How can a foreigner work legally in Bulgaria?

At home it is simpler: you can find a job through acquaintances or, at worst, register with the employment office and receive at least a token allowance. In Bulgaria a foreigner cannot count on any social support, and on top of that must renew their residence permit once a year (once every 6 months) and pay for insurance.

Dangerous myth-making

There is a myth that any foreigner, especially one who speaks Russian, can easily find work in the tourism sector. It is true that in summer many vacancies open up at the Black Sea resorts, and employers are ready to hire anyone, including foreigners. However, such employment has a substantial drawback – in most cases the only work a foreigner can be offered is illegal.

This means that after the very first inspection (and inspections at the resorts are carried out regularly) both the employer and the employee will be fined. Later on, even more serious fines and problems with the law are possible. Ignorance of the law is no defence – the fines will have to be paid anyway, since holders of a Bulgarian long-term residence permit are not entitled to work as employees in Bulgaria.

Working as an employee legally

Is it possible to get a job legally? Such an option exists, but legal employment involves considerable difficulties – above all for employers. An employer must prove that for objective reasons they cannot hire a domestic specialist, and only then, under a special permit from the Ministry of Labour, may they hire a foreign specialist.

This procedure is simplified for certain professions that are in short supply in Bulgaria, for example in information technology. But for now it is not advantageous for employers to hire foreigners, and exceptions are usually made only for the most valuable specialists, for whose sake it is worth obtaining all the permits.

Your own company

The most common way to get around the ban on employment is to open your own company and provide services on its behalf. Setting up an OOD (LLC) takes a minimum of time and is inexpensive. If the company is not carrying out any activity, it is enough to file reports once a year; this is handled by «счетоводникъщи», that is, accountants. If activity is being carried out, however, constant and fairly close cooperation with a Bulgarian accountant is required so that all the documentation is in order. Naturally, reports must be filed and taxes paid on time.

Employers usually react positively to an offer to provide them with services through a company rather than being taken on as an employee. This approach frees them from the need to pay social security contributions, so it often turns out to be more advantageous. A company providing services must take all costs and taxes into account when calculating the price of those services, so that the activity is not loss-making.

Setting up a company and working for yourself remains today the only legal and convenient way for foreigners to earn money in Bulgaria. Most people living in the country permanently earn their income in precisely this way, as managers of their own companies.

An end to the restrictions

The ban on foreigners working as employees applies only to those who hold a long-term residence permit. This permit must be renewed annually for five years. After that, a foreigner can obtain the status of a permanent resident of the country.

Permanent residence gives new opportunities and rights comparable to those of the country’s citizens. In particular, you can work as an employee without any special permits, without fear of fines or police prosecution. Of course, you can also continue working in your own company, if this type of activity has already become familiar and convenient.

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