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Taxation of Freelancers in Bulgaria Working with Foreign Clients:Gaide
This guide explains how freelancers in Bulgaria are taxed when working with foreign clients. If you are self-employed or plan to become one, understanding these rules will help you make informed financial decisions.
Who Can Register as a Freelancer?
In Bulgaria, freelancers are registered as self-employed individuals under the category “свободна професия” (liberal profession). Citizens of the EU, EEA, or Switzerland can register easily if they hold a valid residence certificate. Non-EU citizens, on the other hand, must have a residence permit and, in most cases, a work permit.
Registration is made at the National Revenue Agency (NRA) and usually takes just a few days. Once registered, you receive a personal identification number and can legally issue invoices to both local and foreign clients.
Income Tax for Freelancers
Freelancers in Bulgaria pay a flat personal income tax of 10%. The tax applies equally to income earned from Bulgarian and foreign clients. One of the main advantages is the 25% recognized expense deduction — meaning that only 75% of your total income is taxed.
Example: if you invoice €1,000, the taxable base is only €750. The final tax due is €75 (10% of €750). This simple calculation is one of the reasons why Bulgaria remains an attractive destination for digital professionals and remote workers.
Social Security Contributions
Social security contributions are mandatory for all freelancers. The amount depends on your declared annual income and is recalculated every year after filing your annual return. The minimum and maximum contribution bases for 2025 are as follows:
| Income Base (BGN per month) | Type |
|---|---|
| Minimum: 1,077 BGN | Applicable if your income is low or just starting out |
| Maximum: 4,130 BGN | Applicable for high-income freelancers |
The contributions cover health insurance, pension, and general social insurance. If your income increases, your contributions increase proportionally. Payments are usually made monthly, and you can declare and pay them directly online through the NRA’s platform.
Do You Pay Taxes Abroad?
No, you do not. If you are a registered freelancer in Bulgaria, your clients abroad do not withhold taxes. You issue invoices without VAT unless you are VAT-registered. Bulgaria has signed double tax treaties with many countries, meaning you are protected from being taxed twice for the same income.
In most cases, foreign clients simply pay your invoice in full, and you handle the taxation locally in Bulgaria.
Key Advantages for Freelancers in Bulgaria
- Low and predictable 10% income tax rate
- 25% recognized expenses without proof required
- Transparent and flexible social contribution system
- Full legal protection under EU tax regulations
- No double taxation for foreign-sourced income
In short, the Bulgarian tax system offers freelancers simplicity, stability, and efficiency. With proper registration and regular declarations, you can focus on your work while enjoying one of Europe’s most favorable tax regimes.
ASB Accounting Services Bulgaria can assist you with registration, bookkeeping, and annual reporting. Contact us today to ensure your freelance activity is fully compliant and optimized for success.
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