Freelancer Registration in Bulgaria — Taxes, Social Security & Procedure (2026)

There is no special "freelancer" status in Bulgaria

Bulgarian legislation does not recognize the concept of "freelancer" as a separate legal category. Persons wishing to work independently (without an employment contract) register as:

• Self-insured person practicing a liberal profession — lawyers, notaries, architects, translators, consultants, IT specialists, designers, etc.
• Person practicing a craft — for certain crafts listed by law.
• Sole trader (ET) — a less commonly used option for freelance activity.

The most common and recommended option for freelancers is registration as a self-insured person practicing a liberal profession.

Who can register?

• Address in Bulgaria — a registration address (permanent or current) is required.
• Personal ID number — a Bulgarian EGN for Bulgarian citizens or a foreigner personal number (LNCH) for foreign persons with the right of residence.
• Valid residence — for foreign citizens, a valid residence permit (long-term or permanent) is required. EU citizens have the right to free residence.
• Legal capacity — aged 18 or over.

Foreign citizens (from the EU and non-EU) can register as freelancers, provided they have the right of residence and a foreigner personal number (LNCH).

Registration procedure

1. BULSTAT registration

   Within 7 days of starting activity, file a registration application with the BULSTAT register at the Registry Agency. You receive a unified identification code (UIC), which is your tax and social security identifier.

2. NRA declaration

   Within 7 days of BULSTAT registration, file a declaration of commencement of activity as a self-insured person with the competent NRA territorial directorate. In the declaration, you choose the type and scope of insurance.

3. Choosing insurance scope

   You can choose between:

   • Basic insurance (without sickness and maternity) — lower contributions.
   • Extended insurance (with general sickness and maternity) — additional 3.5 %, but access to sick leave and maternity benefits.

The entire procedure can be completed within 1–2 business days.

Taxation

Freelancers (self-insured persons practicing a liberal profession) are taxed as follows:

• Rate — 10 % flat income tax.
• Standard recognized expenses — 25 % of gross income. The tax base is 75 % of the income received.
• Annual tax return — filed by 30 April of the following year.

Calculation example

The effective tax rate (tax only, without contributions) is approximately 6.5 % of gross income.

Social security contributions 2026

Important: As of March 2026, no new budget for 2026 has been adopted — the extended 2025 budget is in effect. If a new budget is adopted, contribution thresholds may change.

Social security contributions are paid monthly by the 25th of the month following the month the income was received. At year-end, an equalization is made based on actual income.

VAT registration

Freelancers are subject to mandatory VAT registration under certain conditions:

• Mandatory registration threshold — EUR 51,130 taxable turnover for a 12-month period (from 01.01.2026, the threshold is calculated on a calendar year basis).
• Registration deadline — within 7 days of reaching the threshold.
• Voluntary registration — possible at any time. Recommended when working with EU clients (reverse charge).
• Intra-Community supplies — when providing services to EU taxable persons, registration under Art. 97a of the VATA may be required (regardless of turnover).

Accounting obligations

Liberal professions have simplified accounting obligations compared to commercial companies:

• Annual tax return — by 30 April of the following year (Annex 3 of the annual return under Art. 50 of the PITA).
• BULSTAT — maintaining up-to-date registration.
• Income and expense records — maintaining an income book (double-entry accounting is not required).
• Contribution equalization — annually, together with the annual tax return, based on actual income.
• Double-entry accounting is not required — unlike commercial companies, liberal professions are not required to maintain double-entry accounting or prepare annual financial statements.

With VAT registration, obligations for monthly VAT returns and ledgers are also added.

Freelancer vs EOOD — comparison

When is freelancer status more advantageous? For income up to ~EUR 25,000–30,000 annually and when you do not want to assume the administrative burden of an EOOD. Also, if you do not need limited liability.

When is an EOOD more advantageous? For higher income, when you want limited liability, and when you can optimize the social security burden by structuring compensation (minimum salary + dividend).

Frequently asked questions