To start a business in Bulgaria, you can choose between three common forms, and the country sells itself to freelancers and small founders with a 10 per cent tax and a one-euro company capital. Both are true, and both come with small print. Before you choose a status for starting a business in Bulgaria, it helps to see the three common forms side by side and to count the contributions, which are often what surprise people.
Which legal form should you choose?
- Freelancer (свободна професия, svobodna profesiya, free profession): no company. You pay 10 per cent income tax after flat-rate expenses of 25 per cent, or 40 per cent for certain activities such as copyright and licences, lawyers and notaries.
- Sole trader (ЕТ, едноличен търговец, edinolichen targovets): registered in the commercial register; taxed at 15 per cent of the annual tax base.
- Company (ЕООД for one owner, ООД for several): a limited liability company registered with the Registry Agency.
The NRA gives an example for a freelancer: on quarterly receipts of 2,300.81 euros, after the 25 per cent flat-rate expenses and the contributions paid, the income tax advance is 108.60 euros.
How do you register as a freelancer?
The NRA says to register first in the BULSTAT register of the Registry Agency, within 7 days of starting the activity, then to file your declaration as a self-insured person with the NRA, also within 7 days. Before that you need your residence certificate and personal number; see residence in Bulgaria for EU citizens and the Bulgaria LNCh number guide.
How do you set up an EOOD or OOD?
You file form A4 on the Registry Agency portal (portal.registryagency.bg) with the articles of association, a bank certificate for the paid-in capital, the manager's notarised consent with specimen signature, and the required declarations. The agency lists 12 documents on its page.
The minimum capital is 1 euro since 1 January 2026, with each share worth at least one cent. If the capital exceeds the minimum, at least 70 per cent must be paid in. The agency's page still mentions 2 leva, which is the old minimum. First-registration fees in the 2026 tariff: 56.24 euros on paper or 28.12 euros online for an EOOD or OOD, and 15.34 or 7.67 euros for an ET (converted by us from the leva in the tariff at 1.95583).
You will need a qualified electronic signature (KEP) for online filings; see Bulgarian administration online.
The cheapest form on paper is not always the cheapest in practice: contributions, accounting and your home country's rules all weigh in. Moovy can compare the three forms for your case and list the questions to put to an accountant. It does not register a business or give accounting advice in your place.
What contributions do the self-employed pay?
For 2026 the NRA gives these rates: pension 14.8 per cent (19.8 per cent if born before 1960), universal pension fund 5 per cent (born after 1959), illness and maternity 3.5 per cent (optional) and health 8 per cent. Insurable income is between 550.66 and 2,111.64 euros a month until 31 July 2026, then between 620.20 and 2,300 euros from 1 August. That means you pay contributions on at least 620.20 euros a month, even if you earn less. (The NRA's minimum health contribution of 24.81 euros a month from 1 August concerns a different case: someone who is not health-insured on another basis and pays health contributions only.)
If you remain insured in your home country with an A1 certificate, Bulgarian contributions may not be due; have it checked. For healthcare, see healthcare in Bulgaria.
What are the deadlines?
Income tax advances are due on 30 April, 31 July and 31 October. The annual return for a freelancer is due between 10 January and 30 April; for a sole trader between 1 March and 30 June. Monthly contribution forms are due by the 25th of the following month. See income tax in Bulgaria.
When does VAT apply?
VAT registration becomes mandatory within 7 days after annual turnover in Bulgaria exceeds 51,130 euros (threshold since 1 January 2026). The standard rate is 20 per cent, the reduced rate 9 per cent (tourist accommodation, books and periodicals, baby food and hygiene products), and the monthly return is due by the 14th of the next month.
How do you start a business in Bulgaria step by step?
If you want to start a business in Bulgaria, the order matters more than the form you choose.
- Secure your residence and personal number. Without them, no registry or tax office will treat you as a normal applicant; see residence in Bulgaria for EU citizens.
- Choose the legal form: freelancer, sole trader or company, using the comparison above.
- Register in BULSTAT or the commercial register at the Registry Agency.
- Declare yourself to the NRA within seven days, and choose your insurable income within the legal range.
- Open a business bank account; see bank account in Bulgaria.
- Set up your accounting and calendar of advances and returns.
Freelancer, ET or EOOD: how do you choose?
A freelancer is the lightest option: no company, no capital, and 10 per cent tax after flat-rate expenses. It suits individuals who sell their own services. The ET is a sole trader in the commercial register, taxed at 15 per cent, with a regime closer to a company's. The EOOD (one owner) or OOD (several) separates the business from your personal assets, with a minimum capital of 1 euro, but it brings accounting and annual-accounts duties.
The right answer depends on your clients, your risk and your home country's rules. A client abroad may prefer a company; a small consultant may prefer to stay a freelancer. Ask an accountant to compare the three on your numbers, including your home country's tax rules.
What are the accounting duties?
A company keeps its books under the Accountancy Act and files its annual financial report with the commercial register, signed by the person who prepared it and by the manager, according to the Registry Agency. In practice, most small companies hire an accountant. A freelancer keeps records of income and expenses to support the declarations and the flat-rate expenses. We have not reviewed accounting fees, so ask for quotes.
What about foreign clients and A1 certificates?
If you serve clients in other countries, your VAT treatment may differ from a purely domestic sale, and the VAT threshold of 51,130 euros refers to turnover in Bulgaria. We did not review the cross-border VAT rules, so seek advice before invoicing abroad. If you remain insured in another country, the A1 certificate may relieve you of Bulgarian contributions; confirm with the NRA before you register, since paying twice is a real risk.
How do you keep the NRA relationship smooth?
Get your access to the portal early (a PIK or a KEP; see Bulgarian administration online). Put the dates in your calendar: advances on 30 April, 31 July and 31 October, monthly contribution forms by the 25th, VAT returns by the 14th. Keep the originals of invoices and contracts. If you are unsure if you are a tax resident, settle that first, as explained in income tax in Bulgaria.
What mistakes should you avoid when you start a business in Bulgaria?
- Forgetting BULSTAT or doing it after the NRA.
- Assuming contributions follow income. There is a minimum base.
- Mixing up deadlines: 30 April for freelancers, 30 June for ET.
- Trusting old leva figures. Confirm amounts in euros.
- Treating accounting as optional. A company keeps books under the Accountancy Act and files annual accounts with the commercial register; most hire an accountant.
Rates, thresholds and minimum incomes change every year, sometimes in the middle of it, as in 2026. Before you start a business in Bulgaria or sign your first contract, have your situation confirmed by an accountant or a tax adviser in Bulgaria.