Since March 31, 2024, air and maritime border controls between Bulgaria, Romania, and the Schengen Area have been lifted. On January 1, 2025, both countries fully joined the Schengen Area.
With this transition, Bulgaria gained access to new economic and trade opportunities. Find out what entering the Schengen zone means for businesses in Bulgaria in this article.
What is the Schengen Zone?
First introduced in 1985, the Schengen area allows free travel between member countries with no internal border controls. Instead, members implement uniform controls at the external borders of the Schengen area. Countries within the Schengen zone also enjoy free movement of goods and services.
Which Countries are Part of the Schengen Zone?
In 2025, the Schengen zone consists of 29 countries. Alongside the majority of countries in the European Union (EU), four non-EU countries are also members: Norway, Iceland, Liechtenstein, and Switzerland. Bulgaria and neighbouring Romania are the latest countries to join the Schengen area.
How Will Bulgaria Benefit From Entering the Schengen Zone?
Being part of the Schengen zone comes with an array of benefits, all of which ultimately help generate financial prosperity and opportunities for member states. The Schengen area is built on strong foundations of trust, unity, and cooperation between its members. As a result, Bulgaria will be naturally able to build closer relationships with other Schengen zone countries.
Free movement of people within the Schengen area could also make Bulgaria a more desirable location for travel and tourism, in turn boosting the economy. And with no tariffs on goods moved between member states, Bulgaria can enjoy prosperous trade relations with other Schengen zone countries. Finally, harmonised systems and constant information exchange between law enforcement agencies within the Schengen area will help facilitate swifter responses to security threats.
Benefits of the Schengen Zone for Businesses in Bulgaria
Entering the Schengen zone is great news for businesses in Bulgaria; it opens the door to financial benefits, smoother supply chains and processes, and new opportunities for growth.
Key benefits include:
- Access to Cross-border Employees. The Schengen area’s free movement currently allows 1.7 million people to live in one Schengen zone country while working in another. Free movement grants businesses in Bulgaria access to a wider pool of talent from neighbouring and nearby Schengen area countries like Romania, Greece, Hungary, and Croatia.
- Free Movement of Services. Not only does free movement mean skilled workers can travel from neighbouring Schengen zone countries into Bulgaria to work, but services can also be freely provided beyond the Bulgarian border. For example, businesses in Bulgaria could explore extending their services across the border into Romania.
- Free Movement of Goods. Movement of goods between Schengen zone countries is free from tariffs or border controls. This will allow businesses in Bulgaria to enjoy reduced administrative costs, and more efficient transportation of goods to and from other Schengen area members.
- Tourism and Hospitality Opportunities. Free travel makes countries within the Schengen zone more attractive and accessible to tourists. Europeans residing in the Schengen area can easily visit neighbouring member countries, and third-country nationals can explore the Schengen area freely for up to three months with a Schengen visa. Entering the Schengen area could therefore bring great economic benefits for tourism and hospitality businesses in Bulgaria.
Navigating Business in the Schengen Area With Leinonen Bulgaria
If you are unsure how joining the Schengen zone will affect your business from a tax and accounting perspective, Leinonen Bulgaria can help. Having amassed 1500+ satisfied clients, our local experts in payroll, tax, and accounting have been diligently supporting businesses in Bulgaria for more than 14 years.
Interested in Exploring Business in Bulgaria?
If you are considering branching out into a new market now Bulgaria has entered the Schengen zone, a solid understanding of regulations around tax and accounting in Bulgaria is vital. Leinonen’s local experts can offer the support you need, so your business in Bulgaria can truly thrive. Contact Leinonen Bulgaria today to arrange a consultation and get the vital knowledge you need on navigating payroll, tax, and accounting in Bulgaria.
