Bulgaria at a glance
Taxes in Bulgaria
Employer Contributions
| Contribution | Rate |
|---|---|
| Total employer tax | 18.92% – 19.62% |
| Social insurance (incl. pension at 8.22%) | 18.92% – 19.62% |
| Health insurance | 4.8% |
| Contribution | Rate |
|---|---|
| Total employer tax | 18.92% – 19.62% |
| Social insurance (incl. pension at 8.22%) | 18.92% – 19.62% |
| Health insurance | 4.8% |
| Contribution | Rate |
|---|---|
| Total employee tax | ~23.78% |
| Social security | 13.78% |
| Income tax (flat rate) | 10% |
Bulgaria uses a flat 10% income tax rate — one of the lowest in the EU.
Employer of Record in Bulgaria
How Remote& EOR Works
Standard EOR structures are not recognized under Bulgarian law. A temp agency licence is required, and Remote& holds one. This licence allows Remote& to serve as the legal employer of your Bulgarian workers, managing payroll, tax compliance, benefits, and employment agreements.
| Party | Role |
|---|---|
| Your Company | Directs work, manages tasks and performance |
| Remote& | Holds temp agency licence; runs payroll, files taxes, ensures compliance |
| Employee | Signs contract with Remote& and fulfills work obligations for your company |
Ask Remi:
"Hire a backend developer in Bulgaria — €3,000/month, starting next quarter" Remi handles everything: compliant contract, payroll registration, tax filings, and benefits setup.
Benefits in Bulgaria
- Medical examinations: Many employees require a preliminary medical check upon hiring and periodic follow-ups based on age or role
- Occupational safety and health training: Mandatory for all employers to provide during work hours, at employer expense
- Additional pension contributions
- Extra days off
- Transport allowance
- Life insurance
- Supplementary health insurance
- Cash bonuses
- Flexible working arrangements
- Multisport cards
Leave entitlements
| Leave type | Entitlement |
|---|---|
| Paid Annual Leave | 20 days + public holidays |
| Sick Leave | Unlimited (employer covers first 2 days at 70%; National Social Security Institute covers the remainder) |
| Maternity Leave | 410 days paid |
| Paternity Leave | 15 days paid |
| Parental Leave | Unlimited until child turns two |
Employment conditions
Probation
The probationary period is negotiated between employer and employee but cannot exceed 6 months. A probation clause may only be included once per employee per position at the same company.
Non-Compete
Post-employment non-compete clauses restricting work with competitors are considered void under Bulgarian law.
Employee Rights & Protections
Workers are entitled to: a written employment contract, personal data protection, union membership, harassment and discrimination protection, preservation of employment through employer changes, equal treatment, mandatory medical exams, and pay transparency.
Payments
End of employment in Bulgaria
Bulgarian law provides four termination pathways:
1. Mutual agreement — permitted at any time 2. Notice-based termination — by either party with a specific, justified written reason per the Labour Code 3. Immediate termination — by either party without notice period in specific circumstances 4. Fixed-term contract expiration — automatic end on agreed date
Certain employee categories receive additional protection against notice-based termination. Employees with at least 12 months of social insurance contributions in the preceding 18 months qualify for unemployment compensation. Severance includes unused annual leave plus notice-period pay or up to one month's salary in specific scenarios.
Frequently asked questions
Four main routes: run payroll from HQ for short-term cases; engage contractors for project-based work; establish a local entity for direct employment; or partner with a licensed temp agency like Remote&. The temp agency route is the only compliant EOR-style path in Bulgaria.