Retirement has long ceased to mean the end of an active life. Many people with rich experience as accountants, teachers, architects, consultants, or craftsmen continue to work even after retiring.
If you are retired and want to work legally, registering as a freelance professional is undoubtedly the most advantageous option in Bulgaria. The state provides significant reliefs for working retirees, especially when it comes to the social security burden.
Here is what you need to know about the rules in 2026.
1. The Big Advantage: Exemption from State Social Security (DOO)
The biggest expense for a young freelancer is the monthly social security contributions for a pension (DOO). As a person who has already acquired the right to a retirement pension based on length of service and age, you are not obliged to insure yourself again for a pension.
- By your choice: DOO insurance is entirely at your discretion. If you decide not to pay these contributions, it is completely legal.
- Savings: This means you save a significant amount every month that would otherwise go to the NOI (National Social Security Institute) funds.
- Exception: If you still decide to pay DOO (for example, to recalculate and increase your pension in the future), you must explicitly declare it.
To learn more about the general rules for starting out, see The essentials for registering and accounting as a freelancer.
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2. Mandatory Health Insurance
Although you are exempt from pension contributions, the law requires all working individuals, including retired freelancers, to pay health insurance.
- On what amount: Health insurance (8%) is paid in advance every month on the minimum insurable income for self-employed persons (which for 2026 depends on the adopted state budget, but is generally equal to the minimum wage).
- Annual equalization: At the end of the year, when you file your annual tax return, you will have to do an equalization. If you have earned more than the minimum threshold on which you paid in advance, you will have to pay additional health insurance on your actual profit.
3. How is the tax calculated?
As a retired freelancer, your taxation is the same as for all other freelancers.
- Statutory recognized expenses (NPR): The state automatically recognizes a percentage of expenses for you (usually 25% for consultants/freelance professions or 40% for authors/craftsmen). You do not pay tax on this money.
- Tax base: From your total income, we subtract the NPR and the health insurance you have paid. You owe a 10% personal income tax on the remainder.
- For example: If you are a consultant who has earned 1,000 BGN, the state removes 25% (250 BGN). Only 750 BGN (minus health contributions) are taxed, on which you pay a 10% tax. If you are interested in consulting activities, read How to Register as a Self-Employed Consultant in Bulgaria.
4. Do you need a cash register?
This depends on how your clients pay you.
- If you work with companies and they pay you exclusively via bank transfer (to your IBAN), you do not need a cash register. You only issue an invoice.
- If you work with individuals and they pay you in cash, you will have to buy a cash register. See the details in Freelancing and cash registers.
Conclusion
For a retired individual, registering as a freelance professional is the cleanest and most legal path to extra income. The exemption from mandatory pension contributions makes this form extremely profitable. Your only obligation is to regularly pay your health contributions and to correctly file your annual tax return at the beginning of each following year.
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