Bulgaria is a country that attracts many freelancers from all over the world. Not only its beautiful cities and rich culture are reasons for this, but we find that many have high regard for the positive financial environment Bulgaria has worked hard to promote and the many fiscal advantages as reasons to settle in Bulgaria.
There is no doubt that the main attraction that brings freelancers to Bulgaria is the income tax, lower than in other parts of Europe, and with much simpler rules. The tax in Bulgaria is a flat rate of 10% on income, after deductions.
Bulgaria has placed itself among the most desirable countries for freelancers.
However, to take advantage of all the benefits freelancers can enjoy by registering as self-employed workers in Bulgaria, the best ally will be a trustworthy and reliable accounting company, in our opinion, none better than Accountancy Bulgaria.
Not only do the professionals at Accountancy Bulgaria have over 30 years of experience, but they will be able to administrate your business’ accounting, reports, and taxes, offering valuable advice on company registration in Bulgaria, and the best strategies to maximize your profits and reduce your costs, making sure you can concentrate in growing your business as a freelancer.
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Freelancer in Bulgaria: pros
There are a variety of benefits for those interested in registering as a freelancer in Bulgaria.
For a foreigner to become a freelancer in Bulgaria, they are required to become residents. Many find this alone a great benefit, especially as a first step into the European market.
But no doubt is the tax scheme the reason behind many freelancers, digital nomads, and self-employed professionals, relocating to Bulgaria.
The personal income tax for freelancers in Bulgaria is a flat rate of 10%.
Self-employed workers in Bulgaria can automatically deduct 25% of expenses from their total income (in some cases, depending on the profession, this percentage can go up to 40%).
Other benefits for freelancers in Bulgaria include avoiding the process of having to open a company bank account, as a personal account is enough, and finally, there are no minimum capital requirements to register as a self-employed worker in Bulgaria.
How to become a freelancer in Bulgaria?
Registering as a freelancer in Bulgaria is a straightforward and rather simple process, which can take up to a week. In order to start, the applicant must have a residency card, so this would be the place to start.
Freelancers in Bulgaria also need to have a self-employment permit, which is issued by the Employment Agency in Bulgaria and needs to be renewed every year.
Freelancers in Bulgaria: taxations and social security
We have already mentioned the flat tax rate of 10% on income after deductions. Deductions include 25% on commercial expenses, so everything freelancers must pay to run their business, and social security contributions. There are a few options when it comes to the coverage of social security, with a bit of a higher deduction if it includes maternity leave and general sickness.
So, let’s make a hypothetical example to understand the taxes in Bulgaria.
If your total monthly income is EUR 2.000, 25% is deducted as expenses, resulting in a total of EUR 1.500. Based on this number, social security contributions are calculated, and the amount for that is also deducted.
Over what is left after all these deductions, the 10% flat rate on income tax is applied.
Conclusion
In a world where freelancers, digital nomads and self-employed workers have become extremely popular, Bulgaria has decided to make it attractive, easy, and advantageous for professionals to relocate in this country. Why? Because freelancers can find success and grow their business.
Freelancers in Bulgaria can benefit from an advantageous tax scheme that will help them maximize their income and reduce their costs.
We cannot emphasize enough how important it is for freelancers to engage the services of a reliable accounting company that will take care of their financial needs and taxes, leaving freelancers to dedicate their time to the growth of their business.