Establishing and maintaining a Bulgaria payroll
The Eastern European nation of Bulgaria is an increasingly popular place for foreign businesses to expand. The country’s economy expanded significantly through the 21st Century, and many industries are booming, from heavy industry to science and tech.
If your business is planning to expand into Bulgaria, one of the first things you will need to do is start hiring a local workforce,. This generally means you will need to establish a legal entity in the country, set up a payroll, and jump through other administrative hurdles. Collectively, these processes can take weeks, potentially delaying your expansion efforts and cutting into your budget.
However, to build a business and hire employees in Bulgaria, you will need to establish a Bulgaria payroll and may need to register an official entity. This is a complicated process and requires strict adherence to the country’s unique regulations and application procedures. Because of this, the payroll setup process can take longer than expected and cause delays with expansion efforts, potentially costing your business time and lost revenues.
If you have an entity
If your company already has a legal entity registered in Bulgaria, then New Horizons’ experts can help you with the next steps. Our team will set up and manage your payroll, as well as any associated HR and compliance work to help you focus on the important job of expanding your business in Bulgaria.
If you don’t have an entity
If you don’t have a registered entity in Bulgaria, you can use our full payroll outsourcing service. Our Bulgarian subsidiary will act as employer of record for your employees, and our team will handle the HR, administration, and complex legal compliance work.
Choose this service for a low-risk, flexible, and scalable solution for your Bulgarian payroll setup and management, with all the benefits of hiring locally and none of the usual complications.
Build your business in Bulgaria with help from New Horizons
Bulgaria payroll guide
What withholdings and taxes are required in Bulgaria?
In Bulgaria employers and employees must pay social security contributions. Employers cover 60% and 40% of the contributions, which total of 17.3% of salary, plus pension insurance contributions of 5% of salary, and health insurance contributions of 8% of salary.
Employers must also contribute between 0.4% and 1.1% of salaries to workplace accident insurance.
Entitlements and terminations
Employees in Bulgaria are generally entitled to a minimum of 30 days of notice for terminations. If an employee is terminated due to sickness and has been with their employer for more than five years, they are entitled to severance of at least two months’ pay.
How to establish a Bulgaria payroll
You may choose to establish an internal payroll in Bulgaria, but this is a time-intensive option that can be very difficult to execute in practice, with language barriers, cultural differences, and frequently changing regulations getting in the way. The simplest option is to outsource your Bulgaria payroll setup and management.