Unable to open a business bank account in Bulgaria: solving the problem

Bulgaria has been and remains an ideal country for doing business. Low taxes, economic stability and the opportunity to operate throughout the EU make Bulgaria very attractive to entrepreneurs from other countries. It is no surprise that many plan to do business in Bulgaria even though they have no desire to live in the country permanently.

And this is where entrepreneurs face an unpleasant surprise: Bulgarian banks, which readily open accounts for residents, refuse to serve foreigners who do not hold a residence permit in Bulgaria. This is due primarily to the law on measures against money laundering: banks are required to carefully monitor all suspicious foreigners (this group includes citizens of all countries outside the EU), and most financial institutions play it safe by refusing to open an account for such applicants at all.

Naturally, doing business under such conditions is out of the question: a bank account in Bulgaria is required both to register a company and for its subsequent operations. The situation seems hopeless, but there is a solution.

Obtaining a long-term residence permit in Bulgaria

All you need in order to open a bank account without any problems and do business in Bulgaria is to obtain a Bulgarian residence permit. Any of the grounds set out in the law on foreigners can be used for this. It is not necessary to live in the country permanently — it is enough to come to Bulgaria once a year to renew the residence permit, and business can be run remotely.

The most obvious option seems to be a long-term residence permit “through business”, but this ground is by no means universal. To obtain a residence permit in Bulgaria, you must not only have a company here, but also employ at least 10 citizens of the country (for each founder), and on a full-time basis. Such conditions are far from suitable for every entrepreneur, especially if that many employees are not needed. In addition, to obtain a long-term residence permit you must already have a company, which a non-resident cannot register — i.e. it turns into a vicious circle with no way out.

A far more accessible and proven option is a long-term residence permit “through a representative office”. This ground has allowed many citizens of Russia, Ukraine and other countries to obtain a residence permit in Bulgaria.

What is required to obtain a Bulgarian residence permit on this ground?

1. Open in Bulgaria a representative office of a company that has been operating for at least two years and pays taxes, or be registered with an already existing representative office.
2. Obtain a certificate from the Bulgarian Chamber of Commerce and Industry (BCCI).
3. Obtain a type D visa in your country of habitual residence. This requires a set of documents including, in addition to the certificate, a bank statement confirming available funds, medical insurance, a document confirming accommodation (a rental agreement will do) and a criminal record certificate.
4. Come to Bulgaria on the type D visa and submit the documents to the migration service to obtain the long-term residence permit at least 2 weeks before the visa expires. The same documents are required as for the visa.
5. Obtain a residence permit in Bulgaria.

Thereafter the long-term residence permit is renewed every year for as long as it is needed. Banks readily open accounts for holders of a residence permit ID card.

Residence permit in Bulgaria: advantages

• The ability to open accounts with Bulgarian banks.
• The ability to stay in Bulgaria not for 90 days every six months, but for as long as you like during the year.
• The ability to register a car both for a company and for an individual (registration is done only in Sofia, blue plates are issued).
• The ability to visit Romania, Cyprus and Croatia without a visa.
• The ability to live in Bulgaria for more than 183 days a year and, accordingly, to be a tax resident of Bulgaria.
• The ability to obtain a Bulgarian permanent residence permit or EU long-term resident status subject to a number of conditions regarding the length of stay in the country, and in the longer term Bulgarian citizenship as well.

Contrary to popular belief, those who do not plan to obtain a permanent residence permit or EU long-term resident status do not need to stay in Bulgaria for any minimum period — you can come to the country only when your business interests require it, and to renew your long-term residence permit.

An important clarification: a trade representative office may not carry out economic activity in Bulgaria, so doing business will require opening a Bulgarian company. This, however, is quite simple and inexpensive, provided of course that you rely on experienced lawyers. Bulgarian Expert offers services for registering companies in Bulgaria, registering representative offices, obtaining residence permits and other matters. Contact us for a free consultation and we will advise you on the most advantageous way to move to Bulgaria and start your own business here.

Long-term residence permit in Bulgaria

Company registration in Bulgaria

Accounting services for your company in Bulgaria.

Trade representative office