Freelance tax and contributions in Bulgaria

Working life · Last reviewed: 2026-08-23

The order of the calculation matters

A freelancer's arithmetic runs differently from an employee's, and the sequence matters. Statutory recognised expenses come off gross income first, then the mandatory contributions paid, and only the remainder bears the 10%. For income from free professions the statutory expense deduction reaches up to 25% of income — that is how the European Commission's Joint Research Centre records it in its Bulgaria country note. The Act sets different percentages for different income types; confirm yours against the Act and the NRA, because only the verified 25% figure is given here.

The attraction of a statutory deduction is that you do not have to prove the spending: it is granted by law even if you never collected a single invoice. For knowledge workers with a laptop and no leased office, that is a real advantage.

Contributions: the heavy end

A self-insured person carries the contribution entirely; there is no employer share. The pension contribution for those born after 1959 is 14.8%, with a further 5% going to the second pillar for that cohort; the health insurance contribution is 8%. Contributions are not paid on all actual income but on a chosen insurable income, which must sit between the annual statutory minimum and maximum. The 2026 minimum and maximum could not be confirmed from an official source in the 23 August 2026 check, so no figures are given here — take them from the NRA page.

Quarterly advance tax and the annual return

A freelancer does not pay in one lump at year end. According to the NRA a self-insured person determines the advance tax for each quarter except the last, files a declaration for the taxes due, and pays the advance tax by the end of the month following the quarter in which the income was received. No advance tax is due for the fourth quarter; it is settled through the annual return. That return is filed between 10 January and 30 April for individuals, and filing electronically by 31 March with no publicly enforceable liabilities earns a 5% discount on the tax due.

A client abroad means VAT registration, whatever your turnover

This is the trap freelancers with foreign clients fall into most often. Under Article 97a of the VAT Act, a person supplying services to taxable persons in another EU member state, or receiving services from abroad with a place of supply in Bulgaria, is subject to compulsory registration — with no turnover threshold at all. A Sofia designer invoicing a Berlin agency is inside the rule however small the revenue. Buying advertising or cloud services from abroad can trigger the same duty.

1. 1

   Open your status in the right order

   Register the freelance activity in the relevant register, declare self-insurance to the NRA, and obtain a ПИК for electronic access.
2. 2

   Choose your insurable income

   You pick a figure between the statutory minimum and maximum for the year; a low choice leaves cash today but shrinks your pension and benefits.
3. 3

   Set the quarterly calendar

   For the first three quarters compute and pay the advance tax by the end of the following month; the fourth closes with the annual return.
4. 4

   Screen cross-border work for VAT

   If you have business clients in the EU or buy services from abroad, do not skip the Article 97a registration.
5. 5

   File early

   Filing electronically by 31 March with no public arrears earns the 5% discount, and the same return closes the contribution equalisation.

Frequently asked questions

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