Income from Upwork, Fiverr and other platforms: taxes and social security in Bulgaria

27 October 2026 · 11 min read · The Danak team

If you receive income from international freelance platforms such as Upwork, Fiverr, Freelancer or similar, those amounts are considered income from the practice of a liberal profession under the Personal Income Tax Act (Закон за данъците върху доходите на физическите лица, ЗДДФЛ) and are subject to tax and social insurance under the general rules for self-insured persons.

Do I need to register and when

Yes. As soon as you conclude your first transaction through the platform and receive payment, you are carrying out economic activity and are required to register as a self-insured person. The deadline is 7 days from the start of activity — this is the day you first provided a service for payment, not the day you received the money.

Registration is done at the Registry Agency (Агенция по вписванията) or at a National Revenue Agency (НАП) office. After registration you receive a company number (ЕИК) and begin to owe social security contributions and tax.

What exactly is the taxable income

The law taxes the income you actually receive. Platforms like Upwork and Fiverr deduct a commission from each transaction — typically between 5% and 20% depending on your turnover. The amount that arrives in your bank account is the net amount after the deduction.

Under the general rule, expenses connected with the activity — including the platform's commission — are deducted to determine the taxable profit. In any case, however, the Personal Income Tax Act permits normatively recognised expenses of 40% of gross income for liberal professions (Art. 29(1)(2) ЗДДФЛ), so you do not need to justify each expense individually.

In practice, the National Revenue Agency has not published an explicit position on whether the income you declare must be the amount before or after the commission. If you want complete certainty for your specific case, you can request a written opinion from the NRA. Most freelancers declare the net amount (after commission), because that is the sum they received as payment for their work, and the commission is an expense for access to the platform.

After registration you choose a monthly insurance income (осигурителен доход) between the minimum and maximum threshold. The minimum insurance income for 2026 is 550.66 € for the period January–July and 620.20 € from August to the end of the year. The maximum is 2,111.64 € (January–July) and 2,300 € (August–December).

On your chosen insurance income you owe monthly social insurance contributions, which cover pension, health and the universal pension fund. For a person born after 1959, the total amount of compulsory insurance is 27.8% of the insurance income, allocated as follows:

Pension insurance: 14.8%
Universal pension fund: 5%
Health insurance: 8%

If you also choose insurance for general sickness and maternity (recommended if you want benefits during illness or pregnancy), this adds another 3.5%, for a total of 31.3%.

If you insure on the minimum income from August 2026 onwards (620.20 €), you will owe 172.42 € per month — you can see how exactly social security contributions are calculated in the calculator or the detailed guide.

Contributions are paid monthly by the 25th of the following month together with filing Declaration form 1 (Декларация образец 1). This declaration is required even when you have no income during the month — your chosen insurance income remains in force until you change it with a new declaration.

Advance tax — payment four times a year

Self-insured persons owe advance tax on expected income from the activity. Advance tax is calculated quarterly and is paid by the end of the month following the quarter: by 30 April for the first, by 31 July for the second, by 31 October for the third. No advance is paid for the fourth quarter — the final liability is determined with the annual return.

The amount of each advance payment is calculated as follows:

Take the taxable income for the quarter.
Deduct normatively recognised expenses — 40% for liberal professions.
Deduct the insurance contributions paid for the quarter.
Apply 10% tax on the remainder.

For example, if in the first quarter of 2026 you received 4,500 € income, you would calculate:

Income: 4,500 €
Recognised expenses (40%): 1,125 €
Insurance contributions (3 × 153.08 €): 459.24 €
Taxable base: 4,500 − 1,125 − 459.24 = 2,915.76 €
Advance tax (10%): 291.58 €

Advance tax is declared with Declaration under Art. 55 ЗДДФЛ (Декларация по чл. 55 ЗДДФЛ) and is paid with payment type code 111213. You will find details of deadlines and calculations in the article on advance tax for liberal professions.

Annual tax return

By 30 April of the following year you file an annual tax return under Art. 50 ЗДДФЛ (годишна данъчна декларация по чл. 50 ЗДДФЛ) with all appendices. Income from freelance platforms is entered in Appendix 3 (Приложение № 3) — income from the practice of a liberal profession.

In the annual return you show all income for the year, deduct 40% normatively recognised expenses and the insurance contributions paid, apply tax reliefs if you are entitled to them (for children, donations, voluntary pension insurance, etc.), and calculate the final tax. From this you deduct the advance payments you made during the year. If there is a balance to pay, you pay the difference by 30 April; if there is overpaid tax, you can request a refund.

The calculator calculates your annual tax and shows you step by step how the final amount is arrived at.

VAT and Article 97a registration due to the platform's commission

If your annual turnover from all activities exceeds 51,130 € over the last 12 months, you owe VAT registration and must charge 20% tax on services you provide to Bulgarian clients.

There is, however, another aspect that is often overlooked. The commission the platform deducts from each of your transactions can be regarded as a service the platform provides to you — access to infrastructure, provision of clients, payments, etc. If the platform is established outside Bulgaria (which is the case with Upwork, Fiverr and most international platforms), this service falls within the scope of Art. 21(2) of the VAT Act (ЗДДС) with the place of supply in Bulgaria.

When you receive a taxable service from a supplier in another Member State or a third country, you as the recipient owe self-assessment of VAT under the reverse charge procedure. This requires registration under Art. 97a(1) ЗДДС. Registration must take place no later than 7 days before the date the tax becomes chargeable — in practice, on first use of the platform.

Whether specifically in the case of Upwork or Fiverr commissions there is an obligation to register under Article 97a depends on the nature of the relationship between you and the platform, the type of service provided and the supply regime. You can find more details and clarifications about this registration in the article on Article 97a VAT registration when working with EU clients and platforms. If you are not sure whether you owe such registration, it is best to consult a tax adviser or request a written opinion from the NRA.

The NRA receives data on your income automatically

Since 2023, the European directive DAC7 has been in force, which obliges digital platform operators to provide tax authorities with information about sellers registered with them and the income those sellers earn. The directive has been introduced into Bulgarian law through the Tax and Social Security Procedure Code (Данъчно-осигурителен процесуален кодекс).

This means that the NRA now receives automatic data from Upwork, Fiverr and other platforms about your income, if you are a Bulgarian tax resident. Platforms are required to provide this information once a year, including your identification details, the amounts you have received, the number of transactions, etc. The exchange of information takes place between the competent authorities of the Member States without your involvement.

From a practical point of view, this means that not filing a return for this income or understating it is a sure way to receive an inspection from the NRA. The authorities have complete information and will easily establish discrepancies between what is declared and what was actually received.

Example: monthly income of 1,500 €

Let us assume you were born after 1959, work through Upwork all year and receive 1,500 € net income per month (after the platform's commission). You insure on the minimum insurance income and have not chosen insurance for general sickness and maternity.

Insurance contributions:

From January to July you owe 153.08 € per month (7 months), and from August to December 172.42 € per month (5 months). Total contributions paid during the year: 1,933.66 €.

Advance tax:

Each quarter you receive 4,500 € (3 × 1,500 €). Normatively recognised expenses are 40%, i.e. 1,125 €.

First quarter:

Income: 4,500 €
Recognised expenses: 1,125 €
Insurance contributions: 459.24 €
Taxable base: 2,915.76 €
Advance tax: 291.58 €

Second quarter: identical, 291.58 €

Third quarter (August–October, with higher insurance):

Income: 4,500 €
Recognised expenses: 1,125 €
Insurance contributions: 497.92 €
Taxable base: 2,877.08 €
Advance tax: 287.71 €

No advance is paid for the fourth quarter.

Total advance tax for the first three quarters: 870.87 €

Annual tax and equalisation:

Your annual income is 18,000 €. After deducting normatively recognised expenses (4,500 €) and the insurance contributions paid during the year (1,933.66 €), an equalisation calculation is made: by insuring on the minimum, you paid less insurance than you would have owed if you had chosen higher insurance income.

The equalisation charge for insurance for the year is 1,819.34 €, which is added to the already paid 1,933.66 €. Total annual insurance becomes 3,753 €. The taxable base becomes 9,747 € (18,000 − 4,500 − 3,753), on which you owe 10% tax = 974.70 €. From this amount you deduct the advance payments (870.87 €) and you have 103.83 € left to pay.

After all taxes and insurance out of 18,000 € you are left with 13,272.30 € net for the year. You can see the full breakdown in the article on net income from a liberal profession.

What to do

If you have just started working through a platform or plan to start, the first step is registration within seven days. After that:

Every month by the 25th you file Declaration form 1 and pay the insurance contributions.
By the end of the month after each quarter you file a declaration under Art. 55 ЗДДФЛ and pay the advance tax.
By 30 April of the following year you file the annual tax return and equalisation.
If your work with EU clients or platforms raises VAT questions, check whether you owe registration under Art. 97a ЗДДС.

The free calculator shows you exactly how much you owe for each quarter and when deadlines fall, moved for holidays and rest days. Danak's paid plans fill in declarations automatically and send reminders before each deadline. You can start with a 30-day trial period without a bank card.

Frequently asked questions

Do I have to declare income from Upwork or Fiverr in Bulgaria?

Yes. Income from freelance platforms is considered income from a liberal profession and is subject to taxation and social insurance. You must register as a self-insured person within seven days of the first transaction and pay insurance contributions and tax under the general rules.

What income do I declare — before or after the platform's commission?

The NRA has not published explicit guidance on the matter. Under the general rule, the income actually received is taxed, i.e. after deduction of the commission. In any case the law permits normatively recognised expenses of 40% of gross income for liberal professions, so the commission is covered by that percentage. If you want complete certainty, you can request a written opinion from the NRA.

Does the NRA receive data on my income from Upwork automatically?

Yes. Since 2023, international platforms are required to provide tax authorities with information about sellers and their income under the European directive DAC7. The NRA receives this data automatically through exchange of information with the competent authorities of other countries. Not filing a return or understating income leads to easily detectable discrepancies and an inspection.

Do I owe VAT if I work through Upwork?

If your annual turnover exceeds 51,130 €, you owe VAT registration and must charge 20% on services you provide to Bulgarian clients. In addition, you may owe registration under Art. 97a ЗДДС for self-assessment of VAT on the commission the platform deducts from you as a service for access to infrastructure. Whether this is the case depends on the specific circumstances — it is advisable to consult a tax specialist.

What are the minimum insurance contributions I owe per month?

If you insure on the minimum insurance income, you owe 153.08 € per month for the period January–July 2026 and 172.42 € per month from August to the end of the year. This includes pension, health and universal pension fund, but not insurance for general sickness and maternity, which is optional and adds another 19.27 € (January–July) or 21.71 € (August–December) per month.