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Bulgaria Setup Guide

Hiring in Bulgaria?

Everything you need in one place.

A complete guide to costs, legal requirements, employment types, and market entry — plus an interactive salary calculator and end-to-end setup service.

The opportunity

Why Bulgaria?

A competitive, EU-based talent market with real depth.

Deep talent pool

With a ~3M-strong workforce, including 1.56M+ white-collar professionals and 500K+ specialists across IT, Engineering, Finance & Healthcare — 150K+ senior and highly specialised IT professionals, alongside a growing gaming talent pipeline.

EU member state

Full EU membership since 2007 — seamless hiring across the European market.

Competitive taxation

A 10% flat income tax and competitive employer contribution rates.

Strong IT ecosystem

A thriving tech scene with global companies and a mature outsourcing industry. Bulgarian professionals are exceptional at what they do — they carry strong hard skills and well-developed soft skills, making them effective collaborators from day one.

Multilingual workforce

Widely spoken English plus German, French, and other European languages, with a meaningful percentage of professionals fluent in other widely-spoken world languages.

How to engage

Employment types

Five ways to bring talent on board — each with different legal and cost implications.

01

Employee

Standard employment contract with full social security — the most common and protected form. You employ the individual directly and retain full ownership of their growth, training, and career development.

02

Contractor (B2B)

Self-employed individual or company providing services. Flexible, lower cost, less statutory protection.

03

Freelancer / Civil Contract

A sole trader under simplified taxation, or a civil contract outside labour law — concluded directly between client and service provider for specific, defined results. Ideal for short-term or project-based work.

04

Employer of Record

A third party employs staff on your behalf — no local entity required. Fastest market entry.

05

Temp-staffing (Agency Worker)

Employed by a staffing agency and assigned to your company. Flexible headcount without direct employment.

The numbers

Key costs & obligations

The statutory framework every employer in Bulgaria should know.

Employer social security
19.62%

of gross, capped at €2,300/month. Ranges 18.92%–19.62% by economic activity; the higher figure is used throughout this page.

Employee social security
13.78%

of gross, capped at €2,300/month

Income tax
10%

flat rate on taxable income — gross less the employee's own contributions

Health insurance
Included

part of the social security contributions above, not an additional charge

Minimum wage
€620.20

gross per month, across all sectors

Paid annual leave
20 days

minimum statutory entitlement, plus public holidays

Notice period
30 days

standard; can be extended to 60 or 90 days by contract

Probation period
6 months

standard; removable by mutual agreement. During probation either side may end the contract without notice, for any reason, and without compensation.

Tax and social security figures are 2026 Bulgarian statutory rates, checked against PwC Worldwide Tax Summaries and the Bulgarian News Agency on 2026-08-07; the contribution ceiling shown applies from 2026-08-01. Leave, notice and probation are general guidance. This is information, not legal or tax advice — verify against current legislation before you rely on it.

Interactive tool

Salary calculator

Estimate net pay and employer costs — based on 2026 Bulgarian rates.

Salary Calculator

Bulgaria · EUR · 2026 rates

€3,000
€620€7,000
Employee / employed status — 2026 Bulgarian rates

Total employer cost / month

€3,451

€41,415 / year

Monthly breakdown

Gross salary€3,000
Employer SSC (19.62%)+€451
Employee SSC (13.78%)€317
Income tax (10%)€268
Net take-home€2,415

Annual employer cost

€41,415

Annual net (employee)

€28,977

Want a tailored cost analysis?

Talk to an expert about your specific hiring scenario

Estimates based on 2026 Bulgarian statutory rates: social security ceiling €2,300/month from 2026-08-01, employee contributions 13.78%, employer contributions 19.62%, income tax 10%. The employer figure assumes the maximum accident-at-work contribution; the statutory range is 18.92%–19.62% depending on economic activity. Rates checked 2026-08-07. For information only — not tax or legal advice.

The roadmap

Hiring timeline

Two paths to bring talent on board — choose the one that fits your engagement model.

01 · Direct Permanent Employment
  1. 1

    Company setup

    Entity registration, share capital, and corporate structure.

  2. 2

    Legal registration

    Commercial register filing, tax registration, and statutory setup.

  3. 3

    Payroll & accounting

    Payroll processing, bookkeeping, and tax compliance.

  4. 4

    Recruitment

    Sourcing and hiring your local team — managed by us end to end.

  5. 5

    Employment

    Contracts, onboarding, and HR administration.

02 · Project Contracting
  1. 1

    Discovery & qualification

    A deep-dive call to understand your project, scope of work, and the exact contractor profile you need.

  2. 2

    Terms & conditions

    A formal agreement between you (as partner) and us (as provider) — covering commercial terms, responsibilities, and service-level expectations.

  3. 3

    Recruitment

    We source, screen, and shortlist contractors matched to your technical and cultural requirements.

  4. 4

    Schedule of work

    Assignment paperwork covering duration, title, scope, pay rate, notice period, reporting line, data policy, equipment, and more.

  5. 5

    Ongoing management

    We manage the contractor relationship, HR aspects, and administrative ownership — so you focus on delivery.

We handle it all

End-to-end setup service

Don't want to navigate this alone? We manage the entire process for you.

Vendor partnerships

Introductions to vetted local providers for every need.

Legalisation & translation

Document legalisation, certified translation, and notary services.

Legal support

Employment law advisory, contract drafting, and compliance.

Accounting

Bookkeeping, tax filings, and financial reporting.

On-ground assistance

Office sourcing, setup, and local operational support.

Recruitment & HR

Full talent acquisition and ongoing HR consulting.

Questions

Frequently asked

How much does it cost to hire someone in Bulgaria?

The total employer cost is the gross salary plus social security contributions of up to 19.62%, charged only on the first €2,300 of monthly gross. Above that ceiling, every extra euro of gross costs the employer exactly one euro. Use the calculator above for a precise estimate.

What taxes do employers pay in Bulgaria?

Employers pay social security contributions — pension, health and unemployment funds — of 18.92% to 19.62% of gross depending on their economic activity, capped at the monthly ceiling of €2,300. There are no additional payroll taxes beyond this.

How long does the hiring process take?

For permanent roles, we deliver a curated shortlist within 2–5 business days. For contractors, we aim for 24–48 hours. The full process — from discovery to signed offer — typically takes 2–4 weeks, but this is heavily dependent on how proactively both sides engage, how quickly interview slots are scheduled, how many interview stages are involved, operational readiness on both ends, and the mutual availability of everyone in the chain. In short: we move fast on our side, and the overall timeline flexes with yours.

Can you adapt to our recruitment process and tools?

Yes — absolutely. Our strategy is flexible and fully adaptable to your processes. Whether you use a specific ATS, require candidates to complete a questionnaire, need NDAs or data processing agreements in place before sharing profiles, or have a particular platform where you manage applicants, we integrate seamlessly into your workflow. We follow your methodology, your stages, and your tools — not the other way around.

Can foreign companies hire Bulgarian employees?

Yes. Foreign companies can hire through a local entity, an Employer of Record, or as B2B contractors. Each structure has different legal, tax, and compliance implications — we advise on the best fit.

What are the notice periods in Bulgaria?

The standard notice period is 30 days, but it can be extended to 60 or 90 days by employment contract. Longer tenure or specific contract terms may extend this.

Do contractors need to register for VAT?

Registration becomes mandatory once turnover passes €51,130; the standard VAT rate is 20%. Since 1 January 2026 that turnover is measured over the calendar year rather than a rolling twelve months, and the application is due within seven days of crossing the threshold. Below it, registration is optional. We provide guidance on the optimal structure.

What is the minimum wage in Bulgaria?

The statutory minimum gross monthly wage is €620.20. It applies to all standard employment contracts across all sectors.

What is the social security contribution ceiling?

The maximum monthly insurable income is €2,300, with effect from 2026-08-01. Income above this amount is not subject to social security contributions — for either side.

How does Bulgaria's flat tax work?

Bulgaria applies a 10% flat personal income tax on taxable income, which is gross salary minus the employee's own social security contributions. There are no progressive tax brackets.

What employment contract types exist?

The main types are indefinite (permanent), fixed-term (up to 3 years), part-time, and contracts with a trial period. Each has specific legal requirements around termination and benefits.

How does the probation period work?

The standard probation (trial) period is 6 months, and it can be removed by mutual agreement. During probation, either side may end the contract without notice, for any reason, and without owing compensation.

What changed in Bulgarian social security in 2026?

Bulgaria adopted the euro as its official currency on 1 January 2026, so every figure on this page is now stated in euros. Pension contributions rose by 2 percentage points, and the maximum insurable income increased from €2,111.64 to €2,300 per month with effect from 2026-08-01. Healthcare funding expanded as well.

Still have questions?

We answer specific questions about your hiring scenario — no obligation.

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