Investing in property in Bulgaria offers an efficient path to obtaining a D visa and residency within 72 days. This process provides a hassle-free opportunity for investors to establish residency in Bulgaria, leveraging the benefits of property ownership in the country.

Investment requirements

Investing a minimum of 600,000 BGN (approximately 306,778.85 EUR) in purchasing real estate, or owning over 50 percent of the capital in a Bulgarian company and investing the same amount in the company’s capital, thereby enabling the company to purchase real estate, qualifies you for a 12-month residency card in Bulgaria. This card can subsequently be exchanged for permanent residency status. This investment pathway offers a significant advantage, as it bypasses the standard requirement of residing in Bulgaria for 30 months within a 5-year period typically necessary for converting to permanent residency. This option thus provides a more direct route to securing permanent residency in Bulgaria for investors.

Positive Outlook for the Bulgarian Property Market Over the Next 5 Years

Bulgaria closed 2023 with a growth rate of 1.8%. Looking ahead to 2024, experts forecast a growth rate of 3.5%.

The growth rate is expected to accelerate further, with Bulgaria’s economy projected to expand by 12% over the next five years, resulting in an average annual GDP growth rate of 2.4%.

This anticipated sustainable growth rate is a positive indicator for real estate investors, suggesting that Bulgaria’s economy is on a healthy trajectory and that property values are likely to appreciate over time. However, it’s also important to monitor other relevant indicators.

Residential or Commercial property?

Under Bulgarian law, there is no distinction between residential and commercial property for the purposes of investment for residency. Property investment can take different forms, such as regulated land or development construction projects. These projects might not qualify as Priority Investment or any other investment category recognized by the Bulgarian Investment Agency.

Applying for residency with a property under mortgage

You can apply for residency using a property purchased with a mortgage. However, for eligibility purposes, especially for acquiring a 12-month temporary residency card, it’s essential that the remaining mortgage balance at the time of your application does not surpass 25% of the property’s total value.

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High Rental Yields in Bulgaria

Rental yield is a straightforward tool to evaluate the performance of real estate investments.

It represents the annual rental income generated by a property divided by its purchase price or market value. For instance, if a property in Bulgaria is purchased for 600,000 BGN (approximately 306,000 EUR) and generates 32,000 BGN in annual rental income, the rental yield would be 5.33%. This exceeds the average rental yields in Western Europe.

Steps to Invest in a Property in Bulgaria

Property Selection and Due Diligence: Begin by selecting a property that meets your needs and investment criteria. Conduct thorough due diligence to assess the property’s legal status, encumbrances, and overall suitability.
Purchase through a Notary: Once you’ve chosen a property, the purchase process is facilitated through a notary. This professional ensures that all legal aspects of the transaction are in order, providing an additional layer of security.
D Visa Application: With the property purchased, the next step is to apply for a D visa with the embassy in your home country. This usually takes few months.
Residency Application: Upon obtaining the D visa, you can then apply for residency. This step involves submitting the required documents and fulfilling the necessary criteria as a property investor. Applications are considered within 14 calendar days.
Permanent Residency: Property investors can apply for permanent residency after holding a temporary residency card for 5 years. Unlike other residency categories, such as the Trade Representation Office (TRO), property investors are not subject to physical stay requirements.
Bulgarian Citizenship Application: Following a 5 years period of permanent residency, you are eligible to apply for Bulgarian citizenship.

Benefits of the Bulgaria Golden Visa

Visa-free travel to over 140 countries

High-Return Investment Opportunities

The Bulgaria Golden Visa is a Schengen visa

Your entire family can join you

You are eligible to become a tax resident of Bulgaria

No physical requirements to convert to Permanent residency

Minimal Investment Period of 5 years

Hassle-free residency renewal process

Are there limitations on investing in real-estate in Bulgaria?

Seventeen years after joining the EU, the court in Luxembourg lifted the restriction on foreigners acquiring agricultural land in Bulgaria. This change also facilitates easier investment in real estate in Bulgaria under the Bulgarian Golden Visa. Until now, foreigners had to buy a ready-made company to use for the purpose of purchasing property.

Is it advisable to pursue investment through a company?

For real estate investment under the Bulgarian Golden Visa program, experts often recommend registering a VAT company. This approach can be particularly beneficial if you purchase a property from a VAT-registered seller, as it allows for VAT recovery. For instance, if the purchase price of a property is 312,000 euros, inclusive of VAT, you could potentially reclaim 62,400 euros in VAT. This effectively reduces the actual investment requirement to 250,000 euros.

Effective Tax-Saving Strategies for Real Estate Investments

When investing in real estate, there are strategic methods that can lead to savings of over 10,000 EUR in municipal taxes. In Bulgaria, the municipal tax stands at 3% across most districts. For a 312,000 EUR property investment, this is approximately 9,360 EUR in municipal taxes, and roughly 1,000 EUR in notarial fees. Our specialized team of property conveyancing lawyers will help through the process of investing in property for the Bulgarian Golden Visa. We ensure your property investment is optimized for tax efficiency.

Permanent Residency for Property Investors in Bulgaria

The general rule for converting a temporary residency card to permanent residency in Bulgaria requires that you spend 30 months in any 5-year period in the country. However, property investors are granted an exemption from this rule. For property investors, you are only required to renew your residency card for 5 years to convert to indefinite permanent residency in Bulgaria.

Bulgarian Citizenship for Property Investors

Property investors can apply for Bulgarian citizenship 5 years after being granted permanent residency status. The requirements for citizenship are standard and similar to those for Bulgaria Fund investors and general naturalization applicants. One of the key requirements is A1/A2 in the Bulgarian language for Bulgarian citizenship.

Already Invested in Real Estate in Bulgaria?

There are many investors who purchased property in Bulgaria at relatively fair prices in the past. Due to inflation and property appreciation, these investors now meet the 312,000 EUR threshold. Unfortunately, these applicants cannot apply directly for the Bulgaria Golden Visa by property investment, as they originally purchased the property at a lower price. However, our team can assist in the process for those who invested some time ago and now find their property price has appreciated to meet the conditions.

How to Buy a Property in Bulgaria

The process involves a notary public who plays a crucial role in conducting due diligence on the property and overseeing the transaction. The notary ensures that all aspects of the property sale are legal, transparent, and compliant with Bulgarian property laws. The property can be purchased remotely by granting an embassy certified Power of Attorney or in person.

What are the costs associated to buying a property in Bulgaria?

Council Tax for Title Transfer: The council tax varies depending on the location of the property and is calculated as a percentage of the sale value. It typically ranges between 2% and 3.5%.

Additional Fees: Beyond the council tax, there are other fees and costs associated with the property purchase. These may include notary fees, legal fees, administrative charges, and possibly real estate agent fees.

For more details, you can check out the Bulgaria property fees calculator.

Family reunification

You can apply for family reunification for your non-EU family members, but only after you’ve been granted your residency card. The family reunification process includes several steps:

Submission to the Migration Office: You start the process by submitting a family reunification application to your local Migration Office. This application is typically reviewed and considered within a two-month timeframe.
Visa Application for Family Members: After your application is approved, your family members need to apply for a Family D visa at the Bulgarian embassy in their home country.
Residency Card Application Process: Once they have obtained a valid D visa, your family members must then apply for their residency cards. It’s crucial to note that this application should be completed no later than two weeks before the expiration of their D visa to ensure compliance with immigration procedures.

It’s important to differentiate this process from the one applicable to family members of Bulgaria Golden Visa applicants who already have permanent residency status.

The process for family members of Golden Visa holders with permanent residency includes different procedures and criteria tailored to their unique status. It’s crucial to understand these differences to ensure that the correct pathway is followed for your specific situation.

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:

	Real Estate Property	Investment Fund
Minimum Investment	€312,000/ €260,000	€ 512,000
TAXES
Transfer Tax	up to 3%	0%
Notary Cost	up to € 840	0%
Exit Fees	0%	0%
Performance fee	0%	25% of the profit
Residency processing fee	€ 5,000	€ 10,000
Due diligence	€ 0	€ 0
Management fee	None	1% of the value of investment

For the most current rates, please contact us directly.

If investing in real estate doesn’t align with your preferences or objectives, you might consider investing in a Bulgarian AIF as an alternative option.