Insurance and Tax Calculator – Freelancer or Company?
Our calculators estimate the mandatory insurance contributions and taxes for self-employed individuals and companies (Ltd./EOOD).
Quickly and easily calculate:
Social and health insurance contributions
Personal income tax (PIT)
Taxes on profit and dividends
Compare expenses as a freelancer or through a company.
Follow the steps, calculate on your own, and choose the most cost-effective option!
🏢 Insurance and Taxes for a Company (EOOD)
- Enter your expected monthly income.
- Select the income amount on which you will be insured (e.g., 1,077 BGN – minimum wage up to 3,750 BGN – maximum insurance threshold).
- Enter your expected monthly expenses (e.g., rent, phone, internet, and others).
🧍 Insurance and Taxes for Freelancers
- Enter your expected monthly income.
ⓘ Insurance contributions and taxes for freelancers are calculated based on expected income.
The calculators do not cover all possible situations, such as income for pensioners or individuals with reduced work capacity.
📞 Want expert guidance?
Book a consultation with an accountant at 0888 411 541 or reach out to us on Viber.
When do I need to register for VAT?
Mandatory Registration:
- If your turnover reaches 166,000 BGN in the last 12 months, you must submit an application to the NRA within 7 days after exceeding this threshold.
- If you provide or receive services from other countries, VAT registration under Article 97a of the VAT Act may be required.
Voluntary Registration:
- You can voluntarily register for VAT if it benefits your business (e.g., for working with VAT-registered partners or reclaiming tax credits).
📞 Need assistance? Contact us or visit the NRA website for more information.
Is insurance coverage mandatory?
Yes, if you work as a self-employed individual or own a company, insurance contributions are mandatory.
- Minimum insurance income: 933 BGN
- Maximum insurance income: 3,750 BGN
- Contributions must be paid monthly, regardless of whether you had any income.
📌 Important: Irregular payments may result in interest charges and penalties.
Planned changes in the 2025 draft budget:
- Minimum insurance income for self-employed individuals is expected to increase to 1,077 BGN, in line with the new minimum wage.
- Maximum insurance income is expected to rise to 4,130 BGN from April 1, 2025, with further increases planned in the coming years.
These changes will take effect after the official adoption of the budget.
Example Insurance Contribution Amounts
Insurance contributions are a percentage of the insured income, as follows:
- State Social Security (DOO) – 18.30% or 23.30% for those born before 01.01.1960
- Universal Pension Fund (DZPO) – 5%
- Health Insurance – 8%
For the minimum insurance income of 933 BGN, the following contributions apply:
- DOO: 170.74 BGN
- DZPO: 46.65 BGN
- Health Insurance: 74.64 BGN
For the maximum insurance income of 3,750 BGN, the following contributions apply:
- DOO: 738.75 BGN
- DZPO: 187.50 BGN
- Health Insurance: 300 BGN
It is advisable to set your insured income close to your expected annual revenue, as these amounts must be adjusted when filing your annual tax return. Please contact us for more information.
What Are the Tax Obligations for Freelancers, Sole Proprietors, and Limited Liability Companies?
Freelancers
- Owe a 10% tax on net income, calculated as:
Gross income – legally recognized expenses (or actual proven expenses if the individual opts for this method).
Sole Proprietors (ET)
- Taxable income includes all revenues minus allowable expenses.
- The tax rate is 15% on the annual taxable income.
Limited Liability Companies (EOOD/OOD)
- Owe a 10% corporate tax on profits (revenues – expenses).
- If profits are distributed as dividends, an additional 5% dividend tax applies.
Do I Need to Pay Insurance Contributions If My Company Is Not Active or Has No Revenue?
✅ Yes, if you are a self-insured individual, insurance contributions are mandatory even if you have no income. You must pay contributions at least on the minimum insurance income.
✅ For companies (EOOD/OOD):
- If the manager has a management and control contract (DUK), insurance contributions are required regardless of whether the company has revenue.
- If the company has no activity and no payments are made, insurance contributions are not required, but it is advisable to submit a declaration of inactivity to the NRA.
📞 Unsure about your situation? Contact us for more information.
What Expenses Are Recognized for Companies and Freelancers?
Expenses for Companies (EOOD/OOD):
All expenses necessary for business operations are recognized, including:
- Salaries and insurance contributions
- Office or equipment rental costs
- Materials, goods, and supplies
- Paid services (accounting, marketing, transport, etc.)
- Travel, training, and representation expenses
Expenses for Freelancers:
- Statutory fixed-rate expenses are recognized as a percentage of income:
- 25% – for most freelance professions
- 40% – for copyright and artistic activities
- Alternatively, actual proven expenses can be used instead of the fixed percentage.
What Is the Difference Between a Self-Insured Individual and a Company Manager in Terms of Insurance Contributions?
Self-Insured Individual:
- Contributes based on the chosen insurance income, which cannot be lower than the minimum insurance threshold.
- Pays insurance contributions for state social security (DOO), health insurance, and DZPO (if born after 1959).
- Has the option to choose whether to contribute for general illness and maternity.
Company Manager (EOOD/OOD):
- Is insured under a management and control contract (DUK).
- Insurance contributions are calculated based on the agreed remuneration, which cannot be lower than the minimum insurance threshold for the position.
- Does not have the option to be insured for general illness and maternity.
Main Difference:
Self-insured individuals choose their insurance income within legal limits, while company managers are insured based on the remuneration specified in their DUK contract.
What Are the Consequences of Not Paying Insurance Contributions or Taxes?
Failure to meet obligations to the NRA can lead to:
- Late payment interest – accrues daily on the outstanding amount.
- Fines and penalties – administrative sanctions are imposed based on the amount and duration of the delay.
- Bank account freezing and asset seizure – the NRA may enforce measures to collect the debt.
- Legal action – in cases of serious violations, including deliberate tax evasion.
- Loss of social and health rights – unpaid insurance contributions may result in the suspension of health insurance coverage.
How to Avoid Problems?
Regular payments and timely declaration submissions are key to avoiding penalties. If you are facing difficulties, you may be able to arrange an installment payment plan with the NRA.
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