In the area of financial transactions involving foreign banks and electronic money institutions (such as Revolut, PayPal, Payserra, TransferWise and the like), the declaration of income therein to the Bulgarian National Bank (BNB) under Order No. 27 is mandatory in certain cases. This obligation is not imposed on individuals unless specific circumstances apply.
All commercial banks operating in the territory of Bulgaria are subject to the strict control of the Bulgarian National Bank and are obliged to submit reports to various regulatory authorities such as the National Revenue Agency and others. In contrast, financial companies that are registered outside the country are not subject to direct supervision by state institutions.
To limit the risks of unfair practices, the legislation requires that all accounts opened with financial institutions or banks abroad be declared to the BNB. This ensures that government authorities can monitor the transparency of traders’ revenues, regardless of the nature of their activities.
Account disclosure on opening:
A declaration Form SPB-2 is submitted to the Bulgarian National Bank (BNB) by all domestic legal entities and individual traders when opening an account abroad and is used for statistical purposes. The deadline for filing is within 15 days after opening the account. Submission of the declaration shall be made electronically by means of a CEP or on paper.
In case of changes in the already declared circumstances, including closure of an account, a confirmatory declaration – form SPB-2 in paper form shall be submitted or the changes shall be reflected by a change request in the Integrated Statistical Information System (ISIS) Portal of the BNB, in accordance with the instructions for electronic submission of statistical information to the BNB.
Quarterly Account Report:
Form SPB-5 is a quarterly statement for accounts opened abroad. It is to be completed by all domestic legal entities and individual traders who have disclosed to the BNB accounts opened abroad. The form describes balances and interest accrued and paid on all foreign accounts. In cases where the account contains balances in different currencies, the balance shall be converted into the reporting currency in accordance with the currency of registration of the account as specified in the Declaration – Form SPB-2.
The statement shall be submitted to the BNB by the 20th day of the month following the quarter under review and the statement for the fourth quarter by 25 January of the following year. Form SPB-5 must be filed by the close of the foreign account for each reporting period and may be filed electronically through the e-Government portal or on paper.
Accounts of individual traders:
Individuals are not required to disclose to the BNB accounts opened abroad. Pursuant to Article 10(2) of the Banking Act and Article 13 of BNB Regulation No 27, individuals are required to report annually (by 31 March of the following year) to the BNB the balance of accounts opened abroad, loans or credits received from/to foreign persons and investments in securities made without the participation of a resident investment intermediary. This should only occur if the total value of their loans and/or liabilities as at 31 December of the reporting year equals or exceeds BGN 50 000 or its equivalent in foreign currency.
Reporting shall be done through statistical form SPB-8 Statement of Loans and Payables of Domestic Persons to Non-Domestic Persons.
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