Retirement no longer means the end of an active life. Many people with a wealth of experience as accountants, teachers, architects, consultants, or artisans continue to work even after they become eligible for a pension.
If you are a pensioner and want to work legally, registering as an individual practicing a liberal profession is undoubtedly the most advantageous option in Bulgaria. The state provides significant relief for working pensioners, especially regarding the social security burden.
Here is what you need to know about the rules in 2026.
1. The major advantage: Removal of the mandatory state social insurance (Doo)
The largest expense for a young freelancer is the monthly pension contribution (Doo). As a person who has already acquired the right to a pension for length of service and age, you you are not obliged to be insured for pension again.
- At your discretion: Insurance for state public social security is entirely at your discretion. If you decide not to pay this money, it is completely legal.
- Savings: This means that you save a significant amount each month that would otherwise go to the National Social Security Institute funds.
- Exception: If you still decide to pay state public social security (for example, to recalculate and increase your pension in the future), you must declare it explicitly.
To learn more about the general rules for starting, see The most important things about registering and accounting as a freelancer.
2. Mandatory health insurance
Although you are exempt from pension contributions, the law requires all working individuals, including freelancers who are pensioners, to pay health insurance.
- On what amount: Health insurance (8%) is paid in advance every month based on the minimum insurance income for self-employed persons (which for 2026 depends on the adopted budget, but is generally equal to the minimum wage).
- Annual adjustment: At the end of the year, when you submit your annual tax return, you will have to perform an adjustment. If you have earned more money than the minimum threshold on which you made advance payments, you will have to pay additional health insurance on your actual profit.
3. How is the tax calculated?
As a freelance retiree, your taxation is the same as for all other freelancers.
- Statutorily recognized expenses (NPR):The state automatically recognizes a percentage of expenses for you (usually 25% for consultants/freelance professionals or 40% for authors/craftsmen). You do not pay tax on this money.
- Tax base:From your total income, we subtract the statutory expenses and the health insurance premiums you have paid. You owe a 10% income tax on the remainder.
- For example: If you are a consultant who has earned 1000 BGN, the state removes 25% (250 BGN). Only 750 BGN (minus health insurance contributions) is taxed, on which you pay 10% tax. If you are interested in consulting work, read How to register as a freelance consultant in Bulgaria.
4. Do you need a cash register?
This depends on the way 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 need to purchase a cash register. See the details in Freelance profession and cash register: When is it mandatory and when not in 2026?.
Conclusion
For a pensioner, registering as a freelancer is the cleanest and most legal path for additional income. Exemption from mandatory pension contributions makes this form extremely cost-effective. Your only obligation is to pay your health insurance contributions regularly and correctly submit your annual tax return at the beginning of each following year.
