Up to 90% of Construction and Renovation Workers in Bulgaria Work Illegally

Up to 90 percent of construction and renovation workers in Bulgaria are operating outside the legal framework, according to entrepreneur Lozan Lozanov, who raised concerns about the lack of regulation in construction and installation services, particularly in the interior renovation sector. Speaking to BNR-Radio Sofia, he described an environment where “everyone does what they want” due to the absence of clear industry rules and oversight.

Lozanov, who is the organizer of “Master Forum 2025” and runs a podcast focused on changing professional attitudes in the sector, argued that the industry currently lacks both formal associations and any unified structure. He estimated that between 80 and 90 percent of workers are operating illegally, saying this situation harms both clients and service providers by leaving the sector without accountability or standards.

He added that formalization would bring a range of benefits, including improved access to state recognition, better conditions for securing loans and rental agreements from banks, and eligibility for health insurance in case of workplace accidents. According to him, legalization would also protect workers from sudden enforcement actions in the future, similar to previous regulatory shifts affecting online businesses.

The entrepreneur also suggested that full regulation could lead to lower prices, potentially by around 15 percent, due to increased competition within a properly structured market. He urged consumers to carefully plan renovation projects, conduct prior research, and select contractors and consultants who are willing to take responsibility for their work.

Lozanov expressed hope that, if the state introduces regulatory measures, it will draw on best practices from other European countries while avoiding past mistakes. He also noted that efforts are underway to create an official association for professionals working in the repair and renovation sector.

Source: BNR