Labor Laws in Bulgaria
- Annual Leave: 21 days
- Maternity Leave: 410 days
- Public Holidays: 11
- Workweek: 38.5 hours per week.
Grow Your Workforce in Bulgaria
Get everything you need to hire talent in Bulgaria. Download our comprehensive guide for hiring in this expanding market.
Capital:
Sofia
Language:
Bulgarian
Currency:
Bulgarian lev
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- 1 Hiring Employees in Bulgaria
- 02 Labor Laws in Bulgaria
- 15 Bulgaria Salary and Wages
- 05 Income Tax in Bulgaria
- 06 Social Security in Bulgaria
- 07 Deductible Expenses in Bulgaria
- 08 Immigration Bulgaria
- 09 Value Added Tax (VAT) in Bulgaria
- 10 Withholding Tax in Bulgaria
- 11 Mandatory Benefits in Bulgaria
- 12 Payroll In Bulgaria
- 13 Payroll Accrual in Bulgaria
- 14 Accrued Benefits in Bulgaria
- 15 Why use Global Expansion to hire in Bulgaria
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Income Tax in Bulgaria
Individuals are taxed in Bulgaria based on their tax residency status. Bulgarian tax residents are taxed on their worldwide income.
Non-residents are taxed in Bulgaria only on their Bulgarian-source income, which has a very broad legal definition.
A flat tax rate of 10% applies to all personal income, with some exceptions.
Value Added Tax (VAT) in Bulgaria
The standard VAT rate in Bulgaria is 20%.
Social Security in Bulgaria
The social security system aims to guarantee a stable standard of living for everyone. The Bulgarian social security system covers the following risks:
- General disease,
- Work-related accidents,
- Occupational disease,
- Maternity,
- Unemployment,
- Old-age,
- Death.
The employer is obligated to report the conclusion of an employment contract within three days to the National Revenue Agency. Besides, he must pay the social security contributions by the 25th of the following month (Article 7 (1) of the Social Security Code (SSC.)
The total national insurance contribution rate (social security and health insurance) is 32.7% to 33.4%, of which 18.92% to 19.62% is payable by the employer and 13.78% is payable by the employee.
Work Visas in Bulgaria
Here is work visa information for Bulgaria, download our guide for an extensive breakdown.
The Employment Promotion Act is the main legal framework regulating the employment of foreign citizens in Bulgaria. However, not all foreign citizens are required to apply for a work permit when coming to work in Bulgaria.
EU and Swiss citizens are not required to obtain Bulgarian labor permits; they must only register with the local Employment Office of the region they live in.
Non-EU citizens must first apply for a work permit with the National Employment Agency before starting work for a Bulgarian company. The employer must apply for the foreign employee’s Bulgarian labor permit.
Hire Bulgarian Talent with Global Expansion
Setting up a company in Bulgaria can be expensive and complex. Global Expansion simplifies your entry into this market.
We handle hiring, HR, and payroll while ensuring compliance with local regulations, all without establishing a local entity.
Our Bulgaria Employer of Record (EOR) solution allows you to focus on your business growth.
Ready to hire anywhere in the world?
Grow your team the right way with Global Expansion.
