Laws

Bulgaria

Labour, tax and social security legislation

  • LABOUR CODE
    The Labour Code is the main legal act in the field of labour legislation in Bulgaria. The Labour Code regulates the relations between an employer and a worker.
    Labour relations in Bulgaria
    Types of employment contracts
    Requirements and procedures for hiring foreign nationals
    Procedure for termination of employment contracts
    Termination by the worker with notice
    Termination by the employee without prior notice
    Termination by the employer with notice
    Termination by the employer without notice
    Termination by initiative of the employer against agreed indemnification
    Other types of contracts
    Labour Remuneration

  • SOCIAL SECURITY CODE
    The Social Security Code (CSR) is a statutory instrument governing public relations relating to:

    • state social insurance for general disease, labour accidents, professional disease, motherhood, unemployment, old age and death;
    • supplementary social insurance.
    Funds are used to pay pensions and social benefits.

  • LAW ON TAXES ON INCOME OF INDIVIDIALS
    The Law on taxes regulates the taxation of individuals. Within the scope of the Law, several different taxes apply to individuals, namely:
    - Annual Personal income tax, excluding activity as a sole trader, more commonly referred to as the Income Tax (DDA)
    - Tax on business as a sole trader (ET)
    - Final tax (withholding tax)
    - Patent tax - detailed in the Local Taxes and Fees Act
    Taxable individuals under this Act are:
    • local and foreign individuals who are subject to the tax obligation;
    • local and foreign residents obliged to withhold and pay taxes.
    In Bulgaria, the incomes of individuals are subject to a flat tax of 10%. (Income tax). This rate applies both to salaries under employment contracts and to civil-law fees, freelance income, craftsmen, farmers, performers. The sole trader's tax is 15%.

  • LAW ON HEALTH INSURANCE
    The Law on Health Insurance has as its main task to implement and administer compulsory health insurance in Bulgaria and the related public relations.

  • TAX-INSURANCE PROCEDURE CODE
    This Code governs the procedures for the establishment of taxes and compulsory social security contributions as well as for securing and collecting the public receivables assigned to the revenue authorities and the public executors.

  • LAW ON SETTLEMENT OF COLLECTIVE LABOUR DISPUTES
    This law establishes the procedure for settling collective labour disputes between workers and employers on labour and social security issues and living standards.

  • DECREE ON MISSIONS IN THE COUNTRY
    This regulation defines the conditions for secondment in the country, the amount of mission money (travel, subsistence and accommodation), the order of their reporting, as well as the rights and obligations of the seconding and seconded persons.

  • DECREE ON EMPLOYMENT AND SPECIALIZATIONS ABROAD
    The Decree regulates the terms and conditions for the secondment, implementation and reporting of official missions and specializations abroad, the rights and obligations of the posting authorities and of the seconded persons.

  • DECREE ON WORKING HOURS, HOLIDAYS AND ALLOWANCES

  • DECREE ON THE STRUCTURE AND THE ORGANIZATION OF THE REMUNERATIONS

  • DECREE ON REMUNERATION AND INCOME ON WHICH INSURANCE CONTRIBUTIONS ARE PURSUED

  • LAW ON EMPLOYMENT MIGRATION AND EMPLOYMENT MOBILITY
    This law governs the regulation of labour market access for third-country workers, including self-employment.

  • EMPLOYMENT PROMOTION ACT
    This law governs public relations in the promotion and preservation of employment, vocational guidance and adult education.

  • LAW ON CORPORATE TAXATION
    Subjects to corporate tax are:
    - the profit of local legal entities;
    - the profit of local legal entities, that are not traders, including organizations of religions, from transactions under Article 1 of the Commerce Act, as well as from leasing out movable and immovable property
    - the profits of foreign legal entities from a permanent establishment in the Republic of Bulgaria.
    - unpersonified companies and insurance funds set up under Art. 8 of the Social Security Code are treated as legal persons.

    Corporate tax is not paid by entities liable to taxation only with alternative taxes for the respective activity specified in Section Five of the CITA. These are the enterprises funded by the budget, the organizers of the gambling games, and the entities engaged in ships’ operation activities.
    They are subject to corporate taxation for all the remaining activities except for the ones subject to alternative taxation.
    The tax base for determining corporate tax is the tax profit. The corporate tax rate is 10 per cent.

  • Bulgaria's Special Policies for Disadvantaged Groups of People
    Labour rights of pregnant women and mothers
    LABOUR RIGHTS OF PERSONS WITH PARTIAL INCAPACITY

Trade

  • Public Procurement Act
    This Act shall determine the terms and conditions for the award of public contracts for works, supplies or services and for the holding of design contests by contracting authorities in order to ensure efficiency in the spending of:
    1. public funds;
    2. the funds provided by the European funds and programmes;
    3. the funds related to the implementation of activities in the water, energy, transport and postal services sectors;
    4. the funds of companies and enterprises which are assignors within the meaning of the law.
    (2) (amend. SG 88/2023, in force from 22.12.2023) Public procurement shall be the acquisition by one or several contracting authorities through a contract for public procurement of works, supplies or services by contractors chosen by them, regardless of whether they are intended for public purposes - in case of public contracting authorities, and in case of sectoral contracting authorities - when they are intended for the implementation of sectoral activities.
    (1) Public contracts should be awarded in accordance with the principles of the Treaty on the Functioning of the European Union (TFEU), in particular those of free movement of goods, freedom of establishment and freedom to provide services and mutual recognition, as well as with the resulting principles of:
    1. equality and non-discrimination;
    2. free competition;
    3. proportionality;
    4. publicity and transparency.
    (2) In the award of public contracts, contracting authorities shall not be entitled to restrict competition by including conditions or requirements which give an unjustified advantage or unduly restrict the participation of economic entities in public procurement and which are not adapted to the subject, value, complexity, quantity or volume of the public procurement.

Romania

Labour, tax and social security legislation