Bulgaria May Adopt Flexible Physical Stay Requirements for Golden Visa Investors

The proposed amendments to Bulgaria’s permanent residence legislation have raised concerns among foreign investors, particularly regarding the potential introduction of a physical stay requirement.

However, recent explanations provided in connection with the draft legislation suggest that the Bulgarian government intends to adopt a flexible, case-by-case approach rather than impose automatic penalties for extended absences from the country.

Has Bulgaria Officially Introduced a Physical Stay Requirement?

First and foremost, it is important to clarify that the proposed physical stay requirement has not necessarily become law. The legislative process is ongoing, and the final wording and implementation of any new provisions remain subject to second voting within the upcoming weeks.

Nevertheless, the government’s explanation of the proposed amendment offers valuable insight into how the requirement could be applied in practice.

Importantly, the authorities have indicated that the revocation of permanent residence should not be based solely on the number of days spent outside Bulgaria. Instead, each case should be assessed individually, taking into account all relevant circumstances.

How Would the Physical Stay Requirement Be Enforced?

In practical terms, the authorities would first need to establish that a permanent resident has been absent from Bulgaria for a period that could trigger the proposed requirement. Such an assessment may take place during administrative procedures, particularly when applying to renew a residence card. Permanent residence cards are valid for 5 years.

However, establishing an absence does not automatically mean losing permanent residence.

According to the government’s explanation, the administrative authorities must conduct an individual assessment of each case before deciding whether to revoke permanent residence, rather than relying solely on a rigid calculation of the time spent outside Bulgaria.

This obligation follows from several provisions of Bulgaria’s Administrative Procedure Code, including:

• Article 6 — Proportionality: Administrative measures must be proportionate to the circumstances.
• Article 35 — Establishment of Facts: Authorities must examine the relevant facts and circumstances before making a decision.
• Article 59 — Statement of Reasons: Administrative decisions must be properly reasoned and justified.

These safeguards are particularly important for Bulgaria Golden Visa investors who may have legitimate reasons for spending substantial periods outside Bulgaria.

Can Investors Justify Their Absence from Bulgaria?

Yes. One of the most significant aspects of the government’s explanation is the recognition that an absence may be justified by individual circumstances. For example, the government specifically acknowledges that full-time education, although not an automatic exemption, may constitute a valid reason for an extended absence. This illustrates an important principle: the physical stay requirement, if introduced, would not necessarily operate as a strict rule. Investors should therefore have an opportunity to explain their circumstances and provide supporting evidence.

Depending on the individual case, relevant considerations could include business commitments, professional obligations, family circumstances, education, medical reasons, or other legitimate factors. Where the authorities accept these explanations, they may provide grounds for maintaining permanent residence despite an absence that would otherwise raise concerns under the proposed requirement. However, this should not be interpreted as an automatic waiver. The outcome would depend on the applicable legislation, the evidence submitted, and the individual administrative assessment.

Why Should Investors Expect a Flexible Approach?

Bulgaria has historically pursued policies aimed at attracting foreign investment and encouraging international investors to establish economic ties with the country. Against this background, a rigid physical stay requirement could create practical difficulties for investors whose professional and business activities require frequent international travel.

After all, international investors often manage businesses, investments, and other commitments across multiple jurisdictions. It is therefore reasonable to argue that the purpose of Bulgaria’s investment-oriented residence policies should be considered when assessing an investor’s circumstances.

Investors have a legitimate basis to expect that their economic contribution, business commitments, and reasons for absence will receive appropriate consideration.

What Does This Mean for You?

The key takeaway is that the proposed physical stay requirement should not necessarily be viewed as an automatic threat to your Bulgarian permanent residence status.

Even if the requirement is ultimately adopted, the government’s explanation suggests a process involving three important steps:

1. Establishing the absence: The draft legislation refers to an absence of six months and one day during the year in which the absence is established. In practice, this means the year preceding the renewal of the permanent residence card, rather than every year of residency.
2. Assessing the individual circumstances: An established absence should trigger an examination of the particular facts rather than automatic revocation.
3. Considering reasonable justifications: The resident should have the opportunity to present explanations and supporting evidence that may justify the absence.

For investors, this distinction is particularly significant.

Rather than assuming that spending an extended period outside Bulgaria will automatically result in the loss of permanent residence, investors should focus on maintaining appropriate documentation and being prepared to explain their circumstances if questioned by the authorities.

Although uncertainty remains regarding the final adoption and implementation of Bulgaria’s proposed physical stay requirement, the government’s explanation provides an encouraging indication of its intended application. The central message is clear: an extended absence from Bulgaria should not automatically result in the revocation of permanent residence.

Where Should I Invest My Capital?

For investors seeking to obtain permanent residence through the Bulgaria Golden Visa program, Bulgaria AIF Fund offers a dedicated investment option structured to meet the program’s requirements.