Social Security Obligations for Bulgarian Companies

To meet your social security obligations for a Bulgarian company in 2026, you register as an employer, enroll your manager or owners if they work for the company, calculate contributions on the correct insurance base, file monthly declarations on time, and pay the due amounts in euros through Bulgarian e-banking.

Key Takeaways

Social security contributions in Bulgaria: what employers and managers must do

As soon as your Bulgarian company hires its first employee or engages a managing director, you take on social security duties. These duties include registration as an employer, determining the correct insurance base for each insured person, filing monthly reports, and paying contributions on time. The core tasks repeat every month, so once your workflow is set, compliance becomes routine.

Core employer obligations for social security in Bulgaria

Obligation	Who it applies to	When	What it involves	Result
Employer registration	Any entity with employees or insured managers	Before first hire or engagement	Open employer account; appoint payroll contact	Active employer profile for filings
Hire/contract registration	Each employee or insured director	Before start date	Register person, contract type, insurance code	Legal start of insurance coverage
Monthly declarations	All insured persons	Each month	Report insurance base, contributions, changes	Official record of due amounts
Monthly payment	All insured persons	Each month	Pay employer and employee shares in euros	Contributions settled
Year-end reconciliation	All insured persons	At year end	Check totals vs payroll and ledgers	Clean audit trail

For official guidance and e-services related to registrations, monthly declarations, and social security codes, consult the National Revenue Agency (NRA). Policy updates and fiscal parameters are published by the Ministry of Finance, and cross-border rules follow EU coordination, described by the European Commission.

Employment models in Bulgaria and how they affect social security

How you work in your own company changes your obligations. Founders and managers can be employees, directors under a management contract, or self-insured persons. You can also use contractors, but most operational roles in Bulgaria are better under employment or management relationships for compliance.

Employment and engagement options for founders and staff

Model	Who uses it	Insurance base	Who pays	Pros	Cons
Employment contract	Employees, founders who also work operationally	Gross salary, subject to minimum thresholds	Employer and employee	Clear rules, benefits, easier bank and visa processes	More paperwork; fixed monthly costs
Management contract	Managing directors who are not regular employees	Management remuneration	Employer and manager	Fits director responsibilities; flexible pay	Needs careful setup; still insured
Self-insured owner (EOOD/OOD)	Owner-managers working for the company	Declared self-insurance base	Insured person pays; company may facilitate	Flexible base; aligns with variable income	Separate declarations; limited benefits if base is low
Contractor (service agreement)	External specialists	Not an employee insurance base	Contractor; company withholds if required	Flexible engagement	Risk of misclassification for ongoing roles

Company types, ownership rules, and social security impact

Any limited company or branch that employs staff in Bulgaria must meet the same social security duties. Ownership by foreigners is allowed in full. The legal form affects governance and how you engage managers, but monthly payroll mechanics remain similar.

Legal forms and the way they interface with social insurance

Form	Typical use	Who can be insured	Common engagement	Notes
EOOD (single-owner LTD)	Solo founders	Owner-manager, employees	Self-insured owner or management contract; employees	Easy to add co-founders later
OOD (multi-owner LTD)	Two or more founders	Managing partners, employees	Management contracts; employee roles	Clear partner roles via resolutions
AD / EAD (joint-stock)	Scale-ups	Executive board; employees	Management service contracts; payroll teams	More formal governance
Branch (foreign company)	Operate locally without a subsidiary	Local employees	Employment contracts	Full social duties in Bulgaria
Representative office	Market research only	Local staff for liaison	Employment contracts	No trading; still must insure staff

If you are choosing the jurisdiction and form, compare the reasons Bulgaria is a strong choice for company formation, then plan your payroll from day one so the company starts clean. When you are ready, we deliver fast, secure, and tax-optimized company registration in Bulgaria and combine it with a simple payroll calendar.

Address, bank account, and remote setup timeline

Remote founders can set everything up without being in Bulgaria full time. You will still need a registered address and a Bulgarian IBAN to run payroll and social contributions.

Registered address options for remote employers

Option	What you get	Typical yearly cost (EUR)	Who it suits	Compliance value
Registered seat	Legal address for filings	150–250	Micro employers	Meets registry requirements
Virtual office + mail scan	Seat, scanning, call handling	250–450	Fully remote teams	Fast access to official letters
Co-working address	Seat, desk access	600–1,200	Client-facing roles	Extra “substance” for partners

Remote setup timeline for payroll-ready operations

Milestone	What happens	Typical time	Your task
Company formed	Entity and seat registered	1–2 weeks	Approve documents
Bank account opened	Bulgarian IBAN issued	1–2 weeks	Complete KYC
Employer registration	Payroll profile at NRA	1–3 days	Provide signatory details
First hires or director engagement	People and contracts registered	1–2 days	Sign contracts; confirm bases
Monthly cycle goes live	Payroll, filings, payments	Every month	Approve and fund payments

If you want the six-step big picture first, review how to register your company in Bulgaria in 6 steps, then return here to lock your payroll model.

Cross-border work, EU coordination, and residence questions

EU founders often divide their time between countries. If you work temporarily outside Bulgaria while remaining insured in Bulgaria, you may need an A1 form under EU social security coordination. You can find the framework and practical guidance on the European Commission website. Non-EU founders typically pair company ownership with a residence permit. For process overviews, use the official Bulgarian government portal and work with your immigration counsel for the right permit type.

What does social security really cost? Examples in euros

Exact rates and insurance ceilings can change, and different roles have different minimum bases. The table below shows illustrative budgeting so you can plan cash flow. Your accountant will set the actual insurance base and contributions for your case.

Illustrative monthly employer budgeting (examples)

Scenario	Gross salary or base (EUR)	Employer contributions (estimate)	Total employer cost (EUR)	Who this fits
Junior employee	1,000	200	1,200	Entry roles
Skilled specialist	2,000	380	2,380	Tech, marketing
Manager under management contract	3,000	570	3,570	Director-level
Self-insured owner (declared base)	1,500	300	1,800	Owner-managers with variable income

To forecast your overall company tax alongside payroll, walk through the numbers with this guide to calculate corporate tax in Bulgaria. And because pay mix matters, compare the long-term cash impact of dividends vs salary in Bulgaria before you fix director remuneration.

Monthly payroll workflow that keeps you penalty-free

Set a simple calendar, stick to it, and delegate filings. The following loop is lean and works well for remote owners.

Payroll month at a glance

Week	Tasks	Your role	Accountant’s role
Week 1	Collect timesheets and changes; prepare payroll	Approve inputs	Draft payslips; check insurance bases
Week 2	Approve payroll and contributions	Authorize payments	Generate declarations and payment orders
Week 3	Pay salaries and contributions	Fund the IBAN	File monthly declarations via NRA e-services
Week 4	Archive documents; management report	Review reports	Reconcile ledger and bank

Branches and representative offices: special notes

Branches of foreign companies in Bulgaria employ staff and have full social duties like any Bulgarian company. Representative offices cannot trade, yet they still may hire local staff to conduct research or liaison activities, and those employees must be insured. Plan for the same monthly filings and payments in euros.

Branches vs representative offices — social insurance duties

Structure	Can trade?	Can employ?	Social security obligations	When to choose
Branch	Yes	Yes	Full employer duties in Bulgaria	Operate locally while keeping foreign HQ
Representative office	No	Yes	Employer duties for staff	Market research or pre-trade presence

Ownership, visas, and permits: how they connect to payroll

Foreign owners can hold one hundred percent of a Bulgarian company. EU citizens can work freely in Bulgaria under EU rules. Non-EU owners often combine ownership with a residence permit and then payroll enrollment once the permit is granted. For process overviews and links to institutions, start at the official Bulgarian government portal and work with your immigration counsel to choose the correct route.

Common mistakes and how to avoid them

Social security pitfalls for new Bulgarian employers

Mistake	Risk	Prevention
Starting work before registration	Fines; denied coverage	Register contracts before start date
Using the wrong insurance base	Back payments; penalties	Confirm base for each role; document changes
Late monthly declarations	Penalties; audit risk	Fix a filing calendar with reminders
Mislabelling a regular worker as contractor	Reclassification; liabilities	Use employment or management contracts for core roles
No link between payroll and accounting	Ledger mismatches	Automate entries; reconcile every month

How much does it all cost, and how long does it take?

Budget for employer setup, monthly payroll processing, and contribution outflows. Contribution amounts depend on actual insurance bases and roles; processing fees depend on headcount. For a broader view of incorporation and operational costs beyond payroll, review how much it costs to set up your company in Bulgaria.

Typical costs for small employers (illustrative)

Item	What’s included	Monthly (EUR)	Annual (EUR)
Payroll processing (per employee)	Payslip, declarations, archiving	30–60	—
Employer contributions outflow	Social and health contributions	Depends on base	—
Virtual office	Registered seat, mail scanning	—	250–450
Year-end payroll reports	Annual statements	—	150–300

If you want us to run the calendar, filings, and payments for you each month, meet the team behind our accounting services in Bulgaria. We keep your books tidy and your payroll penalty-free.

Plan your pay mix from day one

For founders and managers, the decision is not just about salary. It is about total compensation, benefits, and long-term tax planning. Validate your profit plan and run scenarios so you can fix a sustainable strategy before the first payroll month starts.

Get help and start clean

Need a precise plan for your case? We will review your role, your team, and your cash-flow targets, then propose a compliant setup you can run from anywhere.

Book your free 30-minute consultation and get a tailored social security checklist for 2026.

Frequently Asked Questions