European Expansion: Bulgaria and Romania’s Entry into the Schengen Zone and its Impact on Tourism and Trade

Since its development over 30 years ago, the Schengen Area has opened the door to barrier-free travel and trade throughout Europe.

By abolishing border checks, allowing for passport-free movement between member states and introducing a single visa for all participants, the area has had an enormous impact on the countries within it.

Over 1.25bn journeys are made within the Schengen area every year. As well as greater freedom for their residents and citizens, participating nations benefit from a boost in trade and tourism and better integration with neighbouring states.

Unsurprisingly, others in the region have long expressed their desire to join the area. Two such nations, Romania and Bulgaria, recently reached an agreement on partial Schengen access starting in March 2024.

This last development could have a far-reaching impact on the residents and citizens of both countries, offering easy access to the EU and the freedom to trade and travel across the European continent.

The Schengen Area explained 

In short, the Schengen Area is a block of European nations that allow the free movement of people, goods, services and capital. It was developed to facilitate closer social and economic ties across Europe by:

Facilitating free movement: The removal of cross-border checks allows residents and citizens of participating states to travel, work and study across the region.

Reducing visa obligations: All citizens of third countries can travel freely throughout the Schengen Area under a single common visa.

Announcement of Bulgaria and Romania’s entry into the Schengen Area

Citizens of Bulgaria and Romania will soon be free to live, work and travel across the Schengen Area following an agreement reached with the other 26 participating states.

From March 2024, eligible travellers from both countries will be able to enter the area without a passport by either air or sea. An agreement for access via land is expected next year.

As a result, anyone with the right to live and work in Romania and Bulgaria will be allowed to do the same throughout the other Schengen nations without the need for border checks or lengthy visa applications.

Changes in border control and travel freedom for Bulgarian and Romanian citizens 

While checks remain in place at land borders, Bulgarian and Romanian citizens will be able to enter any other Schengen state via air or sea without travel documents and lengthy border checks.

Under the new agreement, anyone with valid citizenship or residency in either country will be free to travel and trade anywhere else in the area without the need for a visa when arriving by air or sea.

As yet, agreements are not in place to extend the agreement to land borders. However, as both Bulgaria and Romania have met all of the criteria to become full Schengen Area nations, further developments are expected in 2025.

Expected boost in tourism and business opportunities 

The Schengen Area is credited with boosting the fortunes of its members in numerous ways. Most notably, the unified visa for participating nations encourages increased tourist numbers to the region and greater movement between states.

Similarly, businesses in the region benefit from stronger trading links, easy access to a much larger market and the ability to trade goods throughout the zone without lengthy customs checks or duties.

The removal of barriers between countries facilitates frictionless trade throughout Europe, eliminates the red tape that often limits international commerce, and it reduces the cost of doing business in the process.

For these reasons and many others, Bulgaria and Romania are expected to see a significant boost in trade and tourism. Access to the wider European continent is also likely to attract long-term residents to both countries.

The move will undoubtedly attract business owners, entrepreneurs and investors to the region. Both countries benefit from low cost of living and ease of doing business, which, coupled with frictionless trade with the EU, makes for an incredibly attractive proposition.

Can we expect more European Golden Visa programs? 

At first glance, it may seem that the latest Schengen Area developments only benefit those currently based in the area. However, as many European countries actively encourage residency and citizenship by investment, the advantages extend to anyone with the means to apply. 

Hungary has recently laid out its plans for a new Golden Visa program. Under the scheme, eligible applicants can obtain a ten-year residency in the country in return for investment in government funds or real estate.

The holder of a Hungarian residency card is able to travel, live and work freely within the wider Schengen area without the need for an additional visa. 

Thanks in no small part to the success of programs like these, there is a reasonable expectation that Romania and Bulgaria will follow suit. By launching such initiatives, both countries can attract investment and interest in the region, offering a fast, simple and affordable way to gain a foothold in Europe.   

Residency and citizenship-by-investment schemes offer governments a proven way to stimulate and diversify economies, create jobs, boost real estate sectors and enhance their country’s image to a global audience.

Why work with Knightsbridge Group

Residency and citizenship requirements can seem daunting – particularly when they are often subject to change. But Knightsbridge is on hand as your reliable ally, offering a spectrum of services, including legal support, corporate services, immigration guidance and wealth management.

Backed by a team of 30 seasoned professionals with a cumulative industry experience surpassing 200 years, we are committed to delivering comprehensive solutions tailored precisely to your unique requirements.

We specialise in immigration services, where we excel in assisting individuals and families in securing residency and citizenship through strategic investments. Our team will guide you through the entire application process, helping you meet all necessary requirements while optimising your chances of success.

Our dedication to excellence and client satisfaction is unwavering. Staying abreast of the latest legal and regulatory developments, we build enduring relationships based on trust, integrity and professionalism.

Take the first step towards success – contact us today to schedule a free consultation with one of our experts. We look forward to guiding you on your journey to European residency.