Bulgaria: Lowered threshold for permanent residency in Bulgaria for foreign investors

International Tax Review is part of Legal Benchmarking Limited, 1-2 Paris Garden, London, SE1 8ND

Copyright © Legal Benchmarking Limited and its affiliated companies 2026

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

Bulgaria: Lowered threshold for permanent residency in Bulgaria for foreign investors

koleva.jpg

Rossitza Koleva

After the Bulgarian Parliament amended, at a second reading on February 13 2013, texts of the Law on Investment Act in the Republic of Bulgaria, foreign investors in the country will receive the statute of permanent residents at an amended threshold. This amendment altered some of the permanent residency criteria after President Plevneliev vetoed them in December 2012. Now for the sake of comparing the status before and after the President's veto – according to the law, initially adopted by the Bulgarian Parliament last November, Bulgarian citizenship could have been acquired by any foreign investor willing to invest BGN1 million ($665,000) into the economy of the country, particularly in the capital of a company with a priority investment project.

What the Parliament did on February 13 2013 was to change these permanent residency requirements by decreasing significantly the required investment for several categories of applicants.

According to the new regulations, permanent residency will be granted to anyone who invests BGN600,000 in Bulgarian property, BGN500,000 in a Bulgarian legal entity and by opening not less than 10 working place or BGN250,000 in a firm with not less than five jobs in an economically underdeveloped region. A further clarification from the Law on Investment Act, article 25, defines that permanent residency is given to foreigners that have invested in the country by depositing in the capital of a Bulgarian legal entity not less than BGN500,000, where the foreigner is a partner or shareholder with registered shares not less than 50% of the company's capital and as a result of which new long term and non-material assets have been acquired for not less than BGN500,000 and at least 10 new jobs for Bulgarian citizens are opened and kept for the entire period of the foreigner's stay, certified by the Ministry of Economy, Energy and Tourism.

In addition, enterprises that have opened new jobs will receive back the insurances for the newly hired employees for a two-year period, under the condition that the investment and the labor engagement are maintained by the employers for not less than three years for small and medium enterprises and not less than five years for large size enterprises. The newly opened jobs will be a criterion for the issuing of the specific certificate for investment category. This will encourage investors with projects in the services field where the size of the investment is not large but the generated hires are significant, for example – the outsourcing projects which lately, is a sector that attracts more and more investments in Bulgaria.

Rossitza Koleva (rossitza.koleva@eurofast.eu)

Eurofast Global, Sofia Office, Bulgaria

Tel: +359 2 988 69 78

Website: www.eurofast.eu

more across site & shared bottom lb ros

More from across our site

Exclusive ITR data emphasises that DEI does not affect in-house buying decisions – and it’s nothing to do with the US president
The firms made senior hires in Los Angeles and Cleveland respectively; in other news, South Korea reported an 11% rise in tax income, fuelled by a corporation tax boom
The ‘deeply flawed’ report is attempting to derail UN tax convention debates, the Tax Justice Network’s CEO said
Salim Rahim, a TP specialist, had been a partner at Baker McKenzie since 2010
While the manual should be consulted for any questions around MAPs, the OECD’s Sriram Govind also emphasised that the guidance is ‘not a political commitment’
The landmark Indian Supreme Court judgment redefines GAAR, JAAR and treaty safeguards, rejects protections for indirect transfers and tightens conditions for Mauritius‑based investors claiming DTAA relief
The expansion introduces ‘business-level digital capabilities’ for tax professionals, the US tax agency said
As tax teams face pressure from complex rules and manual processes, adopting clear ownership, clean data and adaptable technology is essential, writes Russell Gammon, chief innovation officer at Tax Systems
Partners want to join Ryan because it’s a disruptor firm, truly global and less bureaucratic, Tom Shave told ITR
If Trump continues to poke the world’s ‘middle powers’ with a stick, he shouldn’t be surprised when they retaliate
Gift this article