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Investment


How you can get EU residence by investing in Bulgaria

eu citizesnship and residence is easy to get

The Law

Before going into the different investment options, it is important to understand Bulgarian and EU law regarding the normal timescales for long-term residency, permanent residency and citizenship:

0-5 Years is Long Term Residency

Client receives a long-term residency card (often called a Lichna karta, or an EU residency card). This must be renewed every year for these five years. The cost for renewal each year 150 euros state fees. Clients may stay as long as they like in Bulgaria, but the minimum period is 6 months per year. It doesn't need to be consequent period of stay. For example the cient can stay 2 months, then leave the country for another 3 months, and then come again to the ocuntry. They may also travel anywhere they like in the Schengen zone. Officially, if they want to stay more than 3 months in any one Schengen country, they must apply for residence in that country, on the basis of employment, self-employment or study. If not, then they can go to another Schengen country for 3 months, etc.

5 Years onwards is Long Term Residency

Client receives a permanent residency card (again, often called a Lichna karta, or an EU residency card). This does not need to be renewed annually because it is valid for 5 years. Hoever it has to be renewed on every 5 years (just like the passports). Clients may stay as long as they like in Bulgaria, as there is no minimum or maximum stay period. They can come and leave the country without restrictions. They may also travel anywhere they like in the Schengen zone. Officially, if they want to stay more than 3 months in any one Schengen country, they must apply for residence in that country, on the basis of employment, self-employment or study. If not, then they can go to another Schengen country for 3 months, etc.

10 Years onwards, clients may apply for citizenship

Client receives a passport. They have exactly the same rights as above, except they may now vote and they are also allowed to join the Bulgarian army and police.


Investment residence programme

The most reliable way of getting residency in Bulgaria is through investment. There are 3 basic ways of doing this.

1. For example, if a client was to invest a relatively small amount like 50,000 euros and expand their existing business overseas into Bulgaria, that would be enough to persuade the immigration authorities of their intentions and they would be granted long-term residency. As this is not covered by the Investment Promotion Act, we offer a full money back guarantee should the application not be successful. The whole process takes between 4 to 6 months.

2. Under the The Investment Promotion Act, there is an option, that if a client wanted to skip the first 0-5 years Long Term Residency, they can invest 1 million Bulgarian levs (512,000 euros) and immediately get Permanent Residency. However, this is a very large investment and the only advantage is that they don't have to wait so long before applying for citizenship. The whole process would take between 4 to 6 months.

3. The Investment Promotion Act provides a very favourable regime for investors who make big investments in Bulgaria. Pursuant to the latter Act, a big investment is one above 8,000,000 euros.

Some of the benefits for the big investment are:

  • financial and administrative help for creating infrastructure
  • shorter terms for administrative procedures
  • dedicated state/municipality clerks working with the particular investor
  • programs for free qualification of investor's employees
  • investment certificate class "A" and "B" given by the ministry of finance
  • relieved tax regime etc. (in some cases 0% corporate taxation)
  • favourable terms for buying/renting state/municipality property(real estate and movables)
  • excellent immigration regime for the investor - can obtain permanent residence in Bulgaria and can immediately apply for citizenship

By doing this, the investor receives permanent residence in Bulgara immediately. The residence is granted with the cooperation of high level governmental officials - The Minister of Finance and the Minister of Interior.

Taxation of companies

The most common company forms in Bulgaria are "OOD" (limited liability company), "EOOD" (sole owned limited liability company) and "AD" (Joint Stock Company, limited by shares).

The tax regime is as follows:

  • corporate tax: flat rate of 10%
  • dividend tax: flat rate 5%, payable only upon paying dividend to the company shareholders

If the company possess/owns properties, an annual property tax shall be paid, depending on the property location, type of the land its value.

The taxation of the different companies is the same. There is difference (0% taxation) if the company possess investments certificate, as described above and meets some investment requirements.

Land taxes

Agricultural land in Bulgaria is not subject to taxation (0% tax). Only buildings and regulated land is subject to taxation. The tax amount depends on the different municipalities, as this is a local tax and not a state tax. If the property is living premises/office/factory, the owner also should pay a garbage fee - again an annual payment.