Freelancing in Bulgaria: legal aspect, taxes, obligation


5 December 2019
Everywhere can be your office. You can arrange your own working schedule. Those are just parts of the benefits of working as a freelancer. More and more companies work with outside contractors to fill the short-term and long-term talent gap. Bulgaria offers a suitable environment for freelancers with a low-income tax rate and high social charges.

How many people work as a freelancer in Bulgaria?

Bulgarian has 7 million residents. It is common to work as a freelancer in Bulgaria. In 2018, more than 7000 people worked as a freelancer in Bulgaria. We observe a high amount of freelancers in Bulgaria.

Do freelancers need to register or open a company

No, they do not. You do not need to open a company in order to work as a freelancer in Bulgaria. You only need to take care of legal duties such as reporting the income tax and paying the social contributions. This rule applies to all full-time and part-time Bulgarian freelancers.

What is the basic tax rate for a freelancer?

The tax burden in Bulgaria is relatively low compared to other countries. Bulgarian ranks third among the country with a lower tax rate and social contribution rate. Just fall behind Romania and Ireland. The corporate tax and the individual tax rate are 10%. That is calculated from the taxable income. That is a friendly tax structure. Moreover, pension contributions are calculated from the reduced value. Besides the income tax, the freelancers and employers are required to pay the pension and health contribution. The pension and health contribution percentage is 27.8% from the remuneration and divided into two parties.

How to report the income tax rate as a freelancer

The individual has to report the income tax from January 1st to April 30th. Freelancers can report the income tax to the National Revenue Agency. They can pay the tax online with a credit card, bank transfer, and by mail.

What is the additional requirement to work as a freelancer

All of the above legal duties are for a freelancer who stays in Bulgaria for more than 183 days. For freelancers with EU citizenship, they can enter Bulgaria without any visa. For non-Euro freelancers, you first need to start applying for the freelancer permit from the Employment Agency before obtaining the resident permit.

What is better and safer to work as a freelancer

Bulgaria offers a suitable environment for freelancers. Useme offers a safe way to grow your freelance business. With us, any client can only download your work after paying for it. You have a faster way to receive payment in the best ways. Have a new project? We will confirm the cooperation in advance.

Are you looking for a better way to work with a Bulgarian freelancer? Useme offers an easy way to hire every talent. With a piece of information, we can send a tax invoice and finish the whole process. You can start the cooperation and work on the project right away!

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