Bulgaria is one of the European countries that offers the most benefits for freelancers, from low living costs to favorable tax policies. For this reason, every year, hundreds of self-employed individuals choose this country as the base for their business.

However, the path to becoming a freelancer in a foreign country requires careful planning and an understanding of local regulations. That’s why companies like Accountancy Bulgaria have emerged, assisting foreigners who move to this country for work reasons in becoming a freelancers in Bulgaria, fully understanding its regulations and tax system.

Analyzing the advantages of choosing Bulgaria as a destination for business and the possible challenges that may be encountered along the way.

The benefits of becoming a freelancer in Bulgaria

Bulgaria has become a hub for freelancers worldwide, offering a range of benefits that make it a top choice for those seeking flexibility and financial growth.

• Cost-Effective Living: Bulgaria’s low cost of living is one of its biggest draws. From affordable housing to reasonably priced goods and services, your income can stretch much further here than in many other European countries.
• Attractive Tax Regime: Bulgaria offers a flat income tax rate of 10%, one of the lowest in the EU. This is a significant advantage for freelancers who want to maximise their earnings while maintaining a legal and compliant business structure.
• Tech-Friendly Environment: High-speed internet is crucial for any freelancer, and Bulgaria delivers. The country is known for its robust internet infrastructure, allowing you to stay connected and work efficiently.
• Access to EU Markets: As an EU member, Bulgaria offers easy access to the European market. Freelancers can easily collaborate with clients across Europe, benefiting from the country’s strategic location.

Challenges and How to Overcome Them

While becoming a freelancer in Bulgaria is filled with opportunities, it’s important to be aware of potential challenges.

Language barrier

While English is widely spoken in business circles, learning some Bulgarian can be beneficial, especially when dealing with official documents or local authorities. Partnering with local multilingual experts can help bridge this gap, ensuring you understand and comply with all local regulations.

Navigating bureaucracy

Bulgaria, like many countries, has its share of bureaucracy. Handling paperwork, registrations, and tax filings can be daunting, particularly if you’re unfamiliar with the system. Turning to a specialized agency can be very helpful.

Building a network

Establishing a professional network in a new country can take time. To accelerate this process, consider joining coworking spaces, attending local events, and participating in online freelancer communities. This will help you connect with potential clients and fellow freelancers, creating opportunities for collaboration and growth.

Steps to becoming a freelancer in Bulgaria

If you’re considering becoming a freelancer in Bulgaria, these are the steps to follow.

1. Visa and residency requirements

For non-EU citizens, obtaining a long-term visa is a necessary first step. This process involves providing sufficient financial resources, a clean criminal record, and valid health insurance. EU citizens enjoy easier entry, needing only to register with local authorities if they plan to stay longer than three months.

2. Registration as a freelancer

To legally work as a freelancer in Bulgaria, you must register as a self-employed individual. This involves submitting an application to the Bulgarian Trade Register and acquiring a BULSTAT number, which serves as your unique identification. This process is relatively simple and can be completed online.

3. Financial management and banking

Opening a Bulgarian bank account is crucial for managing your freelance income. Most banks offer accounts tailored to freelancers, with online banking and low fees. Accountancy Bulgaria can assist with setting up your accounts, ensuring everything is in order from the start.

4. Social security and tax obligations

Freelancers in Bulgaria are responsible for their own social security contributions and taxes. This includes registering with the National Revenue Agency (NRA) and filing tax returns annually.  Specialized agencies, from this perspective, can help freelancers navigate the complexities of Bulgarian tax law while maximizing financial benefits.