How Much Social Security Do Company Owners and Freelancers Pay?

Key Moments

• 00:00 – Introduction
• 00:35 – Does owning a company require social security contributions?
• 01:20 – Passive shareholders and active company owners
• 02:05 – Social security obligations for freelancers
• 03:10 – How monthly contributions are calculated
• 04:15 – Choosing the correct insurance arrangement

Short Summary

How much social security company owners and freelancers pay in Bulgaria depends on the work they perform, the way they manage their activity and the insurance basis they use. Simply owning shares in a Bulgarian company does not always mean that the owner must make additional monthly social security contributions.

A passive shareholder who does not manage the company, provide services or participate in its daily operations is generally treated differently from an active owner. When an owner manages the business or performs personal work for the company, an appropriate social security arrangement is normally required.

Active company owners may operate as self-insured individuals or receive remuneration under another legally applicable arrangement. The correct option depends on their role, the type of work. They perform and whether they already have insurance coverage through another activity, such as a labour contract.

Freelancers and other self-employed professionals must register their activity correctly and make social security and health insurance contributions based on the applicable insurable income. Their monthly obligations may vary depending on the selected insurance coverage and income level.

It is also important to distinguish between remuneration for personal work and dividend income. Dividends arise from company ownership, while payment for work relates to an activity performed by the owner. Dividend payments should not be used as a substitute for the correct remuneration. And social security treatment of an owner who actively works in the business.

To understand social security for company owners and freelancers in Bulgaria in 2026, each person’s employment status, business role and sources of income should be reviewed together. Choosing the correct arrangement helps prevent unpaid contributions, incorrect declarations and future compliance issues.