How to Close Your Freelancer Registration in Bulgaria (Deregistration Guide 2026)

Closing Your Freelancer Status: A Structured Exit

Whether you are switching to an EOOD (limited company), leaving Bulgaria, or simply stopping your self-employed activity, closing your freelancer (svobodna profesiya) registration requires a specific sequence of administrative steps. Miss one, and you may continue accruing social security obligations or face penalties from the NRA.

The good news: the process is straightforward and typically completes within a few weeks. This guide covers every step — from the initial OKD-5 cessation declaration to the final tax return — so you can close cleanly with no loose ends.

When and Why Freelancers Close Their Registration

There are three common reasons why freelancers in Bulgaria decide to close their registration:

1. Switching to an EOOD: If your income has grown beyond EUR 60,000-80,000 per year, converting to a limited company gives you liability protection and the ability to retain earnings at just 10% corporate tax. The combined CIT + dividend rate for an EOOD is 15%. See our guide on converting from freelancer to EOOD.
2. Leaving Bulgaria: If you are relocating and will no longer be a Bulgarian tax resident, you must close your freelancer registration before or upon departure. Leaving the BULSTAT registration open while abroad creates unnecessary social security obligations.
3. Stopping activity: If you are retiring, taking a break, or transitioning to employment, you should formally close the registration to stop the accrual of monthly social security contributions.

Step-by-Step: The Complete Deregistration Process

Here is the full sequence. Steps 1 and 2 happen immediately upon cessation. Step 3 applies only to VAT-registered freelancers. Steps 4 and 5 happen in the following year.

Step 1: NRA Cessation Declaration (OKD-5)

The OKD-5 declaration is the same form you used when you first started your freelance activity. It serves dual purposes: declaring the commencement of self-insurance and declaring its cessation. When closing, you file the OKD-5 to notify the NRA that you have stopped your self-employed activity as of a specific date.

How to file

• Electronically: Through the NRA's electronic services portal using a qualified electronic signature (KEP). This is the fastest method.
• In person: At your local NRA territorial directorate (based on your permanent address registration).

What to include

The OKD-5 cessation must specify the exact date you stopped activity. This date determines when your social security obligation ends. From this date forward, you are no longer required to make monthly social security payments as a self-insured person.

Step 2: BULSTAT Deregistration at the Registry Agency

After filing the OKD-5, you must deregister from the BULSTAT National Register at the Registry Agency (Agentsia po Vpisvaniyata). This removes your EIK identification code from the active register.

How to file

• Electronically: Through the Registry Agency's online portal using a qualified electronic signature (KEP).
• In person: At any Registry Agency office with a completed application form.

Fee and timeline

The state fee for BULSTAT deregistration is approximately EUR 5 (electronic filing). Processing is typically completed within a few business days.

Step 3: VAT Deregistration (If Applicable)

If you are registered for VAT, you must apply for deregistration when you cease your freelance activity. This step does not apply to freelancers who were never VAT-registered. For a detailed overview of VAT registration, see our voluntary VAT registration guide.

Procedure

Submit a VAT deregistration application to the NRA territorial directorate within 14 days of ceasing activity. The NRA will verify the grounds for deregistration within 7 days, then issue a deregistration act within a further 7 days. The entire process typically takes 2-4 weeks.

The inventory VAT rule (Article 111 ZDDS)

Under Article 111 of the Bulgarian VAT Act (ZDDS), upon deregistration you are deemed to have made a taxable supply of all remaining goods and assets for which you previously claimed input VAT credit. In practice, this means:

• You must prepare a protocol-inventory (Appendix No. 9) listing all assets and goods on hand at the date of deregistration.
• You must charge output VAT on these items at their acquisition cost (less depreciation), and declare it in your final VAT return.
• If you never claimed input VAT credit on any assets (common for service-based freelancers with no significant equipment), no additional VAT is due.

Step 4: Final Tax Return and Social Security Reconciliation

Regardless of when you close your registration during the year, you must file a final personal income tax return by April 30 of the year following the tax year. This return covers all income earned during the year, including income earned before you stopped your freelance activity.

What to file

• Annual tax return: Declare all freelance income earned during the year. The standard 25% automatic expense deduction applies, followed by the 10% flat tax on the taxable base. Your effective income tax rate remains 7.5%.
• Table 1 (social security reconciliation): Compares your actual annual income against the monthly insurance base on which you paid monthly contributions. If your actual income (after the 25% deduction) was higher than your total chosen insurance base for the year, you owe additional social security contributions.
• Table 2 (health insurance reconciliation): Same concept as Table 1, but specifically for health insurance contributions.

Payment deadline

Any additional tax or social security contributions resulting from the reconciliation must be paid by April 30 of the following year — the same deadline as the filing itself. If you file early (by March 31), you receive a 5% discount on the tax owed.

Can You Restart as a Freelancer Later?

Yes. There is no restriction on re-registering as a freelancer after closing your previous registration. If you decide to resume self-employed activity — whether months or years later — you simply repeat the original registration process:

1. Register with BULSTAT at the Registry Agency to obtain a new EIK.
2. File a new OKD-5 declaration with the NRA within 7 days of restarting activity.

Your previous tax history, prior BULSTAT number, and earlier filings have no effect on your ability to register again. The process is the same as if you were registering for the first time.

Best Time to Close: End of the Calendar Year

While you can close your freelancer registration at any point during the year, December 31 is the cleanest date from an accounting and tax perspective:

• Complete calendar year: Your final tax year covers a full January-to-December period, avoiding partial-year complexity in the social security reconciliation.
• Clean cutoff: No income straddles two different tax statuses (freelancer in one part of the year, something else in another).
• Simpler accounting: Your accountant files one standard annual return covering the full year, rather than dealing with a mid-year cessation and the associated pro-rata calculations.

That said, there is no legal requirement to wait until December 31. If you are leaving Bulgaria or switching to an EOOD mid-year, close your registration at the appropriate time. The NRA and your accountant can handle partial-year filings.

What About Pending Invoices and Late Payments?

Income received after you close your registration — such as late payments for invoices issued while you were still active — is still taxable. It must be declared in your personal income tax return for the year in which it is actually received.

• The 25% automatic expense deduction still applies to this income.
• The 10% flat tax applies to the taxable base.
• Inform your accountant about any outstanding receivables so they can be tracked and reported correctly.

Do You Still Need an Accountant After Closing?

Yes — but only for the final filing cycle. Your accountant will:

• Prepare and file any remaining monthly or quarterly declarations for the period you were active.
• Prepare your final annual personal income tax return (due by April 30 of the following year).
• Calculate the social security reconciliation (Table 1 and Table 2) and determine any balance owed.
• If VAT-registered, prepare the final VAT return and the protocol-inventory under Article 111 ZDDS.

Once these filings are complete and all resulting taxes and contributions are paid, you no longer need ongoing accounting services for that freelancer activity. If you are switching to an EOOD, your accountant (or a new one) will begin the company's accounting from the EOOD registration date.

Frequently Asked Questions