Influencer in Bulgaria: taxes and social security

When we talk about modern, next-generation professions, influencer is usually the first one that comes to mind. Many people look at it with a smirk, while others make a living this way and build professional careers in front of audiences that sometimes number in the millions. In this article we explain how taxes and social security work for influencers on some of the better-known platforms.

The NRA’s position

The activity of influencers is not unknown to the National Revenue Agency (NRA), which has even published a special brochure on the taxation of income from various platforms. The NRA says that the income may fall into different categories:

• Business activity for some types of income, for example advertising income such as AdSense;
• Copyright and royalty income for subscriptions and other income;
• Other income for donations received on the platforms.

This approach is partly correct, but it does not clearly separate when income comes from business activity and when it is something else. For some types of income we can argue that the platforms themselves treat them as royalties. This is the case with YouTube and TikTok, and with other platforms as well.

What the NRA brochure says about the different types of income

In its brochure “Profession: influencer. Taxes and social security”, the NRA looks at income by its source and by whether it is regular. The main points are:

• Ads on the watch page (AdSense on YouTube): if the person does not carry out business activity, or the activity is not related to the channel, the income is taxable income from other sources under Art. 35(6) of the Personal Income Tax Act (PITA) (Appendix No. 6, 10%). If the payments are regular and a permanent source of income, the NRA treats them as business activity of a sole trader (Appendix No. 2, 15% on the taxable profit).
• Channel memberships, Super Chat, Super Stickers and Super Thanks: copyright and royalty income, where they cannot be classified as business activity of a sole trader.
• Subscriptions for access to content (for example OnlyFans): copyright and royalty income, if the income is not regular and is not connected to the person’s main activity. If it is regular and received on a habitual basis, the NRA treats it as trade activity.
• Sale of own goods (merch): business activity, taxed under the general rules for online sales.
• Copyright and royalty income is declared in Appendix No. 3 to the annual return and is taxed at 10% after deducting 40% statutory expenses. For a freelance professional the statutory expenses are 25%.

The same understanding is expressed in a published 2026 NRA opinion on an inquiry from a person who receives payments from Google Ireland for ads on their YouTube video channel. According to it, where the activity is systematic, organised and profit-oriented, the income is business activity as a trader under Art. 26(7) PITA, is taxed at 15% on the taxable profit under the Corporate Income Tax Act, is declared in Appendix No. 2 and is insurable income.

The NRA’s earlier practice is more favourable. In an opinion of 9 November 2022 on an inquiry from a person who receives advertising income from Google Ireland on their YouTube channel, the agency accepts that, where there is no connection to business activity, this income is other income under Art. 35(6) PITA. It is declared in Appendix No. 6 without statutory expenses and is not insurable income. The two opinions do not contradict each other because the facts are different, but they show that the classification depends on how the activity is organised.

The practical difference is significant: the same advertising income can be taxed at an effective 6% as royalty income or at 15% as trade activity. That is why the regime should be assessed before the first payment, not when the return is filed.

Deadlines and penalties

The annual tax return under Art. 50 PITA is filed by 30 April (by 30 June for sole traders). If it is not filed on time, the NRA imposes a fine or property sanction of up to EUR 255.65, and up to EUR 511.29 for a repeat offence. Incorrect data that leads to lower tax or no tax being paid is punished with a fine of up to EUR 511.29, and up to EUR 1,022.58 for a repeat offence. The NRA receives data on the income of Bulgarian citizens from platforms, courier companies, employers and international companies.

How Tax Monkey classifies the income

The NRA’s approach, as described in the agency’s materials, although it has some merit, suffers from one major drawback. It does not separate adequately the income that influencers receive from the respective platforms according to its nature, but tries to cover it as a whole. The NRA brochure also does not address at all the possibility of operating as a freelance professional, which in practice is one of the most common choices for content creators.

Before we go through the platforms one by one, here are the different types of income in table form:

How the rates in the table are calculated

The statutory expenses under Art. 29 PITA are deducted without proof, and 10% tax is due on the remainder. This gives the effective rate on gross income:

• Copyright and royalty income: 40% statutory expenses, taxable income 60%, tax 10% × 60% = 6% of gross income.
• Freelance professions and remuneration under non-employment contracts: 25% statutory expenses, taxable income 75%, tax 10% × 75% = 7.5% of gross income.
• Other income under Art. 35 PITA (donations): no statutory expenses, tax of 10% on the whole income.

Example: with EUR 12,000 of annual royalty income, taxable income is EUR 7,200 and the tax is EUR 720. For the same amount in donations the tax is EUR 1,200, and for payments from advertisers for product promotion (taxable income EUR 9,000) the tax is EUR 900. These amounts do not take into account social security contributions and the other reliefs in the annual return.

The classification in the table is Tax Monkey’s legal position. It is not binding on the NRA, which may classify regular and organised income as business activity. For larger amounts we recommend assessing the regime in advance.

How the platforms themselves treat the income

Different platforms take different approaches, but the larger ones treat all income that individuals receive from the platforms themselves as copyright payments (royalties). This is evident from the platforms’ terms and conditions and from the documents they issue for tax purposes. For example, YouTube withholds tax on income from US viewers because it treats the income, including from AdSense, as royalties and withholds tax under the treaty between Bulgaria and the USA.

In practice the platform takes the view that it is the one exploiting the content commercially, not the author of the content. The author simply receives remuneration for having licensed the content. For this reason the income is considered royalties.

US tax withholding on YouTube payments

YouTube requires all monetising creators, regardless of their country, to submit tax information in AdSense for YouTube. Google withholds tax only on income from viewers in the USA, which includes ads, YouTube Premium, Super Chat, Super Stickers, Super Thanks and channel memberships. For creators outside the USA the rate is between 0% and 30%, depending on whether the country has a treaty with the USA.

If no tax information is submitted, Google may withhold up to 24% of the creator’s total worldwide income, not just the US income. For a “Business” account outside the USA the default rate is 30% of US income. The tax information must be submitted by 10 December for the reduced rate to apply for the current year. The forms expire at the end of the third full calendar year after the year of signing and must be submitted again.

Bulgarian creators can claim relief under the Bulgaria-USA double taxation treaty. Under the treaty the rate for copyright and royalty income is 5%. The tax withheld in the USA can be deducted as a foreign tax credit under the PITA when filing the annual return, but the income must still be declared in full in Bulgaria.

The amounts withheld are visible in the payment report in AdSense for YouTube, not in YouTube Analytics. For the tax withheld, Google issues an annual document (for example Form 1042-S) by 14 April of the following year.

What is the right approach for a professional influencer?

In our team’s view, influencers who do this professionally should register in the BULSTAT register as persons practising a freelance profession. Having acquired this status, they must also register as self-insured persons with the NRA. This does not mean that all the income they receive would be freelance income. On the contrary, most of it would remain royalty income. It does mean, however, that social security contributions must be paid, and that for most platforms VAT registration will also be needed.

The mandatory steps are:

1. Registration as a freelance professional in the BULSTAT register;
2. Registration as a self-insured person with the NRA;
3. Almost always, VAT registration.

Monthly obligations of influencers

• Social security contributions on the minimum insurable income;
• Advance and annual tax;
• VAT on a monthly basis;
• Possibly an equalisation of contributions at the end of the year, if the average monthly insurable income is above the minimum.

From 1 August 2026 the minimum monthly insurable income for self-insured persons is EUR 620.20 and the maximum is EUR 2,300 (State Social Security Budget Act for 2026, State Gazette No. 68 of 28 July 2026). Until 31 July 2026 the minimum was EUR 550.66 and the maximum EUR 2,111.64.

The contributions are 27.8% of the chosen insurable income, or 31.3% when the General Illness and Maternity fund is included (indicative, for persons born after 31 December 1959). At the minimum insurable income of EUR 620.20 this is about EUR 172.42 per month without the General Illness and Maternity fund and about EUR 194.12 with it. The contributions are entirely at the expense of the self-insured person.

The final amount of insurable income is determined after the end of the year on the basis of the data in the statement attached to the annual tax return. When the average monthly insurable income is above the minimum, additional contributions are due. The start, interruption, resumption and termination of the activity are declared with a Form OKd-5 within 7 days.

Value added tax (VAT)

From 1 January 2026 the national threshold for mandatory registration under Art. 96 of the VAT Act is EUR 51,130 of annual turnover in the country. The application is filed within 7 days after the threshold is exceeded.

Regardless of turnover, Art. 97a(2) of the VAT Act requires registration of a taxable person established in Bulgaria who supplies services to a taxable person established in another Member State, where the place of supply of the service is in that State (Art. 21(2) of the VAT Act). This is the typical case with payments from Google Ireland for ads on YouTube, where the creator carries out an independent economic activity. This is assessed on the facts: regularity, organisation and profit motive.

The registration application under Art. 97a(2) of the VAT Act is filed at the latest 7 days before the date on which the tax on the service becomes chargeable, i.e. in practice before the first payment from the platform. Late registration leads to VAT and interest being assessed in an audit, as shown by the case described in the “Case law” section.

A separate question concerns the fees and commissions that platforms withhold from payments to the creator. If they are treated as a service received by the creator, the place of supply is in Bulgaria (Art. 21(2) of the VAT Act) and the VAT on them is payable by the creator under the reverse charge (Art. 82(2) of the VAT Act). Where the supplier is established outside the country, receiving such services is in itself grounds for registration under Art. 97a(1) of the VAT Act. The court adopted exactly this approach for Patreon’s fees.

Registration under Art. 97a does not give a right to input VAT credit. The registered person issues invoices without VAT to the platform (the tax is accounted for by the recipient in the other Member State) and files a monthly VAT return and a VIES declaration. Taxable supplies in the country, for example advertising for a Bulgarian advertiser, count towards the threshold under Art. 96 and may lead to full VAT registration.

Data the NRA receives from platforms

In its influencer brochure the NRA states that it receives data on the income of Bulgarian citizens from various platforms, courier companies, employers and international companies. As a result, failure to file a return and incorrect data are easily detected. For income missed in past years, a corrective return can be filed, after first assessing the limitation periods and penalties.

Income by platform

YouTube

AdSense for YouTube payments to creators in the EU are made by Google Ireland Limited. Income from ads, YouTube Premium, channel memberships, Super Chat, Super Stickers and Super Thanks is paid out through AdSense for YouTube. The tax treatment depends on the type of income:

• Ads and YouTube Premium: royalty income, effective tax 6%. The NRA may treat them as business activity (15%) if they are regular.
• Channel memberships: royalty income, effective tax 6%.
• Super Chat, Super Stickers and Super Thanks: in our position donations (other income), tax 10% and no social security contributions. In its brochure the NRA includes them in royalty income where they are not business activity.
• Payments from advertisers for integrations and sponsored videos: remuneration for a freelance service, effective tax 7.5% and insurable income.
• Sale of own goods (merch): business activity.

The first step is to submit tax information in AdSense for YouTube (see above). Income in foreign currency is converted at the official exchange rate on the date the payment is received.

TikTok

TikTok pays creators under several separate programmes, and access to them depends on the country, age (over 18), number of followers and views. The Creator Rewards programme (the successor of the Creator Fund) is available only in selected countries, so before planning income from it, check in the app whether it is available for your country. LIVE gifts require at least 1,000 followers.

Tax treatment of the main income:

• Creator Rewards (remuneration for original video content): royalty income, effective tax 6%.
• LIVE gifts and gifts on videos (virtual gifts that TikTok exchanges for “diamonds” and pays out as money): in our position donations, other income under Art. 35(6) PITA, tax 10% and no social security contributions. The taxable income is the amount actually received from TikTok after the platform’s deductions, not the value of the gifts in coins.
• Affiliate commissions (TikTok Shop Affiliate) and paid partnerships with brands (including through Creator Marketplace): remuneration for a freelance service, effective tax 7.5% and insurable income.
• Sale of own goods through TikTok Shop or the profile: business activity as a trader.

For systematic and organised streams the risk that the NRA will classify LIVE income as business activity is higher. The payment reports from the platform and bank statements are the primary document for the income. Payments from a platform established in another Member State lead to registration under Art. 97a of the VAT Act if the creator carries out an independent economic activity.

OnlyFans

OnlyFans is operated by Fenix International Limited (United Kingdom). The platform collects payments from subscribers and withholds a 20% commission. In its judgment of 28 February 2023 in case C-695/20, the Court of Justice of the EU confirmed that the operator of such a platform is considered the supplier of the services to users and owes VAT on the entire amount paid by subscribers, not only on its commission. The creator does not charge consumer VAT to subscribers. Their supply is to the platform.

Tax treatment of the main income:

• Subscriptions: royalty income, effective tax 6% and minimum social security contributions when registered as a freelance professional. The NRA accepts the same only when the income is not regular and is not connected to the main activity; for regular income received on a habitual basis the NRA treats it as business activity (15%).
• Tips: donations, other income under Art. 35(6) PITA, tax 10% and no social security contributions.
• Content produced to the individual order of a specific subscriber: in our assessment remuneration for a freelance service, effective tax 7.5% and insurable income.

The creator’s supply is to Fenix International Limited, which is established in the United Kingdom, i.e. outside the EU. For this reason receiving payments from OnlyFans does not in itself fall within Art. 97a(2) of the VAT Act, which concerns recipients established in another Member State. Whether VAT registration is needed depends on the person’s other income and on the general grounds in the law.

A separate risk is the 20% commission. If the NRA applies the approach from the Patreon case (see “Case law”) and accepts that the commission is a service that Fenix provides to the creator, VAT on it is payable by the creator under the reverse charge, and receiving the service is grounds for registration under Art. 97a(1) of the VAT Act. The CJEU judgment in the Fenix case supports the opposite view, under which the platform acts in its own name and there is no separate service to the creator. We have not found Bulgarian case law on OnlyFans on this question.

Payments go through payment operators and bank accounts, and the income is declared in Bulgaria regardless of the type of content and the country of the platform.

In December 2024 the NRA sent emails to 962 persons who, from 2018 until early 2023, received a total of around BGN 14 million from a subscription platform for adult content without declaring it. The data was provided to the NRA by the platform itself. The agency states that the income is declared in Appendix No. 2 or Appendix No. 3 to the annual return.

Other platforms

The same approach applies to Instagram and Facebook (Meta), Twitch, Patreon and other similar platforms. What matters is the nature of the payment, not the platform: advertising income and paid subscriptions follow the treatment of royalty income, donations and tips are other income, and payments from advertisers for product promotion are remuneration for a service. The sale of own goods is business activity.

Case law

As of October 2026 we have not found a published judgment of the Supreme Administrative Court ruling on the classification of income from YouTube, TikTok or OnlyFans under the PITA. For now, the main guidance is therefore the NRA’s brochure and opinions. There are, however, judgments that directly concern content creators:

• Judgment No. 100 of 19 April 2022 of the Administrative Court of Veliko Tarnovo in administrative case No. 622/2021 (YouTube and Patreon). A video content creator receives payments from Google Ireland for ads on their YouTube channel and subscriptions from followers through Patreon. The court accepts that they carry out an independent economic activity and should have filed a registration application under Art. 97a(2) of the VAT Act at the latest 7 days before the first payment from Google. The fee withheld by Patreon is a service received by the creator, with place of supply in Bulgaria, and the VAT on it is payable by them under the reverse charge. Because of the late registration, VAT and interest were assessed. According to the published data, the judgment entered into force on 13 March 2023.
• Judgment of the CJEU of 28 February 2023 in case C-695/20 Fenix International (OnlyFans). The operator of a platform that sets the general terms and conditions, authorises the payment or the delivery, is considered the supplier of the services to the end users and owes VAT on the entire amount paid by them.
• Judgment No. 5453 of 24 September 2021 of the Administrative Court Sofia City in administrative case No. 3825/2020. The court annuls a tax assessment notice that classified an individual’s income as business activity of a trader under Art. 26(7) PITA on the basis of summary statements from a courier company. According to the court, such statements are not an accounting document, and the NRA must establish how the activity was actually carried out. The case is not about platforms, but the argument applies when the NRA classifies platform income as trade activity solely on the basis of summary data received about it. The judgment is subject to cassation appeal and we have not found information about the outcome.

The conclusion is that in a dispute with the NRA the facts are decisive: how the activity is organised, how systematic the income is and what the contracts with the platforms say. For this reason we recommend keeping the platforms’ terms and contracts, payment reports and bank statements for every year.

Frequently asked questions

Is income from YouTube, TikTok and OnlyFans taxable in Bulgaria?

Yes. The income of local individuals from platforms is taxed under the PITA regardless of the platform and of the country in which the payer is established. It is declared in the annual tax return under Art. 50 PITA by 30 April of the following year.

Does an influencer need to register as a freelance professional?

According to Tax Monkey, professional and systematic activity requires registration as a freelance professional in the BULSTAT register and as a self-insured person with the NRA. Most income remains royalty income with an effective tax of 6%. The start of the activity is declared with a Form OKd-5 within 7 days.

How much tax is paid on AdSense?

According to Tax Monkey, AdSense income is royalty income: 40% statutory expenses, 10% tax on the remainder, effectively 6% of gross income. The NRA may take the view that regular AdSense income is business activity with 15% tax on the taxable profit, so the regime should be determined before the first payment.

Are donations, Super Thanks and tips taxable?

Yes. In our position these are other income under Art. 35(6) PITA: 10% tax on the whole income, no statutory expenses and no social security contributions. They are declared in Appendix No. 6 to the annual return.

Is VAT registration needed for AdSense and TikTok income?

Usually yes. Where the platform is established in another Member State (for example Google Ireland), Art. 97a(2) of the VAT Act requires registration regardless of turnover, if the person carries out an independent economic activity. Registration does not give a right to input VAT credit. The general registration threshold under Art. 96 of the VAT Act is EUR 51,130 of annual turnover in the country.

What are the minimum social security contributions for a self-insured person in 2026?

From 1 August 2026 the minimum monthly insurable income is EUR 620.20. At a rate of 27.8% the contribution is about EUR 172.42 per month, and at 31.3% (with the General Illness and Maternity fund) about EUR 194.12. Until 31 July 2026 the minimum insurable income was EUR 550.66.

Does YouTube withhold tax and can double taxation be avoided?

Google withholds tax only on income from viewers in the USA, at a rate between 0% and 30%. The reduced rate under the Bulgaria-USA treaty applies if the tax information is submitted in AdSense by 10 December. The tax withheld can be deducted as a tax credit when filing the annual return in Bulgaria.

Can actual expenses be deducted instead of the statutory ones?

For royalty income and freelance professions the statutory expenses of 40% and 25% apply without proof. For business activity as a trader, the taxable profit is determined under the Corporate Income Tax Act on the basis of the expenses recorded.

What are the penalties for undeclared income?

Failure to file a return on time is punished with a fine of up to EUR 255.65, and up to EUR 511.29 for a repeat offence. Incorrect data leading to lower tax is punished with a fine of up to EUR 511.29, and up to EUR 1,022.58 for a repeat offence. The tax due and interest are added to these.

Does OnlyFans pay VAT instead of the creator?

According to the CJEU judgment in case C-695/20 Fenix International, the operator of a platform such as OnlyFans is considered the supplier to users and accounts for VAT on the entire amount paid by subscribers. The creator does not charge consumer VAT to subscribers, but declares their income for income tax purposes and assesses whether there are grounds for VAT registration.

When is a single-member company (EOOD) more suitable than a freelance profession?

An EOOD may be more advantageous at higher income, since profit is taxed at 10% corporate tax and the distributed dividend at 5% tax. The company requires accounting and an annual financial statement, and the manager’s social security record depends on their contract. The choice requires a calculation for the specific case.

Is there case law on the taxation of income from YouTube and other platforms?

We have not found published Supreme Administrative Court practice on the classification of this income under the PITA. On VAT, the Administrative Court of Veliko Tarnovo holds that a creator who receives payments from Google Ireland must register under Art. 97a(2) of the VAT Act before the first payment, and that the fees withheld by Patreon are a service on which the creator owes VAT under the reverse charge (Judgment No. 100 of 19 April 2022 in administrative case No. 622/2021).