Employer of Record (EOR) in Bulgaria

Expanding into Bulgaria offers access to a well-educated workforce, stable EU market conditions, and competitive labour costs, but navigating the country’s employment laws, tax obligations, and registration processes can be a significant barrier for companies without a local presence.

For employers looking to engage talent quickly and compliantly, without establishing a Bulgarian legal entity, a Global Employer of Record (EOR) provides a legally sound alternative.

Hiring in Bulgaria Without an Entity: What a Global EOR Enables

Hiring employees in Bulgaria requires compliance with local labour law, payroll tax systems, and employment contract formalities — all of which are regulated at the national level and enforced through multiple agencies. For companies without a Bulgarian legal entity, these requirements present a significant operational barrier.

A Global Employer of Record (EOR) offers a practical and compliant solution. Acting as the legal employer on behalf of the client, the EOR enables companies to onboard staff in Bulgaria without registering a local business or opening a payroll account with the National Revenue Agency.

The EOR assumes responsibility for employment contracts, income tax withholding, social contributions, and termination procedures, while the client retains operational control over the employee’s daily work.

This model is increasingly used for market entry, remote team expansion, executive hiring overseas, and contractor conversion, especially where businesses need flexibility without compromising compliance.

Core Functions of an Employer of Record in Bulgaria

Immigration Support

For non-EU nationals, legal employment in Bulgaria requires work permits and residence authorisation. An Employer of Record (EOR) in Bulgaria can sponsor the necessary work permits and manage the documentation process with Bulgarian immigration authorities. The EOR ensures all employees, whether relocated or locally hired, are employed within the bounds of Bulgarian law.

Employee Onboarding

Under Bulgarian law, employment agreements must be in writing and submitted to the National Revenue Agency before the employee begins work. An Employer of Record (EOR) in Bulgaria handles the employment registration process, drafts compliant contracts in Bulgarian, and ensures all statutory onboarding steps are completed. For expatriates, this includes immigration support where required.

Employment Contracts

The EOR prepares contracts that comply with the Bulgarian Labour Code and reflect local norms around notice periods, probation, social benefits, and salary structure. Fixed-term contracts are permitted only under specific legal grounds, and all agreements must be signed before work begins. The EOR ensures the contract format, content, and submission process are legally valid.

Payroll and Tax Compliance

Bulgaria applies a flat 10% income tax rate, with mandatory employer and employee contributions to social security, health insurance, and unemployment funds. The EOR processes payroll, calculates all deductions, issues payslips, and files reports with the relevant tax and insurance bodies. Payments are made in Bulgarian lev (BGN) and in accordance with local banking and tax deadlines.

Employment Termination

Dismissals in Bulgaria are tightly regulated. The EOR manages the legal process, ensuring proper grounds, notice periods, and severance payments (where applicable) are followed. For terminations initiated by the client, the EOR ensures documentation and procedures meet compliance standards to reduce legal exposure.

Fast, Compliant Hiring

A Global Employer of Record can enable employment in Bulgaria within days, not months. This allows companies to meet urgent hiring needs without delays tied to company registration, tax setup, or local onboarding formalities. The EOR handles employment registration, payroll, and statutory declarations, ensuring the employee can begin work without compliance gaps.

No Local Entity Required

Hiring through an EOR eliminates the need to establish a Bulgarian legal entity. This is particularly useful for companies testing the market or running a limited-scope project. The EOR becomes the official employer on record, allowing your business to operate locally without taking on the full administrative and regulatory burden of incorporation.

Full Compliance with Local Law

Bulgarian labour law mandates written contracts, prior employment registration, and regular payroll filings. An EOR ensures these obligations are met, from initial onboarding to contract termination. This includes managing social contributions, tax reporting, leave entitlements, and employee protections — all of which must comply with national rules to avoid penalties.

Flexible Workforce Strategy

An EOR provides flexibility to scale up or down without long-term commitments. Whether you’re converting contractors, hiring temporary specialists, or relocating team members into Bulgaria, the EOR offers a compliant way to engage talent while retaining control over their day-to-day responsibilities. It also reduces the internal cost of managing employment logistics across borders.

Key Benefits of the EOR Model in Bulgaria

• Hire local or international employees without local incorporation
• Compliant employment agreements in Bulgarian
• End-to-end payroll management with local tax filings
• Registration with Bulgarian social security and health insurance
• Local oversight of terminations and statutory obligations
• Reduced risk of permanent establishment and employee misclassification
• Ability to onboard staff within a few business days
• Operational control remains with the client

Acumen International: Global Employer of Record Services in Bulgaria

Service Scope

Acumen International enables companies to legally employ talent in Bulgaria through our Employer of Record infrastructure. Our services cover employment, payroll, and compliance for both local and expatriate staff — without requiring the client to establish a local company or navigate labour compliance on their own.

Employer Responsibilities

As the official employer on paper, Acumen handles all statutory duties:

• Drafting and registering employment contracts
• Processing monthly payroll and social contributions
• Issuing payslips and tax documents
• Managing statutory leave and employee entitlements
• Executing legal terminations and post-employment obligations

We ensure that every employment arrangement aligns with Bulgarian employment law and reporting requirements.

Risk and Compliance

Acumen International helps avoid legal and operational risk by assuming full responsibility as the local employer. Our team ensures all employment relationships comply with Bulgarian labour law, tax legislation, and data reporting requirements. We provide complete transparency for audit purposes and coordinate with authorities in the event of inspections or disputes.

Practical Applications

Clients use Acumen International’s Employer of Record solutions in Bulgaria to solve complex hiring and workforce compliance challenges, especially when entity setup is not practical. Typical scenarios include:

• Employing local staff during early-stage market entry or exploratory operations;
• Hiring expatriates with full legal support, payroll registration, and statutory benefits;
• Converting contractors into employees to comply with labour regulations and reduce misclassification risk;
• Supporting post-merger workforce integration and business continuity during mergers, acquisitions, divestitures, or restructuring;
• Employing senior-level or strategic hires where tailored terms, cross-border tax planning, and long-term compliance oversight are required;
• Engaging white-collar professionals and compliant blue-collar roles where local labour law mandates formal payroll and insurance contributions;
• Coordinating workforce operations across multiple jurisdictions with a single EOR partner to streamline reporting and reduce administrative overhead.