Self-employment in Bulgaria for foreigners in 2026: registration, tax and residence
A freelance profession with 10% tax after a quarter of income is deducted and contributions from $200 a month. A foreigner from outside the EU first needs a freelance permit.
| Item | In short |
|---|---|
| What it is called | a freelance profession registered with the register and the tax office; for trade there is sole trader (ET) status |
| Remote registration | the permit application is filed online and the visa in person; registration can be handled by a representative under a power of attorney |
| Residence | citizens of non-EU countries first need a freelance permit, then a long-term visa and a residence permit |
| Taxes | 10% on 75% of income, that is 7.5% of revenue; a sole trader pays 15% of profit |
| Contributions | 27.8% of the chosen base, at least $200 a month |
| VAT | 20% with turnover above $58,000 a year |
| Timing | registration takes 1-2 working days; the freelance permit runs for up to 1 year and can be renewed |
Facts checked: 07.10.2026
Bulgaria is an EU country with one of the lowest personal income tax rates in the Union, 10%, and since 1 January 2026 it also uses the euro. A freelancer does not need a company here: registering as a freelance professional is enough, and tax is charged on only three quarters of income.
A foreigner from outside the EU first needs a freelance permit from the Employment Agency, with an activity plan, proven experience and knowledge of Bulgarian. Below: how to obtain it, what taxes and contributions cost in 2026 and how a freelance profession differs from sole trader status.
We will calculate online the cost of registering and running your company for the first year.
Who self-employment in Bulgaria suits
A freelance profession in Bulgaria suits those who provide services personally: developers, designers, translators, consultants, architects, teachers. Tax is 10% after a 25% flat deduction from income, that is 7.5% of revenue, with no proof of expenses.
EU citizens can use the status as soon as they register their residence. A foreigner from another country needs the right to reside in Bulgaria and a foreigner's personal number, and to obtain them through freelance practice needs a permit from the Employment Agency.
This route does not suit those who do not speak Bulgarian and cannot prove two years of experience in the profession: without these the permit is not granted. Such foreigners find it easier to open a company. Traders and shop owners can use sole trader status, but its tax on profit is higher at 15%.
Registering as self-employed in Bulgaria step by step
| Step | Time |
|---|---|
| Education documents and proof of at least 2 years of experience, legalised and translated into Bulgarian | before filing |
| Certificate of Bulgarian at level B1 or above | before filing |
| Activity plan for the permit period and proof of funds for it | before filing |
| Application for a freelance permit to the Employment Agency, online | the permit is issued for up to 1 year |
| Long-term visa at a Bulgarian embassy, then a residence permit from the Ministry of the Interior | after the permit; the visa is applied for in person |
| Entry in the register and registration with the tax office as a self-insured person | within 7 days of starting the activity; takes 1-2 working days, fees up to $35 |
| Bank account | from a few days |
The permit is obtained before work starts: practising without it counts as working without the right to work. The activity plan is the key document: it shows the market, the clients and the income calculation, and at renewal it is compared with the report. So we write the plan around real contracts.
Taxes and contributions in Bulgaria
| Regime | Rate and threshold | Who it suits |
|---|---|---|
| Freelance profession | 10% on 75% of income: a quarter of income is deducted as flat-rate expenses | those who provide services personally |
| Sole trader | 15% of profit as shown in the accounts | trade and manufacturing |
| Pension and health contributions | 27.8% of the chosen base: at least $200 and at most $720 a month | every self-insured person |
| Contributions with sickness and maternity cover | 31.3% of the base: at least $220 a month | those who need these benefits |
| VAT | 20% with turnover above $58,000 in a calendar year | larger businesses and those working with EU companies |
Contributions are calculated on a base the entrepreneur chooses within set limits. From 1 August 2026 the minimum base rose, and minimum contributions are about $200 a month. At year end contributions are recalculated from actual income: if it exceeds the chosen base, the difference is paid when the return is filed.
Advance tax is paid for the first three quarters, by the end of the following month; no advance is paid for the fourth quarter. Anyone providing services to companies in other EU countries, or buying services from them, needs a special VAT registration before reaching the threshold.
In Bulgaria tax is 7.5% of revenue - but not everyone gets a freelance permit
The law does not stop you applying to the Employment Agency on your own. But mistakes cost more than any fee: an activity plan with no figures or clients, experience proven with the wrong documents, language below the required level, work before the permit is issued and a renewal without two contracts and a report. We check whether you qualify on experience and language, write the plan around real contracts, prepare the documents for the permit, visa and residence, and register you with the register and the tax office.
The cost of support depends on your profession and family size; a manager will calculate it in the chat.
Reporting and deadlines
The annual return is filed between 10 January and 30 April of the following year. The annual contribution statement is filed with it.
Contributions are paid by the 25th of the month following the one for which they are due.
A freelance professional does not keep double-entry books: an income ledger and transaction documents are enough. A sole trader keeps accounts and files annual financial statements.
Banking and receiving payments from abroad
The account is opened after registration: the bank asks for a passport, residence permit, foreigner's personal number and proof of registration. Banks are reluctant to open accounts for non-residents without a Bulgarian address, so we choose the bank in advance.
Since 1 January 2026 Bulgaria has been in the euro area: payments from European clients arrive by ordinary transfer with no conversion. More on our page about a business account in Bulgaria.
Residence through self-employment
The basis for residence is the freelance permit issued by the Employment Agency. You need an activity plan, education documents, proof of at least 2 years of experience, a Bulgarian language certificate and proof of funds for the activity.
The permit is issued for up to 1 year. With it you obtain a long-term visa and a residence permit from the Ministry of the Interior. To renew, no later than 30 days before expiry you file an updated plan, two service contracts and a report on how the previous plan was carried out.
Those who work only for foreign clients can also use the separate remote work permit introduced in 2025: we compare the terms before filing. After 5 years of lawful, continuous residence you can apply for long-term resident status. Other grounds are in our review of Bulgarian residence permits.
Self-employed or a company
A freelance profession is cheaper and simpler: no share capital or bookkeeping, and tax of 7.5% of revenue. But it does not work for trade, requires personal work and, for a foreigner from outside the EU, Bulgarian as well.
A limited liability company can be registered by a foreigner without language or experience requirements, including from abroad. Corporate tax is 10%, a further tax is withheld on dividends, and liability is limited to the contribution.
We calculate which is better for your profession and income before registration: prices and procedure are on our company registration in Bulgaria page.
Restrictions for certain nationalities
Citizens of the EU, the EEA and Switzerland do not need a freelance permit: they register at once. For everyone else it is mandatory, and the requirements are the same for any nationality.
EU banks may not hold more than $120,000 per client who is a national or resident of Russia or Belarus, unless they hold citizenship or a residence permit of an EU or EEA country or Switzerland.
Persons on sanctions lists will be refused both the permit and an account. For professions regulated by law in Bulgaria - doctor, attorney, architect - the right to practise is confirmed first.
This topic in other countries
Self-employment for foreigners in other countries:
- Self-employed in Serbia as a foreigner in 2026: registration, taxes and residence
- Self-employed in Belarus as a foreigner in 2026: registration, taxes and residence
- Self-employed in Kyrgyzstan as a foreigner in 2026: registration, taxes and residence
- Self-employed in Uzbekistan as a foreigner in 2026: registration, taxes and residence
- Self-employed in Montenegro as a foreigner in 2026: registration, taxes and residence
- Self-employed in Slovakia as a foreigner in 2026: registration, taxes and residence
- Self-employed in Spain as a foreigner in 2026: registration, taxes and residence
- Self-employed in Italy as a foreigner in 2026: registration, taxes and residence
- Self-employment in Poland for foreigners in 2026: registration, tax and residence
- Self-employment in the Czech Republic for foreigners in 2026: registration, tax and residence
- Self-employment in Slovenia for foreigners in 2026: registration, tax and residence
- Self-employment in Georgia
More on living and doing business in Bulgaria:
- Bulgarian residence: all grounds
- taxes in Bulgaria
- cost of living in Bulgaria
- Sofia: a relocation guide
- company registration in Bulgaria
- a business account in Bulgaria
All countries for a remote business are in our overview of where to open a company remotely.
FAQ
Can a foreigner register as self-employed in Bulgaria?
How much does it cost to register as self-employed in Bulgaria?
What taxes does a freelancer pay in Bulgaria in 2026?
How much are contributions for the self-employed in Bulgaria?
Is Bulgarian required for the freelance permit?
How long is the freelance permit in Bulgaria valid?
When is VAT registration required in Bulgaria?
Freelance profession or company in Bulgaria?
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