Payment Institution License in Bulgaria

Services enabling cash deposits and withdrawals on a payment account, including all related servicing operations

Processing direct debits, credit transfers (including standing orders), and transactions via payment cards or similar instruments

Issuing payment instruments and acquiring payment transactions

Executing cross-border or domestic money transfers without account creation

Initiating a payment transaction at the request of the user from an account held at another provider

Providing consolidated information on one or more payment accounts held with other payment service providers

Legal Form: The applicant must be incorporated in Bulgaria as a Limited Liability Company (OOD/EOOD) or a Joint Stock Company (AD)

Initial Capital Requirements:

• €20,000 to €50,000 for limited/niche services (e.g., money remittance or payment initiation)

• €125,000 for a full Payment Institution license (covering account maintenance, card execution, and acquiring)

• Capital must be fully paid up in a local bank account and explicitly proven to originate from transparent, lawful sources

Safeguarding: Mandatory implementation of secure client fund segregation mechanisms (either via isolated safeguarding accounts at commercial banks or via an approved insurance policy)

Application Fee: A statutory non-refundable fee paid directly to the BNB (approximately BGN 4,000 for a PI license)

The institution must be managed by at least two executive directors (4-eye principle). They must possess verified higher education degrees in economics, finance, or law, and have significant senior management experience in the financial sector

At least one of the executive directors or authorized managers must be a resident of Bulgaria to interact directly with local authorities

Directors, managers, and ultimate beneficial owners (UBOs) holding more than 10% must present pristine criminal record checks, proof of solid financial reputations, and no history of corporate bankruptcy

The company must designate a qualified local Anti-Money Laundering (AML) Compliance Officer and a dedicated Chief Risk Officer

The BNB rejects applications that function merely as front companies. You must prove that key corporate decisions are actively made inside Bulgaria

A 3-year financial forecast detailing expected transaction volumes, target markets, operational costs, and breakeven timelines

Complete technical documentation demonstrating compliance with EU rules, including DORA (Digital Operational Resilience Act), secure data processing frameworks, and advanced transaction monitoring systems

Once authorized by the BNB, the PI license can be passported across all European Economic Area (EEA) member states

Instead of establishing multiple foreign entities, you register cross-border activity via a simple notification procedure managed between the BNB and the target state's regulator. Services can then be provided via freedom of services or through localized foreign agents

A flat 10% tax rate on net corporate profits

Dividend Withholding Tax: A low flat rate of 5% when distributed to individuals or non-EU entities. (0% to corporate entities within the EU under the Parent-Subsidiary Directive)

Personal Income Tax: A flat 10% for resident staff members

Value Added Tax (VAT): Standard rate of 20%. Financial services are typically exempt from VAT, but ancillary tech or consultancy services require structured handling

Opened at a local Bulgarian commercial bank specifically to accumulate and freeze the initial capital until the license is granted

Operational Account: Standard corporate accounts for daily operations (paying salaries, rent, taxes)

Safeguarding Accounts: Strictly segregated accounts held at highly rated EEA commercial banks or the BNB itself. These hold 100% of the customers’ transited funds, shielding customer capital entirely from the PI’s own corporate liabilities