BULGARIAN RESIDENCE WITH THE PURCHASE OF A PROPERTY FOR THE PRICE OF EUR 300,000
May 18, 2022
The purchase of immovable property in Bulgaria worth over 300,000 Euros is a quick way for a alien to obtain the right to reside in the country.
Investing in ownership of an apartment or a building can be made both by an individual and by a legal entity in which the alien is a shareholder.
The main benefits of the residence procedure through the purchase of immovable property are:
– Low risk of investing in immovable property, unlike, for example, investing in financial instruments for the purpose of residence in the Republic of Bulgaria,
– Relatively simplified procedure, in terms of required documents, for obtaining the right of residence and its subsequent extension,
– Opportunity for the alien’s family members to also obtain a residence permit through the family reunification procedure, and
– The long-term residence permit based on investment in immovable property after 5 years of residence in the country allows the alien to obtain a permanent residence permit and gain access to the Bulgarian labour market.
The procedure for obtaining residence through investment in immovable property is regulated by the Law on Aliens in the Republic of Bulgaria and the regulations for its implementation. The requirements are as follows:
1. The alien should have invested an amount of at least BGN 600,000 in the acquisition of ownership of immovable property (or several immovable properties) within Bulgaria. It is important to note that the option of obtaining a residence permit cannot be applied to properties already purchased. At the start of the procedure, the alien must produce a certificate from a Bulgarian licensed credit institution for the receipt of an amount of at least BGN 600,000 for the acquisition of property rights. Acquisition can be either in the form of sales and purchase or through other types of transactions resulting in the transfer of rights for a consideration (e.g., exchange).
2. If the alien is using borrowed assets for the property purchase, they should not exceed ¼ (a quarter) of the purchase price. If the declaration of origin indicates a “Loan”, then the applicant must also produce a credit institution certificate for an outstanding part of the loan not exceeding 25 percent.
3. If the alien is not buying the property directly as an individual but through a company in which they have interest, then they should have invested an amount of at least BGN 600,000 in the capital of a business and should hold more than 50 percent of the said business.
4. At the time of applying for a residence permit, the alien must have already paid the full sale price to the seller via bank transfer, and in case of borrowed assets the amount of the outstanding part of the loan should not exceed 25 percent.
5. The sale price should be transferred to the seller’s bank account which must be opened in a Bulgarian credit institution. In other words, the sale cannot take place if subject to a suspensive condition concerning the payment of the sale price of at least EUR 300,000.
The Regulations for the Implementation of the Law on Aliens in the Republic of Bulgaria introduce few additional requirements. Some of them are mentioned below. The delegated legislation adds to the law by stating that if the buyer is a company, to issue a residence permit to the alien-partner, the following documents should be produced:
– Statement for the company’s cost of acquisition of immovable property purchased after the date of payment of the respective amount in the company capital,
– Sales and purchase agreements (proofs of payment),
– A copy of the inventory book or depreciation plan showing the accrual of tangible fixed assets, or other document certifying the value and type of acquired new immovable property after the investment.
The facts entered in the company’s lot in the Commercial Register shall be officially verified by the services for administrative control of aliens in the Republic of Bulgaria.
In addition to the documents related to the investment made through the purchase of immovable property, the alien shall also submit the standard package of documents required for the issuance of a residence permit.
Initially, in case of approval, the bodies of the Bulgarian Ministry of Interior shall grant a long-term residence permit to the alien concerned. This type of card is issued for a maximum period of one year and should be renewed every year.
After a period of 5 years, if the residence in the Republic of Bulgaria has continued without interruptions beyond the permitted residence term, then the alien may apply for and obtain a permanent residence permit. This type of document, unlike the former one, does not require annual renewal, except when it expires.
If you are interested in the above procedure for residence in Bulgaria through purchasing a property, send us an e-mail to the addresses listed in the „Contact Us” section.
Yosifova , Ivanov and Petrov Legal Services may also assist you in the following:
– Finding a proper real estate within Bulgaria complying with the desires and abilities of the client,
– Opening/using a special bank account to be used to transfer the sale price,
– Holding negotiations until execution of the transaction in the form of a title deed,
– Providing a complete set of services relating to the sales and purchase transaction and obtaining the residence permit thereafter.
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