Taxation of Freelancers in Bulgaria
💼 Welcome to T&G Consulting – your trusted partner for accounting and tax services in Bulgaria. This guide explains how freelancers in Bulgaria are taxed when working with international clients and what benefits the system offers.
Who Can Register as a Freelancer?
Freelancers are registered as self-employed under the “liberal profession” category. EU, EEA, and Swiss citizens can register with a residence certificate, while non-EU citizens need a residence and work permit. Registration through the National Revenue Agency (NRA) takes only a few days. ✍️
Income Tax
Freelancers pay a flat 10% income tax on their total income. The rate applies equally to Bulgarian and foreign clients. Additionally, 25% of income is automatically recognized as expenses, so only 75% is taxable.
Example: If you earn €1,000, your taxable amount is €750, and the tax due is €75. 📊
Social Contributions
Social and health contributions are mandatory and based on income. For 2025, the minimum base is 1,077 BGN, and the maximum is 4,130 BGN. These payments cover pension, health, and social insurance.
Do You Pay Taxes Abroad?
🌍 No. If you are registered as a freelancer in Bulgaria, your foreign clients do not withhold taxes. You issue invoices without VAT unless registered for VAT. Double tax treaties ensure you won’t be taxed twice for the same income.
Benefits for Freelancers
- Low 10% income tax rate
- 25% recognized expenses automatically
- Transparent contribution system
- Protection from double taxation
- Stable and predictable business environment
Taxation of Freelancers in Bulgaria offers one of the most straightforward and cost-effective frameworks in the EU. The system is built around clarity and flexibility — 10% flat tax, 25% recognized expenses, and transparent social contributions. These conditions make Bulgaria not only attractive for digital professionals but also a sustainable long-term base for freelancers working with international clients. 💡
However, simplicity on paper doesn’t mean you should manage it alone. Even small errors in declaration or delayed filings can lead to penalties or missed deductions. That’s why working with professionals who understand both Bulgarian and international tax specifics is essential. Our team at T&G Consulting ensures your registration, reporting, and annual filings are completed correctly, on time, and fully compliant with the National Revenue Agency’s requirements. 📊
We don’t just handle your numbers — we help you structure your freelance activity strategically. From choosing the right taxation base to optimizing your insurance contributions and preparing your invoices for foreign clients, we provide end-to-end support. Whether you are a digital nomad, consultant, developer, or creative professional, we tailor a financial plan that suits your lifestyle and income model. 🌍
With T&G Consulting, you gain more than an accountant — you gain a partner who helps you grow with confidence. Let us take care of your paperwork while you focus on building your business and delivering great results for your clients worldwide. Contact us today to schedule a free consultation and discover how easy compliance can be when handled by experts. 💼
T&G Consulting can help with registration, accounting, and annual filings so you can focus on your work with confidence. 💡
Useful and interesting information, visit the channel of our partners!