Bulgaria

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Regulations for Working in Bulgaria

Overview

In Bulgaria, foreign companies must register posted employees via an online portal. Registration requires you to enter information about the company and employees as well as confirmation by e-mail. The portal also provides information on working conditions and sanctions, which are important for legally secure deployment in Bulgaria. Automated solutions make the process much easier.

EU Posted Workers Directive

Bulgaria has passed a law to implement the EU Posting of Workers Directive, which requires foreign employers to register posted employees. This applies to both services and intra-company transfers. Registration takes place via a online portal. Further information on sanctions, working conditions and case law is also available there.

What are the requirements?

The foreign employer must inform the labor inspectorate of changes to the posting.

e.g.

Change the duration of posting
Change of place of work
Change in the type of services provided

For this purpose, a new posting notification must be submitted.

Documents required

The Bulgarian body that receives posted workers must receive certain documents from the foreign employer:

employment contract (or equivalent document)
Legislation in force in the home country
Documents proving working time (e.g. time sheets)
Payslips or equivalent payroll documents

A Bulgarian translation is required for these documents, but this does not have to be certified or sworn. The foreign employer must be able to submit these documents up to 1 year after the posting is completed.

Penalties for violation

The Bulgarian labour authorities may impose fines if the regulations are not complied with.

Foreign employer

first infringement: 1,500 to 15,000 BGN (approx. 767 to 7,669€) per infringement
repeated violations: 15,000-20,000 BGN (approx. 7,669-10,226 €)

Responsible person

first infringement: 1,500 to 15,000 BGN (approx. 767 to 7,669€) per infringement
repeated violations: 15,000-20,000 BGN (approx. 7,669-10,226 €)

Institution that employs posted workers

first infringement: BGN 5,000 (approx. 2500€) per posted worker
repeated violations: 5,000-10,000 BGN (approx. 2,500-5,000 €)

Labor Law

Minimum wage and remuneration

Minimum gross monthly wage: 1.077 BGN (approx. 550 EUR)

Has been in force since January 1, 2025
Annual revision: The Bulgarian minimum wage is reviewed annually.
Since January 1, 2024, the minimum wage has been set at 50% of the average gross wage of the previous 12-month period.

Minimum wage through collective agreements

There is no generally applicable collective agreement in Bulgaria.
However, there may be collective agreements at company, sector, industrial or municipal level (with effect only for companies that apply or have signed them)
The minimum wage rates set out in collective agreements must not be lower than the national minimum wage
The minimum income subject to insurance depends on the profession and is generally higher than the minimum wage. The maximum income subject to insurance for 2023 is BGN 3,400 (approx. EUR 1,738)

Working time

Workers posted to Bulgaria are entitled to:

to work a maximum of 8 hours per day
to work a maximum of 40 hours per week

According to the Bulgarian Labour Code, overtime work is subject to certain restrictions and requires compliance with legal regulations on maximum working hours and rest periods.

Important Hints

Failure to comply with the employment laws applicable in the country may also result in financial obligations, fines or demands under local termination and working time laws.

Social Security

When a worker is posted to Bulgaria from an EU country, EU Regulation 883/2004 on the coordination of social security systems applies:

A1 certificate available: employee continues to be insured by the home country‍
without A1 certificate: The Bulgarian social security legislation, and the foreign employer must act like a Bulgarian employer.

Important Hints

The consequences of a violation may include extensive administrative obligations, back contributions (interest), increased audit costs and severe sanctions. In addition, significant reputation damage can occur in this context.

Income Tax

General regulation under Bulgarian law

Flat income tax of 10% on earned income, not 20% or 30%.

There is no “de minimis” period in which foreign workers automatically avoid Bulgarian tax
Double Taxation Agreements (DTA) between Bulgaria and the employee's home country specify whether Bulgaria can tax income earned during posting.

Tax liability and registration

If the employee's income becomes taxable in Bulgaria under the relevant DTA, the employee is responsible for reporting and paying Bulgarian income tax.
If the foreign employer has a permanent establishment in Bulgaria, additional tax obligations and withholding obligations may arise.

Discrepancies in the text provided

The text refers to tax rates of 20% and 30% plus an “18% surcharge”. This is not in line with current Bulgarian income tax legislation (where the standard tax rate is 10% and there is no national supplement).
When workers are posted from other countries that have progressive tax rates (20%, 30%, etc.) and local surcharges, these tax rates may apply in their home country — not in Bulgaria.

Important Hints

The consequences of a violation may vary depending on the situation, but there is often an immediate obligation to file a tax return in the destination country, which can have further, extensive consequences for employees and the company.

Immigration & Visas

International activities require exact compliance with international visa and entry requirements. The traveller, the type of activity, the purpose of stay and the duration are decisive for this, whether a business visa, a work visa or other special permits are required.

Important Hints

The consequences of a violation may include entry bans and associated loss of revenue, sanctions, fines and reputation damage.

Permanent Establishment

Employees working abroad can establish a permanent establishment through their activities in the target country and thus trigger a chain of financial and administrative consequences for companies.

Important Hints

The consequences of a violation may vary depending on the situation, but each establishment entails a significant administrative burden. In addition to registration, profit allocation and filing of the corporate income tax return, income tax obligations usually also arise.

Wichtige Hinweise

Important Hints