Insights
EOR, PEO or Global Employment Organization in Bulgaria? How to Hire Without an Entity
Insights · By YuDing Wang · Updated 24 October 2026
In Bulgaria, “employer of record” (EOR), “professional employer organization” (PEO) and “global employment organization” (GEO) usually describe the same service: a Bulgarian employer hires your new team member and runs payroll while the person works on your business. None of these labels is a legal category in Bulgaria. What matters is who signs the employment contract, who notifies the National Revenue Agency (NRA) and how the arrangement is structured.
Reviewed October 2026 against the Labour Code and Employment Agency guidance. General information, not legal advice.
What each term means in Bulgaria
| Term | What it usually means | How it works in Bulgaria |
|---|---|---|
| Employer of record (EOR) | A provider employs your hire in the country and runs payroll and compliance | The provider’s Bulgarian employer signs a Labour Code contract with the employee and files with the NRA |
| Professional employer organization (PEO) | A US model in which client and PEO share employer duties (co-employment) | Co-employment has no basis in Bulgarian law; one company is the employer. “PEO in Bulgaria” in practice means an EOR |
| Global employment organization (GEO) | Another commercial name for an international EOR | Same as an EOR; check who the Bulgarian employer is |
| Temporary work agency | An agency employs workers and assigns them to a user company that directs their work | Regulated by the Labour Code (arts. 107p–107x); the agency must be registered with the Employment Agency |
| Payroll provider | Calculates pay and files returns for an employer | You must already be the employer in Bulgaria |
Who is the employer, and who directs the work?
Bulgarian employment law looks at substance, not labels. Whatever a provider calls itself, one company signs the employment contract, notifies the NRA, pays the salary and withholds contributions and tax. That company is the employer and carries the Labour Code obligations.
The next question is who gives the employee instructions. Bulgarian law allows two structures. A registered temporary work agency can assign its employees to work under your direction, with equal treatment rules and limits set by the Labour Code. Under a service model, the provider takes on an agreed scope of work for your business, employs the person to carry it out and manages the employment, while you define the work and the results.
NNRoad’s Bulgaria employer of record service uses the service model: we take on the agreed scope of work and employ the person to deliver it, and our Local Team manages the employment.
Ways to hire in Bulgaria without your own company
| Option | Fits when | Watch out for |
|---|---|---|
| Employer of record (service model) | One or a few employees working on your business, quickly and without a local entity | Agree the scope of work and how approvals run at onboarding |
| Temporary work agency | You need workers under your managers’ direct instructions for a period | Check the agency’s registration and the equal-treatment rules |
| Register your foreign company with the NRA as an employer | You want to employ directly and can run Bulgarian payroll and HR yourself | Monthly filings, Labour Code duties and possible tax presence |
| Independent contractor | A defined project by a genuinely independent professional | Paid work under your direction counts as employment |
| Expat Employment | The person is a non-EU national who needs a permit | A Bulgarian employer has to apply; see Expat Employment in Bulgaria |
Which one fits your hire?
- First employees, no entity yet: an employer of record is usually the fastest compliant route.
- Your managers must direct the work day to day: use a registered temporary work agency, or set up your own employer.
- A project with clear deliverables: a genuine contractor, see On-Demand Talent in Bulgaria.
- You already have a Bulgarian company: outsource payroll only, see Bulgaria payroll.
For the full hiring process, read how to hire employees in Bulgaria. For costs, see Bulgaria EOR cost.
When to set up your own company instead
An employer of record covers employment. It does not let you sign and invoice Bulgarian customers as a local business, hold stock or run a licensed activity. When you reach that point, or when your team is large enough that a local entity costs less, compare the routes in start a business in Bulgaria or operate without one. Employees can move from the EOR to your company on an agreed date.
Questions about EOR, PEO and GEO in Bulgaria
Is a PEO legal in Bulgaria?
The US co-employment model does not exist in Bulgarian law, but the service providers sell as “PEO” is legal when one Bulgarian company is the employer and the arrangement is set up as a genuine service or through a registered temporary work agency.
What is a global employment organization?
A global employment organization (GEO) is a commercial name for a provider that employs people for clients in several countries. In Bulgaria it works like an employer of record.
Is an employer of record the same as a temporary work agency in Bulgaria?
Not necessarily. A temporary work agency must be registered with the Employment Agency and assigns workers to work under the client’s direction. An employer of record using a service model employs and manages its staff while the client defines the work and the results.
Can a foreign company employ staff in Bulgaria directly?
Yes. It can register with the NRA as an employer and run Bulgarian payroll itself. Many companies use an employer of record first because it avoids that set-up.
Hiring in Bulgaria without a company?
NNRoad can employ your hire in Bulgaria and run the contract, payroll in euro and filings, with one contact in English.
Related
Ten checks to make before you sign.
The full process, from offer to final pay.