Residence Through Business in Bulgaria

For non-EU citizens, registering a company in Bulgaria can serve as a pathway to obtaining a residence permit. Bulgaria’s Foreigners in the Republic of Bulgaria Act provides specific provisions allowing foreign entrepreneurs to reside in the country based on their business activities.

Types of Residence Permits

Type D Visa (Long-Stay Visa)

Before obtaining a residence permit, non-EU citizens must first obtain a Type D visa from the Bulgarian embassy or consulate in their home country. This visa allows entry into Bulgaria for the purpose of applying for a residence permit.

Temporary Residence Permit

A temporary residence permit (продължително пребиваване) is initially issued for up to one year and can be renewed annually. This is the first step for business-based immigration.

Long-Term Residence Permit

After five consecutive years of legal temporary residence, you may apply for a long-term residence permit (дългосрочно пребиваване), valid for five years and renewable.

Permanent Residence Permit

Permanent residence (постоянно пребиваване) may be obtained after five years of long-term residence, or in certain special circumstances.

Business-Based Grounds for Residence

Manager or Representative of a Commercial Entity

Non-EU citizens who are registered as managers or representatives of a Bulgarian company may apply for a temporary residence permit under Art. 24, para. 1, item 6 of the Foreigners Act. Requirements include:

• The company must be actively operating
• The company must have hired at least 10 Bulgarian citizens on full-time employment contracts
• The manager must demonstrate the company is conducting genuine economic activity

Investor or Trader

Non-EU citizens who have invested in Bulgaria may qualify under different categories:

• Foreign investors who have invested more than BGN 500,000 in a Bulgarian company
• Traders conducting business that benefits the Bulgarian economy
• Freelancers or self-employed persons authorized to work in Bulgaria

Trade Representative

Representatives of foreign commercial entities may obtain residence permits to manage branch offices or commercial representations in Bulgaria.

The Application Process

Step 1: Register Your Company

Complete the company registration at the Trade Register. Ensure the company has a proper registered address and appointed manager.

Step 2: Obtain a Type D Visa

Apply at the Bulgarian embassy or consulate in your home country. Required documents typically include:

• Valid passport
• Completed visa application form
• Passport-sized photographs
• Proof of company registration (Trade Register extract)
• Proof of accommodation in Bulgaria
• Health insurance valid in Bulgaria
• Proof of sufficient financial means
• Clean criminal record certificate (apostilled and translated)

Processing time is typically 30-45 days.

Step 3: Enter Bulgaria and Apply for Residence Permit

After entering Bulgaria with your Type D visa, you must apply for a temporary residence permit at the Migration Directorate (Дирекция “Миграция”) within the validity period of your visa.

Additional documents for the residence application:

• Proof of address registration in Bulgaria
• Company financial statements and tax declarations
• Evidence of employee hiring (if applicable)
• Social security registration confirmation
• Health insurance coverage
• Proof of sufficient means of subsistence

Step 4: Receive Your Residence Card

If approved, you will receive a residence card (лична карта на чужденец) valid for up to one year. This card serves as your identification within Bulgaria and proof of legal residence.

Employment Requirement: 10 Bulgarian Employees

The requirement to hire 10 Bulgarian employees is often the most challenging condition for small business owners. However, there are important nuances:

• Employees must be on full-time contracts
• Part-time employees may count proportionally
• The requirement applies at the time of the residence permit application
• Alternative grounds for residence may have different or no employment requirements

Some entrepreneurs address this by establishing businesses in labor-intensive sectors such as tourism, agriculture, or manufacturing, which are prevalent in the Troyan and Lovech region.

Practical Considerations

Renewal Requirements

Temporary residence permits must be renewed annually. At each renewal, you must demonstrate that:

• The company remains active and operating
• Employment conditions continue to be met
• You have maintained your Bulgarian address
• Health insurance is current

Family Reunification

Holders of a temporary residence permit may apply for their family members (spouse and minor children) to join them in Bulgaria.

Path to EU Permanent Residence

After five years of continuous legal residence, non-EU citizens may apply for EU long-term resident status, which provides additional rights including the ability to live and work in other EU member states under certain conditions.

Legal Representation

The residence permit process involves immigration law, corporate law, and employment law. Attorney Biser Dimov in Troyan provides comprehensive support for non-EU clients seeking residence through business registration, including company formation, employee hiring, and all immigration filings. Contact us for a detailed consultation on your immigration pathway through Bulgarian business.