If you’re looking to get Bulgaria residency through property investment, this guide will help you understand the process. Whether you’re from the EU or outside, this guide will show you the steps you need to take to invest in Bulgarian property and gain residency.
Foreign Ownership of Property in Bulgaria: Legal Framework
Can Foreigners Buy Property in Bulgaria?
Yes, foreigners can buy property in Bulgaria, but there are some rules to follow based on your nationality.
Properties with Land: If you’re not from the EU or EEA, you cannot own land directly. Instead, you need to set up a Bulgarian company to own the land. For more information on Bulgarian company incorporation, visit our company incorporation guide. If you’re from the EU or EEA, you can buy land and property in your name without any issues.
Apartments: Foreigners can buy apartments and condos easily because they don’t include land ownership.
Does Buying Property Lead to Residency?
Buying property alone won’t automatically grant you residency. However, it can help you get an extended residence permit if you meet certain requirements.
- Minimum Investment: You need to invest at least BGN 600,000 (around EUR 300,000) in Bulgarian real estate. You can achieve this by buying multiple properties if you prefer.
- Type D Visa: Before applying for a residence permit, non-EU/EEA nationals must first obtain a Type D visa, which is a long-stay visa.
How to Get an Extended Residence Permit
Once you’ve invested the required amount, here’s what you need to do to get an extended residence permit:
- Transfer Funds: Ensure that the full purchase price is transferred to the seller’s Bulgarian bank account. This payment must be complete and unconditional.
- Submit Documents: Submit the title deed, proof of investment, and other required documents to the Bulgarian Ministry of the Interior.
- Receive the Permit: If your paperwork is in order, you’ll receive a one-year extended residence permit. This can be renewed annually.
Pathway to Permanent Residency and Citizenship
Permanent Residency: After holding an extended residence permit for five years, you can apply for permanent residency. With this, you no longer need to renew your permit annually.
Citizenship: After holding permanent residency for another five years, you can apply for Bulgarian citizenship.
What Documents Do You Need?
To apply for an extended residence permit based on property investment, you need:
- Permanent Residency: After holding an extended residence permit for five years, you can apply for permanent residency. With this, you no longer need to renew your permit annually.
- Citizenship: After holding permanent residency for another five years, you can apply for Bulgarian citizenship.
Additional Documents
- A valid Type D visa.
- Health insurance for your stay in Bulgaria.
- A clean criminal record certificate from your home country.
Investment Tips for Investors
Best Investment Strategies
To meet the BGN 600,000 investment requirement, you can buy multiple properties or just one, depending on your needs and goals. You could invest in residential properties in popular cities like Sofia or Plovdiv, or go for commercial properties like retail spaces or offices in growing areas. This way, you have the flexibility to either spread out your income sources or focus on one strong asset, both of which can help increase property value and rental income.
Tax Considerations
As a property owner in Bulgaria, you’ll need to pay taxes. This includes property taxes, taxes on rental income, and capital gains tax if you sell the property. It’s a good idea to talk to a legal advisor to make sure you’re following the rules and paying the right amount of tax.
Conclusion
Buying property in Bulgaria is a great opportunity, especially if you want to gain residency. But there are strict rules to follow, especially for non-EU/EEA nationals. By investing at least BGN 600,000 and following the correct steps, you can get an extended residence permit and even permanent residency or citizenship after five years. Bulgaria’s property market and residency options make it a great choice for international investors.
FAQ: Frequently Asked Questions
Can I rent out my property?
Yes, you can rent out your property, but you’ll need to pay taxes on the rental income.
Can I buy land in Bulgaria if I’m not from the EU/EEA?
No, but you can set up a Bulgarian company to own the land.
Does buying property automatically give me residency?
No, you need to invest at least BGN 600,000 and apply for a Type D visa and residence permit.
What is a Type D visa?
It’s a long-stay visa required for non-EU/EEA nationals who want to apply for residency in Bulgaria.
Can I get permanent residency after buying property?
Yes, after holding an extended residence permit for five years, you can apply for permanent residency.
What’s the minimum investment for residency?
You need to invest at least BGN 600,000 in real estate.
Are there tax responsibilities for foreign property owners?
Yes, you’ll need to pay property taxes, rental income tax, and possibly capital gains tax.
Can I get Bulgarian citizenship through property investment?
Yes, after five years of permanent residency, you can apply for citizenship.
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