HR, PEO & Employer of Record (EOR) Services in Bulgaria

Introduction

Bulgaria offers a unique mix of low operating costs, a flat 10% corporate tax rate, and access to EU markets, making it an attractive gateway to Europe. Its talent pool, especially in IT, engineering, and shared services, has positioned the country as a leading destination for global expansion. For businesses looking to scale efficiently, Bulgaria delivers both cost advantages and strategic growth potential.

EOR & PEO Solutions in Bulgaria

If you’re looking to hire employees in Bulgaria without setting up a legal entity, using an Employer of Record (EOR) like Empleyo is the simplest and most compliant path forward. An EOR in Bulgaria acts as the official legal employer on your behalf, managing everything from payroll and HR administration to employment contracts and statutory employee benefits.

This model allows you to expand into Bulgaria quickly, while remaining fully compliant with local labor laws without the complexity or cost of registering a local entity.

What Is an Employer of Record in Bulgaria?

An Employer of Record Bulgaria (also known as an EOR provider) enables businesses to hire and onboard Bulgaria employees without having to incorporate in-country. The EOR manages:

You continue to oversee your team’s day-to-day tasks, while the EOR service handles legal obligations as the official employer on paper.

What’s the Difference Between EOR and PEO?

A Professional Employer Organization (PEO) typically supports businesses that already have a registered entity in Bulgaria, offering co-employment solutions for HR, payroll, and benefits. An EOR, however, is ideal when you don’t have a legal presence in Vietnam but still want to hire full-time staff.

Whether you choose an EOR or PEO depends on your Bulgaria hiring strategy, budget, and long-term plans for the market.

Benefits of Using an EOR Service in Bulgaria

By using an EOR solution, companies can confidently build their team in Bulgaria, access top talent in Bulgaria, and stay focused on business growth — without getting tangled in bureaucracy.

Hiring in Bulgaria

Bulgaria is a thriving market with a growing pool of skilled professionals, making it an ideal destination for businesses looking to expand globally. But to hire in Bulgaria successfully, it’s important to understand your options especially when you don’t have a legal entity in Bulgaria.

That’s where using an Employer of Record in Bulgaria makes all the difference.

Your Hiring Options in Bulgaria

Businesses have two main paths to hire employees in Bulgaria:

The second option is faster, lower-risk, and ideal for companies that want to test the market, launch quickly, or hire remote employees without permanent infrastructure.

Why Use an EOR to Hire in Bulgaria?

This approach is especially useful for startups, global teams, and growing businesses that need to hire quickly and remain fully compliant.

Employment in Bulgaria

Understanding how employment in Bulgaria works is key to managing your team successfully and staying compliant. Whether you’re hiring directly or using an Employer of Record (EOR), companies must follow labor laws closely especially when it comes to employment contracts, payroll, and employee benefits.

That’s why many growing businesses choose to use an EOR in Bulgaria to handle these responsibilities with confidence.

Employment Contracts in Bulgaria

All employees in Bulgaria must be hired under a written employment contract, clearly outlining the job role, salary, benefits, working hours, and duration of employment. Contracts must comply with the Labor Code of Bulgaria, and are usually signed before or on the first day of work.

By working with a Bulgaria employer of record, you can ensure that all employment contracts in Bulgaria are properly structured, compliant, and aligned with local requirements without having to hire a full in-house HR team.

Payroll & Employer Contributions

Payroll in Bulgaria involves more than just paying a monthly salary. Employers are required to withhold income tax and make contributions to:

These deductions and employer contributions are calculated based on the employee’s gross monthly salary, and must be submitted on time to remain compliant. An EOR in Bulgaria handles this for you, managing all payroll, tax filings, and reporting on your behalf.

Employee Benefits and Leave

labor law mandates several employee benefits, including:

Using an employer of record service ensures your team in Bulgaria receives all required benefits and that your business remains fully compliant with employment law.

Termination & Notice Periods

Ending an employment contract in Bulgaria requires strict adherence to the country’s labor code, which mandates clear procedures and notice periods depending on the contract type and reason for termination. Notice periods typically range from 30 days for indefinite contracts to up to 3 months in some cases, while dismissals must be supported by lawful grounds such as redundancy, performance issues, or mutual agreement.

An Employer of Record (EOR) ensures businesses remain compliant with these regulations, reducing legal risk and providing a seamless offboarding process for both employer and employee.

Visas & Permits in Bulgaria

If you’re planning to hire employees in Bulgaria or bring in foreign talent, understanding Bulgaria’s visa and permit requirements is critical. Navigating these processes can be complex, but working with a trusted Employer of Record (EOR) in Bulgaria makes it much easier.

An experienced EOR provider will ensure all permits are handled legally, so you can focus on building your team in Bulgaria with confidence.

Work Permits for Foreign Employees in Bulgaria

Foreign nationals who plan to work in Bulgaria must obtain the appropriate work authorization, which is typically tied to an employment contract and requires coordination with local authorities. The process involves securing both a work permit and a long-term residence permit, with requirements varying based on role, qualifications, and duration of stay.

Partnering with an Employer of Record (EOR) simplifies this process by managing applications, compliance, and ongoing employment administration — allowing businesses to seamlessly onboard global talent while staying fully aligned with Bulgarian labor and immigration laws.

Types of Visas for Foreign Talent

There are several types of visas used to work or do business in Bulgaria, including:

Each visa type has specific use cases, duration limits, and documentation requirements. If you’re looking to hire in Bulgaria or send international staff temporarily, an EOR Bulgaria solution helps you identify the right visa and manage the application process end-to-end.

Business Permits for Foreign Companies

To operate directly in Bulgaria, foreign companies typically need to register a legal entity in Bulgaria and apply for a business license. This can be a time-consuming process that includes office registration, investment approvals, and compliance with labor laws.

Alternatively, you can use an EOR in Bulgaria to bypass the need for a local entity. The Bulgaria employer of record is already registered and authorized to employ staff and manage payroll, contracts, and local compliance making it easier and faster to hire employees in Bulgaria.

Why Visas & Permits Matter for Global Hiring

If you’re hiring foreign employees in Bulgaria, or placing international staff in-country, it’s essential to stay compliant with immigration laws. The right employer of record service helps you:

Common Questions on EOR in Bulgaria

How quickly can we hire employees in Bulgaria using an EOR?

With an EOR, companies can typically onboard employees in Bulgaria within a few days to a couple of weeks, since the EOR already has a legal entity and payroll structure in place—removing the need for lengthy company registration or local setup.

What types of employment contracts are possible under an EOR in Bulgaria?

EORs can provide both indefinite and fixed-term contracts in line with Bulgarian labor law, ensuring that terms such as working hours, probationary periods, and notice periods comply with statutory requirements.

What licensing and registration does an EOR need in Bulgaria?

To operate as an EOR in Bulgaria, a provider must be a licensed Professional Employment Organization (PEO) and be registered with the National Employment Agency as a temporary-employment provider. They must also maintain active employer’s responsibility insurance to legally offer employment services.

What local compliance obligations does an EOR handle in Bulgaria?

An EOR in Bulgaria is responsible for drafting legally compliant written employment contracts in Bulgarian (or English), registering employment with the National Revenue Agency, managing payroll and withholding for personal income tax (10%), social and health insurance, calculating severance or termination liabilities, and ensuring adherence to Labor Code rules on probation, working hours, leave entitlements, and terminations.

What probation and notice periods apply under Bulgarian EOR contracts?

Probation periods can last up to six months for indefinite-term contracts, and one month for fixed-term contracts under one year. Notice periods generally span at least 30 days (can go up to 90 days based on contract). Fixed-term contracts may stipulate notice aligned with the remaining term.

Can an EOR help with salary benchmarking and competitive compensation?

Given Bulgaria's competitive labor market, businesses are often looking for guidance on setting a fair yet sustainable salary structure. They ask if an EOR can provide insights into local market rates.