Bulgaria has a population of more than 7 million people, with industry, mining, and agricultural sectors leading the economy. The corporate tax rate is 10%, with advance tax payments submitted on a monthly or quarterly basis.
Labor and Payroll Considerations in Bulgaria:
- Employment contracts must be in writing, with 2 types of employment contracts recognized – both temporary and permanent
- Minimum wage is 420 lev per month ($261 USD)
- Employers need to register with the Commercial Register
- Employers need to notify the National Revenue Agency of new hires
- Income tax and social security are withheld from employee pay
- Employers must also contribute social security
- Generally, foreign workers who are not EU, EEA, or Switzerland nationals need a work and residence permit
Payroll funding options in Bulgaria are flexible. If the company does not have a local bank account, Blue Marble offers money movement services so you can fund payroll in USD and we settle in the local currency. If you have a local bank account you can pay employees directly or have the in-country payroll team make the payments on your behalf.
New VAT rules will reduce the administration needed for companies who sell good and services online across borders. Bulgarian companies can now declare and pay VAT electronically for all EU sales by submitting quarterly VAT returns to Bulgarian authorities. Each EU member state will now have a portal (OSS) where merchants can register.
If you are just getting started in Bulgaria or need to simplify your payroll and compliance, we can help. Blue Marble has a cloud-based payroll platform to manage payroll across all countries and currencies. With customized reporting and real-time access to payroll costs, you can view and manage your global employees and ensure compliance. We provide a dedicated US service team and in-country experts to help when questions come up. To learn more about payroll in Bulgaria, click here