🇧🇬 Bulgaria — Individual Freelancer Taxation in 2026 (Свободна Професия)

This is one of two detailed guides on Bulgarian freelancer taxation. See the overview article for a comparison of both structures.

Main takeaways

What it is

In Bulgaria, certain professionals can register as individual freelancers (свободна професия — "liberal profession") without forming a company. This status allows you to issue invoices and earn income directly as an individual, with a simplified tax calculation based on a statutory recognized expense deduction.

This is a common structure for IT consultants, designers, translators, accountants, engineers, and other independent professionals working with clients. The statutory expense percentage depends on the kind of income, however; for example, lawyers are in the special 40% category rather than the ordinary 25% free-profession category.

Rates at a glance (2026)

How the calculation works

Step 1 — Recognized expenses

This is a statutory deduction applied without documenting actual expenses. Use 25% for ordinary income from exercising a free profession and for remuneration under non-employment contracts. Use 40% for author and licence remuneration, and for income from exercising a free profession as a lawyer (for income acquired after 1 January 2023). The category follows the legal nature of the income, so do not select 40% merely because it gives a better result.

Step 2 — Monthly social base

Bulgaria's minimum and maximum insurable base both rose mid-year in 2026 — 550.66/2,111.64 EUR through July, 620.20/2,300 EUR from August — so the annual social base blends both periods:

7 × min(max(monthly income, 550.66 EUR), 2,111.64 EUR) + 5 × min(max(monthly income, 620.20 EUR), 2,300 EUR)

where monthly income = (gross income − applicable recognized expenses) ÷ 12 (note that this is an estimate, and the exact number would depend on your actual monthly income distribution).

Per Art. 6(8) КСО, your social contributions are calculated on your monthly income after the applicable recognized-expense deduction.

Because the two periods have different ceilings, the base stops growing in two steps: the January–July portion caps out first, once monthly income passes 2,111.64 EUR, and the August–December portion follows once it passes 2,300 EUR. The base is fully capped — at ≈26,281 EUR/year — only once income clears both, which happens at roughly 36,800 EUR/year gross in the 25% category, or 46,000 EUR/year gross in the 40% category. See "The social insurance cap in detail" below for the partial-cap band in between.

Step 3 — Social contributions

DOO 14.8% + DZPO 5% + NZOK 8% = 27.8%

Step 4 — Income tax base

Note: social contributions are deductible from the income tax base — you pay tax on income after both the flat expense deduction and your insurance contributions.

Step 5 — Income tax

Step 6 — Net income

Examples

The chart uses the ordinary 25% category. Its effective rate keeps falling as income rises because social contributions are fixed once the cap is hit. At 120,000 EUR the marginal rate on each additional euro is just 7.5% — only the 10% income tax on 75% of income, with social already fully capped. For qualifying 40% income, the comparable marginal rate above the cap is 6%.

The social insurance cap in detail

The cap is the defining feature of the freelancer route, and because the ceiling itself rose mid-year in 2026, it's a bit more complex. In the ordinary 25% category:

• Below ≈8,811 EUR/year gross: both parts of the year are held at their statutory minimum bases.
• Between ≈8,811 and ≈9,923 EUR: only the August–December part remains floored.
• ≈9,923 to ≈33,786 EUR/year gross: neither period is held at its minimum or maximum, so both parts of the base rise with income and the flat 26.3% effective rate applies.
• ≈33,786 to ≈36,800 EUR/year gross: the January–July portion has capped out, but August–December hasn't yet — only 5 of the 12 months' worth of base is still rising with income, so the marginal rate on each extra euro drops to a transitional ≈15.3%.
• Above ≈36,800 EUR/year gross: both portions are capped, the annual social base is fixed at ≈26,281 EUR, and every additional euro of gross income only generates:
  • Additional recognized expenses: 25 cents deducted
  • Additional income tax: 10% on the remaining 75 cents = 7.5 cents

Marginal effective rate once fully capped: 7.5% — one of the lowest in the EU.

For qualifying author/licence remuneration or lawyer income using the 40% deduction, the same two-step pattern plays out later: the transitional band runs from roughly 42,233 to 46,000 EUR gross (marginal rate ≈12.3% in between), and the marginal income-tax rate once fully capped is 6%: 10% tax on the 60 cents left after recognized expenses.

When freelancer beats EOOD

For the ordinary 25% category shown in the chart, the freelancer route becomes more tax-efficient than the EOOD structure above approximately 66,300 EUR/year. Between roughly 16,400 and 66,300 EUR/year, the EOOD's fixed minimum social base wins out. Below ~16,400 EUR/year the freelancer is cheaper again; at the very bottom both structures are already on the minimum social base, so the advantage comes from the freelancer's lighter income-tax treatment and lack of dividend tax. The 40% category has a lower taxable base and therefore different crossover points; use the calculator's 40% option if your income legally qualifies.

See the EOOD detailed guide and the overview comparison table for a full breakdown.

Registration requirements

To register as a свободна професия freelancer you need:

• A Bulgarian personal identification number (ЕГН for citizens, ЛНЧ for foreign residents)
• Registration with the National Revenue Agency (NRA) as a self-insured individual
• Registration with the relevant professional registry if your profession requires it (e.g., lawyers with the Bar)
• A translated and apostilled education diploma may be required for certain professions

The registration process is manageable but involves navigating Bulgarian bureaucracy in Bulgarian. An accountant or a service like Podnikio can handle it on your behalf.

What about Podnikio?

Podnikio handles freelancer registration, quarterly advance tax payments, annual tax filing, and social insurance declarations — all connected to your invoicing and business bank account in one platform, for a single monthly fee. We manage the registration end-to-end so you can start working without dealing with the Bulgarian tax authority yourself.

Calculator

Enter your expected annual income to see your exact tax breakdown as a Bulgarian freelancer — and compare it against the EOOD structure. And if you are considering other countries as well, check out the full tax calculator.

Contact us

If you have questions or want to discuss whether it's the right choice for your freelance business, feel free to reach out to us. We offer free initial consultation to help you navigate the complexities of freelancer taxation and find the optimal setup for your situation.