Freelancer Taxes in Bulgaria — Plameli Finance

An accountant for freelancers and digital nomads in Bulgaria

Freelancers in Bulgaria, whether consulting, developing software, designing, translating, or coaching, have a different rhythm from companies: income is less regular, clients are often abroad, and administrative obligations are lighter but still mandatory. We work with that specific rhythm in mind, rather than applying the template built for a trading company.

Self-employed status or an EOOD: which fits you

If you practice a liberal profession, you can operate as a self-employed individual registered with the National Revenue Agency (NAP) and the BULSTAT register, known in Bulgarian as a “самоосигуряващо се лице,” or you can incorporate an EOOD, a single-member limited liability company. Self-employed status is administratively lighter and is often the right starting point, or fits a modest and irregular income. An EOOD tends to make more sense once income grows, once you want to separate personal and business assets, or when clients prefer to contract with a company rather than an individual. We assess your specific situation rather than offering one universal answer.

How income from a liberal profession is taxed

Income from a liberal profession is taxed after a normatively recognised expense allowance of 25 percent of income, applied without needing to collect receipts to justify it. Personal income tax applies to the remaining amount at the flat rate that applies to individuals. We track your income through the year so you know the approximate tax burden well before year end.

Advance social security contributions and the annual tax return

Self-employed individuals pay advance social security contributions during the year, with the final amount settled through the annual tax return. We calculate the advance contributions based on the insurable income you choose and track the payment deadlines, so interest for late payment does not accumulate. Early in the following year we prepare the annual tax return, which declares annual income, recognised expenses, tax due, and the advance contributions already paid, based on the records kept throughout the year.

Invoicing clients abroad and tax residency

Freelancers based in Bulgaria regularly work with clients outside the country, within the EU and beyond. We help you issue invoices correctly, including the details required when billing business clients in another EU member state, and explain what the place of supply means for the tax treatment of each specific transaction. Tax residency itself is assessed case by case, based on where you actually live and work during the year; we review your circumstances individually rather than making a general promise upfront.

When VAT becomes relevant

As your turnover grows, or once you start supplying services to business clients in the EU under certain rules, VAT registration naturally becomes a relevant question. We do not give a blanket answer in advance; we review the actual volume and structure of your income and propose a solution suited to your situation.