Remote Work (Home Office) in Bulgaria — Rules & Obligations (2026)

What You Will Learn

• The difference between remote work (telework) and home-based work under the Labour Code
• The mandatory clauses a remote work agreement must contain
• The employer's obligations regarding equipment, health and safety, and expense coverage
• The employee's obligations when working from home
• How the right to disconnect works in practice
• The tax treatment of home office expenses
• The risks of cross-border remote work (working from abroad)

Remote Work vs Home-Based Work — Art. 107z vs Art. 107v of the Labour Code

The Bulgarian Labour Code distinguishes two regimes that appear similar at first glance but carry significant legal differences.

Remote Work (Art. 107z–107p Labour Code)

Remote work (telework) is a form of work organisation where the employee performs duties outside the employer's premises using information technology. The defining element is the use of a computer, network, and software — without these, it does not qualify as remote work under the law.

The regime is set out in Art. 107z–107p of the Labour Code, with the latest amendments from State Gazette No. 27/29.03.2024 introducing substantial new requirements.

Home-Based Work (Art. 107v–107e Labour Code)

Home-based work covers activities performed at the employee's home or another premises of their choice that do not necessarily require information technology. This primarily involves manual or physical labour — manufacturing, assembly, packaging.

Comparison Table

This article focuses on remote work (telework/home office), as it is significantly more prevalent in modern employment relationships.

What the Remote Work Agreement Must Contain

Remote work may be agreed upon when the employment contract is signed or subsequently — through a supplementary agreement under Art. 119 of the Labour Code. In both cases, written consent from both parties is required. The employer cannot unilaterally impose remote work (except in cases expressly provided by law, such as during an epidemic emergency).

Mandatory Elements of the Agreement

Based on Art. 107z–107i of the Labour Code, the agreement must include:

1. Specific workplace address(es) — under Art. 107z(8), the employment contract may specify more than one workplace. A specific address (or addresses) must be stated.
2. Rules for assigning and reporting work — Art. 107z(9) requires mandatory rules on how tasks are assigned and results reported.
3. Technical equipment and maintenance terms — a description of the equipment the employer provides and the conditions for maintenance, repair, and replacement.
4. Internet connectivity — terms for internet access — whether the employer covers the costs, in what amount, and by what method.
5. Working hours and rest periods — the distribution of working hours, lunch break, daily rest, and weekly rest.
6. Communication procedures — the methods and channels of communication between the employee, employer, and third parties.
7. Health and safety conditions — minimum requirements for a healthy and safe workplace.
8. Conditions for terminating the remote work arrangement — the possibility of reverting to on-site work — deadlines, conditions, and procedure.

Change of Workplace at the Employee's Request

Under Art. 107z of the Labour Code, the employee may request a temporary change of workplace (e.g. working from another city) for up to 30 working days per year. The employer has discretion to approve or reject the request.

Employer Obligations — Equipment, Health & Safety, Expenses

The employer bears a significant share of obligations under the remote work regime.

Technical Equipment

Under Art. 107i(3) of the Labour Code, the employer must provide at its own expense:

• Computer (laptop or desktop)
• Necessary software (licences, operating system, specialised programmes)
• Hardware devices (monitor, keyboard, mouse, webcam, headset)
• Internet connectivity
• Work-related consumables

The employer is responsible for maintenance and repair of the provided equipment.

Alternative: Employee's Own Equipment

Under Art. 107i(5) of the Labour Code, the employee may use their own equipment if this is expressly agreed in the employment contract. In such cases, the employer typically compensates the employee — but this compensation has tax implications.

Health and Safety at Work

Following the amendments to the Health and Safety at Work Act of 29.03.2024, the health and safety obligations for remote work include:

• Information from the employer: minimum workplace safety and health requirements — desk and chair ergonomics, lighting, ventilation, electrical safety
• Information from the employee: a written description of the workplace characteristics (Art. 107k Labour Code)
• Training and instruction: mandatory upon hiring, upon change of workplace, and upon introduction of new equipment
• Monitoring system: the employer may introduce a work monitoring system only with the employee's written consent; the employee's personal space must be respected
• Access to the workplace: the employer or their representative has the right to access the workplace during working hours with prior notice; the employee may not refuse without a valid reason

Expense Coverage

Beyond equipment, the employer should cover or compensate:

• Internet costs (in full or in part, as agreed)
• Electricity costs (proportional to working hours, if agreed)
• Consumables (paper, toner, if necessary for the work)

Employee Obligations

Working from home does not relieve the employee of obligations — on the contrary, the 2024 amendments specified these in greater detail.

Key Obligations Under Art. 107k Labour Code

• Written workplace description: the employee provides the employer with a description of the workplace — address, dimensions, suitable desk and chair, lighting
• Notification of changes: the employee must notify the employer of any change in circumstances (moving to a different address, change of conditions)
• Notification of workplace accidents: in the event of a workplace accident, the employee must immediately notify the employer
• Access to the workplace: the employee may not refuse the employer (or their representative) access during working hours without a valid reason
• Care of equipment: the employee must maintain the provided equipment in working order
• Compliance with information security rules: protection of company information, passwords, access to corporate systems

Working Time and Accountability

Under Art. 107l(3) of the Labour Code, the employee self-organises their working time but has the following obligations:

• To be available and working during hours when the employer communicates with third parties (clients, partners, public authorities)
• To comply with the rules for assigning and reporting work under Art. 107z(9) of the Labour Code
• Not to exceed the maximum working day and to observe minimum rest periods

Right to Disconnect

One of the most significant innovations of 29.03.2024 is the legislative recognition of the right to disconnect for remote workers.

What the Law Provides

Under the new Art. 107l of the Labour Code, a remote worker is not required to respond to employer communications (calls, emails, chat messages, video conferences) during:

• Daily rest (minimum 12 consecutive hours between two working days)
• Weekly rest (minimum 36 consecutive hours)

Practical Application

The right to disconnect means that:

• The employer may not impose sanctions on an employee for not responding to an email received at 10 PM
• The employee does not owe an explanation for missing a call on Saturday
• If the employer systematically sends tasks outside working hours and expects an immediate response, this may constitute a violation of employment law

Limitations

The right to disconnect is not absolute:

• During overtime (duly ordered under Art. 144 of the Labour Code), the employee must be available
• During on-call duty under Art. 139 of the Labour Code
• In extraordinary circumstances (system failure, data security incident, etc.) requiring an immediate response

Recommendation for Employers

Develop an internal policy on the right to disconnect that clearly defines:

• Working hours during which communication is expected
• Emergency communication channels (for extraordinary cases only)
• Rules for sending emails outside working hours (e.g. delayed sending)
• Consequences for managers who systematically violate the policy

Tax Treatment of Home Office Expenses

The tax treatment of remote work expenses is an area where employers frequently make errors.

Equipment Provided by the Employer

Costs for a computer, monitor, desk, chair, software, and other equipment provided by the employer are tax-deductible under Art. 33 of the Corporate Income Tax Act (CITA), subject to the following conditions:

• Costs are properly documented (invoice, delivery-acceptance protocol)
• Equipment is related to the business activity of the company
• Equipment is recorded as an asset in the employer's accounts

Since the equipment remains the employer's property, providing it to the employee does not constitute taxable income for the employee.

Internet and Electricity Costs

Internet and electricity costs covered by the employer are tax-deductible if:

• They are agreed in the employment contract or supplementary agreement
• They are documented — invoice in the employer's name or documented reimbursement
• They correspond to actual costs for the working time

In practice, most employers set a fixed monthly amount for internet and electricity (e.g. EUR 25–50/month). To be tax-deductible, this amount must be supported by a calculation reflecting the actual cost.

Compensation for Use of Personal Equipment

If the employee uses their own computer, monitor, or other equipment (under Art. 107i(5) of the Labour Code), the employer's compensation may be treated in two ways:

• As taxable income of the employee under the Personal Income Tax Act — if not documented as a business expense
• As a tax-deductible expense of the employer — if supported by a contract, amortisation calculation, and documentation of the equipment's use for work purposes

Practical Advice

To minimise tax risks, provide equipment in the employer's name (invoiced to the company) rather than compensating the employee for personal equipment. This way, the equipment remains a company asset, the expense is clearly deductible, and no taxable income arises for the employee.

Cross-Border Remote Work

Remote work from abroad is an increasingly common practice but gives rise to serious legal, tax, and social security risks that employers rarely account for.

Social Security Implications

Under Regulation (EC) No. 883/2004, a person is insured in the country where they perform their activity. If an employee hired by a Bulgarian company works remotely from Spain for more than 25 % of their working time, an obligation to insure under Spanish law may arise.

Since 01.07.2023, the Framework Agreement on Cross-Border Telework has been in force, signed by most EU Member States (including Bulgaria). It allows retention of social security coverage in the employer's country, provided remote work from another country amounts to less than 50 % of total working time. An application to the NRA is required.

Tax Implications

Working from abroad may trigger:

• Tax liability for the employee in the country from which they work — under the 183-day rule or the domestic tax law of that country
• Permanent establishment for the employer — if the employee concludes contracts or carries out substantial activity on behalf of the company

Under most double tax treaties, a permanent establishment may arise where a “fixed place of business” or “dependent agent” exists. The employee's home office abroad may, under certain conditions, qualify as such.

Employment Law Implications

If the employee predominantly works from another country, the employment law of that country may become applicable under the Rome I Regulation (Regulation (EC) No. 593/2008). Art. 8 provides that the law of the country in which the employee habitually carries out their work applies.

Recommendation

For cross-border remote work:

1. Limit the duration — clearly agree on a maximum number of days working from abroad (e.g. up to 30 days per year)
2. Require advance notification from the employee regarding the country and period
3. Check the social security and tax implications for the specific country
4. Seek legal advice for a risk assessment

Frequently Asked Questions

Conclusion

The rules for remote work in Bulgaria were substantially updated by the amendments of 29.03.2024. If your company offers home office arrangements, it is essential to review employment contracts and internal policies to ensure they meet current requirements.

If you need assistance drafting remote work employment contracts, internal policies on the right to disconnect, or assessing the risks of cross-border remote work — contact Innovires Legal. Our team will help you build a proper framework tailored to your business model.

This article is for informational purposes only and does not constitute legal advice. Legislation and administrative practices are subject to change. For specific legal advice tailored to your situation, please consult a lawyer. Information is current as of March 2026.