> And if your income is smaller than 710 BGN, even if it's straight zero, then you'll have to pay social security as if your income was 710 BGN
Is this really how it works? They're taxing people with 0 income? I guess it isn't relevant to the target audience of the article but it must suck for the unemployed.
> Accountant fees: about 150 - 200 BGN per month independently of the income.
This seems really high. Why do you need an accountant every month instead of once a year?
> Is this really how it works? They're taxing people with 0 income? I guess it isn't relevant to the target audience of the article but it must suck for the unemployed.
No no, the social security min base 710 BGN is only relevant if you declared that you're actively working, but in fact getting no income. If one decides to e.g. take a break for a year, they can declare that they don't actively working anymore, and thus they'll be paying a lot less (I don't know exact amounts though)
And also, unemployment is a whole lot different story, but I don't know details about that.
> This seems really high. Why do you need an accountant every month instead of once a year?
As already mentioned by phoronixrly, yes it's because of the VAT registration. Having that registration, accountants have to do some paperwork every month.
> In either case (company or individual), due to our line of business, most likely you'll also need to do the VAT registration. It's something like 150 - 200 BGN.
The VAT registration requires monthly declarations of VAT. Tracking your VAT takes time for the accountants as they need to summarize all your invoices, expenses, and other paperwork. Links (conveniently only available in Bulgarian):
In Spain for self employed workers there is also a minimum. If you do not want to pay it you need to unregister.
This does not apply for employees. It's just for self employed workers as it's more of a fee for the paperwork that you generate for the government than a tax on income.
> it's more of a fee for the paperwork that you generate for the government than a tax on income.
It’s more of a total ripoff. I do less than 20 invoices a year so 300$/month is ridiculously overpriced if it’s only supposed to cover “paperwork costs”.
Not sure how it works in Bulgaria, but over here in the Netherlands if your income is lower than some level you can (with some conditions) apply for unemployment benefits that will include enough money for the social security taxes. This is a bit roundabout (why not just withhold the social security money from the benefits in the first place?), but such are the joys of a complex tax system evolved over multiple centuries.
Same in Romania, there is a tax minimum that you need to pay even if you don't make that kind of money. on the other side, there is no max on taxes, sky is the limit.
Is this really how it works? They're taxing people with 0 income? I guess it isn't relevant to the target audience of the article but it must suck for the unemployed.
> Accountant fees: about 150 - 200 BGN per month independently of the income.
This seems really high. Why do you need an accountant every month instead of once a year?