Self-insured persons in Bulgaria — 2026 guide

Who is a "self-insured person"

Art. 4(3) of the Social Insurance Code lists the categories. In practice, several broad groups:

• Liberal professions — notaries, lawyers, doctors, artists, journalists, translators, engineers, IT consultants, designers, etc.;
• Owners of Bulgarian Ltd. companies (ЕООД/ООД) who perform personal work in the company;
• Farmers;
• Sole traders (ЕТ);
• Craftspeople;
• People carrying out economic activity outside an employment relationship.

A self-insured person makes monthly contributions themselves — unlike employees, whose contributions are withheld and paid by the employer. This gives flexibility but the burden falls on the person.

Social insurance contributions — 2026

Minimum insurance income for 2026: BGN 1,077 / month → minimum monthly contribution ≈ BGN 299.40 (27.80%).

Maximum insurance income: BGN 4,130 / month → maximum monthly contribution ≈ BGN 1,148.14.

Income tax — 15%

Under Art. 29(1)(2) PITA, liberal professions and crafts apply statutory recognized expenses of 25%. So the taxable income is:

Tax is 15% on the taxable income (NOT 10% as for employees). Plan accordingly — the net is significantly lower than from salary.

Worked example

Deadlines — a self-insured person's year

Q4 has no separate advance payment — it is reconciled in the annual declaration.

Registration and start

1. File declaration Form 1 with the NRA — application to register as a self-insured person;
2. Choice of insurance income (between BGN 1,077 and 4,130);
3. Decision on voluntary insurance (general illness and maternity — additional 3.50%);
4. Registration with BULSTAT for a liberal profession (or ЕООД/ЕТ);
5. If expected annual turnover above BGN 100,000 — mandatory VAT registration.

Rights against the contributions

Self-insured persons have the same insurance rights as employees — provided they have paid regularly:

• Pension for insurance length and age — accrual for each insured month;
• Unemployment benefit — not available (self-insured are not insured against unemployment);
• Sick pay and maternity — only if voluntarily insured for general illness and maternity (+3.50%) for at least 12 months;
• Health insurance — full access to NHIF on timely contributions;
• Occupational injury — only for specific activities with an additional contribution.

Ltd. or self-insured — which when

At some point most freelancers ask whether to switch to an Ltd. company. Comparison:

• Ltd. (ЕООД) — 10% corporate tax + 5% dividend (effectively 14.5%); more administration (accountant required);
• Self-insured — 15% income tax for a liberal profession; simpler administration.

The break-even point is usually around BGN 50,000–70,000 annual gross. Above it, Ltd. becomes more attractive (effective 14.5% beats 15%, plus better expense flexibility). Below it, self-insured is simpler.

Full comparison — Ltd. vs Freelancer.

Frequently asked questions