Permanent residency as an investor of BGN 1000 000 in a collective investment scheme

Published On: 15/08/2024

Investment in Bulgarian economics has always been a legal ground for permanent residency. However, in 2021 Bulgarian Parliament introduced new legal ground for permanent residency for investors in collective investment schemes.

During the period between 2021 and 2023 despite that the law listed this option as a legal ground for permanent residency, in practice no foreign citizen could become permanent resident on the basis of investment of BGN 1000 000 in a collective investment scheme due to lack of secondary legislation determining the particular rules and procedures.

During the past 3 years Berg Law team has monitored each step of the introduction of this new legal frame allowing foreign citizens to receive permanent residency on the basis of investment of BGN 1000 000 in a collective investment scheme.

We are happy to share that Berg law was the first one to assist for the successful completion of the investment of BGN 1000 000 in a collective investment scheme which became the permanent residency ground for our client.

1. General rules

Foreigner citizen can obtain permanent residence permit provided he/she has made an investment or increased their investment through acquisition of shares with a value of not less than BGN 1 000 000 in collective investment schemes originating from the Republic of Bulgaria, operating in accordance with the Law on the Activities of Collective Investment Schemes and Other Collective Investment Enterprises, and provided that :

  • the net value of the assets of each collective investment scheme is worth not less than BGN 5,000,000;
  • the collective investment scheme has received a license or authorization from the Financial Supervision Commission;
  • their investment strategy is mainly focused on investments in shares and/or bonds of Bulgarian legal entities

2. Procedure

The procedure is divided into five main steps.

2.1. Pre-approval procedure by the Bulgarian Investment Agency

Before the investment is completed a pre-approval procedure should be initiated before the Bulgarian Investment Agency. The pre-approval procedure includes provision and review of documents proving origin of the funds, clear criminal record of the applicant, strategy of the collective investment scheme to be used for the investment and others.

2.2. Completion of the investment

Once the Bulgarian Investment Agency approves the candidate and the collective investment scheme, the candidate should complete the investment and obtain document from the collective investment fund evidencing the exact amount of the bought shares.

2.3. Final approval by the Bulgarian Investment Agency

The final step before the residency application is provision of the documents evidencing the completed investment and receipt of final approval by the Bulgarian Investment Agency.

2.4. Visa D application

The final approval by the Bulgarian Investment Agency together with additional documents are provided to the Bulgarian Consulate at the country of origin of the applicant for a Visa D application. In case the applicant already has a prolonged residency in Bulgaria, this step could be avoided.

2.5. Application before the Migration directorate and registration in the Population registry in Bulgaria

Once Visa D has been issued the applicant should visit the Migration Directorate and apply for the permission and permanent residency ID. This step includes also registration in the Population registry. The ID is issued for a period of 5 years and should be renewed on a 5-year basis.

The investment should be maintained for the entire period of the permanent residency. Following 5 completed years of permanent residency the applicant can apply for Bulgarian citizenship.

For more information or legal advice and assistance, please use the contact form or reach out to us at pberg@berglaw.eu

 

 

 

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