BULGARIAN INVESTMENT IMMIGRATION PROGRAM
BULGARIAN INVESTMENT IMMIGRATION PROGRAM
WHO? Visa Free Europe (Bulgaria).
We, the Visa Free Europe team – a Bulgarian consultancy company, are a group of professionals providing a full portfolio of investment immigration and asset structuring and management services to high-net-worth individuals and their families. We’ve devoted ourselves to exercise the best expertise, knowledge, skills, and professional manners in our work. Our company has adopted the highest professional standards and practices in the industry to provide the clients with the required high-end investment and immigration services.
WHAT? Investment immigration.
The investment immigration is a worldwide industry which started from almost 40 years ago and wildly developing in the last decade. It provides people with options for free movement and settlement in connection with investment-based residence and/or citizenship rights.
In these economically, socially, and politically turbulent times people seek security for themselves and their families to achieve a higher quality of life and access better education, healthcare, visa-free travel, settlement. Last but not least the economic prosperity in view of investment establishment is a turning point for one to choose a certain destination for the center of his/her vital interest. Defining individual investors as the seeking factor, on the other hand as proposing factor stay the states attracting foreign direct investments (FDI) towards their economies. At this point, the investment immigration is the particular instrument providing access to all the benefits each party seeks. Most importantly it provides the direct beneficiaries – investors and their families, with worldwide personal and economic freedom.
Currently more than half of the countries worldwide (approx. 105[i]) provide and utilize investment based legal instruments (programs or direct legal options) against residence and/or citizenship. 23 are member states of the European Union (EU).
The latest Kälin and Kochenov’s Quality of Nationality Index (QNI[ii]) puts all EU member states in the top 30 of the most desired and the highest-ranked citizenships in the world. Thus, investment immigration programs provide foreign individuals with access to these countries and the civil and economic rights associated with their residence and citizenship. Bulgaria, Cyprus, Estonia, Ireland, Italy, Latvia, Malta, and Portugal operate the EU investment programs which are most accessible in terms of formalities and investment amounts and at the same time provide the most rights.
The Republic of Bulgaria is one of the innovators in investment immigration providing direct legal options for investment-based permanent residence for more than 21 years and citizenship-by-investment options since 2013.
We facilitate to the utmost the procedures of our clients for implementation of the Program.
Stages:
1. Making your investment – various options for remote establishment are available, either personally by the investor or through a proxy. Trip to the state is optional;
2. Issue of visa “D” – Bulgarian embassies provide full-scale support for legalization and/or translation of necessary documents;
3. Application for permanent residency – obligatory trip to Bulgaria for submitting of required documents;
4. Issuing of residency card – optional if no trips to Bulgaria are planned;
5. Applying for citizenship and receiving citizenship certificate – a trip to the state is optional as the procedure can be carried out through a Bulgarian embassy.
The total term for receiving permanent residence and PR card is approx. 5 months (with 2 trips required).
Citizenship:
As regards citizenship, two options are available – standard and fast-track. The standard one requires € 512 000 and allows applying for citizenship 5 years after receiving PR. Under the fast-track option the investment must be doubled with additional € 512 000. The waiting period is reduced to just 1 year after receiving PR. Citizenship request consideration term is reduced with 2/3rds to just 6 months.
In both cases investors are freed from the following requirements:
- physical residency;
- current citizenship relinquishing;
- language proficiency;
- job and/or income in the country.
Investments maintenance:
Either for 2 years after receiving citizenship under the fast-track or upon granting of citizenship in case of standard procedure.
WHY? Advantages and strengths of the BIIP.
The BIIP features advantages which no other program in EU cumulatively has, such as:
- Direct permanent residency status /PRP/ (time-unlimited permit granted - no residence visas, no renewable permit[iv]);
- No donations required;
- Lowest state fees and taxes in the EU;
- Real investment exit strategy (profitable liquidation);
- Liquid investments and business projects allowed;
- Standard and fast-track citizenship (in 18 months) options available;
- Lowest minimum investments required - € 512 000 for PRP, € 1 024 000 for fast-track citizenship;
- Remote investment establishment;
Taking into consideration the above benefits a reasoned conclusion can be made that the BIIP is one of the most advantageous of all investment programs providing easy access to one of the majorly beneficial citizenships in the world.
As regards the Program’s economic aspects several key points should be noted in detail.
In the first place, unlike Malta, Cyprus, or the Caribbean states, there are no requirements for donations to the state or permanent maintenance of investments. Upon liquidation, the investor receives the initial deposited amount under the applicable terms and conditions.
In the latest years the real estate markets of Cyprus, Malta (Silema, St. Julians) and Portugal (Lisbon, Porto), report major fluctuations, in terms of rise in property transactions and evaluations.
According to the 2019 Annual report on Malta’s program[v], the aver. purchase price per property is 230% higher than the min. investment amount required (€ 808 658 vs. € 350 000) and the aver. rental price is 20% higher (€ 19 150 vs. € 16 000).
Due to the rising investors’ interest in real estate located in specific areas, Portugal has taken legislative steps to exclude the regions of Lisbon and Porto from the eligible areas for real estate investment under the golden visa program.
In the latest years, Cyprus reports a significant rise in the number of property transactions (+43% for ’15-’16)[vi]. In the last two years there is also a rise in the permitted land development area of 51% together with an increase of issued permits. Taking into consideration the high price of min. real estate investment in Cyprus (€ 2 000 000), the violent development of the market for the last years, and the absence of price regulating factors, the bubble burst is inevitable.
On the other hand, the BIIP provides the investors with a real exit strategy and fair liquidation evaluation. This end value (e.g. of financial instruments) depends on the conditions of a market (regulated stock exchange) which is not and cannot be distorted. The Bulgarian program list different investment options like shares of public companies, government bonds, bank deposits, or business project in various economic sectors. Liquidating an investment depends either on pre-set conditions (GB or deposit interests) or objective market conditions.
Compared to the other EU member states citizenship programs, i.e. Cyprus and Malta, the BIIP sets the lowest investment thresholds. Malta requires € 1 150 000 investment (of which 3/4ers are donations). At the same time in Cyprus investors are required to donate € 150 000 to special purpose state funds, invest € 500 000 in residential property which has to be maintained indefinitely, additionally invest min. € 2 000 000 in real estate and/or local business and/or bonds. Meanwhile under the BIIP, the 5-year citizenship procedure requires only an initial investment of € 512 000, while the fast-track procedure allows applying for citizenship 1 year after receiving permanent residence and upon doubling of the initial investment.
Even despite Cyprus and Malta’s lower investment requirements for residence only, do not provide better options than the BIIP. The € 200 000 Malta RBI does not allow investors to apply for citizenship, and Cyprus € 300 000 RBI allows application for citizenship but after whole 7 years.
INVESTMENT IMMIGRATION DURING AND AFTER THE COVID-19 CRISIS.
The current worldwide crisis of epidemical essence, has shown us the real value and implementation of the investment migration. Although the migration flows have been strictly restricted in the current weeks, passport and residence permit holders have been allowed access to the particular states and the related social and economic benefits.
In the aftermath of the COVID-19 crisis, most EU member states take anti-crisis measures in regard to the investment programs they operate.
- Malta redirects 80% of the income from the Program to the state’s Consolidated fund thus being able to spend 4/5ths of its MIIP-derived income the moment it arrives, while only 1/5th will go to the National Development and Social funds (which has savings purpose);
- Cyprus takes measures, incl. legislative, to accelerate the investments pertaining to CIP applications currently on hold for regulatory reasons. Applications under the program which are put on hold for 2021 due to the Program’s cap shall be considered now;
- Portugal stops the initiative for restricting eligible areas for real estate investments aimed to exclude the regions of Lisbon and Porto;
- Ireland has put down all time restrictions for accepting application under the investment program;
- Greece allows residence permits to be served through registered mail as well as investors to apply by proxy;
Last but not least, the Cypriot and Maltese governments officially stated their positions to not phase out their citizenship-by-investment programs and on the contrary to continue operating them, noting their key importance for the countries’ economic recovery from the current crisis. These statements are answers of the two concerned countries to a letter of the European Commission asking for a phase-out plan regarding the investment programs.
Where is Bulgaria?
At the end of March, a group of MPs introduced a draft of a legal bill for amendments in the relevant residence and citizenship legal acts. According to proposed amendments 3 (three) new investment options for residence and citizenship are introduced by:
- Expanding the scope of investments in financial instruments;
- Allowing investments in enterprises for collective investing (Collective Investment Schemes and Alternative Investment Funds);
- Opening of priority investment projects for investments under the Program.
The Program’s framework is optimized by removing not working or problematic options, strengthening the control over investors, introducing citizenship options by investments in business and new job places. These amendments are targeted in a long-term perspective, aiming to raise the BIIP competitiveness amidst other programs.
CONCLUSION.
The current times show us the necessity of reevaluating our priorities in terms of providence and foresight. The international feature of all aspects of our life determines that we should not restrict ourselves to a particular location if we aim to achieve a higher standard of life and prosperity for us and our close ones. Investment immigration is the right tool that can help you to obtain the economic and social goods and commodities necessary for the aforementioned purposes.
We tend to reasonably believe that Bulgaria and the Investment Immigration Program provide all that is required to achieve social and economic international freedom and prosperity in the most accessible way and without sacrificing any rights of yours.
[ii] The Kälin and Kochenov’s quality of nationality index has become a point of reference that explores the various factors that make one nationality (citizenship) better than another in terms of legal status, economic strength, human development, peace and stability, as well as visa-free travel and the ability to settle and work abroad without undertaking cumbersome formalities;
[iii] Conditional designation. The Republic of Bulgaria provides direct legal options for obtaining prolonged and permanent residence rights on the grounds of investments as well as citizenship by investments options. Formally separated legal construction as “program” is not available.
[iv] Permanent residency is subject to investment maintaining. Residence card is subject to reissuing if passport expires but this does not affect the granted PRP. Visa is required for first trip for applying for PRP.
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