What are the benefits of becoming a registered freelancer in Bulgaria?
If you are a digital nomad or crypto investor who would like to have his worldwide income taxed at a low rate, freelancer registration in Bulgaria could be the best choice. Freelancer registration is an easy way to obtain tax residency status in Bulgaria, even if you are not a freelancer in nature.
Frelancer Compared to EOOD
- Operating as a freelancer, you are entitled to deduct up to 25% of your fixed expenses. For example, if your turnover is 100,000 EUR annually, you will only pay income tax on 75% of the turnover. Effectively, you will be paying 7.5% personal income tax.
- The freelancer registration process is straightforward and takes a week. You need a Bulgarian residency card and a high school or university diploma. Our team will help you get a Bulgarian residency card in only a few days.
- Being a freelancer, you will avoid the higher compliance requirements involved in opening a company bank account. Instead, freelancers can use payment personal bank or EMI accounts like Revolut or Wise. Our team will assist you in opening a bank account with a Bulgarian-based bank.
- There are no minimum capital requirements.
- Dividends are tax exempt for Bulgarian residents.
Like EOODs (sole owned limited liability companies):
- You can obtain a VAT and EORI number for your freelancer operations within a week.
- As a freelancer, you have to pay social contributions based on your income.
Your corporate income will be taxed in Bulgaria. However, your private income should be taxed in your home country, unless you become a tax resident of Bulgaria.
Accounting as a Freelancer
Freelancers are subject to the Bulgarian commercial law, and it is obligatory to conduct double-entry bookkeeping, though publishing annual accounts is not required. Freelancers are obliged instead to publish personal tax declarations. You can find more details about accounting in Bulgaria.
How to do Freelancer Payroll
As a freelancer, payroll is no different to that of any other legal entity. You can read more about Payroll in Bulgaria.
For more information about freelancer registration in Bulgaria, please do not hesitate to contact our team.