The professions of the architect and designer have their strict rules. Your work is closely tied to the regulations of the Chamber of Architects in Bulgaria (CAB) or the Chamber of Engineers in Investment Design (KIIP). Unlike other professions, your projects are often created, approved and paid in installments over months or even years.
From January 1, 2026, the official currency in Bulgaria is the euro. This requires special attention to your finances and contracts. This detailed article will guide you through all important accounting situations – from old lev advances to international contracts and copyrights.
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1. Project invoicing: Advances from 2025 to 2026
Architectural projects are almost never paid all at once. The standard practice is to receive an advance payment upon signing the contract, an intermediate payment at the conceptual design stage and a final payment upon delivery of the working project.
What happens if you took an advance in levs in 2025, but you finish and deliver the project in 2026 in euros?
- Fixed exchange rate: All old contracts in levs remain valid. They are automatically recalculated at the fixed rate of 1.95583 levs for 1 euro. There is no need to sign new contracts or annexes with your clients. You can find more about this process in our article Accounting transition to the euro: A guide for businesses.
- Issuing a final invoice: When you issue the final invoice in 2026, it must necessarily be in euros. In it, you write the full price of the project in euros. Then you subtract the paid lev advance (which is already converted into euros). The final amount in the document is only the remainder that the client has to pay you.
- Tax year: Taxes are paid for the year in which the money actually entered your bank account. The advance from 2025 is declared with the tax return for 2025, and the final payment in euros enters your income for 2026.
2. Membership fees to CAB/KIIP and insurance
To have the right to design legally and put your stamp, you are obliged to pay an annual membership fee to CAB or KIIP. Professional liability insurance is also completely mandatory by law.
How are these mandatory expenses recognized before the NRA:
- As a freelance professional: The state recognizes 25% expenses by law. These 25% include absolutely all your expenses – the membership fee, the insurance, the licenses for specialized software, as well as the equipment. You do not describe these expenses separately in your tax return and you do not need to keep invoices for them before the NRA.
- As an EOOD: If you work through your own company, the situation is different. These fees are a 100% recognized company expense. The insurance and the fees to the chambers directly reduce the profit of your company. To choose which of the two options is more profitable for your volume of work, read Pros and cons of EOOD and freelance profession.
Free 30-minute consultation for new clients.
Free 30-minute consultation for new clients.
3. Copyright in architecture
An often overlooked aspect is that the architectural project is a work of art and a subject of copyright.
- Copyright contract: If your contract with the client explicitly states that you assign the copyrights to the created project, you can use a higher percentage of statutory recognized expenses.
- The difference in taxes: Instead of the standard 25% expenses for a freelance profession, with a copyright contract the state recognizes 40% expenses. This means that you will pay a 10% tax only on 60% of the money earned, which is a serious saving. It is important that your contract is drafted correctly.
4. International competitions and projects
Bulgarian architects and engineers are highly valued abroad and often win international competitions or work with foreign investors.
- Work within the EU: If you sell a finished project to a business client (company) in another European Union country, you must have a VAT registration before you get the money. In 2026, you have the right to use the new regime for small enterprises in the EU (a number with an “-EX” extension), which makes it much easier for you.
- Competitions outside the EU: When working with clients in the USA, UK or Asia, the VAT rate is 0%. However, this income is summed up and monitored for reaching the threshold for mandatory VAT registration in Bulgaria (51,130 euros).
Conclusion
Architectural and engineering work requires exceptional precision – not only in the drawings, but also in the management of finances. Proper accounting of transition projects from levs to euros, smart management of copyrights and strict monitoring of international income will protect you from fines and save you significant amounts of taxes in 2026.
