In the context of migration legislation in Bulgaria, violations and related fines are an important aspect of the legal framework regulating the residence and work of foreigners in the country. Violations such as staying for more than 90 days without the necessary documents, lack of a green card, as well as hiring a foreigner without a work permit, can lead to the imposition of administrative and financial penalties, and even in some cases constitute a crime and are prosecuted with all the rigors of the law!
The main text regulating coercive administrative measures is the fourth chapter of the Regulations for the Application of the Law on Foreigners. This part of the document sets out in detail the conditions under which various administrative measures and sanctions may be imposed on foreigners violating the migration legislation of the Republic of Bulgaria. In addition, it also determines the procedures for the removal of foreigners from the country, as well as the conditions for granting temporary asylum or the right of residence under various circumstances.
For violations such as staying beyond the permitted time, foreigners may be subject to fines, as well as various measures, including the obligation to leave the country. In case of lack of a green card, which is mandatory for certain categories of foreigners residing in Bulgaria, fines and other administrative sanctions may also be imposed. In addition, employers who hire foreigners without the necessary work permit also run the risk of financial penalties and administrative liability.
It is important to note that violations of migration legislation not only can lead to financial losses for the individuals and organizations concerned, but can also limit the possibilities for future residence or work in Bulgaria. In this regard, strict compliance with migration and labor laws is essential for all foreigners and their employers in the country.
In this article we will examine in detail what fines affect foreigners who reside in Bulgaria
Foreigners who violate the migration legislation in Bulgaria may be sanctioned with different fines depending on the type of violation. It is important to note that penalties and fines are strictly regulated and can vary greatly depending on the specific circumstances of the violation. Here are some examples of fines that can be imposed:
These examples highlight the rigour and diversity of migration legislation in Bulgaria and the importance of strict compliance with the rules and regulations for foreigners and employers.
Foreigners driving a car without a valid green card or civil liability insurance in Bulgaria face severe fines, according to Bulgarian law. The Green Card serves as proof of civil liability insurance and is mandatory for all motor vehicles registered in the country, as well as for those entering its territory from third countries without valid insurance for Bulgaria.
According to Art. 483. of the Insurance Code, a contract for insurance “Civil liability” of motorists is obliged to conclude any person who either:
When a foreigner enters from a third country (non-EU country) and does not have a green card, he is obliged to take out border insurance “Civil Liability” for motorists at the border checkpoint from which he enters the territory of the Republic of Bulgaria. This person must have a valid border insurance “Civil Liability” of motorists until they leave the territory of the Republic of Bulgaria.
IMPORTANT The foreigner is not obliged to conclude a contract for border insurance “Civil Liability” of motorists upon entering the territory of the Republic of Bulgaria, provided that he hasvalid certificate “Green Card”.
According to Art. 638 of the Insurance Code, anyone who owns or drives a motor vehicle without the compulsory civil liability insurance is subject to the following sanctions:
These measures underline the seriousness with which Bulgarian legislation treats the driving of a motor vehicle without adequate civil liability insurance. In addition to punitive measures, the lack of insurance can also lead to significant financial consequences for the culprits in the event of a traffic accident.
If you have exceeded the 90-day period of residence in Bulgaria, it is important to act quickly to avoid legal consequences. According to Bulgarian legislation, foreigners who remain in the country after the expiration of the permitted period of residence may be punished with a fine of 500 to 5000 BGN. In case of repeated violation, the fine increases to 1000 to 10 000 BGN.
In most cases, once the period of residence has been exceeded, you will have to leave the country to be able to apply for a “D” visa (long-term visa) or to request international protection if you have a reason under Art. 8 or 9 of the Asylum and Refugees Act to do so. On the other hand, persons of proven Bulgarian origin who work in a Bulgarian company under an employment contract may remain in Bulgaria even after the expiry of the 90-day period, even if they have entered with a tourist visa (C), by submitting documents for permanent residence on the basis of Art. 25, para. 1, item 1 of the Law on Foreigners in the Republic of Bulgaria (ZDA) CHRB) without the need to leave the country for the issuance of a “D” visa, As long as they entered the country legally.
In such situations, it is extremely important to consult a specialist in migration law. Elan Consulting offers professional assistance and advice to foreigners who find themselves in similar situations. Contact an Elan Consulting specialist to get detailed information about your specific situation, the options available to regulate your status and the steps you need to take to comply with Bulgarian law. So you will be able to find the best solution for your situation, avoiding unnecessary complications and fines.
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The Law on Labour Migration and Labour Mobility in Bulgaria and the Law on Foreigners in the Republic of Bulgaria impose strict sanctions on employers who hire foreigners without the necessary work permit. According to Art. 48a of the Law on Foreigners, employers - both individuals and legal entities, are subject to fines and property penalties for various violations related to the employment of foreigners.
These provisions emphasize the importance of compliance with the legislation by employers when hiring foreigners. It is important to note that fines and penalties apply not only to the hiring of foreigners without permission, but also to other related violations, such as failure to notify the termination of employment relations with foreigners.
In this light, it is strongly recommended that employers contact labor migration specialists, such as those at Elan Consulting, to ensure that they understand and fulfill their obligations regarding the hiring of foreigners. This will help employers avoid fines and ensure that their work practices are in full compliance with the legislation.
Violations related to the employment of foreigners without proper authorization, which constitute a crime, are clearly defined in the Criminal Code (CC) of the Republic of Bulgaria. These provisions underline the seriousness with which Bulgarian legislation relates to the hiring of illegally staying or underage foreigners. Responsibilities and penalties for such actions include:
These provisions underline the need for strict compliance with Bulgarian legislation on the employment of foreigners. Employers should be especially careful and check the legal status of their potential employees to avoid severe penalties, including imprisonment and significant financial fines.
In order to answer in detail and summarily the question about fines for foreigners and companies owned by foreigners, for evasion and non-declaration of income in Bulgaria, we must take into account the comprehensive information from the Tax and Insurance Procedure Code (DOPC), the Personal Income Taxes Act (ZDDFL)) and the Corporate Income Tax Act (CPA), as well as specific provisions related to various types of violations.
Under the Personal Income Taxes Act (ZDDFL), individuals and sole proprietors are required to file tax returns for the income they generated during the fiscal year. In case of failure to submit such a declaration within the established period, a fine of up to BGN 500 is imposed. In case of repeated violation, the fine can reach up to 1000 BGN. Incorrect or incomplete income declaration also leads to penalties, with fines ranging up to BGN 1000 for the first violation and up to BGN 2000 for subsequent ones.
The Corporate Income Tax Act defines the obligations of companies to declare the income generated and pay the corresponding taxes. Failure to comply with these obligations leads to financial penalties, which for an initial violation range from BGN 500 to BGN 3000. In case of repeated violation, the property penalties increase to the range of BGN 1000 to BGN 6000, underlining the importance of correct and timely financial reporting by the business.
The Tax and Insurance Procedure Code covers various scenarios in which penalties may be imposed for violations related not only to the declaration of income, but also to other aspects of tax and social security legislation. For example, misuse of tax information can lead to fines of 1,000 to 5,000 BGN, and in particularly severe cases - up to 10,000 BGN. Failure to issue a certificate on time and failure to accept a declaration are also punishable by fines, which emphasize the importance of transparency and cooperation with tax authorities.
Double Taxation Avoidance Agreements (SIDDOs) are designed to reduce the tax burden for individuals and companies that generate income in more than one country. It is important that these agreements are properly implemented in order to avoid undue tax deductions. In Bulgaria, improper application of the SIDS, involving non-payment or payment of a smaller amount of tax without substantiated grounds for implementing the agreement, leads to penalties. For individuals and legal entities, this means a fine of 5% of the amount of unpaid tax, but not more than BGN 15,000 for the first violation. In case of repetition, the penalty increases to 10% of the unpaid tax, but not more than 30,000 BGN.
Under Bulgarian law, special attention is paid to cross-border tax schemes, which create a potential risk of tax avoidance. Persons obliged to provide information about such schemes, but do not fulfill this obligation, are punished by a fine of 2,000 to 5,000 leva for natural persons, or by a financial penalty of 5,000 to 10,000 leva for legal entities or sole traders. Providing incomplete or false information about cross-border tax schemes also carries penalties ranging from BGN 1000 to BGN 3000 for individuals and from BGN 2000 to BGN 8000 for legal entities or sole traders. Consultants who fail to comply with their obligations in relation to cross-border tax schemes also face the same fines and penalties. In case of repeated violation, the penalties are doubled.
These measures underline Bulgaria's commitment to the fight against tax fraud and tax avoidance, especially when it comes to complex cross-border operations. The aim is to ensure transparency and fairness in international taxation by requiring full and accurate reporting of information on cross-border tax schemes.
