Representation or Company? Bulgaria Residence Permit Comparison (2026)

Representation or company? On the company route you must employ at least 10 full-time Bulgarian staff per foreigner. A representation has no staff requirement, but your parent company needs a turnover of at least the equivalent of 100,000 leva and no tax debt. A representation gives residence to a maximum of 2 people and cannot carry out commercial activity. A Bulgarian company can sell, and corporate tax is 10%.

What is the difference between the two routes?

Business people who want long-term residence in Bulgaria usually choose between two options. The first is to set up your own company in Bulgaria. The second is to open a commercial representation in Bulgaria for your existing company abroad. Both are lawful routes, but their conditions and burdens are very different.

Comparison table

Topic	Commercial representation	Bulgarian company
Legal basis	Foreigners Act Art. 24/1/6	Foreigners Act Art. 24/1/2
Staff requirement	None	At least 10 full-time Bulgarian employees per foreigner
Parent company condition	Turnover of at least the equivalent of 100,000 leva (about 51,130 euro), no tax debt	No parent company condition; the Bulgarian company has its own obligations
People who can get residence	Maximum 2 representatives	Owner or manager, as many as the staff condition supports
Commercial activity	Not allowed (promotion, market research)	Allowed (sales, invoices, trade)
Tax	No profit; parent company’s tax compliance is checked	Corporate tax 10%
Office	Lease of at least 1 year	Company address required
Register	BCCI register of representations	Bulgarian Commercial Register
Setup and running burden	Lighter	Heavier (payroll, accounting, tax)

Company route: the 10 Bulgarian employees condition

If you set up a company in Bulgaria and want residence as manager or partner, you must employ at least 10 full-time Bulgarian employees per foreigner (Foreigners Act Art. 24/1/2). If two foreign partners want residence, the expected staff grows accordingly.

What this means:

• Employees must be Bulgarian, full-time and registered,
• Salaries, insurance and payroll must run properly every month,
• For a small business this is a serious cost and administrative load.

The advantage of the company route: you can do real business in Bulgaria. You sell, issue invoices and make profit. The company pays 10% corporate tax on its profit, one of the lower rates in Europe.

Representation route: the parent company decides

A representation has no staff requirement (Art. 24/1/6). Instead the following are required:

• The parent company’s turnover must be at least the equivalent of 100,000 leva. Because Bulgaria adopted the euro in 2026, that is about 51,130 euro.
• The parent company must have no tax debt: the last 2 years at first registration, the last year at renewal.
• An office lease of at least 1 year in Bulgaria.
• A maximum of 2 representatives can get residence through one representation.

An important limit: a representation cannot carry out commercial activity. Sales and invoicing cannot be done through it. It only promotes the parent company, does market research and builds contacts. So it suits business owners who will not do their main trade in Bulgaria but want to live there and be close to Europe. Setup details are in opening a commercial representation in Bulgaria.

Which route suits whom?

A representation suits you if:

• You have an active, tax-compliant company abroad with enough turnover,
• You do not want to employ staff in Bulgaria,
• 1 or 2 people are enough for residence,
• Your main trade will stay in another country.

A company suits you if:

• You really want to sell and provide services in Bulgaria,
• You have a business model that will employ 10 or more people,
• Your parent company does not meet the representation conditions but you are ready to start business in Bulgaria.

For the cost side see costs and obligations of a commercial representation. For the general process, residence permit through commercial representation is the starting point.

If you have Bulgarian origin

You may not need any business route at all. If you have Bulgarian origin, applying for Bulgarian citizenship solves the residence question and gives you EU citizenship. If your ancestors came from Bulgaria, we recommend checking this first.

Before you decide

The right choice depends on your company’s turnover, tax status, staff plans and what you want to do in Bulgaria. For company setup see our company formation service, and for the residence process our Bulgaria residence permit page. For an assessment of your case, book an online appointment or send your documents for a free document review.

Frequently asked questions

Can I sell in Bulgaria by opening a representation?

No. A commercial representation cannot sell or issue invoices. If you want to trade in Bulgaria, you need a branch or a company.

Why are 10 Bulgarian employees required to set up a company?

Foreigners Act Art. 24/1/2 requires at least 10 full-time Bulgarian employees per foreigner for residence through a company. The aim is that the company creates real employment in Bulgaria.

Do I have to employ staff in a representation?

The number of staff is not a residence condition. If you do employ staff in Bulgaria, however, insurance and payroll obligations arise.

How much tax does a Bulgarian company pay?

Corporate tax in Bulgaria is 10%. The company’s other tax and insurance obligations must be assessed separately.

Can I do both?

Yes. Some businesses start with a representation and set up a company in Bulgaria as the business grows. The residence conditions are assessed separately for each route, so the plan should be clear from the start.