The relation between the professional football player and the professional football club in Bulgaria is based on a labour contract. There is a Standard Player's Contract which includes all the minimum requirements for the professional football sector in the European Union. The contract should be registered in the Bulgarian football federation within 7 days after signing. The registration should be made by the Club but the player should follow what is going on.
Work permit and Residence permit
2.1. Work permit
European citizens may be employed, and may work in Bulgaria without restrictions and without the need of work permits. That means that if a football player from an EU country has signed an employment contract with a Bulgarian football club he does not need a work permit, only a residence permit.
Non-EU/EEA or Swiss citizens have the right to work in Bulgaria only after a National Employment Agency work permit is issued. The permit must be requested by the employer. Applications are submitted to the local branch of the Employment Agency of the foreigner's work place.
2.2. Residence permit
All foreign nationals, EU and non-EU, must apply for a residence permit if they wish to stay in Bulgaria for a period longer than 90 days.
There are two types of residence permit issued to foreigners moving to Bulgaria:
Long-Term Residence Permit: Issued for one year to non-EU citizens and for five years to EU citizens
Permanent Residence Permit: Issued for an indefinite period of time by the National Migration Directorate and its local branches. Applications for Permanent Residence can only be submitted in Bulgaria
In Bulgaria, the income tax at an annual flat rate is 10% (on your taxable income, less compulsory contributions and any tax relief you qualify for).
Tax on the income from employment is assessed in advance by the employer during the year, both monthly and yearly.
As the contract between the professional football player and the Club in Bulgaria is a labour contract the Club is managing all player's taxes no matter the nationality.
There is a Collective Bargaining Agreement signed between the Bulgarian Football Union (the Federation), the Bulgarian Football League and the Association of Bulgarian footballers that was signed in 2012. Due to the Bulgarian labour legislation the CBA is valid for a period of 2 years. The now acting CBA was renewed in August 2014 for a further period of 2 years.