Bulgaria is an EU country with the lowest taxes for freelancers at a 7.5% tax rate. As a freelancer (self-employed) in Bulgaria, you will be only taxed on 75% of your income as you will be entitled to statutory “recognized expenses” which automatically make up 25% of the income. A flat 10% tax rate is then applied over the rest of your income. As a result, when operating your freelance business as a sole proprietor in Bulgaria, your tax rate is reduced to 7.5% of your income derived from freelance work.