Introduction
If you’re an artist in Bulgaria and want to legally earn income from your creative work, this guide will help you understand the registration process, tax options, and financial obligations. Whether you’re a painter, musician, writer, or digital creator, you’ll learn how to choose between a freelance setup or EOOD, register correctly, and handle your taxes.
This practical guide is tailored for the Bulgarian creative sector, combining legal clarity with useful tips — so you can focus on your art and stay fully compliant.
Who qualifies as an “artist” in Bulgaria?
In Bulgaria, the term “artist” encompasses a wide range of creative professionals who generate income through original artistic expression. You may qualify if you work in:
- Visual arts: painting, sculpture, photography, illustration
- Performing arts: music, theater, dance, acting
- Digital creation: animation, graphic design, video content
- Literary arts: writing, poetry, screenwriting, translation
Most independent artists in Bulgaria register under the NACE code 90.03 – “Artistic creation.” This classification is used by the National Revenue Agency (NRA) for tax and legal purposes.
Step 1: Choose Your Legal Form
There are two common ways to legally operate as an artist in Bulgaria: registering as a freelancer or incorporating a single-member company (EOOD). Each has its own tax structure, administrative requirements, and benefits depending on your income level, client base, and growth plans.
Option 1: Self-Employed (Freelancer / “Свободна професия”)
As a freelancer, you act as a natural person offering services under your own name. This is a straightforward and affordable setup, ideal for those with limited turnover and local clients.
- Simple registration through the NRA
- Lower accounting and setup costs
- Suitable for beginners and part-time artists
Option 2: Company (EOOD – Single Member Limited Liability Company)
An EOOD offers greater legal protection, tax flexibility, and credibility when working with brands, foreign platforms, or partners. Though it comes with more obligations, it can be beneficial for artists with higher income or international projects.
- Allows issuing VAT invoices and signing contracts
- Better suited for scaling and expense management
- Can reduce personal tax burden in some cases
Freelancer vs EOOD: Which is Better for Artists?
Freelancer: Ideal for new artists with limited income and local clients. Offers simpler setup and fewer obligations.
EOOD: Better for scaling, working with foreign clients, or managing larger income. Comes with corporate tax, dividend tax, and monthly reporting.
Step 2: Documents & Registration Process
The registration process varies depending on whether you choose to register as a freelancer or set up an EOOD. Here’s what each path involves:
For Freelancers:
- Valid ID or residence permit (EU or third-country nationals)
- Declaration for freelance registration with the NRA
- Selection of NACE code 90.03 (or related, based on your niche)
- Optional registration with BULSTAT (now integrated into civil registry)
You may also be required to notify the National Social Security Institute (NOI) regarding your insurance contributions.
For EOOD:
- Draft Articles of Incorporation
- Minimum capital of 2 BGN
- Company bank account
- Registration with the Commercial Register
- Optional VAT registration depending on business scope
Step 3: Understand Your Tax Obligations
Artists in Bulgaria are subject to different tax regimes depending on their legal status. Understanding your obligations is crucial to avoid penalties and manage your finances effectively.
If Freelance (Self-Employed):
- 15% personal income tax on net profits
- Monthly or quarterly advance payments to NRA
- Mandatory health and pension contributions, calculated based on declared income (min. ~650 BGN/month)
- Annual tax return submission by April 30
If EOOD:
- 10% corporate income tax on net profit
- 5% tax on distributed dividends
- Social security payments for managing director
- Annual financial statements and reporting obligations
VAT Registration: Mandatory for turnover above 166,000 BGN. Recommended voluntarily if you work with EU platforms or want to reclaim VAT on expenses.
Common Deductible Expenses for Artists
Both freelancers and EOOD owners can deduct business-related expenses to lower taxable income. Eligible expenses typically include:
- Equipment: computers, instruments, drawing tablets
- Studio rent or a share of home office utilities
- Art supplies, software licenses, online tools
- Travel and accommodation for exhibitions or events
- Marketing, website hosting, or promotional materials
Keep invoices and records organized — your accountant can help you determine what qualifies.
When Should Artists Register for VAT in Bulgaria?
You should register for VAT if:
- Your annual income exceeds 166,000 BGN
- You work with EU-based agencies or platforms
- You invoice international clients requiring VAT compliance
Voluntary VAT registration is recommended if you have high business costs and want to reclaim VAT on eligible expenses.
Learn more about VAT exemption options available to freelancers in Bulgaria.
Benefits of Working with a Specialized Accountant
Creative professionals face unique challenges — from irregular income to cross-border work. An accountant who understands the art sector can help you:
- Select the most tax-efficient legal structure
- Register correctly with the NRA and other institutions
- Track deductible expenses and avoid penalties
- Plan for quarterly payments, insurance, and tax returns
This allows you to focus on your craft while staying compliant and financially stable.
Conclusion
Registering as an artist in Bulgaria is more than a legal obligation — it’s a strategic move to grow your creative career with confidence. Whether you choose to operate as a freelancer or establish a company, knowing your responsibilities and tax opportunities puts you ahead.
If you’re just getting started or want to optimize your setup, working with a professional who understands the creative sector can make all the difference.
Need help? Learn more about our specialized accounting services for artists or request a consultation today.
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