When running a business or working as a freelancer in Bulgaria, one of the most crucial steps to take is hiring a reliable Accountant in Bulgaria. Proper accounting services ensure compliance with the country’s legal framework and help you avoid unnecessary fines and complications. Whether you are a sole proprietor or a company with multiple employees, understanding Bulgaria’s taxation, social security, and reporting requirements is vital for smooth operations and sustainable growth.
Why You Need an Accountant in Bulgaria
- Mandatory Accounting: By law, every business in Bulgaria must maintain proper accounting records. A professional Accountant in Bulgaria handles bookkeeping, financial statements, and tax declarations to keep your operations compliant.
- Financial Security: Accurate accounting protects you from penalties, supports informed decision-making, and showcases financial stability to potential partners or investors.
- Local Expertise: A qualified Accountant in Bulgaria understands the specific Bulgarian tax regulations, reporting deadlines, and best practices, making it easier to navigate the local business environment.
Key Accounting Services in Bulgaria
- Bookkeeping and Financial Statements
An Accountant in Bulgaria keeps track of all financial transactions and prepares regular financial statements, such as balance sheets, income statements, and cash flow statements. These documents reflect your organization’s performance and must adhere to Bulgarian National Accounting Standards or International Financial Reporting Standards (IFRS), depending on the size and nature of the entity. - Tax Compliance and Consulting
Taxation in Bulgaria involves personal income tax, corporate tax, social security contributions, and value-added tax (VAT). By hiring an Accountant in Bulgaria, you can be sure all tax declarations and payments are filed on time. Moreover, you receive guidance on legal ways to optimize your tax obligations and reduce expenses. - Payroll and Social Security
Bulgarian law requires employers to calculate and remit social security contributions for employees. Freelancers who are registered as self-insured individuals also need to contribute to social security and health insurance funds. A competent Accountant in Bulgaria assists in calculating contributions accurately, preparing payslips, and submitting relevant declarations to the National Revenue Agency (NRA). - VAT Administration
Companies exceeding certain turnover thresholds must register for VAT. A professional Accountant in Bulgaria will:- Track the VAT registration requirement.
- Prepare and submit monthly or quarterly VAT returns.
- Keep detailed records of sales, purchases, and intracommunity transactions.
Taxation and Social Security for Freelancers
- Flat Personal Income Tax: Freelancers in Bulgaria are subject to a flat 10% personal income tax rate on their profits.
- Recognized Expenses: Depending on your activity, you may deduct a legally specified percentage of your income as expenses before applying tax.
- Social Security Contributions: Freelancers classified as self-insured pay their own social security and health insurance contributions within defined minimum and maximum thresholds. An Accountant in Bulgaria ensures correct calculation and timely submission of these contributions.
Taxation and Social Security for Companies
- Corporate Income Tax: The standard corporate tax rate in Bulgaria is 10%. Correct computation of your tax base and deductions is essential to remaining compliant and minimizing liabilities.
- Employee-Related Obligations: Companies hiring staff under labor contracts must withhold personal income tax at a 10% rate and remit social security contributions (shared between employer and employee).
- Annual Financial Statements: At the end of each financial year, your Accountant in Bulgaria will prepare financial statements and file an annual tax return to the authorities.
Reporting Requirements and VAT
Bulgarian businesses must file several declarations and reports throughout the year. Failure to meet deadlines can lead to fines or audits by the NRA. An Accountant in Bulgaria keeps track of these crucial obligations:
- Monthly and Quarterly Declarations:
- Declaration Forms 1 and 6 for social security and income tax.
- VAT returns if you are VAT-registered.
- Annual Obligations:
- Annual Corporate Tax Return (by March 31).
- Publication of annual financial statements in the Commercial Register (by June 30 for most companies).
Accurate tracking, clear record-keeping, and on-time submissions are the pillars of Bulgarian reporting requirements. A dedicated Accountant in Bulgaria will help you maintain transparency and compliance at each stage.
Why Choose Accountly as Your Trusted Accountant in Bulgaria
At Accountly, based in Sofia, Bulgaria, we offer a full range of accounting and payroll services, ensuring that both freelancers and companies meet their legal obligations and maximize their financial efficiency. Our goal is to simplify your accounting processes, giving you more time to focus on what matters most—growing your business. Here’s what you can expect from our dedicated Accountant in Bulgaria:
- Expertise and Personalized Support: We tailor our services to match your unique business model, ensuring accurate bookkeeping, tax filings, and payroll management.
- Comprehensive Solutions: From company formation advice to VAT registration and financial reporting, our team guides you through every step of Bulgarian accounting.
- Ongoing Consultation: We stay abreast of legislative changes and regularly update you on evolving compliance requirements. Our proactive approach helps you avoid pitfalls and unnecessary costs.
- Streamlined Payroll Services: We handle social security contributions, income tax withholding, and payslip generation, ensuring seamless payroll processing.
Whether you are a startup, an established enterprise, or a freelancer seeking professional guidance, Accountly is here to be your reliable Accountant in Bulgaria. Our dedicated team in Sofia will ensure your financial matters are handled efficiently and transparently.
Let us handle your accounting burdens so you can focus on growing your business.
