Bulgarian Citizenship by Investment Financing Products

Obtain an EU / Bulgarian Passport through real estate investment and/or loan-financing

bulgaria citizenship by investment financing products

Bulgaria has one of the most compelling citizenship by investment programs worldwide. Investing EUR 430,000 in 2 residential units in the capital Sofia can allow applicants to attain full EU citizenship in as little as 18 months.

Alternatively, a ‘walk-away’ financing option brings the costs down even further, to a one-off payment of EUR 290,000 including fees.

Furthermore, we also provide a supplemental offering that allows a spouse to apply for fast track citizenship simultaneously with the main applicant.

Let’s dissect the process:

The first step – Obtaining a permanent residence permit

A permanent residence permit can be granted to applicants within 6 months if they choose one of the following options:

  1. Finance a ‘walk-away’ non-recourse loan of EUR 190,000 (including professional, due diligence and government fees). 
  2. Invest EUR 288,000 in a condo unit in the capital Sofia (including professional, due diligence and government fees). The condo unit (3 bedrooms, 113 sq. m, fully furnished) can then be sold back to the service provider after 6 years (at cost), or alternatively be retained and sold on the open market. Whether to keep the buy-back option or retain ownership needs to be decided at the time of investment.

Once permanent residency is acquired, applicants have the option to wait for 5 years until they are eligible for citizenship. This is the ‘standard’ option. However, there is also a fast-track option, described below.

Second step – Obtaining fast-track citizenship

Once either of the above options have been chosen for obtaining permanent residency, applicants can decide to fast-track their path to citizenship. This is made possible through once again choosing one of the following options (applicants can choose a different option to what they opted for in the first step):

  1. Finance a ‘walk-away’ non-recourse loan of EUR 160,000 (including professional, due diligence and government fees). 
  2. Invest in a second condo unit for EUR 278,000 (including professional, due diligence and government fees). 

Supplemental offering

Bulgarian citizenship is generationally transferable. What this means is that when an applicant receives citizenship, his or her children and grandchildren will also become immediately eligible for citizenship. However, a spouse will need to wait five years in order to become eligible. That being said, a spouse will be eligible for permanent residency in Bulgaria, or any other EU / Schengen country that the main applicant with citizenship wants to move to.

However, these benefits notwithstanding, there is also the possibility for a spouse to opt for a supplemental offering that can confer citizenship immediately, after the main applicant has obtained citizenship. These are:

  1. Financing a ‘walk-away’ non-recourse loan with EUR 95,000
  2. Invest in another condo unit for EUR 215,000

Timeline

Step 1: It takes 4-6 months to process a permanent residence application after the initial investment is made. Applicants with permanent residency can then wait 5 years to become eligible for citizenship.

Step 2: If applicants opt for fast-track citizenship, it takes 12 months to become eligible for citizenship after permanent residency has been acquired, plus 2-4 months to process the fast-track citizenship application.

Total time for Fast Track Citizenship is 18-22 months.

Summary

In summary, it is possible to receive EU / Bulgarian Citizenship for as little EUR 190,000 for a single applicant applying for permanent residency with a 5 year waiting period to citizenship eligibility, or EUR 288,000 with a returnable investment amount of EUR 215,000.

If applicants want to opt for Fast Track citizenship, attainable in 18 months from the start of the process, they must make a second investment or loan financing payment. Applicants can also choose to ‘mix and match’ their investment options, so it is possible to choose financing for the first step, and real estate for the second step, or vice versa.

Bulgarian Citizenship by Investment Products Overview

Financing

The Bulgarian Citizenship by Investment Program requires an investment of BGN 2,000,000, which is EUR 1,024,000, to start the standard track application procedure. The Fast Track product all-in handling fee of EUR 335,000 includes the financing of EUR 1,024,000 for a period of five years.

Our product Financing Fast is the most popular product due to several reasons. It is the most affordable EU / Bulgarian fast track product worldwide which allows you to obtain citizenship in 18 months. From a processing point of view, it is the most straightforward product which saves you some time compared to other Fast Track products.

Alternatively, it is also possible to opt for the financing of a loan of EUR 512,000, which will confer permanent residency status and then citizenship eligibility after 5 years.

There is also a supplemental offering that allows for a spouse to apply for fast track citizenship simultaneously with the main applicant.

Financing Standard I

The applicant pays for financing a loan of EUR 512,000 to purchase Bulgarian government bonds or listed stocks

  • Time to Permanent Residency  – 6 months
  • Time to Bulgarian Citizenship  – 66 months
  • Investment in EUR (Refundable)  – 0
  • All-in Handling Fee in EUR (Non-refundable)  – 190,000

Financing Fast

The applicant pays for financing a loan of EUR 1,024,000 to purchase Bulgarian government bonds or listed stocks

  • Time to Permanent Residency  – 6 months
  • Time to Bulgarian Citizenship  – 18 months
  • Investment in EUR (Refundable)  – 0
  • All-in Handling Fee in EUR (Non-refundable)  – 335,000

Financing Two Main Applicants

Both partners of a legally married couple can apply simultaneously. Two main applicants pay for financing a total loan of EUR 2,048,000 to purchase Bulgarian government bonds or listed stocks

  • Time to Permanent Residency  – 6 months
  • Time to Bulgarian Citizenship  – 18 months
  • Investment in EUR (Refundable)  – 0
  • All-in Handling Fee in EUR (Non-refundable)  – 430,000

Property

According to Foreigners in the Republic of Bulgaria Act, Chapter 3, Article 25, one must invest into Bulgarian Stock Exchange Listed Equity, or into Bulgarian Government Bonds to meet the investment requirements of the program. We have created worldwide unique Property products, which have an underlying financing of Equity for our applicants to receive their permanent residency within 6 months and their citizenship in 18 (Fast), or in 66 months (Standard).

About the Property

Our Property is located in Sofia, in the capital of Bulgaria, in the residential area near the main office district. We co-operate with a Bulgarian project manager and work with the biggest and very well-known Bulgarian developer.

Our Property concept is new to Sofia and is described as follows:

  • Each building has a height of 26 m, has 5 floors and 20 apartments with a ceiling height of 5.35 m;
  • The apartment size of 129 sqm gross, and 113 sqm net, perfectly meets the requirements of our typical tenants, which are international companies providing accommodation for overseas employees, international students, as well as affluent locals;
  • The Price per sqm is EUR 1,597 gross, and EUR 1,823 net, which is incredibly low for what you get;
  • An added bonus; each apartment can be divided into two single units/apartments which is approved by the fire brigade. You can choose between keeping the standard apartment size or splitting it into two independent apartments;

A standard apartment has the following characteristics:

  • Each apartment has a mezzanine floor stretching over half the ground floor space;
  • Access to the mezzanine floor via stairs;
  • Two bathrooms per apartment: one on the ground floor and one on mezzanine floor;
  • Elevator and external stairs to each of the internal apartment floors;
  • Ground floor (70 sqm): Open kitchen, living room, bathroom, entrance to elevator and stairs;
  • Mezzanine floor (43 sqm): 2 bedrooms, bathroom, entrance to elevator and stairs;
  • Floor to ceiling windows are triple glazed;
  • In general, you can customize your apartment/s according to your preferences.
  • Each Property comes with a buy-back guarantee after six years, if this is opted for prior to investment. If applicants do not opt for this buy-back guarantee, they may sell the apartment on the open market after six years. In addition, there is a rental guarantee of 5% per year, but note that these returns are used to co-finance the underlying investment into Equity. You will not receive any returns for the first six years.

Property Standard

Applicant invests in 1 Apartment for EUR 215,000 and holds it for 72 months

  • Time to Permanent Residency  – 6 months
  • Time to Bulgarian Citizenship  – 66 months
  • Investment in EUR (Refundable)  – 215,000
  • All-in Handling Fee in EUR (Non-refundable)  – 73,000
  • Total Cost in EUR – 288,000

Property Fast

Applicant invests in 2 Apartments for EUR 430,000 and holds them for 72 months.

  • Time to Permanent Residency  – 6 months
  • Time to Bulgarian Citizenship  – 18 months
  • Investment in EUR (Refundable)  – 430,000
  • All-in Handling Fee in EUR (Non-refundable)  – 121,000
  • Total Cost in EUR – 551,000

Property Fast Two Main Applicants

Both partners of a legally married couple can apply simultaneously. Two main applicants invest in a total of 3 Apartments for EUR 645,000 and hold them for 72 months.

  • Time to Permanent Residency  – 6 months
  • Time to Bulgarian Citizenship  – 18 months
  • Investment in EUR (Refundable)  – 645,000
  • All-in Handling Fee in EUR (Non-refundable)  – 151,000
  • Total Cost in EUR – 796,000

Steps to EU citizenship

  1. The applicant travels to the Bulgarian embassy in their country of residence.
  2. The applicant applies for a Visa D at the Bulgarian embassy. The passport is returned on the same day with a stamp.
  3. After 3 to 4 weeks, the applicant can pick up their Visa D at the embassy.
  4. Using the Visa D, the applicant travels to Bulgaria to apply for permanent residency status, which is completed in 1 day.
  5. After 4 to 6 weeks, the Bulgarian government issues an approval letter, granting permanent residency status.
  6. The applicant has the option to return to Bulgaria to apply for the permanent residency card.
  7.  12 months after the date of permanent residency status approval, our law firm files the citizenship application.
  8. Up to 6 months later, the applicant receives the government approval letter of citizenship.
  9. The applicant can pick up the passport by traveling to Bulgaria, or by visiting their local Bulgarian embassy.

What do I get with a Bulgarian Passport?

The Bulgarian passport can be of great value for any non-European citizen, considering the following benefits:

  • The Bulgarian passport allows visa-free travel or visa on arrival to 154 countries, including the Schengen Area, Turkey, Australia, New Zealand, Southeast Asia, Japan, South Korea, South America, Mexico, and the Caribbean, among others.
  • Acquiring Bulgarian citizenship implies acquiring full EU citizenship, enjoying access to the European market and freedom of movement, and all the benefits that it entails.
  • Bulgaria is qualified to be a member of the Schengen Area.
  • The right to settle and/or do business in any EU / EEA country or in Switzerland.
  • The right to buy land in Bulgaria and other EU countries.
  • Access to the educational system in Bulgaria and other EU member states.
  • The right to obtain medical care and social benefits in Bulgaria and in the European Union.
  • No physical residency and language skill requirements.

Although obtaining the Bulgaria residency/citizenship by investment does not imply any tax liability, planting a tax residency flag there may be attractive, considering that both the personal and corporate income tax rate is 10%, and dividends and interests are subject to a final 5% and 8% tax, respectively. Furthermore, Bulgaria has concluded about 60 tax treaties with other countries.

Bulgaria has amazing mountains, landscapes and natural parks, historical towns, modern cities, and nice beaches, where it’s possible to take a dip into the Black Sea and during its warm summers. The country is also just a two-hour flight from all European cultural and financial centers and the cost of living is cheap – very cheap.

Documentation & Further Information

If you want to know further details about this program apply now for a free private consultation call.

NOTICE:The contents of this article are not to be considered as a legal opinion or tax advice and should not be relied upon as such. Far Horizon Capital Inc does not hold itself out as a legal or tax advisor. If you wish to receive a legal opinion or tax advice on the matter(s) in this article please contact our offices and we will refer you to an appropriate legal practitioner. Use of our website FlagTheory.com is subject to our terms and conditions.

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