Bulgaria Prepares Changes to Residence-Permit Rules for Trade Representatives: What Investors and Future Residents Need to Know

Bulgaria is preparing significant changes to the legislation governing the granting of residence permits based on registration of a trade representative office of a foreign company. 

On 17.04.2025, the Bulgarian parliament adopted at first reading a number of amendments to the Foreigners Act. The changes considerably tighten the requirements both for short-term stay in the country and for obtaining a residence permit through trade representative offices. The key amendments were approved on 18 June 2025 and are currently awaiting the president's signature. The amendments are aimed at tightening control and increasing the transparency of the legalisation of foreign specialists. The planned changes have provoked active debate in the business community and among legal advisers.

Let us examine the amendments to the Foreigners Act and what they mean.

The amendments to the law may significantly affect both those who already live in Bulgaria on the basis of a registered trade representative office and those who are only planning to relocate through business.

Among the key innovations proposed by the Ministry of Internal Affairs and supported by a number of MPs are:

• Establishing a minimum annual turnover of the parent foreign company of 100,000 leva over the last two years (at first reading it was 500,000 leva).
• Limiting the number of representatives in a single trade representative office to a maximum of two (not counting family members).
• Tightening control by the Bulgarian Chamber of Commerce and Industry (BCCI) — it will be able to carry out inspections, demand proof of activity and withdraw the registration if violations are detected.

Reaction of the business community

Although the aim of the law — to combat fictitious representative offices and abuse of residence permits — seems logical, some provisions have caused a sharp reaction. That is why the second version is milder than the first.
The BCCI supported a number of points relating to transparency and control, but criticised several key provisions:

• The turnover of 500,000 leva was recognised as excessive and discriminatory for small businesses, especially for start-ups and entrepreneurs from the EU and non-EU countries carrying out real activity but with smaller turnovers. The Chamber proposed lowering the threshold to 100,000 leva, which was reflected in the second  version.
• It was proposed to introduce a transitional period of 3 years for already registered representative offices — in order to avoid the cancellation of current residence permits and to give business time to adapt. In the final version it is 2 years.

The changes were initiated in the context of Bulgaria's integration into the Schengen area, which requires a stricter migration policy. The new rules are aimed at ensuring that legalisation through a trade representative office is available only to those who really carry out business, and not to those who use the scheme solely for the purpose of relocation.

However, there is a risk that the tightening of the conditions may reduce the inflow of investors and halt honest small-business initiatives.

What should those who are planning or have already obtained a residence permit through a trade representative office do?

For current residents:

• Prepare documents on activity: reports, contracts, office expenses.
• Be ready to confirm economic activity and business connections in Bulgaria.

For new applicants:

• Look for commercial property to register the office.
• Study alternative routes for obtaining a residence permit.

The changes in the legislation on trade representative offices in Bulgaria are moving in the direction of increased transparency and compliance with EU standards. Despite the initial rigidity of the proposals, it is already clear that the business community is influencing the final version of the law. The support of the BCCI and the proposals to lower the threshold and introduce a transitional period are an important signal for investors.

If you are considering Bulgaria as a country for living, investment or relocation — do not lose time. The right strategy, professional support and up-to-date information will help you adapt to the new conditions and successfully obtain a residence permit.

If you are planning to remain in Bulgaria on the basis of a trade representative office — our company is ready to help:

• we will check the documents of the parent company;
• we will find a suitable office;
• we will prepare evidence of economic activity;
• we will provide support for the registration and interaction with the BCCI.

Ready to go through the procedure legally and with results? Write to us — we will prepare a personal action plan.