When is it necessary to register a branch instead of only registering with the NRA?

If the foreign company has a fixed place of business in Bulgaria, holds meetings with clients, generates revenue and incurs expenses on Bulgarian territory, it must register a branch or subsidiary.

Foreign Employer Registration Bulgaria 2026 | NRA, Social Security, Procedure

Q: What documents are required for NRA registration?

Required documents include: a certificate of good standing of the foreign legal entity (apostilled and translated into Bulgarian), a tax registration certificate, a VAT registration certificate (if applicable), the employment contract, a notification under Art. 62 of the Labour Code and applications for the issuance of a service number.

Q: Which employment legislation applies?

Under Art. 11 of Regulation (EC) No. 883/2004, a person pursuing an activity as an employed person in a Member State is subject to the legislation of that state. Accordingly, Bulgarian employment and social security legislation applies.

Q: How are social security contributions paid from abroad?

It is strongly recommended to open a bank account in Bulgaria. Payments from foreign accounts create issues with the required fields in the budget payment order.

Q: What tax is withheld from the employee's salary?

Employment income is subject to a flat rate of 10% income tax under PITA. The advance tax is determined by the employer on a monthly basis.

When Is Registration Required

Scenario 1: Hired Employees Only (Ancillary Activity)

The foreign employer hires a person who resides in Bulgaria and works remotely — from their home or a shared workspace. The company has no fixed place of business (office, workshop, warehouse) in Bulgaria, does not hold in-person client meetings and does not generate direct revenue from activity in the country.

In this case, registration as a social security insurer with the NRA is sufficient — without the need for a branch or subsidiary.

Scenario 2: Business Activity (Branch or Subsidiary Required)

If the foreign company has a fixed place of business in Bulgaria, holds client meetings, generates revenue and incurs expenses, and conducts commercial activity — it must register either:

A branch of a foreign legal entity — entered in the Commercial Register.
A subsidiary (EOOD or OOD) — an independent legal entity incorporated under Bulgarian law.

The distinction is material, as the existence of a permanent establishment (PE) within the meaning of CITA and the TSSPC subjects the foreign company to corporate income tax in Bulgaria.

Legal Framework

EU Regulations

Regulation (EC) No. 883/2004 establishes the core principle: a person pursuing an activity as an employed person in a Member State is subject to the legislation of that state (Art. 11). Accordingly, for an employee working on Bulgarian territory, Bulgarian social security legislation applies.

Regulation (EC) No. 987/2009 (the implementing regulation) adds in Art. 21 that an employer whose registered office is outside the competent Member State fulfils all obligations arising from the applicable legislation — “as if its registered office were in the competent Member State”.

National Legislation

Labour Code (LC) — governs the employment contract, NRA notification (Art. 62), working hours, leave and termination.
Social Security Code (SSC) — establishes social security contributions, insurer obligations, pension and health insurance.
Health Insurance Act (HIA) — health insurance contributions.
Personal Income Tax Act (PITA) — taxation of employment income.
Tax and Social Security Procedure Code (TSSPC) — governs the issuance of service numbers.
Ordinance No. H-13/2019 — on the submission of data by employers regarding insured persons.

Step-by-Step Procedure

Step 1: Prepare the Foreign Company’s Documents

The foreign employer must prepare the following documents:

Certificate of good standing of the foreign legal entity, issued by the competent authorities in the country of registration. The document must be apostilled (for states party to the Hague Convention) and accompanied by a certified translation into Bulgarian.

Tax registration certificate — the company’s tax identification number in the country of its registered office. Also apostilled.

VAT registration certificate (if applicable) — the company’s VAT number. Also apostilled.

Step 2: Enter into an Employment Contract

The employment contract is concluded in accordance with Bulgarian law (Labour Code). It must contain all mandatory elements under Art. 66 LC:

Details of the parties (employer and employee).
Place of work.
Job title and nature of the work.
Date of conclusion and commencement of performance.
Term (if fixed-term).
Amount of basic and additional remuneration.
Length of the working day and week.
Amount of paid annual leave.
Notice period for termination.

Remuneration must be stated in Bulgarian leva (or in euro — with provision for conversion) and may not be lower than the national minimum wage.

Step 3: Register with the NRA and Obtain a Service Number

Within 3 working days of concluding the employment contract, the employer is required to file a notification to the NRA under Art. 62(3) LC.

The NRA officials verify the submission and issue a service number to the foreign employer under Art. 82(4) TSSPC. This number identifies the company in the tax administration’s system for registration of employment contracts, filing monthly declarations, and payment of social security contributions and taxes.

Step 4: Appoint an Authorised Person

The foreign employer appoints an authorised person in Bulgaria who acts on its behalf before the NRA, the NSSI and other institutions. The authorisation is executed by express power of attorney, certified in accordance with the applicable rules.

Step 5: Open a Bank Account

It is strongly recommended that the foreign employer open a bank account with a Bulgarian bank. When paying social security contributions and taxes from a foreign account, serious technical issues arise — the budget payment order requires specific fields that are difficult to complete in an international transfer.

The Authorised Person

Functions

Filing notifications under Art. 62 LC regarding the conclusion, amendment and termination of employment contracts.
Filing monthly declarations under Ordinance No. H-13 — Declaration Form 1 and Declaration Form 6.
Paying social security contributions and taxes to the relevant budget accounts.
Issuing documents — salary certificates, income certificates, social security record statements.
Representing the employer before the NRA, NSSI and the General Labour Inspectorate during inspections and audits.

Who May Serve as an Authorised Person

An accounting firm with experience serving foreign employers.
A lawyer or law firm.
A natural person with a permanent address in Bulgaria.

How the Power of Attorney Is Executed

The power of attorney must be express and specify the scope of the authorised person’s powers. If issued abroad, it must be apostilled and translated into Bulgarian by a certified translator.

Tax Obligations

Income Tax on Employment Income

Under Art. 8(2) PITA, income from work performed on Bulgarian territory is sourced in Bulgaria, regardless of the employer’s registered office. The tax rate is a flat 10% on the total annual tax base. The advance tax is determined by the employer monthly and withheld upon payment of the remuneration.

Annual Reconciliation

The employer performs an annual tax reconciliation under Art. 49 PITA by 31 January of the following year, provided the employee declares that they have no other income or employers.

Corporate Income Tax

If the foreign company has no permanent establishment (PE) in Bulgaria, it does not owe corporate income tax. However, if the activity in Bulgaria creates a PE (a fixed place of business, an agent with authority to conclude contracts, etc.), the company is subject to 10% corporate income tax.

Social Security Obligations

Under Regulation 883/2004 and the Bulgarian SSC, for a person working on Bulgarian territory, Bulgarian social security legislation applies. The foreign employer has the status of insurer under Art. 5(1) SSC.

Types of Social Security Contributions

Type of Contribution	Total Rate	Employer	Employee
SSI — Pensions Fund (born before 01.01.1960)	19.8%	11.88%	7.92%
SSI — Pensions Fund (born after 31.12.1959)	14.8%	8.88%	5.92%
SSI — General Illness and Maternity Fund	3.5%	2.1%	1.4%
SSI — Unemployment Fund	1.0%	0.6%	0.4%
SSI — Occupational Accident and Disease Fund	0.4%–1.1%	Entirely	—
Supplementary Mandatory Pension Insurance	5.0%	2.8%	2.2%
Health Insurance	8.0%	4.8%	3.2%

Total (excluding Occupational Accident and Disease): approximately 31.7%–32.7% of the insurable income.

Filing and Payment Deadlines

Declaration Form 1 (data on the insured person) — filed by the 25th day of the month following the month to which it relates.
Declaration Form 6 (total contributions due) — filed by the 25th day of the month following the month to which it relates.
Payment of social security contributions — by the 25th day of the following month.

Branch vs NRA Registration — Comparison

Criterion	NRA Registration (No Branch)	Branch of Foreign Entity	Subsidiary (EOOD/OOD)
When appropriate	Hired employees without a fixed place of business	Expansion of activity without a separate legal entity	Full-scale business activity in Bulgaria
Registration	Service number from NRA	Commercial Register + BULSTAT	Commercial Register
Registration timeline	Days	2–4 weeks	1–2 weeks
Corporate income tax	No (if no PE)	Yes (10%)	Yes (10%)
Separate legal entity	No	No (part of the foreign company)	Yes
Accounting in Bulgaria	Payroll and declarations only	Full accounting	Full accounting
Maintenance costs	Low	Medium	Medium to high

Practical Steps — Summary

If you are a foreign company wishing to hire an employee in Bulgaria without registering a branch, follow this sequence:

Prepare the documents — certificate of good standing (apostilled and translated), tax registration certificate.
Find an authorised person in Bulgaria — an accounting firm or a lawyer with relevant experience.
Enter into an employment contract in accordance with the Bulgarian Labour Code.
File documents with the NRA — notification under Art. 62 LC plus the full set of documents for obtaining a service number.
Open a bank account with a Bulgarian bank for payment of social security contributions and taxes.
File monthly Declaration Forms 1 and 6 and pay contributions and tax.
Perform annual tax reconciliation by 31 January of the following year.

Frequently Asked Questions

Can a foreign company hire employees in Bulgaria without a branch?

Yes. A foreign company may hire persons working on Bulgarian territory without registering a branch or subsidiary. It only needs to register as a social security insurer with the NRA and obtain a service number.

What documents are required for NRA registration?

Required documents: certificate of good standing of the foreign company (apostilled and with certified translation), tax registration certificate, VAT registration certificate (if applicable), the concluded employment contract, a notification under Art. 62 LC and applications for the issuance of a service number.

What is an authorised person and why is it mandatory?

The authorised person is the foreign employer’s representative in Bulgaria who files declarations, notifications and makes payments on its behalf. For a foreign employer without a physical presence in Bulgaria, it is practically essential to appoint such a person.

Which employment legislation applies?

Under Art. 11 of Regulation 883/2004, a person pursuing an activity in a Member State is subject to the legislation of that state. Accordingly, Bulgarian employment and social security legislation applies — the Labour Code, SSC, HIA and PITA.

What social security contributions does a foreign employer owe?

The foreign employer owes all social security contributions under Bulgarian law: SSI (pensions, general illness and maternity, unemployment, occupational accident and disease), health insurance and supplementary mandatory pension insurance. The total burden is approximately 31.7%–32.7% of the insurable income.

How are social security contributions paid from abroad?

It is strongly recommended to open a bank account with a Bulgarian bank. Payments from foreign accounts create technical issues with the budget payment order and there is a risk that the funds will not be allocated to the correct accounts.

When is it necessary to register a branch?

A branch is required when the foreign company is extending its business activity in Bulgaria — it has a fixed place of business, holds client meetings, and generates revenue on Bulgarian territory. NRA registration alone is sufficient only when the employee performs ancillary activities from home.

What tax is withheld from the employee’s salary?

Employment income is subject to a flat 10% income tax under PITA. The advance tax is determined and withheld by the employer monthly. The income is sourced in Bulgaria (Art. 8(2) PITA), as the work is performed on Bulgarian territory.

Conclusion

Registering as a foreign employer in Bulgaria is a straightforward process when guided properly. The key steps are obtaining a service number from the NRA, appointing an authorised person, and ensuring compliance with Bulgarian employment and social security legislation. The procedure is significantly simpler and less costly than registering a branch or subsidiary.

If you are a foreign company planning to hire employees in Bulgaria, the team at Innovires Legal can assist you with the entire registration process and ongoing compliance. Contact us for a consultation.

This article is for informational purposes only and does not constitute legal advice. For specific questions about your situation, please consult a qualified lawyer.

Foreign Employer Registration in Bulgaria (2026)