How much remains net from freelance income in Bulgaria in 2026

21 October 2026 · 8 min read · The Danak team

Everyone starting a liberal profession or already working as a self-insured person asks this question: how much actually remains from my income? The answer depends on your gross income, on whether you choose to insure yourself for general sickness and maternity, and on the insurance income on which you pay contributions. Here is how it is calculated and how much remains in three typical cases.

What is deducted from your income

Self-insured persons pay two things:

Social security contributions — for the pension fund, universal pension fund and health insurance. Optionally, you may add insurance for general sickness and maternity. Contributions are paid each month by the 25th for the previous month, together with Declaration form 1 (Декларация образец 1).

Income tax — 10% of taxable income, after deducting the normatively recognised expenses (25% for most liberal professions, 40% for lawyers and for royalties and licence fees) and the paid social security contributions. The tax is paid three times during the year as advance tax, and after the annual return a final equalisation is made.

The amount of contributions does not depend directly on gross income — it depends on the insurance income (осигурителен доход) on which you choose to insure yourself. Most self-insured persons choose the minimum insurance income to reduce contributions. In 2026 the minimum monthly insurance income is €550.66 from January to July and €620.20 from August onwards.

How equalisation works

At the end of the year the National Revenue Agency (НАП) calculates what your actual average monthly taxable income has been — gross income minus 25% normatively recognised expenses, divided by the months in which you worked. If this taxable income is higher than the minimum insurance income, you owe additional equalisation contributions. These are calculated in the annual return and paid by 30 April of the following year together with any remaining tax.

This mechanism means that the higher your gross income, the higher your total contributions become — even if you pay on the minimum each month. Here is what this looks like in figures.

Three examples for 2026

The following table shows the complete annual calculation for three different monthly incomes. In all three cases the person was born after 1959, works throughout 2026, receives the same income each month, pays monthly contributions on the minimum insurance income and does not insure for general sickness and maternity. All amounts are in euros.

How these amounts are obtained

Normatively recognised expenses are 25% of gross income for most liberal professions (Art. 29(1)(3) of the Personal Income Tax Act (ЗДДФЛ)). For lawyers, and for royalties and licence fees, the rate is 40%. These expenses are deducted directly — no documents are needed.

Monthly contributions for persons born after 1959 who do not insure for general sickness and maternity are 27.8% of insurance income: 14.8% for pension, 5% for the universal pension fund and 8% for health insurance. With minimum insurance income of €550.66 (January–July) this makes €153.08 per month, and with €620.20 (August–December) — €172.42 per month. Total for the year: €1,933.66.

Equalisation contributions are calculated as follows: taxable income (gross minus 25%) is divided by 12 months to obtain average monthly taxable income. If this exceeds the minimum insurance income for the relevant period, 27.8% contributions are due on the difference.

With monthly gross income of €1,500, taxable income is €1,125 per month (1,500 × 0.75). With €3,000 — €2,250 per month. With €6,000 — €4,500 per month. The first exceeds the minimum by a little, the second and third — significantly more, so the equalisation contributions for them are higher. The detailed calculation by months and contributions by fund is shown by the calculator.

Advance tax is paid three times during the year — by 30 April, 31 July and 31 October — for the first, second and third quarters. For each quarter, income minus 25%, minus paid contributions for the same quarter, is calculated, and 10% is taken on the remainder. No advance is paid for the fourth quarter; the final tax for the whole year is calculated in the annual return.

Annual tax is 10% on taxable income for the whole year after deducting all paid contributions. If annual tax comes out higher than advance tax already paid, the difference is paid by 30 April of the following year. If lower — НАП refunds the difference.

What affects net income

How much remains in your pocket depends on three things:

The amount of income — with higher gross income the net percentage is usually also higher, because contributions grow more slowly than income (there is a maximum insurance income). With €1,500 monthly, €13,272 remains from €18,000; with €3,000, €26,787 remains from €36,000; and with €6,000, €60,024 remains from €72,000.

The insurance income you choose — if you pay above the minimum, monthly contributions increase but equalisation contributions decrease. The total amount is higher, however. Higher insurance income leads to greater pension and health insurance service, and for sick leave or maternity — to higher benefits. What is right for you depends on personal circumstances — a conversation with an insurer or accountant helps.

Insurance for general sickness and maternity — if you choose to insure for general sickness and maternity, monthly contributions become 31.3% instead of 27.8% (at minimum insurance income — €172.35 instead of €153.08 from January to July). In return you are entitled to cash benefits for temporary incapacity for work and for pregnancy and childbirth. The type of insurance is chosen once a year — in January — and applies for the whole year.

How to find out the exact amount for you

Your case depends on monthly income, chosen insurance income, whether you have general sickness and maternity insurance, the income category (liberal profession, craft, agriculture — each has a different rate of recognised expenses) and any tax reliefs. Danak's free calculator works out all of this for your case: contributions by months and funds, advance tax by quarters, equalisation contributions, annual tax and net remainder.

If you manage your activity through Danak, the application tracks your income in real time, fills in declarations with the calculated amounts and reminds you of deadlines. Start with a 30-day trial period — no bank card, no commitment, the calculator and calendar remain free.

What to do

If you are at the start of your activity and are wondering whether to begin, remember that contributions and tax are compulsory for everyone who works — as a self-insured person, as an employee or as a sole trader. The differences are in the method of calculation and in how much control you have over the amount. A preliminary calculation gives clarity.

If you are already working but have not calculated your net income, do it now — especially before the end of the year, so that you are ready for the equalisation contributions and tax that are paid in April. Surprises are unpleasant.

If your income has significantly increased or decreased during the year, recalculate. With a decrease it may make sense to file a declaration of cessation of activity with НАП for periods without work, so that you do not owe contributions for them. With an increase — check whether the monthly insurance income on which you pay still corresponds to your plans.

Frequently asked questions

With income different from the examples, how do I find out the net remainder?

Net income depends on the chosen insurance income and on whether you have chosen insurance for general sickness and maternity. The examples in the article apply to insurance on the minimum and without general sickness and maternity. For your own case use Danak's free calculator — you enter monthly income and chosen insurance income, and it calculates contributions, advance tax by quarters, equalisation contributions and net remainder.

Why are contributions at €3,000 and €6,000 monthly income almost the same?

Because with monthly income of €3,000, taxable income (3,000 × 0.75 = €2,250) already exceeds the maximum monthly insurance income for most of the year (€2,111.64 January–July, €2,300 August–December). With €6,000, taxable income (€4,500) also exceeds the maximum, but contributions are charged only up to the maximum. So the difference in contributions between the two cases is small.

Equalisation contributions are a surprise — can I avoid them?

Equalisation contributions are compulsory when your average monthly taxable income exceeds the minimum insurance income. They cannot be avoided, but you can reduce the surprise by paying monthly contributions on higher insurance income from the start — then at the end of the year the equalisation will be smaller or zero. The choice is between higher monthly contributions during the year or a larger amount all at once with the annual return.

If I do not work for some months, do contributions decrease?

Yes. If you file a declaration of cessation of activity with НАП (within 7 days of the cessation, according to Art. 4(5) of the Social Insurance Code (КСО)), you will not owe monthly contributions for months without work. In the annual equalisation, taxable income will be divided only by the active months. If you do not file a declaration, НАП considers that activity has not been interrupted, and you will owe contributions for the whole year.

Is there a way to reduce tax lawfully?

Annual tax may be reduced through tax reliefs under the Personal Income Tax Act — for maintenance of children, for voluntary pension insurance, for life insurance, for donations in certain areas, for reduced work capacity and for a young family's mortgage loan. Each relief has conditions; they are applied in the annual return. Danak's application calculates them automatically based on the data you enter. Tax may also decrease by 5% (but not more than €255.65) if you file the annual return by 31 March (Art. 53(6) of the Personal Income Tax Act).

Sources

• ЗДДФЛ — данък върху доходите на физическите лица (in Bulgarian)
• Кодекс за социално осигуряване (in Bulgarian)
• НАП — самоосигуряващи се лица (in Bulgarian)
• НОИ — осигурителен доход и прагове (in Bulgarian)