Advance tax for liberal professions in Bulgaria 2026: how it is calculated and when it is paid
· 7 min read · The Danak team
Advance tax is a tax that self-insured people pay each quarter on part of their annual income. If you practise a liberal profession, carry on a craft or receive income under civil contracts, you effectively pay tax four times a year: three times in advance and once finally — with the annual tax return, which settles the whole year.
Who owes advance tax under Art. 43 PITL
You owe advance tax under Art. 43 of the Personal Income Tax Act (ЗДДФЛ) if during the quarter you have received income from:
- Practising a liberal profession — lawyer, notary, private enforcement agent, mediator, expert witness, translator, journalist, architect and other activities that the law defines as liberal professions.
- Craft activity, when you have not chosen taxation under the patent tax.
- Royalties and licence fees — for rights over works, inventions, utility models, industrial designs.
- Remuneration under civil contracts (non-employment relationships), when the payer is a natural person, not a company.
Advance tax is owed for the first three quarters of the year. For the fourth quarter (October, November, December) the law does not provide for advance tax — that income is taxed only with the annual tax return.
How advance tax for the quarter is calculated
Taxable income for the quarter is built up in three steps:
- Income you have earned during the quarter — the sum of all payments you have received for your activity during those three months.
- Minus normatively recognised expenses — the law recognises notional expenses as a percentage of income, without requiring documents for them. The percentage depends on the type of income:
- 40% for lawyers, notaries and other liberal professions listed in Annex 3 to the Personal Income Tax Act (ЗДДФЛ) (code 3061), as well as for royalties and licence fees;
- 40% for craft activity (code 305);
- 25% for other income from business activity and for remuneration under civil contracts;
- 60% for income from agriculture.
- Minus social-insurance contributions you have paid for the months of that quarter. The contributions deducted are those for pension, health insurance, universal pension fund and — if you have chosen it — sickness and maternity.
The base thus obtained is multiplied by 10% — that is the advance tax you owe for the quarter.
Deadlines for 2026
Advance tax for each of the first three quarters is paid and declared by the end of the month following the quarter:
- For the first quarter (January, February, March) — by 30 April 2026.
- For the second quarter (April, May, June) — by 31 July 2026.
- For the third quarter (July, August, September) — by 2 November 2026. The statutory day is 31 October, but it falls on a Saturday, so the deadline expires on the first working day after that.
The tax is declared with a declaration under Art. 55(1) of the Personal Income Tax Act (ЗДДФЛ) (form 4001) and is paid electronically in the National Revenue Agency (НАП) system or at the counter at an NRA office. The payment type code is 111213.
Why no advance tax is owed for the fourth quarter
The fourth quarter (October–December) carries no obligation for advance tax. Income you have received during those months is taxed only when you file your annual tax return — it covers the whole year and calculates the final tax.
The advance tax you have paid during the year for the first three quarters is deducted from the final tax. If the advance paid is less than the annual tax due, you pay the difference by 4 May 2027 (for 2026 the statutory day is 30 April, but it falls on a public holiday followed by further non-working days). If you have paid more, the difference is refunded to you.
The annual tax return under Art. 50 of the Personal Income Tax Act (ЗДДФЛ) is filed between 10 January and 4 May 2027, and if you file it by 31 March you receive a discount of 5% on the tax due, up to 255.65 €.
Example with specific figures
Imagine you are a lawyer, born after 1959, active throughout 2026. You insure yourself on the minimum insurance income (осигурителен доход) and have not chosen insurance for general sickness and maternity. Each month you receive income of 1,500 €.
First quarter (January–March 2026)
Income for the quarter: 1,500 € × 3 = 4,500 €
Normatively recognised expenses: for a liberal profession such as lawyer they are 40% of income.
4,500 € × 0.40 = 1,125 €
Social-insurance contributions paid for January, February and March:
During January–March 2026 the minimum monthly insurance income is 550.66 €. The monthly contribution at that income (without sickness) is 153.08 €: pension 81.50 €, universal pension fund 27.53 €, health insurance 44.05 €.
For three months: 153.08 € × 3 = 459.24 €
Taxable base:
4,500 € − 1,125 € − 459.24 € = 2,915.76 €
Advance tax:
2,915.76 € × 0.10 = 291.58 €
You pay and declare this amount by 30 April 2026.
Second quarter (April–June 2026)
The calculation is the same: income 4,500 €, expenses 1,125 €, contributions 459.24 €, base 2,915.76 €, advance tax 291.58 €. Deadline: by 31 July 2026.
Third quarter (July–September 2026)
From 1 August 2026 the minimum insurance income rises to 620.20 € and the monthly contribution (without sickness) becomes 172.42 €.
Income for the quarter: 4,500 €
Normatively recognised expenses: 1,125 €
Social-insurance contributions: for July 153.08 €, for August and September 172.42 € each.
153.08 € + 172.42 € + 172.42 € = 497.92 €
Taxable base:
4,500 € − 1,125 € − 497.92 € = 2,877.08 €
Advance tax:
2,877.08 € × 0.10 = 287.71 €
Deadline: by 2 November 2026.
Fourth quarter (October–December 2026)
For these months you do not pay advance tax and do not file a declaration under Art. 55. Income is reported only in the annual tax return, which you file between January and April 2027.
What to do
If your activity brings income from a liberal profession, craft or civil contract, it is best to track each month how much you have received and what contributions you have paid. The app:calculator automatically calculates the advance tax for each quarter according to your insurance income, type of activity and the contributions you have paid.
The app:calendar shows all deadlines for the year, already moved to the first working day when they fall on a Saturday, Sunday or public holiday. If you want reminders before each deadline, they are part of the app:pricing.
When you file your annual tax return, the advance tax you have paid during the year is deducted from the final tax. If you have paid more, the NRA refunds the difference. If you have paid less, you pay the balance by 4 May.
If your income or contributions change during the year, the base for each quarter also changes — so it is important to recalculate each quarter afresh.
Frequently asked questions
How is advance tax for a liberal profession calculated?
Advance tax is calculated as follows: from income for the quarter you deduct normatively recognised expenses (40% for lawyers and most liberal professions, 25% for other business income) and the contributions for social insurance paid for the months of that quarter. You multiply the resulting base by 10% — that is the advance tax.
When is advance tax paid for 2026?
Advance tax is paid by the end of the month following the quarter: for the first quarter by 30 April, for the second by 31 July, for the third by 2 November 2026. For the fourth quarter no advance tax is owed — it is taxed only with the annual tax return.
Why is no advance tax owed for the fourth quarter?
Income from the fourth quarter (October–December) is taxed only with the annual tax return, which covers the whole year and calculates the final tax. Advance tax is a prepayment — for the last quarter there is no point in prepayment, because shortly after it you file the annual return.
With what declaration is advance tax declared?
Advance tax is declared with a declaration under Art. 55(1) of the Personal Income Tax Act (ЗДДФЛ) (form 4001). It is filed with the NRA by the end of the month following the quarter and states the income, expenses, contributions and tax due for the quarter.
What happens if I do not pay advance tax on time?
If you do not pay advance tax on time, the NRA charges interest for late payment from the day after the deadline to the day of payment. If you do not file the declaration under Art. 55 on time or file it inaccurately, you may be sanctioned with an administrative fine.