Bulgaria Residence by Investment: Mutual Funds, ETFs and Alternative Investment Funds

Private Clients Insights, Citizenship by Investment

Bulgaria has positioned itself as a compelling destination for residence by investment (RBI) within the European Union. With full Schengen membership achieved on January 1, 2025, and eurozone accession on January 1, 2026, the country now offers investors a structured pathway to permanent EU residency combined with unrestricted visa-free mobility across 29 Schengen countries.

Unlike legacy golden passport schemes that award citizenship directly, Bulgaria’s current programme operates through a transparent framework. Investors obtain Permanent Residence (PR) status through investment in regulated Bulgarian funds, typically ~€512,000 minimum followed by eligibility for citizenship through naturalisation after five years of continuous residency. This structure ensures robust anti-money laundering compliance while delivering tangible mobility benefits within 6–8 months.

Why Bulgaria Residence by Investment Now?

Schengen Integration: Bulgaria’s completion of full Schengen membership eliminates all land border controls between Bulgaria and neighbouring countries. PR holders enjoy visa-free travel to 29 Schengen states without passport checks or visa applications, a material advantage over programmes offering limited mobility.

Eurozone Membership: Bulgaria’s adoption of the euro eliminates currency conversion costs and exchange rate exposure for transactions within the eurozone (20 of 27 EU Member States). 

Competitive Tax Environment: Bulgaria maintains the EU’s lowest corporate income tax rate at 10% (alongside a matching 10% personal income tax). Combined with full EU treaty access and single-market residency, this creates legitimate opportunities for tax-efficient structuring within OECD BEPS compliance frameworks.

Economic Momentum: Bulgaria achieved real GDP growth of 3.4% in Q2 2025, driven by robust private consumption and rising capital investment. The OECD and IMF project sustained growth near 3% through 2026. Unemployment sits at a record low of 3.4%, reflecting tight labour markets and rising real wages.

Residence by Investment Options in Bulgaria

Investors can select from multiple asset classes, each with distinct profiles. The majority of investor interest concentrates on mutual funds, ETFs, and AIFs, passive structures requiring no operational involvement. Bulgaria hosts more than 140 licensed funds, all regulated by the Financial Supervision Commission, but it should be noted that not all funds meet the Immigration criteria set by the Aliens in the Republic of Bulgaria Act.

The Application Process

Step 1: Pre-Clearance

Applicants submit documentation to the Bulgarian Investment Agency (BIA) for anti-money laundering review. Required: bank reference confirming source of funds, curriculum vitae, and criminal record certificate. Timeline: ~1-2 months.

Step 2: Fund Investment

Investor is onboarded by the respective Fund Manager and invests in the licensed or registered fund (mutual fund, ETF, AIF). Investors cannot use brokerage platforms such as Interactive Brokers and others and they need to directly open an account with the Fund Manager. The BIA issues an Investment Certificate confirming compliance. Timeline: 3-6 weeks.

Step 3: Type D Visa

Application submitted to a Bulgarian embassy or consulate in person. Even if applicants already have a Schengen visa or are originally from a visa-free country, they still need to apply . Timeline: ~35 working days

Step 4: Bulgaria Entry & PR Application

Following visa approval, the investor travels to Bulgaria, activates the visa, and applies for permanent residence with biometric registration. Timeline: ~2 months

Step 5: PR Card Issuance

The Ministry of Interior approves the PR application and applicants apply for a Schengen-compliant ID card valid for five years. Timeline: 3 – 30 days (depending on the service required)

Total process: 5–7 months from application start to PR card in hand.

Permanent Residence: What It Provides

A Bulgarian PR card grants:

• Visa-free travel throughout the 29-country Schengen Area without passport controls or border formalities
• EU residency status with the right to establish tax residency and access EU banking, investment, and professional frameworks
• Freedom of movement to other EU member states under EU residency rules
• Pathway to citizenship after maintaining PR for five continuous years
• Family inclusion (spouse and unmarried children under 18) at no additional investment cost

The PR requirement is straightforward: maintain the fund investment for five years and not be absent from Bulgaria or any other EU Member state for more than 12 consecutive months. After five years, investors can withdraw their investment and retain PR status indefinitely.

Citizenship by Naturalisation

After five years of continuous residency, investors become eligible to apply for Bulgarian citizenship. 

The process involves:

• Document assembly (birth certificate, marriage certificate, criminal records, proof of residence)
• Background screening by multiple agencies, including the State Agency for National Security
• Review by the Citizenship Council and interior ministry
• Final approval by presidential decree

Timeline: ~9-12 months (according to the legislation, but delays are possible). Upon approval, applicants receive a Bulgarian passport offering visa-free access to 170+ countries.

Regulatory Framework

All residence by investment applications undergo pre-clearance by the Bulgarian Investment Agency, a government body operating under the Ministry of Innovation and Growth. The BIA’s role is to verify that:

• Invested funds originate from legitimate sources (verified through banking records and asset tracing)
• Applicants are not subject to FATF sanctions, UN designations, or material criminal exposure
• Investments comply with programme requirements and fund licensing standards

This gatekeeping ensures the programme operates within international anti-money laundering standards and EU directives, preventing misuse by individuals involved in sanctions evasion, money laundering, or terrorism financing.

Key Considerations

Investment Risk: Fund investments carry standard securities market risks. Values fluctuate daily; past performance does not guarantee future results. However, professional fund managers regulated by Bulgaria’s Financial Supervision Commission conduct ongoing portfolio management within disclosed investment strategies.

Maintenance Obligations: PR holders must maintain the fund investment for five years and spend minimum 12 days annually within Bulgaria or the Schengen Area. Extended absences beyond 12 consecutive months may trigger PR revocation.

Currency and Stability: Bulgaria’s adoption of the euro eliminates currency risk for eurozone transactions but introduces exposure to euro-denominated assets. Investors should evaluate the eurozone’s economic direction as part of long-term residence planning.

Next Steps

Prospective applicants can directly contact NBLO’s Immigration Team via our Contact Form or email us at: cbi@newbalkanslawoffice.com. NBLO has extensive experience in residency and citizenship matters in Bulgaria. We will help applicants:

• Assess personal eligibility and funding structures
• Select appropriate fund investments aligned with risk tolerance and investment philosophy
• Prepare documentation for BIA pre-clearance
• Navigate consular and interior ministry procedures
• Plan post-residence compliance obligations

The Bulgarian Investment Agency and Bulgaria’s diplomatic missions are equipped to process complete applications efficiently.