Learn about what you need to do to become a sole trader in Bulgaria.
A burgeoning market for tech and freelancers alike, Bulgaria might be considered the undiscovered gem of Eastern Europe. If you’re already a resident, you may be surprised just how easy it is to begin working for yourself as a sole trader in Bulgaria! Just keep in mind that the information presented here should not be used in place of legal counsel.
What is a sole trader in Bulgaria?
A sole trader, also commonly referred to as a sole proprietor, is someone who is self-employed. By registering as a sole trader, you get the right to work and perform an income-generating activity in your own name. However, there is no limit to your liability, and you’ll be personally responsible for paying off any debts you’ve incurred in your freelance work.
If legal liability is a concern, you can protect yourself by creating a sole-owned limited liability company (EOOD). However, forming an EOOD requires investment capital, appointing a manager, and drafting the company’s founding documents. Because this is a much more complex way to register a business, we’ll focus solely on registering as a sole trader.
How do I become a sole trader in Bulgaria?
To become a sole trader, you must either be a citizen of Bulgaria or a resident. Additionally, you can not become a sole trader if you are bankrupt, have been convicted of bankruptcy, if your commercial rights have been removed, or if insolvency proceedings have been opened against you. Additionally, every sole proprietor may only register a single business name.
So long as you are not disqualified by the above requirements, registering as a sole proprietor is straightforward. To begin, you’ll need to register at the Registry Agency of the Bulgarian Ministry of Justice (online registration is also available). This registration allows you, as an individual, to begin working on commercial activity in your name. You’ll need to submit an application with your Personal ID number, any relevant licenses or permits (TK), a guarantee that you do not have another sole trader business name, and your signature.
Bulgaria maintains strict instructions on how to name your company. Your business name must contain your first and last name.
What kind of taxes will I need to pay as a sole trader?
Bulgaria requires a sole trader to pay 15% of their income by April 30th of every year to the National Revenue Agency. You can reduce the amount of your tax liability with mandatory contributions to social and health insurance, voluntary insurance contributions, and occasional Tax Relief acts. Of course, it may behoove you to consult an accountant to maximize your deductions. Additionally, if your taxable income exceeds BGN 50,000 over any 12-calendar period, you will be required to register for Value Added Tax (VAT), which you can do on the National Revenue Agency’s website.
Receiving payments in Bulgaria via Liquid.
Did you know that Liquid is the seamless way to receive payments in Bulgaria and 175+ countries worldwide? It also supports select foreign currencies, including BGN! Whether you’re sending an invoice to an existing client or one who’s new to Liquid, payments are sent via wire transfer in 2-5 business days.
Invoices in Liquid are in USD by default but can also be sent in BGN and other select foreign currencies, allowing vendors to receive payment in their local currencies instead of USD. In addition, you can also agree to Work Orders / Project Proposals in BGN and other select foreign currencies in Liquid.
Liquid only charges clients who initiate payments of $3 per US invoice paid and $8 per international invoice paid.
Liquid never charges Vendors to receive payments, even when Vendors are invoicing payments from Clients who are not current users of Liquid.
Now you’re ready to start freelancing as a sole trader in Bulgaria!
As a registered sole trader in Bulgaria, you can now take on clients from around the globe. Make your freelance career as seamless as possible with Liquid, the easiest way to invoice and get paid internationally.
Ready to invoice your United States-based clients? Try Liquid today.