Can an EU citizen start a business in Bulgaria?

EU membership and rights · Last reviewed: 2026-08-23

The source of the right is the Treaty, not national law

Freedom of establishment includes the right to take up and pursue activities as a self-employed person and to set up and manage undertakings, in particular companies. The Treaty's yardstick matters: the right is exercised under the conditions laid down for its OWN NATIONALS by the law of the country where the establishment takes place. It is therefore an equality rule rather than an exemption: Bulgaria may ask of you whatever it asks of a Bulgarian entrepreneur — and nothing more.

Grasping that distinction saves a lot of time in practice. Registration in the Commercial Register, tax registration, an accounting setup, compliance with professional rules — all of these apply to Bulgarian founders too, so requiring them of you is not a breach of your rights. Conversely, an extra document, extra capital or an extra authorisation demanded only because you are foreign is exactly the kind of restriction the Treaty forbids.

Two distinct freedoms: establishing versus providing services

EU law recognises two ways of doing business in another member state, with different regimes. Freedom of establishment (Article 49) covers economic activity carried out in a stable and continuous way — incorporating a company, opening an office, hiring a team. Freedom to provide services (Article 56) covers supplying services temporarily while remaining established in your own country. The line is drawn by the duration, regularity and infrastructure of the activity.

What the practical steps look like

1. 1

   Register if you will stay more than three months

   Under Directive 2004/38/EC, EU citizens living in a member state for more than three months must register with the relevant authorities. This is a registration, not a permit; being a worker or self-employed person is one of the qualifying grounds.
2. 2

   Obtain a personal identification number

   Tax and social security records attach to a personal number. Without it, the register and bank steps stall.
3. 3

   Choose a legal form and register it

   A company means an entry in the Commercial Register; operating as a self-employed person is an alternative. The two routes carry different tax and contribution consequences.
4. 4

   Complete tax and social security registration

   Filing obligations begin when the activity does. This step is a consequence of trading, not a limit on your rights.
5. 5

   Start recognition early if your profession is regulated

   Some professions are regulated nationally and require recognition of qualifications before practice. That procedure takes time and belongs in the plan from the start.

Equal treatment and its limits

Directive 2004/38/EC provides that all Union citizens residing on the basis of the Directive in the host member state enjoy equal treatment with that state's nationals within the scope of the Treaty, and that this also applies to accompanying family members. The same Directive sets a limit: host authorities are not obliged to grant social assistance to EU citizens not working for payment during the first three months of their stay. Equality is broad, but it is not unconditional.

Social security: only one country's legislation at a time

EU social security coordination runs on Regulations 883/2004 and 987/2009, and its core principle is that a person is subject to the legislation of only one member state at any given time. As a rule this is the state where the activity is actually carried out. If you remain established at home and work temporarily in another member state, you may stay under the sending state's legislation where the conditions are met, evidenced by the portable document A1. A posting may not exceed 24 months, and the rule does not apply where you are sent to replace another posted person.

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