Skip to content
SettleMetric

BGOfficial rules, modeled

Freelancer taxes in Bulgaria (2026).

A freelancer earning €60,000 a year in Bulgaria keeps between 49,160 EUR and 51,300 EUR depending on the scheme — the best option is "ЕООД (single-member LLC) — 10% corporate tax + 5% dividend" at an effective burden of 14.5%. 2 schemes below, each computed from official rules.

VerifiedUpdated

2 schemes · 3 source records · every result follows the published scheme rules

BG · 2026

01

At €60,000 a year

A like-for-like view of every eligible scheme before the full rules below.

  1. 01ЕООД (single-member LLC) — 10% corporate tax + 5% dividendBest result at this incomeNet income51,300 EUREffective burden14.5%
  2. 02Свободна професия (freelancer) — 25% deemed expenses + 10% flat taxNet income49,160 EUREffective burden18.1%

Reference profile: self-employed · €60,000 annual gross income · no deductible expenses · full-year tax residency.

Full rules

Inside each tax scheme

01activeCompany

ЕООД (single-member LLC) — 10% corporate tax + 5% dividend

Effective burden at €60k

14.5%

What you pay

  • Корпоративен данък (corporate income tax 10%) — 10% of profit (deductible from profit)
  • Данък дивидент (dividend withholding 5%) — 5% of profit

Eligibility

  • Activities: it-services, consulting, most-activities
  • Requires tax residency
  • Company route: a single-member LLC (ЕООД) pays 10% corporate income tax on profit, then a 5% withholding tax when the after-tax profit is distributed as a dividend to the owner. Modeled as the full chain assuming all profit is distributed and no salary is drawn. grossAnnual = company profit before tax.

Net income examples

Gross/yearNet/yearBurden
30,000 EUR25,650 EUR14.5%
60,000 EUR51,300 EUR14.5%
120,000 EUR102,600 EUR14.5%

Computed by our open tax engine — assumes no deductible expenses, full-year tax residency. Rules as of Jan 1, 2026.

Important context

The 10% corporate tax then 5% dividend withholding give a flat ≈14.5% on distributed profit — lower than the свободна професия headline. BUT this ignores the owner-manager's compulsory self-insurance: a solo ЕООД owner acting as управител must still self-insure (27.8% on at least the minimum insurable income, ~€1,837/yr, up to the €2,111.64/month cap), which the свободна професия scheme already includes. So the true company burden is higher than 14.5% and the two routes are closer than they look; the company adds accounting and filing overhead. Not modeled: manager social insurance, a director's salary alternative, accounting costs, and VAT. Amounts in EUR (Bulgaria joined the euro 1 Jan 2026).

02activeSole proprietor

Свободна професия (freelancer) — 25% deemed expenses + 10% flat tax

Effective burden at €60k

18.1%

What you pay

  • Нормативно признати разходи (25% deemed expenses) — 25% of revenue (deductible from profit) (a deduction that lowers the tax base, not a payment)
  • Осигуровки — pension + health (27.8%, capped at max insurable income) — 27.8% of profit (min 1,837, max 7,044/year) (deductible from profit)
  • Данък върху доходите (flat 10%) — 10% of profit

Eligibility

  • Activities: it-services, consulting, liberal-professions
  • Requires tax residency
  • The classic Bulgarian freelancer setup: register as a self-insured person exercising a свободна професия (liberal profession). Taxable income = 75% of revenue (a statutory 25% deemed-expense allowance under art. 29 ЗДДФЛ) minus the social/health contributions paid; the remainder is taxed at the 10% flat rate. Social + health contributions are 27.8% but only on the insurable income, which is capped at a maximum (2026: €2,111.64/month), so the effective burden falls sharply above ~€25k profit.

Net income examples

Gross/yearNet/yearBurden
30,000 EUR22,121 EUR26.3%
60,000 EUR49,160 EUR18.1%
120,000 EUR104,660 EUR12.8%

Computed by our open tax engine — assumes no deductible expenses, full-year tax residency. Rules as of Jan 1, 2026.

Important context

The 27.8% self-insured rate = pension 19.8% (state фонд Пенсии 14.8% + universal fund ДЗПО 5%) + health 8%; it excludes the optional general-sickness/maternity cover (which would raise it to 31.3%) that self-insured freelancers usually skip. Contributions run on the insurable income between the 2026 minimum €550.66/month and maximum €2,111.64/month, reconciled by an annual equalization (годишно изравняване) on actual taxable income — so above ~€25.3k profit the contribution is flat and the marginal burden is just the 10% tax. Amounts are in EUR: Bulgaria joined the euro on 1 Jan 2026 (fixed 1 EUR = 1.95583 BGN). Above the VAT-registration threshold the freelancer charges VAT — neutral for B2B/foreign clients, excluded here. NOT modeled: the optional sickness/maternity 3.5%, the first-year proration, and DTA relief.

02

Try your own numbers

Change income, currency and expenses to recalculate every active scheme for Bulgaria.

full calculator
  1. 1 ЕООД (single-member LLC) — 10% corporate tax + 5% dividend
    51,300 EURnet/year
    14.5% burden
  2. 2 Свободна професия (freelancer) — 25% deemed expenses + 10% flat tax
    49,160 EURnet/year
    18.1% burden