Who qualifies as a self-insured person (Art. 4(3) KSO)
The Bulgarian Social Security Code (KSO) identifies four groups of persons required to insure themselves:
| Item | Category | Examples |
|---|---|---|
| Item 1 | Liberal professions and crafts | Lawyers, doctors in private practice, architects, consultants, translators, notaries, private enforcement agents, craftsmen |
| Item 2 | Sole traders (ЕТ) | Individuals registered as sole traders under the Commerce Act |
| Item 3 | Registered farmers and tobacco producers | Persons registered under the Agricultural Producers Support Act |
| Item 4 | Owners, partners, managing directors | Owners/partners in commercial companies and members of unincorporated companies — when performing personal work; managing directors receiving compensation for personal work |
Key distinction: a managing director under a management and control contract (ДУК) is insured under Art. 4(1)(7) KSO — like an employee, with the full package (including unemployment), borne by the company and the individual. An owner, partner or manager performing personal work without ДУК is insured as СОЛ under Art. 4(3)(4). The choice between the two regimes has significant financial consequences.
Scope of insurance. A СОЛ is insured only on income from the activity (free practice, sole-trader profit, remuneration for personal work). Income from an employment or other contract is insured separately under Art. 4(1) KSO.
Contribution rates for 2026
Mandatory funds
| Fund | Born after 31.12.1959 | Born before 01.01.1960 |
|---|---|---|
| Pension Fund (State Social Security, 1st pillar) | 14.8% | 19.8% |
| Universal Pension Fund (2nd pillar, ДЗПО-УПФ) | 5% | — |
| Health insurance | 8% | 8% |
| Total mandatory | 27.8% | 27.8% |
The difference between the two groups is technical: for those born after 1959, part of the pension contribution (5 percentage points) is directed to a private universal pension fund; for those born before 1960, the full amount goes to the state Pension Fund. The overall burden is identical.
General Illness and Maternity (GIM) — optional
Unlike employees under labour contracts, GIM insurance is voluntary for СОЛ. The rate is 3.5%. The choice is made by declaration to the NRA and applies for the full calendar year. Without GIM, working as СОЛ does not entitle the person to sickness or maternity benefits.
Unemployment Fund
СОЛ does not pay unemployment contributions. Accordingly, upon cessation of activity there is no right to unemployment benefit from the National Social Security Institute — unlike employees under labour contracts. This is one of the most significant differences between the СОЛ regime and employment.
Two total options
| Option | Scope | Total rate |
|---|---|---|
| Minimum package | Pension + health (without GIM) | 27.8% |
| Extended package | + General Illness and Maternity | 31.3% |
Minimum and maximum insurance base (2026)
The thresholds changed mid-year with the State Social Security Budget Act for 2026 (State Gazette No. 68 of 28 July 2026). The old amounts apply up to and including July, the new ones from August:
| Parameter | Until 31.07.2026 | From 01.08.2026 |
|---|---|---|
| Minimum insurance base for СОЛ | EUR 550.66/month | EUR 620.20/month |
| Maximum monthly insurance base | EUR 2,111.64/month | EUR 2,300/month |
| Minimum health insurance base for persons not insured on another ground (Art. 40(5)(1) Health Insurance Act — half of the СОЛ minimum base) | EUR 275.33/month | EUR 310.10/month |
Important: the minimum insurance base for СОЛ is a separate statutory figure set each year by the social security budget act. From 1 August 2026 it equals the minimum wage (EUR 620.20); until 31 July 2026 it was EUR 550.66 with the same minimum wage.
Sample monthly contributions
| Insurance base | Minimum package (27.8%) | Extended package (31.3%) |
|---|---|---|
| Minimum until 31.07.2026 — EUR 550.66 | EUR 153.08/month | EUR 172.35/month |
| Minimum from 01.08.2026 — EUR 620.20 | EUR 172.42/month | EUR 194.13/month |
| EUR 1,000 | EUR 278.00/month | EUR 313.00/month |
| EUR 1,500 | EUR 417.00/month | EUR 469.50/month |
| Maximum — EUR 2,300 | EUR 639.40/month | EUR 719.90/month |
The totals are the sum of three separate payments — state social security (Pensions fund and, if chosen, Sickness & Maternity), the universal pension fund and health insurance — each rounded to the cent. At EUR 620.20 without S&M: 91.79 + 31.01 + 49.62 = EUR 172.42; with S&M the state social security payment becomes EUR 113.50 and the total EUR 194.13.
Choosing the monthly insurance base — strategy
When starting activity, a СОЛ chooses the monthly base on which advance contributions will be paid. The choice is important because it:
- Affects pension size — the pension formula uses insurance income.
- Determines sickness and maternity benefits (when GIM is elected) — these are 80–90% of the average insurance base over the preceding 24 months.
- Determines monthly cash outflow, regardless of actual revenue.
Three typical strategies
| Strategy | Suitable for | Consequences |
|---|---|---|
| Minimum — EUR 620.20 | Starters, unstable income, near retirement with incomplete service | Minimum cash burden; low future pension |
| Middle — EUR 1,000–1,500 | Established СОЛ with stable revenue | Balance between contributions and future benefits |
| Maximum — EUR 2,300 | Planning maternity; high actual income | Maximum benefits; no social contributions are due on monthly income above EUR 2,300 (EUR 2,111.64 until 31 July 2026) |
Rule: where actual income exceeds the maximum, social contributions are not due on the excess. Above EUR 2,300/month (EUR 2,111.64 until 31 July 2026) the additional burden is only 10% income tax (for free professions/partners), without social contributions.
Maternity planning. Maternity benefit is 90% of the average insurance base for 24 months prior to the event. A mandatory condition: at least 12 months of insurance with GIM. Women planning maternity often switch to the maximum 1–2 years before the event.
Registration and start of insurance
The procedure to start the СОЛ regime is simple, but meeting deadlines is critical:
- Declaration of commencement of activity — filed with the competent NRA directorate within 7 days of the actual start of activity. The form is available on the NRA portal.
- Choice of insurance base — the chosen monthly amount is stated in the same declaration (not below the minimum).
- GIM election — explicit mark if the person wishes voluntary GIM cover.
- Filing of Declaration Form No. 1 for insured person data — monthly by the 25th of the following month.
- Payment of contributions — also by the 25th of the following month.
Suspension and resumption
A СОЛ may pause insurance upon:
- Temporary incapacity (illness) — with GIM cover, contributions are not due during sick leave.
- Maternity — similarly.
- Termination of activity — by declaration to the NRA.
Without GIM and without terminating activity, contributions are due every month, regardless of actual revenue.
Final size of the insurance base (annual reconciliation)
At year-end, every СОЛ must reconcile advance contributions with actual income from the activity. The procedure is carried out via the annual income tax return under Art. 50 of the Personal Income Tax Act (PITA).
The Schedule and the Tables
- Table 1 — for persons receiving income under Art. 29 PITA (liberal professions, craftsmen, partners/managers with remuneration for personal work).
- Table 2 — for sole traders (ЕТ) with income from business activity under Art. 26 PITA.
In the monthly columns of the schedule, the actual insurance base is filled in, capped at the maximum. If the total annual income exceeds the amount on which advance contributions have been paid, a final additional contribution is due.
Deadlines
| Action | Deadline (for 2026 income) |
|---|---|
| Filing of Art. 50 PITA return + Schedule (Tables 1 and 2) | By 30 April 2027 (Art. 53(1) PITA) |
| Payment of final social contributions | By 30 April 2027 |
| Sole traders — Art. 50 PITA return | By 30 June 2027 |
| 5% PIT discount for electronic filing | By 31 March 2027 with full payment (Art. 53(6) PITA) |
Example — final reconciliation
A liberal-profession СОЛ pays advance contributions on the minimum base throughout 2026: 7 months × EUR 153.08 (to 31 July) + 5 months × EUR 172.42 (from 1 August) = EUR 1,933.66. At year-end the actual income from the practice (after 25% statutory expense deduction) is EUR 1,200/month.
- Annual actual insurance base: 1,200 × 12 = EUR 14,400
- Annual contributions on actual base: 14,400 × 27.8% = EUR 4,003.20
- Additional final contribution: 4,003.20 − 1,933.66 = EUR 2,069.54
This amount is paid by 30 April 2027 together with the annual tax return.
Personal income tax (PITA) for СОЛ
In addition to social contributions, a СОЛ pays personal income tax on taxable income. The rate and base depend on the category:
| Category | Taxable base | Statutory expense | PIT rate |
|---|---|---|---|
| Liberal professions, craftsmen, managers for personal work (Art. 29 PITA) | Income − 25% statutory expense − contributions | 25% | 10% |
| Royalties and licences (Art. 29(1)(2)(b) PITA) | Income − 40% statutory expense − contributions | 40% | 10% |
| Farmers (Art. 29(1)(1) PITA) | Income − 60% statutory expense − contributions | 60% | 10% |
| Sole traders (Art. 26 PITA) | Accounting profit (no statutory expense) | — | 15% |
Note: for sole traders the rate is 15%, not 10% — a key difference from other СОЛ categories. Combined with 8% health and 19.8% pension, the effective burden for sole traders is significant. See detailed analysis in our article on freelancer registration.
The KSO and PITA texts are available at lex.bg. NRA official information — at nra.bg/osiguryavam-se-sam.
СОЛ vs Single-shareholder LLC (ЕООД) — which is better
A common question: “Should I work as a liberal professional or set up an ЕООД?”. Short comparative overview (for personal annual income EUR 30,000):
| Parameter | СОЛ (liberal profession) | ЕООД with dividends |
|---|---|---|
| Social contributions | On chosen base, min EUR 172/month | On personal-work remuneration/ДУК only |
| Taxable base | 75% of income (25% statutory expense) − contributions | Corp. profit 10% + 5% dividend |
| Effective burden | ~33–38% (depending on package) | ~15% combined (10% + 5%) |
| Insurance service and pension | Mandatory accumulation | Only with personal work/ДУК |
| Complexity | Low — individual | Higher — accounting, annual report |
Rule of thumb: up to EUR 20,000–25,000 annually СОЛ is usually simpler and more flexible. Above EUR 30,000 ЕООД with a dividend policy often delivers a lower total burden — especially if accumulation of insurance service is not critical. Detailed analysis requires individual calculation.
Registering as СОЛ or considering a switch?
From selecting the insurance base to optimising the transition to ЕООД — the Innovires team runs a parallel calculation for your actual case: social contributions, personal income tax, VAT, future pension and benefits. Contact us for a consultation before starting activity or before filing the annual return.