Bulgaria Hiring Guide · Reviewed 18 August 2026
Can a Foreign Company Hire Employees in Bulgaria Without Opening a Company?
Yes, in some structures. A foreign company does not always need to incorporate a Bulgarian subsidiary before hiring someone in Bulgaria. But there is no “no-compliance” route. The employment structure still has to satisfy Bulgarian labour, payroll, tax, social security and, where relevant, immigration requirements.
Quick answer
A foreign employer can potentially hire in Bulgaria without first creating a Bulgarian subsidiary, but the correct route depends on who will legally employ the person, who directs the work, how long the arrangement will last, where the employer is established and whether the employee already has the right to work in Bulgaria.
The main ways a foreign company can employ someone in Bulgaria
There is no single structure that fits every international employer. In practice, companies usually consider one of the following routes.
| Route | Legal employer | Typical use | Important point |
|---|---|---|---|
| Foreign employer registration | Foreign company | Direct employment without a Bulgarian subsidiary where the structure is available | The employer still has Bulgarian registration, payroll, tax, social security and labour-law obligations. |
| Local employment provider / staff leasing | Registered Bulgarian provider | Hiring without building your own local employment administration | Bulgarian temporary-work rules may apply where the provider employs the worker and assigns the person to a user undertaking. |
| Bulgarian company | Your Bulgarian entity | Long-term local operations and larger permanent teams | You take responsibility for the full local employer infrastructure. |
| Temporary posting | Existing foreign employer | An existing employee temporarily sent to Bulgaria | Posting rules are a special cross-border arrangement and should not be treated as a substitute for permanent local hiring. |
Where does Employer of Record fit in Bulgaria?
“Employer of Record”, usually shortened to EOR, is an international commercial term. What matters in Bulgaria is the legal structure underneath the service.
Bulgarian labour law specifically regulates enterprises that provide temporary work. Under that framework, the employment provider signs the employment contract and the employee can be assigned to perform work at a user undertaking under that undertaking’s direction and control.
Companies providing temporary work must be registered with the Bulgarian Employment Agency. For this reason, an international company considering an EOR arrangement in Bulgaria should look beyond the marketing label and confirm which Bulgarian employment structure will actually be used.
The better question is: what Bulgarian legal structure will employ this person, and does that structure match the actual working relationship?
What has to happen before an employee starts work?
Regardless of whether the employer is your own entity or a local employment provider, Bulgarian employment has formal requirements. A normal employment relationship should not be treated like paying a freelancer’s invoice.
The employment contract must be in writing and concluded before the employee begins work.
Employment data must be entered in Bulgaria’s Employment Register under the applicable deadlines.
The employer must manage payroll, applicable income-tax withholding and social insurance obligations.
The employee’s nationality and residence status must be checked before the start date.
Bulgaria’s Employment Register changed the process in 2025
Since 1 June 2025, Bulgaria has used an electronic Employment Register maintained by the National Revenue Agency. The system contains the unified electronic employment records of employees.
The Labour Code requires employment data to be entered in the register within the statutory deadlines. This is one reason older online guides referring only to the previous paper employment-book and notification process can now be outdated.
What if the employee is an EU citizen or a non-EU citizen?
EU citizens
EU citizens have freedom-of-movement rights and can generally work in another EU member state without a work permit. Residence formalities can still apply depending on how long the person remains in Bulgaria.
Third-country nationals
Non-EU nationals may require employment authorization, a residence basis and, depending on the case, a type D visa or another qualifying status. The immigration route should be reviewed before promising a start date.
When does an EOR or local employment partner make sense?
A local employment structure can make sense when you want to hire in Bulgaria but are not yet ready to build a Bulgarian company, payroll function and local HR administration.
- You have identified a specialist in Bulgaria but do not have a Bulgarian entity.
- You are testing the Bulgarian market before committing to incorporation.
- Your local entity is still being established.
- You need recruitment and local employment administration from the same Bulgarian partner.
- You want a local team to manage contracts, payroll and employment documentation.
When is opening your own Bulgarian company the better choice?
EOR or staff leasing should not automatically be treated as a permanent replacement for establishing your own operation.
If Bulgaria is becoming a substantial long-term market for your business, you are building a larger permanent team, you need a local commercial presence or you want direct control over the complete employer infrastructure, setting up your own Bulgarian entity may become the more appropriate structure.
Frequently asked questions
Do I need a Bulgarian company to hire one employee?
Not necessarily. Depending on the employer’s country and the working arrangement, options can include foreign-employer registration or using an appropriate Bulgarian employment provider. The structure should be checked before the employee starts.
Is Employer of Record a specific legal category in Bulgaria?
EOR is commonly used as an international commercial description. Bulgarian law regulates the actual employment relationship underneath the service, including specific rules for enterprises providing temporary work. Ask the provider which Bulgarian legal structure is being used.
Can IC Recruiting recruit the employee as well as handle employment administration?
Yes. IC Recruiting provides recruitment in Bulgaria alongside Employer of Record and staff leasing services, so the sourcing and local employment work can be coordinated through one Bulgarian partner.
Can I simply hire the person as an independent contractor instead?
A genuine independent contractor relationship is different from employment. Contractor status should not be selected simply to avoid employer obligations when the practical relationship functions like employment.
Who manages the employee’s daily work?
This depends on the structure. Under the Bulgarian temporary-work framework, an employee can be sent to a user undertaking to perform the assigned work under that undertaking’s direction and control, while the employment provider remains responsible for its employer obligations.
How quickly can an employee start?
There is no responsible universal turnaround time. Timing depends on the selected structure, employment terms, documentation, candidate availability and, where relevant, immigration or right-to-work requirements.
What is the difference between EOR and RPO?
EOR concerns the employment structure and administration. Recruitment Process Outsourcing concerns how candidates are sourced, screened and managed through the hiring process. A company can use recruitment or RPO and still employ the successful candidate through its own entity or another appropriate employment structure.
Local Bulgarian provider
IC Recruiting
IC Recruiting is based in Sofia and provides permanent recruitment, temporary employment / staff leasing, Employer of Record support, RPO and related payroll and HR administration.
Recruitment registration No. 2087 / 22.07.2016. Temporary employment registration No. 453 / 02.10.2023. Registration information can be checked through the Bulgarian Employment Agency.
Sources checked for this guide
- Bulgarian Labour Code, including Articles 61-63 and Section VIIIc on temporary work.
- National Revenue Agency, Employment Register.
- Bulgarian Employment Agency, temporary-work undertakings.
- Bulgarian Employment Agency public employment-provider register.
- Your Europe, registering as an employer in another EU country.
- Bulgarian Ministry of Labour and Social Policy, free movement of persons.
This guide provides general commercial information and is not individualized legal, tax or immigration advice. Cross-border employment should be reviewed according to the employer, employee, role and actual working arrangement.
Planning to hire someone in Bulgaria?
Tell us where your company is established, the role you want to hire, where the employee will work and whether you already have a Bulgarian entity. We can then discuss the practical recruitment and employment options.
