Lower Risk AIFs

Despite Alternative Investment Funds (AIFs) being usually associated with higher risks, it’s possible to tailor their strategies to reduce these risks. For instance, the AIF’s statutes could explicitly prohibit the use of derivatives, Contracts for Difference (CFDs), crypto assets, leverage, and similar instruments. When we state ‘prohibit,’ it means the AIF is not allowed to engage in such transactions unless changes to the existing statutes are approved by the Financial Commission. Should any amendments be made, investors must be notified, providing them the option to withdraw their investments if they choose.

Within this framework, we can consider two categories of AIFs suitable for the Bulgarian Golden Visa program. The first category includes AIFs designed specifically to meet Golden Visa requirements, prioritizing investment safety while targeting annual returns in the 5-10% range. The second category includes AIFs oriented towards higher risk and potentially greater returns.

Why Choose Dedicated Funds for the Bulgarian Golden Visa Program?

Consider this example: a portfolio lost approximately 200,000 BGN in less than a year, illustrating the risks associated with non-specialized funds that prioritize maximizing profitability at the expense of higher loss risks. While funds managed by experts can yield high returns, they also carry significant risks.

We advise choosing conservative funds designed solely for obtaining a Bulgarian Golden Visa.

Assets in Alternative Investment Funds

Alternative Investment Funds (AIFs) offer a broad spectrum of investment opportunities, encompassing both tangible and intangible assets. Within this structure, bonds issued by Bulgarian state-owned enterprises and licensed banks are traditionally regarded as a secure and stable investment choice within AIFs. This trend has gained further momentum in recent years as Bulgarian banks — responding to increased reserve capital requirements set by the Bulgarian National Bank — began issuing bonds to strengthen their capital positions. Notable examples include Allianz Bank, which issued bonds with a yield of 6.85%, First Investment Bank offering 7.00%, and the upcoming TBI Bank bond, expected to launch in early November 2025 with a yield slightly above 7.0%.

Additionally, AIFs present the opportunity for reinvestment into development projects. This option is particularly attractive if you are interested in property ownership in Bulgaria. By investing through an AIF, you can indirectly engage in the property market, potentially benefiting from the growth and development of real estate projects in the region. In this way, the AIF can effectively replicate a REIT-style investment strategy.

AIFs for Bulgaria Golden visa

Not all funds qualify for the Bulgaria Golden Visa under the Foreigners Act. To be eligible for a Bulgarian Golden Visa through investment in an Alternative Investment Fund, the fund must meet specific criteria:

• Manage assets totalling no less than BGN 3,000,000.
• Be licensed or registered by the Financial Supervision Commission.
• Have an investment strategy entirely focused on Bulgarian assets, investing solely in shares, stocks, and bonds of Bulgarian companies. If the selected fund allocates even 0.01% of its portfolio to non-Bulgarian assets, it will not qualify for an investment confirmation.

Few funds currently meet the above criteria — among them, Bulgaria AIF Fund (focused on fixed income) and Expat Capital (tracking the SOFIX Index). Depending on your risk tolerance, you may choose a fixed-income fund offering a predictable annual return of 5.5–7.5%, or, for those with a higher risk appetite, opt for stocks exposure. Bulgarian stocks reached their peak in 2007 and have since undergone a slow recovery — taking nearly two decades to regain only about half of their pre-crisis value.

To ensure a smooth and efficient Golden Visa process, it is advisable to focus on funds specifically approved for the Bulgaria Golden Visa program. At the very least, make sure to ask the right questions when dealing with fund managers — to avoid misleading information that could result in delays of several months and unnecessary subscription and withdrawal costs.

Bulgarian AIFs Gain Efficiency in 2026

The introduction of the euro in Bulgaria on 1 January 2026 further enhances the attractiveness of the Bulgaria Golden Visa investment route. With Bulgaria’s transition to the EUR, investments and underlying assets are now aligned in a single currency, eliminating the need for intermediate currency exchanges.

In the past, investments in Bulgarian Alternative Investment Funds (AIFs) required capital to be deposited into BGN-denominated accounts, while fund portfolios were largely composed of euro-denominated instruments. This mismatch resulted in multiple currency conversions, which slightly diluted overall returns. The euro adoption removes this inefficiency, improving transparency and preserving investor performance.

Choosing the Right Fund

You can invest in more than one Fund. You can diversify your investment across multiple Funds that meet the criteria mentioned above. If you’re unsure about which Fund to invest in, you could consider splitting your investment among a few or several Funds to create a more balanced Alternative Investment Fund (AIF) portfolio. This diversification can extend to various commodities within each Fund, such as shares or bonds in different sectors like finance, banking, or pharmaceuticals, offering a broader risk mitigation strategy.

The primary constraint lies in the type of Fund you choose. You need to determine whether to invest in AIFs or ETFs. However, it’s important to note that you cannot split the required 512,000 EUR investment between AIFs and ETFs; it must be allocated entirely to one type. Currently, there is one AIF and one ETF that satisfy the requirements of the Bulgaria Golden Visa Program in 2026 (for reference Guide to Investment Fund Options for the Bulgaria Golden Visa Program (2026) ) and this split of investment is not an option yet.

From our perspective, the right fund is the one that aligns with your individual risk tolerance. Unfortunately, in Bulgaria, taking on higher risk does not necessarily result in higher potential returns.

Benefits of the Bulgaria Golden Visa

Who Can Invest in AIFs?

Investors eligible to invest in AIFs include former bond investors (those who pursued Bulgarian citizenship by investment in government bonds) and professional investors. The criteria for professional investors generally combine objective and subjective elements. While transaction frequency is one factor, the value of those transactions is equally important. An investor with a smaller number of high-value transactions could qualify as a professional investor, while one with frequent lower-value transactions might also meet the requirements. Thus, categorization accounts for various factors, balancing transaction frequency with overall value.

Due Diligence

Prior to investment in Bulgarian AIF, applicants are required to successfully pass a pre-approval stage with the Bulgarian Investment Agency (BIA). Applicants have to provide the following documents and information:

1. Copy of Passport
2. Bank reference of EUR bank account in FATF compliant jurisdiction with a minimum balance of 512 000 EUR
3. AML Declaration
4. PEP Declaration
5. Detailed information pertaining to employment, professional, and investment activities (or CV)
6. Police Clearance Certificate issued from the home country or country of permanent residence

The Applicant is obliged to provide any additional documents or information as may be required by the Bulgarian Investment Agency. The documents should be legalized before provided.

How long is the duration of the Pre-Approval Stage

The pre-approval stage takes 6-10 weeks. After you successfully complete this stage, you can proceed with your investment for the Bulgarian Golden Visa.

Family Reunification for Bulgaria Golden Visa via AIF Investment

Family members, including children up to 21 years old and spouses, are eligible for family reunification. This process can commence once the main applicant has obtained permanent residency.

Similar to the main applicant, family members must apply for a D visa and then for permanent residency through the local Migration Office. We expect to complete the entire procedure within 3 to 4 months.

Family Reunification for Parents

You can apply for your parents and parents-in-law. However, it’s important to note that they will only be eligible for temporary residency, which is renewable on an annual basis.

Documentation Requirements

The required documentation for family members is minimal. For children, a birth certificate suffices. Spouses need to provide a marriage certificate along with a criminal record. For parents, the main applicant’s birth certificate and their criminal records are necessary. This streamlined document requirement eases the application process for family reunification under the Bulgaria Golden Visa program.

Should you find that the AIF doesn’t align with your investment goals, you may explore the option of investing in real estate in Bulgaria. Opportunities for obtaining the Bulgaria Golden Visa through real estate investment start at 250,000 EUR.

Costs Related to Investment

Depending on your preferred type of investment, the associated costs differ. Below, you can find a table that covers the costs associated with the most popular investment types; real estate acquisition, and Bulgaria Fund Investment:

Does the Bulgarian Golden Visa Lead to Bulgarian Citizenship?

Investing in a Bulgarian Fund grants you indefinite permanent residency. After holding this status for 5 years and passing a Bulgarian language exam, you become eligible to apply for Bulgarian citizenship by naturalization. Authorities have discontinued previous benefits for investors, such as the absence of language requirements and the fast-track citizenship option.