Employing in Bulgaria

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Enter the Bulgarian market without the requirement of opening a local entity.

Expanding into
Bulgaria

Expanding into Bulgaria – which is characterised by a highly-qualified and talented workforce, multifaceted employment and tax laws, a developing infrastructure network linking to the rest of Europe, and leading sectors in mining, industry, agriculture, and tourism – can bring both excitements to the possibilities, but also significant stress to ensuring the entity with the country’s rigorous legal structures and laws.

Lion statue at Lion's Bridge in Sofia, Bulgaria

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Ensuring compliance without sufficient knowledge of the country’s laws also adds to the stress of getting your new entity off the ground and ready to test new markets. Going at it without the proper support can increase the costs, time and risks involved.

Global expansion is a step to make for any business, regardless of what you wish to achieve. The opportunities that can come with an expansion can be both incredibly exciting as well as intimidating and confusing, especially when you consider all the registration procedures that need to be done and the documentation required.

Each new markets bring new challenges, and these can be worked through more efficiently and cost-effectively with the support of a Professional Employer Organisation (PEO) such as Bradford Jacobs, especially through our Employer of Record (EOR) framework.

This can be best utilised when businesses are just beginning their expansion process and require more information before committing to incorporating an entity and fully establishing themselves in that market.

Country EOR Guide - Bradford Jacobs

Download our Guide to Bulgaria

Learn all about expanding into Bulgaria and see what we can do to make your expansion easier.

Download our Guide to Bulgaria

Learn all about expanding into Bulgaria and see what we can do to make your expansion easier.

Country EOR Guide - Bradford Jacobs

Hiring Staff
in Bulgaria

Hiring Staff
in Bulgaria

The Main Sectors of the Bulgarian Economy

The country focuses on the following key sectors, which all have a significant impact on the country’s economy:

The industry sector in Bulgaria primarily deals with metallurgy and machine building. The country contributes to the manufacture of about 10% of the hydraulic machinery used in the world. It also contributes to around 22% of the total GDP and about 30% of full employment in the country. Bulgaria’s major industrial exports include iron, steel, machinery, clothes, and refined fuels. The processed metals include iron, lead, zinc, copper, sulfuric acid, and steel in different parts of the country, such as Pirdop, Kremikovtsi, and Kurdzhali. Besides metal, other products manufactured include machine tools, caustic soda, nuclear energy, military hardware, munitions, food, beverage, tobacco, textiles, and sugar. Another big part of the industry sector is the shipbuilding business located in areas like Varna, Sofia, Plovdiv, Ruse, and Pernik.
The industry sector in Bulgaria largely depends on the mining sector. The country prides itself in having many mineral resources. Iron ore deposits are located in northwest Montana, while mining deposits of copper, lead, and zinc occurs in Balkan, Rhodope, and Sredna mountains. Bulgaria is among the world’s most significant zinc, copper, and lead producers. Black coking coal reserves have also been discovered in Kremikovtsi near Sofia. About 40 coal basins have been identified through exploration ventures, amounting to three billion tons of coal reserves, mainly lignite. It also facilitates the powering of thermal stations in Sofia, Plovdiv, Burgas, and Pernik. The country also has small deposits of natural gas and oil. However, it mostly depends on Russia for its oil supply. Other less valuable minerals in Bulgaria are dolomite, rock salt, kaolin, barite, asbestos, limestone, and gypsum.
This sector contributes 6.62% of total employment and 3.51% of real GDP. Bulgaria is among the leading exporters of tomatoes and grapes in the world. However, the country also grows cereals such as maize, barley, rye, rice, oats, and soybeans besides these products. Sunflower, majorly grown in the north, is used for oil production, whereas pulp is used to manufacture cattle feed. In the south, farmers grow the Oriental type of high-quality tobacco. Bulgarian farmers also rear animals such as sheep, poultry, and pigs. Besides, fishing and fish breeding is also quickly becoming a significant component of the agricultural sector in Bulgaria.
The tourism and services sector currently employs 62.7 % of all workers and contributes around 61.25 % of Bulgaria’s GDP. This includes the tourism sector. In 2017, the World Bank’s records indicated that the number of tourists had risen to 8.8 million. Most foreign tourists who visit Bulgaria are from Germany, Greece, Romania, Russia, and Turkey, representing about 50% of the total number of tourists the country receives yearly. Bulgaria is internationally famous for its winter and seaside resorts.

The Main Sectors of the Bulgarian Economy

The country focuses on the following key sectors, which all have a significant impact on the country’s economy:

Shipka National Monument, Balkans, Bulgaria
The industry sector in Bulgaria primarily deals with metallurgy and machine building. The country contributes to the manufacture of about 10% of the hydraulic machinery used in the world. It also contributes to around 22% of the total GDP and about 30% of full employment in the country. Bulgaria’s major industrial exports include iron, steel, machinery, clothes, and refined fuels. The processed metals include iron, lead, zinc, copper, sulfuric acid, and steel in different parts of the country, such as Pirdop, Kremikovtsi, and Kurdzhali. Besides metal, other products manufactured include machine tools, caustic soda, nuclear energy, military hardware, munitions, food, beverage, tobacco, textiles, and sugar. Another big part of the industry sector is the shipbuilding business located in areas like Varna, Sofia, Plovdiv, Ruse, and Pernik.
The industry sector in Bulgaria largely depends on the mining sector. The country prides itself in having many mineral resources. Iron ore deposits are located in northwest Montana, while mining deposits of copper, lead, and zinc occurs in Balkan, Rhodope, and Sredna mountains. Bulgaria is among the world’s most significant zinc, copper, and lead producers. Black coking coal reserves have also been discovered in Kremikovtsi near Sofia. About 40 coal basins have been identified through exploration ventures, amounting to three billion tons of coal reserves, mainly lignite. It also facilitates the powering of thermal stations in Sofia, Plovdiv, Burgas, and Pernik. The country also has small deposits of natural gas and oil. However, it mostly depends on Russia for its oil supply. Other less valuable minerals in Bulgaria are dolomite, rock salt, kaolin, barite, asbestos, limestone, and gypsum.
This sector contributes 6.62% of total employment and 3.51% of real GDP. Bulgaria is among the leading exporters of tomatoes and grapes in the world. However, the country also grows cereals such as maize, barley, rye, rice, oats, and soybeans besides these products. Sunflower, majorly grown in the north, is used for oil production, whereas pulp is used to manufacture cattle feed. In the south, farmers grow the Oriental type of high-quality tobacco. Bulgarian farmers also rear animals such as sheep, poultry, and pigs. Besides, fishing and fish breeding is also quickly becoming a significant component of the agricultural sector in Bulgaria.
The tourism and services sector currently employs 62.7 % of all workers and contributes around 61.25 % of Bulgaria’s GDP. This includes the tourism sector. In 2017, the World Bank’s records indicated that the number of tourists had risen to 8.8 million. Most foreign tourists who visit Bulgaria are from Germany, Greece, Romania, Russia, and Turkey, representing about 50% of the total number of tourists the country receives yearly. Bulgaria is internationally famous for its winter and seaside resorts.

Commercial Laws in
Bulgaria

National Revenue Agency: The National Revenue Agency (NRA) is a specialised state institution in Bulgaria under the jurisdiction of the Minister of Finance. The main task of the NRA is to administer taxes and social security contributions and collect other public and private state receivables. As of 1 January 2006, the National Revenue Agency incorporated the collection and administering of state taxes (income tax, patent taxes, VAT, corporate taxes) & compulsory social security contributions (health insurance contributions, pension contributions, contributions for additional mandatory pension insurance, etc.).

Ministry of Labour and Social Policy: The Ministry elaborates, coordinates, and implements the state policy regarding healthy and safe working conditions by carrying out through the Executive Agency an integrated control of the compliance with the legislation and the fulfilment of obligations for the provision of healthy and safe working conditions in all spheres and activities, irrespective of the type of ownership

The Labour Code stipulates that employment contracts must be in writing, signed by both parties who keep a copy each, and the National Revenue Agency are advised within three days of the contract being signed. Employment cannot legally start until this has been done.

Initially, the contract can be in any language, but there must be a Bulgarian translation in the case of legal issues, and the Labour Inspectorate can request a Bulgarian version to be provided at any time.

The minimum requirements for the contract are detailed in Article 67 of the Labour Code. Any changes to the contract must also be in writing. Employers risk financial penalties for non-compliance.

Although the Labour Code generally applies to all contracts, if there is an international aspect to the agreement, the parties can elect to be governed by another country’s contract laws.

Commercial Laws in
Bulgaria

Bulgarian seaside town Primorsko

National Revenue Agency: The National Revenue Agency (NRA) is a specialised state institution in Bulgaria under the jurisdiction of the Minister of Finance. The main task of the NRA is to administer taxes and social security contributions and collect other public and private state receivables. As of 1 January 2006, the National Revenue Agency incorporated the collection and administering of state taxes (income tax, patent taxes, VAT, corporate taxes) & compulsory social security contributions (health insurance contributions, pension contributions, contributions for additional mandatory pension insurance, etc.).

Ministry of Labour and Social Policy: The Ministry elaborates, coordinates, and implements the state policy regarding healthy and safe working conditions by carrying out through the Executive Agency an integrated control of the compliance with the legislation and the fulfilment of obligations for the provision of healthy and safe working conditions in all spheres and activities, irrespective of the type of ownership

The Labour Code stipulates that employment contracts must be in writing, signed by both parties who keep a copy each, and the National Revenue Agency are advised within three days of the contract being signed. Employment cannot legally start until this has been done.

Initially, the contract can be in any language, but there must be a Bulgarian translation in the case of legal issues, and the Labour Inspectorate can request a Bulgarian version to be provided at any time.

The minimum requirements for the contract are detailed in Article 67 of the Labour Code. Any changes to the contract must also be in writing. Employers risk financial penalties for non-compliance.

Although the Labour Code generally applies to all contracts, if there is an international aspect to the agreement, the parties can elect to be governed by another country’s contract laws.

FAQ

An Employer of Record (EOR) in Bulgaria allows companies to employ staff in the country without setting up a local entity. EOR services cover employment-related legal responsibilities, such as contracts, compliance, taxes, and payroll, simplifying global expansion for companies.

To hire talent in Bulgaria, using an Employer of Record (EOR) solution simplifies the process. EORs work with talent acquisition by managing employment contracts and ensuring compliance with local labour laws, enabling companies to onboard professionals without establishing a local entity.

Managing payroll in Bulgaria involves various options. For companies with employees across multiple countries, a multi-country payroll solution can streamline processes, ensuring compliance and efficiency across different jurisdictions. Partnering Bradford Jacobs can help navigate the complexities of Bulgaria’s payroll regulations, providing a comprehensive solution that covers compliance, tax, and payroll management for a multinational workforce​.

No, you do not need an entity to hire in Bulgaria. Using an Employer of Record (EOR) service, like Bradford Jacobs, allows companies to hire and operate payroll in Bulgaria without establishing a local entity, simplifying the process and reducing the administrative burden. This approach is ideal for companies looking to quickly and efficiently enter the Bulgarian market.

FAQ

An Employer of Record (EOR) in Bulgaria allows companies to employ staff in the country without setting up a local entity. EOR services cover employment-related legal responsibilities, such as contracts, compliance, taxes, and payroll, simplifying global expansion for companies.

To hire talent in Bulgaria, using an Employer of Record (EOR) solution simplifies the process. EORs work with talent acquisition by managing employment contracts and ensuring compliance with local labour laws, enabling companies to onboard professionals without establishing a local entity.

Managing payroll in Bulgaria involves various options. For companies with employees across multiple countries, a multi-country payroll solution can streamline processes, ensuring compliance and efficiency across different jurisdictions. Partnering Bradford Jacobs can help navigate the complexities of Bulgaria’s payroll regulations, providing a comprehensive solution that covers compliance, tax, and payroll management for a multinational workforce​.

No, you do not need an entity to hire in Bulgaria. Using an Employer of Record (EOR) service, like Bradford Jacobs, allows companies to hire and operate payroll in Bulgaria without establishing a local entity, simplifying the process and reducing the administrative burden. This approach is ideal for companies looking to quickly and efficiently enter the Bulgarian market.

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