Many people assume that freelancing legally in Bulgaria means setting up a company. That's not the case. Registering as a freelance profession is much simpler: you don't need starting capital, you don't need a notary, and the entire process costs €5.11.
Another common question is whether you can simply work under civil contracts. You can, but only for individual tasks. If you're planning ongoing, independent work with multiple clients, registering as a freelance profession is the right path.
This article walks you through the two mandatory steps: registering with BULSTAT and registering with the National Revenue Agency (bg: НАП) as a self-insured person. With specific deadlines, documents, and a practical example.
What you'll learn
- Who needs to register and when
- Registering with BULSTAT
- Registering with the National Revenue Agency
- When VAT registration is required
- What comes after registration
- Practical example
Disclaimer
This article is for informational purposes only and does not replace professional advice. If you have questions, reach out to us at support@effortless.tax or consult with an accountant of your choice.
Who needs to register and when
If you work independently as a programmer, designer, consultant, translator, or architect, you most likely fall into the category of "person practising a freelance profession." The National Revenue Agency defines these as individuals who carry out professional activities on their own account. The list is long: accountants, auditors, lawyers, notaries, medical professionals, engineers, and many more.
Freelance profession or civil contract?
The distinction matters. A freelance profession means you carry out activities on an ongoing basis and on your own account. You choose your clients, determine how you work, and take responsibility for the results. You're a freelancer in the true sense of the word.
A civil contract is different. Under a civil contract, you complete a specific task for a specific client, usually on a one-off or short-term basis. You're not running your own business, you're simply providing a service to order.
If you work regularly with several clients and manage your own activities, you're practising a freelance profession.
When to register
You have 7 days from the start of your activity to submit a registration application under the BULSTAT Register Act (bg: Закон за регистър БУЛСТАТ). Don't wait for your first invoice or first payment. The deadline runs from the moment you actually start working.
Can you be employed and freelance at the same time?
Yes. You can hold an employment contract and practise a freelance profession at the same time. The two are not mutually exclusive. Many freelancers start exactly this way, combining their main job with additional independent work.
Step 1: Registering with BULSTAT
BULSTAT is the register where all individuals practising a freelance profession in Bulgaria are recorded. After registration, you receive a UIC (Unified Identification Code), a unique 9-digit number that identifies you to the National Revenue Agency, the National Social Security Institute (bg: НОИ), and all other institutions. Without it, you cannot issue invoices, pay social security contributions, or file declarations as a self-insured person.
Required documents
To register with BULSTAT as a freelance profession, prepare the following documents:
- Registration application - available from the Registry Agency office or filled in online
- Proof of professional qualification - a diploma, certificate, or other document confirming your qualifications
- ID card - for verification when submitting in person
- Proof of paid state fee - €5.11 for online submission
Three ways to submit
You can submit your freelance profession registration application in three ways:
- In person at a Registry Agency office. Bring your documents in original and copy.
- Through an authorised representative with a notarised power of attorney. Convenient if you can't go in person.
- Online with a QES (Qualified Electronic Signature) through the Registry Agency portal. This is the fastest option for online freelance profession registration, and the fee is only €5.11.
What you get after registration
After successful registration, you receive your BULSTAT UIC. You'll use this 9-digit code when registering with the National Revenue Agency, issuing invoices, and filing insurance declarations.
Registering with BULSTAT does not mean you immediately owe social security contributions and taxes. Your obligations start from the date you specify as the beginning of your activity in your declaration to the National Revenue Agency.
Step 2: Registering with the National Revenue Agency
Once you have your BULSTAT number, the next step is to submit a Self-insured Person Registration Declaration to the National Revenue Agency. The deadline is 7 days from the start of your activity.
How to submit the declaration
You have three options:
- Online through the National Revenue Agency portal (portal.nra.bg) using a PIC or QES. This is the fastest method.
- In person at a National Revenue Agency office at your permanent address.
- By post through a licensed postal operator.
If you already have a PIC code, online submission takes minutes. If you don't, now is a good time to get one. It's free from any National Revenue Agency office, and you'll need it regularly for filing declarations and checking records.
Choosing your insurance type
In the declaration, you choose one of two options, and this is the most important decision at this step.
Option A: Mandatory contributions only
The contribution rate is 27.8% of your income. This covers State Social Insurance (bg: ДОО), Health Insurance, and Supplementary Compulsory Pension Insurance (bg: ДЗПО). The contributions are lower, but you have no entitlement to sick leave or maternity benefits.
Option B: Mandatory contributions + General Disease & Maternity Fund
The contribution rate is 31.3%. In addition to everything in Option A, you gain entitlement to sick leave and maternity benefits.
Which option should you choose? If you're just starting out and want to keep costs low, Option A is a perfectly reasonable choice. If you're planning a family or want protection in case of illness, Option B is worth the additional 3.5%. The good news is that you can change your choice at the beginning of each calendar year.
What you need to know about insurable income
You don't choose a specific insurable income at registration. Each month, you submit Declaration Form 1 (bg: Декларация Образец 1) and pay advance social security contributions on an amount between €550.66 and €2,111.64 (for 2026). At the end of the year, you settle your contributions against your actual income through the Annual Tax Declaration and Declaration Form 6 (bg: Декларация Образец 6). If it turns out you owe more, you pay the difference then.
Most freelancers pay advance contributions on the minimum insurable income of €550.66 and pay the difference during the annual settlement. This makes the monthly declarations quicker and easier, but it's important to set money aside for the settlement. If your income varies from month to month, using the minimum insurable income for advance contributions is the most practical option. More about advance contributions and the annual settlement can be found in the social insurance guide.
When VAT registration is required
Registration under the VAT Act (bg: ЗДДС) is mandatory in two cases:
- Annual turnover above €51,130 from supplies with place of supply in Bulgaria. If your taxable turnover from supplies with place of supply in Bulgaria exceeds this threshold for the current calendar year, you must register. In practice, for most freelancers this means revenue from Bulgarian clients, since B2B services to foreign companies have their place of supply in the client's country.
- Services to EU clients. If you provide services to a business client in another EU country (for example, an IT company in Germany), you must register under Art. 97a of the VAT Act before issuing your first invoice, regardless of your turnover.
- Clients outside the EU (USA, UK, etc.). When working with clients outside the European Union, VAT registration is not required in most cases, regardless of your turnover.
The second case is especially important for freelancers working with international clients. Don't wait to get paid: the registration must be in place before the first invoice. More about invoicing with VAT registration can be found in the invoicing guide.
If you only work with clients outside the EU, or with Bulgarian clients and your turnover is below €51,130, you don't need to worry about VAT.
What comes after registration
Registration is just the beginning. Here's a brief map of the obligations ahead of you as a freelancer.
Monthly social security contributions. Each month, you pay advance social security contributions on an income you choose between €550.66 and €2,111.64. Most beginners start with the minimum insurable income.
Advance tax. Each quarter, you owe 10% tax on your profit. The deadline is the end of the month following the quarter. Details in the advance tax article.
Invoicing. You issue an invoice for every payment received from a client. There are specific requirements you need to follow. Read the invoicing guide.
Annual tax declaration. Once a year (by 30 April), you file a declaration for your income. In it, you settle your tax and social security contributions for the entire year. See the details in the annual declaration article.
Declaration Form 6 (bg: Декларация Образец 6). You submit this together with the annual tax declaration. In it, you declare the final social security contributions owed for the year, calculated against your actual income. If your advance contributions were lower than what you owe, you pay the difference.
Statutory recognised expenses. The state automatically deducts 25% of your income as expenses for most freelance professions. You don't need receipts for these. Learn how it works in the dedicated article.
Practical example: Maria registers as a designer
Maria is a graphic designer and already has her first client. Here's how her week goes from decision to first invoice.
Monday (day 1). Maria decides to start. She prepares her documents: a diploma from NBU and her ID card. She checks that her Qualified Electronic Signature is valid.
Tuesday (day 2). She submits a BULSTAT registration application online with her QES. The fee is €5.11. The entire procedure takes about 15 minutes.
Wednesday-Thursday (days 3-4). She receives her UIC number from the BULSTAT register. The same day, she logs into portal.nra.bg and submits a self-insured person declaration. She chooses Option A (mandatory contributions only, 27.8%), because she's just starting out and wants lower initial costs.
Friday (day 5). Registration is complete. Maria is officially a freelancer!
The following Monday. She issues her first invoice to her client. Less than a week after her decision, her business is up and running.
How much does the first month cost?
At the minimum insurable income of €550.66 and Option A, Maria owes approximately €153.08 per month in social security contributions (27.8% of €550.66). This is the only fixed cost, regardless of whether she has any revenue.
For a detailed breakdown of all deductions and a gross-to-net calculation, read the gross to net article.
Conclusion
Registering as a freelance profession comes down to two main steps: registering with BULSTAT and filing a declaration with the National Revenue Agency. The entire process costs €5.11 and takes a few days.
Next steps
- Prepare your documents (diploma or certificate, ID card)
- Register with BULSTAT (online with a QES or in person at the Registry Agency)
- Submit a self-insured person declaration to the National Revenue Agency
- Issue your first invoice
The whole process is easier than it looks. With your documents ready, you can complete the registration in a few days. After that, you're officially a freelance profession and can start working.
Frequently asked questions
Yes. The two are not mutually exclusive. You won't pay Health Insurance contributions twice, as they are only paid through your employment contract. For your freelance activity, you'll only owe State Social Insurance and Supplementary Compulsory Pension Insurance contributions.
You need a document proving professional qualification. This can be a diploma, certificate, or qualification statement. For some professions (IT, marketing, consulting), a portfolio or course certificates are also accepted. The key is having a document that proves your qualifications.
The BULSTAT fee is €5.11 for online submission. Registration with the National Revenue Agency is free. Total: €5.11 and a few days.
Yes. You can switch your insurance type at the beginning of each calendar year (by 31 January) by submitting a new declaration to the National Revenue Agency.
You can still register later. Missing the deadline alone does not lead to severe penalties. However, it's important to register before you start issuing invoices and declaring income.
Not necessarily. The €51,130 annual threshold applies to turnover from supplies with place of supply in Bulgaria. If you provide services to clients outside the EU, VAT registration is not required, regardless of your turnover. However, if you provide services to business clients in the EU, you must register under Art. 97a of the VAT Act before your first invoice.
