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Live & Work in Bulgaria. I. Summary Area - 110 994 sq. km Population - 7 974 000 Capital - Sofia ...

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Live & Work in Bulgaria Live & Work in Bulgaria
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Page 1: Live & Work in Bulgaria. I. Summary  Area - 110 994 sq. km  Population - 7 974 000  Capital - Sofia  Official language - Bulgarian  Government.

Live & Work in BulgariaLive & Work in Bulgaria

Page 2: Live & Work in Bulgaria. I. Summary  Area - 110 994 sq. km  Population - 7 974 000  Capital - Sofia  Official language - Bulgarian  Government.

Live & Work in BulgariaLive & Work in Bulgaria

Page 3: Live & Work in Bulgaria. I. Summary  Area - 110 994 sq. km  Population - 7 974 000  Capital - Sofia  Official language - Bulgarian  Government.

Live & Work in BulgariaLive & Work in Bulgaria

I. Summary I. Summary Area Area - 110 994 sq. km- 110 994 sq. km PopulationPopulation - 7 974 000 - 7 974 000 CapitalCapital - Sofia - Sofia Official languageOfficial language - Bulgarian - Bulgarian Government type - Government type - Parliamentary republicParliamentary republic Religion:Religion: Bulgarian Orthodox 82.6%, Muslim 12.2%, Roman Catholic Bulgarian Orthodox 82.6%, Muslim 12.2%, Roman Catholic

1.7%, Jewish 0.1%, Protestant, Gregorian-Armenian, and other 4%1.7%, Jewish 0.1%, Protestant, Gregorian-Armenian, and other 4% Industries:Industries: Electricity, gas and water; food, beverages and tobacco; Electricity, gas and water; food, beverages and tobacco;

machinery and equipment, base metals, chemical products, coke, refined machinery and equipment, base metals, chemical products, coke, refined petroleum, nuclear fuelpetroleum, nuclear fuel

Exports: Exports: Clothing, footwear, iron and steel, machinery and equipment, Clothing, footwear, iron and steel, machinery and equipment, fuelsfuels

Import:Import: Fuels, minerals, and raw materials; machinery and equipment; Fuels, minerals, and raw materials; machinery and equipment; metals and ores; chemicals and plastics; food, textilesmetals and ores; chemicals and plastics; food, textiles

National currencyNational currency - Bulgarian lev (BGN) - Bulgarian lev (BGN) A rate of exchange BGN / €A rate of exchange BGN / € - 1.95 / 1 - 1.95 / 1

Page 4: Live & Work in Bulgaria. I. Summary  Area - 110 994 sq. km  Population - 7 974 000  Capital - Sofia  Official language - Bulgarian  Government.

Live & Work in BulgariaLive & Work in Bulgaria

II. EURES network in BulgariaII. EURES network in Bulgaria

11. . National structure of EURES in Bulgaria: National structure of EURES in Bulgaria: 1 Manager;1 Manager; 2 EURES Advisers certificated in 2006;2 EURES Advisers certificated in 2006; 4 EURES Advisers to be trained this year; 4 EURES Advisers to be trained this year; 3 EURES Advisers will be trained in 2008; 3 EURES Advisers will be trained in 2008; Till the end of 2007 we plan to train 28 EURES Assistants to provide EURES services Till the end of 2007 we plan to train 28 EURES Assistants to provide EURES services

in each large Local Labour Office.in each large Local Labour Office. Bulgarian EURES advisers are specialized to deal with certain EU countries.Bulgarian EURES advisers are specialized to deal with certain EU countries.

22. . Typical tasks of EURES advisers in BulgariaTypical tasks of EURES advisers in Bulgaria providing information to job seekers and employers about the European job market providing information to job seekers and employers about the European job market placement servicesplacement services informing other EU citizens about living & working conditions in Bulgariainforming other EU citizens about living & working conditions in Bulgaria making contacts with local labour market actorsmaking contacts with local labour market actors organizing job eventsorganizing job events drafting annual plansdrafting annual plans

Page 5: Live & Work in Bulgaria. I. Summary  Area - 110 994 sq. km  Population - 7 974 000  Capital - Sofia  Official language - Bulgarian  Government.

Live & Work in BulgariaLive & Work in Bulgaria

III. LabourIII. Labour marketmarket i inn BulgariaBulgaria11. . ShortShort revieurevieu

RepublicRepublic ofof BulgariaBulgaria isis devideddevided intointo 6 6 economiceconomic regionsregions / /NorthNorth--WesternWestern, , NorthNorth--CentralCentral, , NorthNorth--EasternEastern, , South-Western and South-Western and South-EasternSouth-Eastern/ / and and 28 28 administrative districts.administrative districts.DuringDuring February 2007 February 2007 thethe averageaverage raterate ofof registeredregistered unemploymentunemployment was was 9.9.4848%%. . The regional unemployment rate The regional unemployment rate varies within wide range but there is a lower rates tendency varies within wide range but there is a lower rates tendency shown in several districts asshown in several districts as: : Sofia Sofia (2.0(2.088%), %), BourgasBourgas (5. (5.5353%), %), GabrovoGabrovo ( (44..8787%), %), VarnaVarna ( (77..22225%)5%), Blagoevgrad, Blagoevgrad ( (77..8484%)%) and and Pernik (7.76%). Sofia, Burgas, Gabrovo and Varna districts have Pernik (7.76%). Sofia, Burgas, Gabrovo and Varna districts have reached a rate of unemployment lower than the average for the reached a rate of unemployment lower than the average for the EU-27 which is EU-27 which is 7.9%7.9% in 2006 in 2006.. Districts with highes unemployment Districts with highes unemployment rates are: Turgovishterates are: Turgovishte (20. (20.5656%), %), MontanaMontana ( (1717..7777%), %), VidinVidin (17.(17.2323%), %), RazgradRazgrad (16. (16.3232%) %) and Shoumenand Shoumen (1 (17.22%7.22%))..

Pictures 1 and 2 illustrate the facts.Pictures 1 and 2 illustrate the facts.

Page 6: Live & Work in Bulgaria. I. Summary  Area - 110 994 sq. km  Population - 7 974 000  Capital - Sofia  Official language - Bulgarian  Government.

Live & Work in BulgariaLive & Work in BulgariaUnemployment rate in February 2007 by administrative districtsUnemployment rate in February 2007 by administrative districts Picture 1Picture 1

Country average rate Country average rate 9,48%9,48%

Page 7: Live & Work in Bulgaria. I. Summary  Area - 110 994 sq. km  Population - 7 974 000  Capital - Sofia  Official language - Bulgarian  Government.

Live & Work in BulgariaLive & Work in BulgariaUnemployment rate by municipalityesUnemployment rate by municipalityes - - FebruaryFebruary 200 2007 Picture 27 Picture 2

Page 8: Live & Work in Bulgaria. I. Summary  Area - 110 994 sq. km  Population - 7 974 000  Capital - Sofia  Official language - Bulgarian  Government.

Live & Work in BulgariaLive & Work in Bulgaria

2. Labour market shortages2. Labour market shortagesDuringDuring 2006 2006 jobjob vacancesvacances inin thethe manufacturemanufacture industryindustry werewere thethe mostlymostly openedopened, , followedfollowed by tradeby trade andand repairsrepairs ofof automobileautomobile andand householdhousehold appliancesappliances, , educationeducation, , agricultureagriculture branchbranch, , constructionconstruction – – househouse buildersbuilders, , casingcasing workersworkers, , househouse--painterspainters, , carpenterscarpenters, , roadroad constructors etc. constructors etc. In In Bulgaria tourism is one of the most rapidly developing sectors. Yet we Bulgaria tourism is one of the most rapidly developing sectors. Yet we need workers in need workers in hotel and restaurant serviceshotel and restaurant services - - waiterswaiters, , chefs and cookschefs and cooks, , chambermaidschambermaids..

Recently the Recently the Bulgarian labour market suffers from aBulgarian labour market suffers from a significantsignificant lacklack ofof highly-skilled professionals in the engineering and technical field - highly-skilled professionals in the engineering and technical field - engineers, IT specialists, information and communication technology engineers, IT specialists, information and communication technology specialists, technicians. We also suffer shortage of specialists, technicians. We also suffer shortage of welderswelders, , electricians, electricians, expertsexperts inin labourlabour safetysafety, , nursesnurses and professionals speaking foreign and professionals speaking foreign languages. languages.

Page 9: Live & Work in Bulgaria. I. Summary  Area - 110 994 sq. km  Population - 7 974 000  Capital - Sofia  Official language - Bulgarian  Government.

Live & Work in BulgariaLive & Work in Bulgaria

3. Labour market surpluses3. Labour market surpluses

InIn 2006 2006 thethe biggestbiggest shareshare of of unemployed were people withunemployed were people with qualificationqualification inin thethe fieldfield ofof engineeringengineering andand technology,technology, followedfollowed byby peoplepeople specializedspecialized in field of in field of economicseconomics, , lawlaw, , socialsocial sciencessciences, , agricultureagriculture, , educationeducation andand humanities and arthumanities and art. . AA littlelittle bitbit lessless areare specialistsspecialists inin servicesservices, , transportation, securitytransportation, security and life guardand life guard, , health carehealth care and and exact exact sciencessciences..

Page 10: Live & Work in Bulgaria. I. Summary  Area - 110 994 sq. km  Population - 7 974 000  Capital - Sofia  Official language - Bulgarian  Government.

Live & Work in BulgariaLive & Work in Bulgaria

IV. Finding job in BulgariaIV. Finding job in Bulgaria11. . How to find workHow to find work

Bulgaria has fully opened its labour market for all the EU/EEA citizens. They Bulgaria has fully opened its labour market for all the EU/EEA citizens. They may register in the Local Labour Office Directorates in Bulgaria where they may register in the Local Labour Office Directorates in Bulgaria where they will be provided with job matching services. One may check for vacancies will be provided with job matching services. One may check for vacancies on the NEA web site on the NEA web site www.az.government.bgwww.az.government.bg. . Other possibility is to look for a job through the newspapers /there are Other possibility is to look for a job through the newspapers /there are advertisements every day/, through Internet – advertisements every day/, through Internet – www.job.comwww.job.com, , http://http://jobs.gbg.bgjobs.gbg.bg, , www.jobtiger.bgwww.jobtiger.bg or by personal contacts. or by personal contacts.

2. How to apply for work2. How to apply for workWhen applying for a job one should prepare a CV – in most cases the When applying for a job one should prepare a CV – in most cases the standart European template is used. Often a motivation letter is enclosed. standart European template is used. Often a motivation letter is enclosed. Other documents needed: diplomas /translated into Bulgarian/, documents Other documents needed: diplomas /translated into Bulgarian/, documents proving vocational training /if any/, documents proving length of service, proving vocational training /if any/, documents proving length of service, Medical sertificate, Police report /wheter the candidate has been charged Medical sertificate, Police report /wheter the candidate has been charged with some kind of crime or has been given a sentence/.with some kind of crime or has been given a sentence/.

Page 11: Live & Work in Bulgaria. I. Summary  Area - 110 994 sq. km  Population - 7 974 000  Capital - Sofia  Official language - Bulgarian  Government.

Live & Work in BulgariaLive & Work in Bulgaria

3. Kinds of employment3. Kinds of employmentThe oficial minimum age for starting work in Bulgaria is 16 years. As an The oficial minimum age for starting work in Bulgaria is 16 years. As an exception people aged 15 and 16 may be hired with a special permission exception people aged 15 and 16 may be hired with a special permission from The Labour Inspection Office. from The Labour Inspection Office. Employees in Bulgaria can be hired for a limited period of time or for a Employees in Bulgaria can be hired for a limited period of time or for a permanent work , for a full time /in the most cases/ or for a part time work. permanent work , for a full time /in the most cases/ or for a part time work. The full time working day is 8 hours per a day. Usually the employers The full time working day is 8 hours per a day. Usually the employers prefer to first hire workers with a contract with a probation period /the prefer to first hire workers with a contract with a probation period /the probation period may not be longer than 6 months/. No matter for what probation period may not be longer than 6 months/. No matter for what perion the worker is hired, a labour contract is obligatory. The contract perion the worker is hired, a labour contract is obligatory. The contract should be concluded before the worker starts work. Within a 3-day period should be concluded before the worker starts work. Within a 3-day period the employer is obliged to send a Notification for each contract to the the employer is obliged to send a Notification for each contract to the National Revenue Agency /NRA/. The worker should be provided with National Revenue Agency /NRA/. The worker should be provided with copies of the contract and of the NRA Notification.copies of the contract and of the NRA Notification.If an employee wants to leave he/she may terminate a contract of If an employee wants to leave he/she may terminate a contract of employment by giving the employer a notice in writing. The notice period employment by giving the employer a notice in writing. The notice period for terminating a contract /either by the employee or the employer/ is 30 for terminating a contract /either by the employee or the employer/ is 30 days.days.

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Live & Work in BulgariaLive & Work in Bulgaria4. Minimum and average salary4. Minimum and average salary

At present the guaranteed minimum salary per month in Bulgaria Is 180 lv At present the guaranteed minimum salary per month in Bulgaria Is 180 lv (about 95 Euro). The average salary is 397 lv per month (about 200 Euro). (about 95 Euro). The average salary is 397 lv per month (about 200 Euro). Tis is the main reason that motivates Bulgarians to look for a job out of our Tis is the main reason that motivates Bulgarians to look for a job out of our country.country.

5. Annual leave5. Annual leaveAny worker has the right for a paid annual leave. The duration of the basic Any worker has the right for a paid annual leave. The duration of the basic paid annual leave is no less than 20 work days /if the worker has paid annual leave is no less than 20 work days /if the worker has completed 6 months length of service/. completed 6 months length of service/. Bulgarian employees didn’t work Bulgarian employees didn’t work on the on the official official public holidays which are: January 1 – New Year, March 3 – public holidays which are: January 1 – New Year, March 3 – National day , National day , May 1 – the day of labour, May 6 – St. George day /the May 1 – the day of labour, May 6 – St. George day /the day of day of bravery and Bulgarian armed forcesbravery and Bulgarian armed forces/, May 24 – the day of the /, May 24 – the day of the Bulgarian education and Bulgarian education and creating of the Bulgarian and slavic alphabet creating of the Bulgarian and slavic alphabet , , September 6 - Unification day, September 22 – Independence day,September 6 - Unification day, September 22 – Independence day, December 24 – Christmas Eve, December 24 and 25 – Christmas, Easter. December 24 – Christmas Eve, December 24 and 25 – Christmas, Easter. The workers should use their annual leave in the year it belongs. The workers should use their annual leave in the year it belongs. They may They may delay it onli with adelay it onli with a permission from the employer permission from the employer. .

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Live & Work in BulgariaLive & Work in Bulgaria66. Illness leave . Illness leave

If illness occurs, the employer may use leave due to illness – in that case If illness occurs, the employer may use leave due to illness – in that case he/she should present to the employer a medical document. During the he/she should present to the employer a medical document. During the leave due to general sickness the worker receives daily cash benefit which leave due to general sickness the worker receives daily cash benefit which is calculated as 80 per cent, and for temporary incapacity due to work injury is calculated as 80 per cent, and for temporary incapacity due to work injury and occupational sickness as 90 per cent of the average daily gross wage.and occupational sickness as 90 per cent of the average daily gross wage.

The benefit for temporary incapacity due to general sickness, for temporary The benefit for temporary incapacity due to general sickness, for temporary incapacity due to work injury and occupational sickness and for pregnancy incapacity due to work injury and occupational sickness and for pregnancy and maternity are paid by the National Social Security Institute through a and maternity are paid by the National Social Security Institute through a bank account, designated by the ensured person. Only for the first day of bank account, designated by the ensured person. Only for the first day of the incapacity the insurer /employer/ pays the employee the average daily the incapacity the insurer /employer/ pays the employee the average daily gross wage for the month in which the incapacity has occurred.gross wage for the month in which the incapacity has occurred.

Page 14: Live & Work in Bulgaria. I. Summary  Area - 110 994 sq. km  Population - 7 974 000  Capital - Sofia  Official language - Bulgarian  Government.

Live & Work in BulgariaLive & Work in Bulgaria

77. Maternity leave. Maternity leaveFemale employees are entitled to pregnancy and childbirth leave of 315 Female employees are entitled to pregnancy and childbirth leave of 315 days for each child. 45 days of these leave are used obligatory before days for each child. 45 days of these leave are used obligatory before giving birth. During this leave the mother receives a cash benefit that is giving birth. During this leave the mother receives a cash benefit that is 90% of her average daily remuneration.90% of her average daily remuneration.

After the leave for pregnancy and childbirth /or adoption/ , the mother is After the leave for pregnancy and childbirth /or adoption/ , the mother is entitled an additional paid leave for rising first, second and third child until entitled an additional paid leave for rising first, second and third child until the children reach an age of 2 years. The additional leave for each the children reach an age of 2 years. The additional leave for each subsequent child is 6 months. The right for this additional leave may be subsequent child is 6 months. The right for this additional leave may be transferred to the father or to one of the parents who work under labour transferred to the father or to one of the parents who work under labour contract. For this 2-yaers paid leave the beneficier receives a cash contract. For this 2-yaers paid leave the beneficier receives a cash compensationcompensation. After having used the the 2-year paid leave any of the . After having used the the 2-year paid leave any of the parents, if they work under a labour contract, have the right to use an parents, if they work under a labour contract, have the right to use an unpaid leave up to 6 months for taking care of a child before he/she unpaid leave up to 6 months for taking care of a child before he/she reaches the age of 8 years. This leave is recognized as length of service. reaches the age of 8 years. This leave is recognized as length of service.

Page 15: Live & Work in Bulgaria. I. Summary  Area - 110 994 sq. km  Population - 7 974 000  Capital - Sofia  Official language - Bulgarian  Government.

Live & Work in BulgariaLive & Work in Bulgaria

VV. Living conditions. Living conditions

1. 1. Entering Bulgaria/Residence PermitEntering Bulgaria/Residence Permit

EU/EEA citizens may enter Bulgaria and reside here up to 3 months only EU/EEA citizens may enter Bulgaria and reside here up to 3 months only with their ID card/passport. After the 3-month period of residing the with their ID card/passport. After the 3-month period of residing the EU/EEA citizens may receive a long-term Residence Permit up to 5 years EU/EEA citizens may receive a long-term Residence Permit up to 5 years if they start work in the country or are self-employed, or are enrolled in an if they start work in the country or are self-employed, or are enrolled in an education course /incl. vocational training/. After expiry of the 5-year education course /incl. vocational training/. After expiry of the 5-year period the EU/EEA citizens may acquire a permanent Residence permit. period the EU/EEA citizens may acquire a permanent Residence permit. The residence permits are issued by the National Police Service – The residence permits are issued by the National Police Service – wwwwww..mfamfa..governmentgovernment..bgbg /the site of the Bulgarian Ministry of Interior/. /the site of the Bulgarian Ministry of Interior/.

Page 16: Live & Work in Bulgaria. I. Summary  Area - 110 994 sq. km  Population - 7 974 000  Capital - Sofia  Official language - Bulgarian  Government.

Live & Work in BulgariaLive & Work in Bulgaria2. 2. Finding accommodationFinding accommodation

In Bulgaria one can freely bye or rent a flat/house. When renting, usually a In Bulgaria one can freely bye or rent a flat/house. When renting, usually a contract between the tenant and the landlord is concluded. Information both contract between the tenant and the landlord is concluded. Information both for hiring and buying a flat/house can be found in the national daily for hiring and buying a flat/house can be found in the national daily newspapernewspaperss. When buying a flat/house the needed documents include both . When buying a flat/house the needed documents include both buyer and the seller’s ID cards as well as documents proving the owner of the buyer and the seller’s ID cards as well as documents proving the owner of the housing. One may search for housing through Real Estate Agencies but this housing. One may search for housing through Real Estate Agencies but this way is usually more expensive. The costs considerably vary depending on the way is usually more expensive. The costs considerably vary depending on the city, the location of the housing, its state /old - new, furnished - part-furnished city, the location of the housing, its state /old - new, furnished - part-furnished etc/. etc/. Country average house market price – 846.5 lv /sq.mCountry average house market price – 846.5 lv /sq.m

3. 3. Cost of livingCost of livingThe prices of the food products and beverage in Bulgaria are still lower than The prices of the food products and beverage in Bulgaria are still lower than in the rest of the European countries which makes the country a comfortable in the rest of the European countries which makes the country a comfortable place to live in.place to live in.The shops which sell food are opened from 7.30 a.m till 8.00 p.m 6 days in The shops which sell food are opened from 7.30 a.m till 8.00 p.m 6 days in week. On Sunday they usually close earlier – at about 4.00 or 5.00p.mweek. On Sunday they usually close earlier – at about 4.00 or 5.00p.mIn the bigger cities there are big stores where any kinds of products can be In the bigger cities there are big stores where any kinds of products can be found. found.

Page 17: Live & Work in Bulgaria. I. Summary  Area - 110 994 sq. km  Population - 7 974 000  Capital - Sofia  Official language - Bulgarian  Government.

Live & Work in BulgariaLive & Work in Bulgaria

4. Child care and 4. Child care and EducationEducation

There are kindergartens everywhere in Bulgaria /even in the small villages, There are kindergartens everywhere in Bulgaria /even in the small villages, with a very few exceptions/. The children are allowed in the kindergartens with a very few exceptions/. The children are allowed in the kindergartens

when when they have reached the age of 3 years. Anyway there are also crèches where they have reached the age of 3 years. Anyway there are also crèches where cares for babies are provided. There is also an alternative for hiring a private cares for babies are provided. There is also an alternative for hiring a private babycare but it is available mainly in the bigger towns and in the cities. babycare but it is available mainly in the bigger towns and in the cities.

Page 18: Live & Work in Bulgaria. I. Summary  Area - 110 994 sq. km  Population - 7 974 000  Capital - Sofia  Official language - Bulgarian  Government.

Live & Work in BulgariaLive & Work in Bulgaria

In Bulgaria the education is obligatory for children who have completed 7 In Bulgaria the education is obligatory for children who have completed 7 years /or if the parents decide – 6 years/ till they reach 16 years. The years /or if the parents decide – 6 years/ till they reach 16 years. The state school education is free for Bulgarian citizens, for foreign citizens state school education is free for Bulgarian citizens, for foreign citizens who have acquired permanent residence in Bulgaria or for whom this who have acquired permanent residence in Bulgaria or for whom this issue is set by a bilateral agreement, and for children up to 16 years who issue is set by a bilateral agreement, and for children up to 16 years who reside in the country with their parents – EU/EEA and Switzerland citizens reside in the country with their parents – EU/EEA and Switzerland citizens who work in Bulgaria. For these children a free training in Bulgarian who work in Bulgaria. For these children a free training in Bulgarian language is provided as well as a training in co-operation with their language is provided as well as a training in co-operation with their country of origincountry of origin

There are language schools in the biggest cities /German, English – these There are language schools in the biggest cities /German, English – these are the most widespread language schools, there are also Spanish, are the most widespread language schools, there are also Spanish, French, Russian schools/. In almost every big town there is a school French, Russian schools/. In almost every big town there is a school where there are classes only for a particular language. where there are classes only for a particular language.

Page 19: Live & Work in Bulgaria. I. Summary  Area - 110 994 sq. km  Population - 7 974 000  Capital - Sofia  Official language - Bulgarian  Government.

Live & Work in BulgariaLive & Work in Bulgaria5. 5. Health systemHealth systemHealth care in Bulgaria is conducted by the Ministry of health – Health care in Bulgaria is conducted by the Ministry of health – www.mh.government.bgwww.mh.government.bg . The expenditure of the health insurance . The expenditure of the health insurance contributions is governed by the National Health Insurance Fund - contributions is governed by the National Health Insurance Fund - wwwwww..nhifnhif..bgbg. Insured people have the right to profit the services provided by medical . Insured people have the right to profit the services provided by medical professionals and by medical institutions that have sighed contracts with the professionals and by medical institutions that have sighed contracts with the National Health Insurance Fund. National Health Insurance Fund.

Every Every insured insured person should choose a personal medical specialistperson should choose a personal medical specialist - - GP.GP. If the If the personal doctor is not competent about the particular illness, he sends the personal doctor is not competent about the particular illness, he sends the patient to a specialist. patient to a specialist. Thease Thease visits are free of charge – only a visit tax is paid visits are free of charge – only a visit tax is paid and it’s 1% of the minimum salary. For each day spent by an insured patient in and it’s 1% of the minimum salary. For each day spent by an insured patient in a hospital a bed tax is paid and it’s 2% of the minimal salary. a hospital a bed tax is paid and it’s 2% of the minimal salary. In Bulgaria there are a big number of private hospitals and specialized medical In Bulgaria there are a big number of private hospitals and specialized medical offices that have not signed contracts with the National Health Insurance Fund offices that have not signed contracts with the National Health Insurance Fund . . The health care they provide is The health care they provide is paid by the patient, no matter if hepaid by the patient, no matter if he is insured is insured or not.or not.

Page 20: Live & Work in Bulgaria. I. Summary  Area - 110 994 sq. km  Population - 7 974 000  Capital - Sofia  Official language - Bulgarian  Government.

Live & Work in BulgariaLive & Work in Bulgaria

VI. Taxation and social insuranceVI. Taxation and social insurance

1. 1. TTaxationaxationAccording to the Personal Income Tax ActAccording to the Personal Income Tax Act a subject for taxation in a subject for taxation in Bulgaria are domestic individuals /that means persons whose permanent Bulgaria are domestic individuals /that means persons whose permanent address is in Republic of Bulgaria, or persons who reside in Republic of address is in Republic of Bulgaria, or persons who reside in Republic of Bulgaria more than 183 days in each 12 months, or persons Bulgaria more than 183 days in each 12 months, or persons for whom for whom Bulgaria is their vital interests place/Bulgaria is their vital interests place/ and and foreign individuals /all the other foreign individuals /all the other persons not included in the list of the domestic individuals/persons not included in the list of the domestic individuals/. . Domestic Domestic individuals are taxable on income earned from sources in Bulgaria and individuals are taxable on income earned from sources in Bulgaria and from foreign countries. from foreign countries. Foreign individuals are taxable on income earned Foreign individuals are taxable on income earned from sources in Bulgaria.from sources in Bulgaria.

Wages for labour performed on the territory of Bulgaria are taxable as a Wages for labour performed on the territory of Bulgaria are taxable as a source from Bulgaria.source from Bulgaria.

Page 21: Live & Work in Bulgaria. I. Summary  Area - 110 994 sq. km  Population - 7 974 000  Capital - Sofia  Official language - Bulgarian  Government.

Live & Work in BulgariaLive & Work in BulgariaDuring 2007 tax bases on which taxes are due are defined as follows:During 2007 tax bases on which taxes are due are defined as follows: an income up to 2 400 lv. per a year is non taxable;an income up to 2 400 lv. per a year is non taxable; on an income from 2 400 to 3 000 lv. per a year the tax is 20%;on an income from 2 400 to 3 000 lv. per a year the tax is 20%; on an income from 3 000 to 7 200 lv. per a year the tax is 120 lv. plus 22% on amount on an income from 3 000 to 7 200 lv. per a year the tax is 120 lv. plus 22% on amount

over 3000lv.over 3000lv. on an income that exceeds 7 200 lv. per a year the owed tax is 1 044 lv. plus 24% on the on an income that exceeds 7 200 lv. per a year the owed tax is 1 044 lv. plus 24% on the

amount over 7 200 lv.amount over 7 200 lv.

The annual tax base is formed as a sum of the monthly tax bases. The tax on the income The annual tax base is formed as a sum of the monthly tax bases. The tax on the income from salary payment is monthly deducted and paid in the National Revenue Agency /NRA/ from salary payment is monthly deducted and paid in the National Revenue Agency /NRA/ by the employer. If the salary is the only source of an employee’s income, there is no need a by the employer. If the salary is the only source of an employee’s income, there is no need a tax declaration to be filled. If there are other sources of income, a tax declaration should be tax declaration to be filled. If there are other sources of income, a tax declaration should be filled and rendered to the NRA.filled and rendered to the NRA.

Families who raise children under age of 18 can profit from annual tax Families who raise children under age of 18 can profit from annual tax concessions. They have to fill in a tax declaration and the annual tax base is concessions. They have to fill in a tax declaration and the annual tax base is reduced as follows: reduced as follows: for a single child under age – with 420 lv.;for a single child under age – with 420 lv.; for two children under age – with 840 lv.;for two children under age – with 840 lv.; For three and more children under age – with 1 260 lv. For three and more children under age – with 1 260 lv.

Page 22: Live & Work in Bulgaria. I. Summary  Area - 110 994 sq. km  Population - 7 974 000  Capital - Sofia  Official language - Bulgarian  Government.

Live & Work in BulgariaLive & Work in Bulgaria

2. Social insurance2. Social insurance

According to the Bulgarian legislation insurance contributions are allocated According to the Bulgarian legislation insurance contributions are allocated in:in:

the Pensions fund – 23% for persons born before 1960 and 19% for the Pensions fund – 23% for persons born before 1960 and 19% for persons born after 1960;persons born after 1960;

the General sickness and maternity fund – 3.5%;the General sickness and maternity fund – 3.5%; the Work injury and occupational sickness fund – between 0.4 – 1.1% the Work injury and occupational sickness fund – between 0.4 – 1.1%

/paid only at the expense of the employer/;/paid only at the expense of the employer/; the Unemployment fund – 3%.the Unemployment fund – 3%. the Obligatory additional pension insurance /only for persons born after the Obligatory additional pension insurance /only for persons born after

1960/ - 4%;1960/ - 4%; the Health insurance– 6%.the Health insurance– 6%.

Page 23: Live & Work in Bulgaria. I. Summary  Area - 110 994 sq. km  Population - 7 974 000  Capital - Sofia  Official language - Bulgarian  Government.

Live & Work in BulgariaLive & Work in Bulgaria

The amount for which contributions are owed includes all kinds of The amount for which contributions are owed includes all kinds of remuneration and income from labor. The ratio between the employer’s remuneration and income from labor. The ratio between the employer’s and employee’s social insurance rates is 65% to 35 % /this is the ratio and employee’s social insurance rates is 65% to 35 % /this is the ratio for 2007 – in the Social Insurance Code it is written that it is changing in for 2007 – in the Social Insurance Code it is written that it is changing in the fallowing years/ plus the Work injury and occupational sickness the fallowing years/ plus the Work injury and occupational sickness fund at the expense of the employer.fund at the expense of the employer.

Public social insurance shall provide benefits, assistance and pensions in the Public social insurance shall provide benefits, assistance and pensions in the following cases: following cases: temporary incapacity;temporary incapacity; temporarily reduced working capacity;temporarily reduced working capacity; disability;disability; maternity;maternity; unemployment;unemployment; old age;old age; death.death.

Page 24: Live & Work in Bulgaria. I. Summary  Area - 110 994 sq. km  Population - 7 974 000  Capital - Sofia  Official language - Bulgarian  Government.

Live & Work in BulgariaLive & Work in Bulgaria

The following groups of persons are obliged to be insured for all social The following groups of persons are obliged to be insured for all social insurance risks: insurance risks:

workers and employees hired for more than five working days, or 40 workers and employees hired for more than five working days, or 40 hours, in one calendar month, hours, in one calendar month,

government employees; government employees; judges, prosecutors, investigators, bailiffs, recordation judges and court judges, prosecutors, investigators, bailiffs, recordation judges and court

employees; employees; regular duty military staffregular duty military staff; ; individuals employed as cooperative members compensated for their individuals employed as cooperative members compensated for their

labor; labor; individuals working under a second or additional labor contract; individuals working under a second or additional labor contract; individuals working under contracts for management and control of individuals working under contracts for management and control of

commercial companies.commercial companies.

Page 25: Live & Work in Bulgaria. I. Summary  Area - 110 994 sq. km  Population - 7 974 000  Capital - Sofia  Official language - Bulgarian  Government.

Live & Work in BulgariaLive & Work in Bulgaria

The following groups of persons are obliged to be insured for disabilityThe following groups of persons are obliged to be insured for disabilitydue to general sickness, for old age and death:due to general sickness, for old age and death: individuals registered as freelance professionals and/or craftsmen;individuals registered as freelance professionals and/or craftsmen; individuals performing economic activity as sole traders, owners of, or individuals performing economic activity as sole traders, owners of, or

partners in, commercial companies;partners in, commercial companies; Ph.D. students if they do not have pension insurance on other premises;Ph.D. students if they do not have pension insurance on other premises; Registered agricultural/tobacco producers.Registered agricultural/tobacco producers.Social insurance commences on the day the person startSocial insurance commences on the day the person startss the the performance of labor activity and continues until its termination. performance of labor activity and continues until its termination.

For civil servants all social contributions are paid by the state.For civil servants all social contributions are paid by the state.

This information is part of the much detailed data about Bulgaria that is going to be published soon at This information is part of the much detailed data about Bulgaria that is going to be published soon at the Eures Info Portal and probably will endure some changes.the Eures Info Portal and probably will endure some changes.


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