Bulgarian Residence Permit Through Real Estate Investment

Bulgaria has become an increasingly attractive destination for foreign nationals seeking to invest in real estate while establishing a legal residence in the European Union. The country’s property market, strategic location and access to the Schengen Area make it an appealing option for international investors.

What many foreign buyers may not know is that purchasing real estate in Bulgaria can also provide a legal basis for obtaining a residence permit, provided that certain statutory requirements are met.

Under Article 24(1)(19) of the Foreigners in the Republic of Bulgaria Act, non-EU nationals who invest at least EUR 307,000 in Bulgarian real estate may qualify for a prolonged residence permit.

This opportunity is available both to individuals purchasing property in their own name and to investors acquiring real estate through a Bulgarian company.

I. Who Is Eligible for Residency Through Property Investment?

Bulgarian legislation provides two main options for foreign investors.

1. Purchasing Property as an Individual

A foreign national may qualify for a residence permit by acquiring ownership of one or several properties in Bulgaria with a combined acquisition value of at least EUR 307,000.

The investment may involve residential or commercial real estate, including apartments, houses, offices or other eligible properties.

The essential requirement is that the foreign national acquires legal ownership of the property and satisfies the statutory investment and payment conditions.

2. Purchasing Property Through a Bulgarian Company

The second option is available to foreign nationals who own more than 50% of the capital of a Bulgarian commercial company.

In this case:

• The foreign investor must hold more than 50% of the company’s capital.
• The investor must contribute the required investment amount to the company’s capital.
• As a result of this investment, the Bulgarian company must acquire real estate in Bulgaria with a value of at least EUR 307,000.

This structure may be particularly relevant to international investors who prefer to hold real estate through a corporate entity.

II. Main Requirements for Obtaining Residency

1. Minimum Investment Amount

The minimum statutory investment is EUR 307,000.

The amount may be invested in one property or several properties, provided that the combined investment meets the required threshold.

2. Payment of the Purchase Price

By the time the residence application is submitted, the statutory investment amount must have been paid in full and received in an account with a Bulgarian licensed credit institution.

The law also allows property acquisitions involving borrowed funds, provided that the outstanding portion of the loan does not exceed 25%.

Therefore, the financial structure of the transaction should be reviewed before the purchase is completed.

3. Proof of Investment and Banking Documentation

The applicant must be able to demonstrate that the investment meets the legal requirements.

The supporting documents generally include:

• Notarial deeds establishing ownership of the property.
• Banking documentation confirming payment of the required amount.
• Evidence of the investment made through a Bulgarian company, where applicable.
• Additional documentation concerning borrowed funds, if the property was financed through a loan.
• Documents proving origin of funds.

The authorities may also require further documents depending on the individual circumstances.

4. Property Documentation

The property must be legally acquired, and the applicant must be able to demonstrate valid ownership.

Where the investment concerns a completed building, documentation regarding its lawful use, including an occupancy or commissioning certificate (commonly referred to as Act 16), may be relevant.

Before proceeding with the investment, it is advisable to conduct legal due diligence on the property, including verification of ownership, registered encumbrances, construction documentation and potential legal restrictions.

III. Procedure for Obtaining a Bulgarian Residence Permit

The procedure generally involves three main stages.

Step 1. Acquisition of Real Estate in Bulgaria

The foreign national purchases one or several properties satisfying the minimum investment requirement.

Before completing the transaction, it is important to verify that the acquisition structure, purchase price and payment arrangements comply with the immigration requirements.

Step 2. Application for a Bulgarian Type D Visa

Following completion of the investment, the foreign national generally applies for a long-stay Type D visa at the competent Bulgarian Consulate in the country of origin of the applicant.

The visa application must be supported by documents establishing the legal grounds for the intended residence.

Step 3. Application for a Residence Permit in Bulgaria

After obtaining the Type D visa, the applicant enters Bulgaria and submits the residence permit application to the Migration Directorate or the competent regional migration authority.

The application includes the investment documentation and other documents required under Bulgarian immigration legislation.

Following approval, the foreign national receives a Bulgarian residence permit.

IV. Validity and Renewal of the Residence Permit

Residence permits issued on this legal ground are generally valid for up to one year.

Depending on the individual circumstances and the decision of the competent authorities, the initial residence permit may be issued for a shorter period.

The residence permit may be renewed, provided that the applicant continues to meet the applicable legal requirements.

V. Can Family Members Obtain Residency?

Foreign nationals who obtain a Bulgarian residence permit through real estate investment may also have the opportunity to apply for family reunification with their spouse and children under 18 years of age.

Under the applicable family reunification rules, the principal applicant generally needs to hold a residence permit valid for at least one year.

Eligible family members may subsequently apply for residence permits, subject to the applicable requirements and procedures.

VI. How Can Berg Law Assist?

Purchasing real estate for immigration purposes requires careful coordination between the property acquisition and the residence application.

A transaction that is commercially valid does not necessarily satisfy every immigration requirement. The ownership structure, source and transfer of funds, property documentation and timing of the application must therefore be considered in advance.

Berg Law provides legal assistance throughout the process, including:

• Assessment of eligibility for residence through real estate investment.
• Legal due diligence of the property and review of ownership documentation.
• Advice on purchasing property as an individual or through a Bulgarian company.
• Review of the investment and banking documentation.
• Preparation and coordination of the Type D visa application.
• Preparation and submission of the residence permit application.
• Assistance with residence permit renewals and family reunification.

Email: pberg@berglaw.eu

Website: www.berglaw.eu

Polina Berg