Employer of Record in Bulgaria

For companies building teams of 10 or more in finance, accounting, HR/payroll, BD, operations, or IT — not for individual hires.
Talk to us about Bulgaria

Why companies build teams in Bulgaria

Lundi supports compliant employment in Bulgaria — Sofia for tech and SSC, Plovdiv as a secondary hub. Strong fit for cost-driven SSC, engineering, and finance operations at meaningfully lower cost than Romania or Poland. For EU compliance plus broader senior talent depth, Poland typically wins.

Languages

Bulgarian

Payroll Frequency

Monthly

Currency

BGN

Capital City

Sofia

Employer Tax Rate

19.62%

Bulgaria offers some of the EU's lowest unit costs for SSC, engineering, and finance operations — corporate income tax is 10% (flat, one of EU's lowest), and labour costs run roughly 25–30% below Poland or Romania. Sofia concentrates the senior talent, with Plovdiv as a secondary hub. Bulgarian lev (BGN) is the local currency, pegged to the euro. Strong fit for cost-driven SSC, finance, and engineering operations within EU compliance perimeter. For broader senior talent depth and ecosystem maturity, Poland or Romania typically offer better quality at modestly higher cost. For companies building teams of 10+, not individual hires.

Cost of Employment in Bulgaria

In Bulgaria, professional recruitment agency fees range from 22-27% of the first-year annual base salary of a recruited employee. Recruitment agencies also require an upfront retainer and payment in advance installments of the agency fee based on milestones such as start of recruitment, presentation of candidates, and scheduling interviews with a candidate shortlist.

We know this might sound overwhelming—but it doesn’t have to be. A solution like Lundi eliminates the barriers for you. With Lundi, you can recruit talent across 70+ countries, easily managing recruitment—all in one, easy-to-use platform. Get an overview of what you need to know when hiring in Bulgaria below.

Talk to us about Bulgaria

Employer Tax Costs in Bulgaria

In Bulgaria, an employer’s social contributions range from 18.92% to 19.62% and include contributions for social security and unemployment, accident at work and occupational illness fund, and health insurance.

Employee Income Taxes in Bulgaria

Employees in Bulgaria pay a flat rate income tax of 10%, no matter their salary bracket. Employees also pay 13.78% into social security contributions.

Employee Probation in Bulgaria

The probationary period in Bulgaria is six months.

Employee Overtime in Bulgaria

Employees in Bulgaria work eight hours daily, 40 hours weekly. Overtime cannot exceed three hours per day over two consecutive days; six hours in a week; 30 hours in a month; and 150 hours in a year. Overtime work is paid at a rate of 150% for regular days, 175% for weekends, and 200% for national holidays. Employees can opt out of their standard working time arrangements under an agreement with their employer.

Employee Notice in Bulgaria

The notice period for either party is usually one month, but it can be up to three months. All notice periods should be provided in the employment agreement.

Employees in Bulgaria can resign without complying with the notice period but will forfeit any notice payment.

Termination in Bulgaria

Employers must provide cause for the termination and provide at least one month's notice. Payment may be made in lieu of notice.Severance is required and the entitlement varies from one to seven months' gross remuneration.

How Lundi works in Bulgaria

Build

We scope your team and recruit the right people in-country — finance, accounting, HR/payroll, BD, ops, or IT.
Talk to us

Operate

We employ the team via our local entity and run the day-to-day — payroll, compliance, HR, and performance management.
Talk to us

Transfer

When you're ready, we transition the team to your own legal entity. Or stay on Lundi's infrastructure indefinitely — your choice.
Talk to us

Why Companies Choose Lundi

If you need help with anything, we're here for you

Who is Lundi for?

Lundi works with companies building international teams of 10 or more — typically in finance, accounting, HR/payroll, BD/sales, operations, or IT. Not for one-off hires or individual placements.

How is this different from an EOR?

EOR platforms employ individuals for you. Lundi recruits, employs, and operates concentrated teams — including day-to-day management, HR, and an optional path to your own entity. It's the operating model for companies that have outgrown the EOR ceiling.

Still have any questions? Talk to us.