With the rise of remote work, many Bulgarians are now employed by foreign companies without a physical presence in Bulgaria. This raises the question: What obligations does a foreign employer have under Bulgarian law when hiring a person based in the country?

Who is Considered a “Foreign Employer”?

A foreign employer in Bulgaria is any legal entity registered abroad that hires employees working on Bulgarian territory—typically remotely from home. If such an employer does not have an office or branch in Bulgaria, it is not considered to be carrying out economic activity in the country.

Registration with the NRA (National Revenue Agency)

A foreign employer must register as an insurer with the NRA and obtain a service number if hiring a Bulgarian-based employee. This is not a company registration—it does not require entry into the Commercial Register.

Annual and Monthly Obligations

If the employer does not operate a legal entity in Bulgaria, it is not required to file annual financial statements. However, the following obligations apply:

Monthly Declarations:

• Declaration Form 1 – submitted monthly for each employee with social security data
• Declaration Form 6 – for due social contributions and advance tax
• Payment of social contributions and taxes – to the Bulgarian budget

Annual Documents:

• Income Certificate (Art. 45, Para. 1 of the Personal Income Tax Act) – issued to the employee by the end of February for the previous year

Not Required (if no local company/branch):

• No Annual Financial Statement (GFS)
• No Corporate Tax Return under the Corporate Income Tax Act
• No VAT Declarations (except in specific cases)

If a Branch or Subsidiary Exists in Bulgaria

In this case, the employer must fulfill the full package of obligations for legal entities in Bulgaria, including:

• Filing Annual Financial Statements with the Commercial Register
• Submitting Corporate Tax Returns under Art. 92 of the Corporate Tax Act
• VAT registration and reporting, if applicable
• Activity Report, if legally required

Conclusion:
If you’re a foreign employer hiring staff in Bulgaria, it’s important to know that:
– Social security registration is mandatory
– NRA registration is required
– No annual financial or tax reporting is required unless economic activity is carried out in Bulgaria

Staying compliant ensures smooth employment relationships and avoids administrative penalties. When in doubt, consult a local accountant or tax advisor in Bulgaria.