Who we help

Accounting for Freelancers and Contractors in Bulgaria

Bulgaria attracts independent professionals for one reason: 10% flat tax. But there are two very different ways to be independent here, and the cheaper one depends entirely on how much you earn and how much you spend. Most freelancers pick wrong because they were told what worked for someone else.

Book a free consultation

You were told "just register an EOOD"

For lower incomes it is often the more expensive route once you add corporate tax, dividend withholding, mandatory manager insurance and the cost of full statutory accounting. Below a certain threshold, registering as a self-insured person is simply cheaper.

Social security is not optional

Independent professionals in Bulgaria owe social security and health insurance on a declared insurable income, with an annual reconciliation against what they actually earned. Freelancers who ignore this build a liability quietly for years.

Your clients are abroad, which changes the VAT answer

Supplying services to EU businesses can force VAT registration well below the turnover threshold. Several of our clients registered late because nobody explained that invoicing one German client was enough.

Self-insured person vs EOOD, in real numbers

As a self-insured person you pay 10% income tax on income after a statutory deduction for expenses that applies without receipts, plus social contributions on your declared insurable income. Administration is light and there are no annual accounts to publish.

Through an EOOD you pay 10% corporate tax on profit, then 5% withholding when you take dividends, plus mandatory insurance for yourself as manager, plus the cost of full statutory bookkeeping. In exchange you get limited liability, a VAT number that looks substantial to corporate clients, and genuine expense deductibility.

The crossover point depends on your revenue, your real expenses and whether your clients care about invoicing an individual. We run both scenarios against your actual numbers before you decide — it takes one call and it is the highest-return conversation a new freelancer here can have.

Residency is the part people skip

Registering a Bulgarian activity does not by itself make you Bulgarian tax resident. Residency turns on where you actually live, where your centre of vital interests is, and how many days you spend where. If you have not resolved this properly, your home country may still consider you taxable there — and Bulgarian tax paid does not always erase that.

We tell clients this before they restructure their lives around a 10% rate, not after.

Services you are most likely to need

Accounting & bookkeeping

Monthly bookkeeping, ledgers and statutory reporting — handled in English, on a fixed fee.

VAT registration & filings

Registration, monthly returns, VIES and Intrastat — including voluntary registration strategy.

Company formation

EOOD and OOD registration for non-residents, plus the bank account and VAT steps that follow.

Frequently asked questions

Is it cheaper to freelance as a self-insured person or through an EOOD in Bulgaria?

It depends on your income and expense profile. At lower incomes the self-insured route is usually cheaper because it avoids dividend tax and the cost of full statutory accounting. As income rises and real business expenses grow, an EOOD tends to win. We model both against your actual figures.

Do freelancers in Bulgaria pay 10% tax?

Yes on income tax — the flat rate is 10%. It is not the whole cost, though: social security and health insurance contributions are due on top, calculated on your declared insurable income and reconciled annually against what you actually earned.

Do I need to register for VAT as a freelancer?

Possibly, and often well below the turnover threshold. Supplying services to businesses in other EU countries, or buying services from EU suppliers, can trigger a registration obligation on its own.

Can I freelance in Bulgaria if I am not a Bulgarian citizen?

Yes. EU citizens can register an activity directly. Non-EU nationals need the appropriate residence basis first, and we will tell you plainly whether your situation supports it before taking you on.

Free consultation

Not sure what your company actually owes?

Book a free 30-minute call. We will look at your situation, tell you what is required and what it costs. No obligation, and no pitch if you do not need us.