Bulgaria

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.

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.

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.

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.

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.

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.

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.