🇧🇬 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, lawyers, accountants, engineers, and other independent professionals working with clients — typically abroad.

Rates at a glance (2026)

How the calculation works

Step 1 — Recognized expenses

This is a flat statutory deduction applied automatically — no receipts or documentation required. It reduces your taxable income before anything else.

Step 2 — Monthly social base

min(max(gross income ÷ 12, 550.71 EUR), 2,111.64 EUR)

Your social contributions are calculated on your actual monthly income, but clamped between the minimum (550.71 EUR) and maximum (2,111.64 EUR). Once your monthly income exceeds 2,111.64 EUR (~25,340 EUR/year), the social base stops growing — this cap is the key driver of the freelancer route's efficiency at high incomes.

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 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.

The social insurance cap in detail

The cap at 2,111.64 EUR/month (25,339.68 EUR/year) is the defining feature of the freelancer route. Once your annual income exceeds roughly 25,340 EUR per year (meaning your monthly average consistently exceeds 2,111.64 EUR), 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 above the cap: 7.5% — one of the lowest in the EU.

When freelancer beats EOOD

The freelancer route becomes more tax-efficient than the EOOD structure above approximately 68,000 EUR/year. Below that, EOOD's fixed minimum social base wins out.

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.