Employer of Record Services Ease Hiring in Bulgaria
International companies are increasingly using Employer of Record (EOR) services to access talent in Bulgaria without establishing a local legal entity. This approach expands the potential talent pool for hiring managers. Information about work visas for IT and engineering roles in cities like Sofia and Plovdiv also highlights the country's low taxes and remote work norms as attractive for foreign talent.
- Bulgaria's flat 10% corporate and personal income tax rate is one of the most competitive in the European Union, making it an attractive environment for both businesses and individuals. Dividends and liquidation quotas are subject to an even lower 5% tax. - The cost for Employer of Record services in Bulgaria typically includes a monthly fee per employee, ranging from approximately €199 to over €2,000, plus a one-time setup fee. In addition, employers are responsible for social security contributions, which amount to about 18.92% to 19.62% on top of the employee's gross salary. - The Bulgarian IT sector includes approximately 126,000 specialists, with 66,000 of them being software developers focused on outsourced services. The country's tech talent pool is expanding, with around 6,000 new IT graduates each year from its 50+ universities. - Under the Bulgarian Labor Code, remote work arrangements must be formalized in a written agreement. Recent updates to the code grant remote employees the "right to disconnect" outside of specified working hours. - An EOR in Bulgaria is legally responsible for all HR-related tasks, including drafting compliant employment contracts, managing payroll and tax withholdings, and ensuring adherence to the Bulgarian Labor Code. This allows the hiring company to manage the employee's daily work without establishing a local legal entity. - The IT and Business Process Outsourcing (BPO) sectors are major users of EOR services in Bulgaria, taking advantage of the country's skilled and multilingual workforce. - The standard workweek in Bulgaria is 40 hours, and employees are entitled to a minimum of 20 days of paid leave annually. Probationary periods for new hires can last up to six months. - While Sofia is the primary tech hub, employing over 50,000 people in the ICT sector, other cities like Plovdiv, Varna, and Burgas are also significant centers for tech talent.
