Becoming a freelancer in Bulgaria: BULSTAT registration, the €51,130 VAT threshold, and flat 10% tax
A Bulgarian freelancer registers in BULSTAT and with the National Revenue Agency. With euro adoption on 1 January 2026 the VAT threshold is now €51,130, personal income tax is a flat 10%, and a normative expense deduction lowers the effective rate.
This article is general information, not tax advice. Regulations change — verify the current rules with the official sources below before acting.
Working freelance in Bulgaria means registering as a self-insured person and enjoying one of the EU's simplest tax settlements — a flat rate softened by an automatic expense deduction. Note that Bulgaria adopted the euro on 1 January 2026, so figures below are now in euro.
Registration
You register as a freelancer (a self-insured person exercising a free profession) in the BULSTAT register and with the National Revenue Agency (NRA / НАП). That single pair of registrations puts you on the tax and social-insurance rolls; there is no company to incorporate.
The €51,130 VAT threshold
You register for VAT when calendar-year turnover exceeds €51,130 — the former BGN 100,000. Because Bulgaria adopted the euro on 1 January 2026, the threshold is now expressed in euro. Below the line you may operate outside the VAT system; above it, registration is mandatory.
Income tax: flat 10%, with a normative deduction
Personal income tax is a flat 10%, but freelancers receive an automatic 25% normative expense deduction, giving an effective rate of about 7.5%. Certain professions get a 40% deduction, for an effective rate of about 6%. Because the deduction is automatic, you do not have to itemise costs to benefit.
Social contributions
As a self-insured person you pay contributions on a self-chosen monthly base between about €550.66 and €2,111.64 in 2026, at a total rate of about 31.3%. Choosing where to set your base is a genuine planning lever — a higher base means more pension and health accrual but a larger monthly bill.
General information about freelancing in Bulgaria, current as of the review date above, and not tax advice. Thresholds and rates change — confirm current figures with the National Revenue Agency or a qualified accountant (счетоводител).
Frequently asked questions
What is the VAT registration threshold in Bulgaria?
You register for VAT when calendar-year turnover exceeds €51,130, formerly BGN 100,000. Bulgaria adopted the euro on 1 January 2026, so the threshold is now expressed in euro. Below the line you may stay outside the VAT system; above it, registration is mandatory. Confirm the current figure with the National Revenue Agency.
How is a Bulgarian freelancer's income taxed?
Personal income tax is a flat 10%, but freelancers get an automatic 25% normative expense deduction, giving an effective rate of about 7.5%. Certain professions receive a 40% deduction, for an effective rate of about 6%. Social contributions are paid separately as a self-insured person.