How to Obtain Residency in Bulgaria: Your Guide to Investment and Entrepreneur Options 

Bulgaria offers a compelling residency option for non-EU citizens, combining affordability with strategic advantages within the European Union. Since joining the EU in 2007 and the Schengen Area in 2024, Bulgaria has become increasingly attractive for individuals seeking access to Europe’s vast economic and cultural opportunities.

Beyond travel privileges, Bulgarian residency opens doors to significant investment opportunities in real estate and business, providing an accessible pathway to legally reduce taxes and expand into EU markets. Residency in Bulgaria can also be a strategic step toward obtaining Bulgarian citizenship, which enhances your global mobility and strengthens your passport portfolio.

Eligibility for Bulgarian Residency

To be eligible for Bulgarian residency, foreign citizens must meet specific requirements and follow a well-defined process. The eligibility criteria for Bulgarian residency vary depending on the type of residence permit being applied for. Generally, applicants must demonstrate a legitimate reason for staying in Bulgaria, such as work, study, family ties, or investment.

Understanding these requirements is crucial for a successful application. Each pathway has its own set of criteria, and meeting these ensures that your application is processed smoothly and efficiently.

Benefits of Bulgarian Residency

Obtaining Bulgarian residency offers numerous advantages for non-EU citizens, making it an appealing option for those looking to live, work, and travel within Europe. Additionally, obtaining Bulgarian permanent residence enhances stability and long-term opportunities, providing rights akin to local citizens. Here are some of the main benefits of holding Bulgarian residency:

Travel Benefits within the EU and Schengen

With Bulgaria now part of the Schengen Area, Bulgarian residency provides the freedom to travel within all Schengen countries without the need for additional visas. This facilitates business travel, tourism, and family visits across Europe.

Tax Advantages and Business Opportunities

Bulgaria is known for its favorable tax environment, offering one of the lowest corporate and individual tax rates in the EU at just a flat rate of 10%. Bulgarian residents can leverage these low taxes to reduce their overall tax burden while operating businesses within the EU. 

For investors, Bulgaria also offers a relatively low cost of living and labor, making it a cost-effective base for establishing and growing a business. Non-EU residents can benefit from Bulgaria’s stable economy and supportive business environment.

Family Reunification Options

Bulgarian residency also supports family unity by allowing primary residency holders to bring their family members to Bulgaria. Spouses and dependent children under the age of 18 are eligible for family reunification visas, enabling them to live, study, and enjoy the benefits of Bulgarian residency. 

Residency Options for Non-EU Citizens

Bulgaria offers non-EU citizens a range of residency pathways through both business and investment options, catering to diverse entrepreneurial and investment goals. One such option is the Bulgarian temporary residence permit, which provides a pathway for foreign nationals to reside in Bulgaria on a short-term basis.

Business Pathways: Trade Representative Office (TRO) and Limited Liability Company (LLC)

For entrepreneurs, Bulgaria provides two main business residency options: setting up a Trade Representative Office (TRO) or establishing a Limited Liability Company (LLC).

• Trade Representative Office (TRO) Route: The TRO pathway is a streamlined option for foreign businesses aiming to establish a non-commercial presence in Bulgaria. A TRO represents the foreign company in Bulgaria without engaging in direct commercial activities, making it an ideal choice for smaller companies or those in the early stages of expansion.

Eligibility and Requirements for a TRO:

1. Existing Foreign Business: The TRO must represent a foreign company that has been operational for at least two years.

2. No Employment Requirement: Unlike the LLC pathway, the TRO does not require hiring Bulgarian nationals, making it appealing for businesses with minimal staffing needs.

3. Personnel Requirements: The person relocating to the representative office does not need to be an employee or the owner of the parent company. However, a single representative office can accommodate a maximum of three individuals.

Steps to Establish a TRO and Apply for Residency:

1. Grant Power of Attorney: Appoint an agent to manage the TRO setup and assist with residency application.

2. Register with the Bulgarian Chamber of Commerce and Industry (BCCI): Submit necessary documents to the BCCI to verify the legal status, incorporation, and intended activities of the foreign company.

3. Prepare Type D Visa Application Documents: With the TRO registered, gather required documents, including proof of financial means, health insurance, and a Bulgarian address.

4. Submit the Type D Visa Application: File the application at a Bulgarian embassy or consulate in the applicant’s home country.

5. Apply for Residency: After obtaining the Type D visa and arriving in Bulgaria, submit the residency application based on the TRO registration.

The TRO pathway provides a low-cost, low-commitment option for residency, allowing foreign business owners to establish an official EU presence without the need to employ local staff.

• Starting a Limited Liability Company (LLC): This option, known locally as an OOD, is ideal for those who want to actively conduct business in Bulgaria. An LLC provides a fully operational legal framework, allowing the owner to engage in commercial activities, generate revenue, and create employment opportunities. Bulgarian companies can employ holders of extended residence permits, giving them similar rights and obligations as Bulgarian citizens.

Requirements for Setting Up an LLC:

1. Legal Structure: The LLC must be established as a legal entity in Bulgaria, requiring minimal share capital (typically around EUR 1).

2. Employment Requirement: To qualify for residency through an LLC, the business must employ at least ten full-time Bulgarian citizens. This employment must be maintained throughout the residency period.

Key Steps to Establish an LLC and Apply for Residency:

1. Company Registration: Choose a unique company name, specify the business activity, and submit necessary documents to the Bulgarian Commercial Register, including information on shareholders, management, and the company’s Bulgarian address.

2. Open a Bank Account: Set up a bank account in the LLC’s name and deposit the initial share capital.

3. Hire Employees: Meet the employment requirement by hiring at least ten Bulgarian citizens, with employment contracts under Bulgarian labor law.

4. Apply for a Type D Visa: Once the LLC is established and employment criteria are met, submit a Type D visa application through a Bulgarian consulate.

5. Apply for Residency: After obtaining the Type D visa and entering Bulgaria, complete the residency application process, linking the residence permit to the LLC.

This pathway is suited for entrepreneurs seeking long-term business opportunities in Bulgaria, benefiting from Bulgaria’s low corporate taxes and the chance to contribute to local employment.

Investment-Based Residency Options

For individuals looking to gain Bulgarian residency through investment rather than business operations, Bulgaria provides several residency pathways based on financial contributions. These options allow investors to benefit from Bulgaria’s growing economy and gain access to the EU, with pathways ranging from real estate investment to significant capital investments that can lead directly to permanent residency.

Real Estate Investment

One of the most straightforward ways to gain Bulgarian residency is through real estate investment. By purchasing property, investors can establish a legal basis for a temporary residence permit, with relatively low barriers to entry. The Bulgarian temporary residence permit, which is valid for 6 to 12 months and can be renewed for up to 5 years, plays a crucial role in this pathway.

Requirements:

• Investors must make a minimum investment of €312,000 in Bulgarian real estate. This can include residential, commercial, or other types of properties.

Process for Acquiring Property

1. Identify and Purchase Property: Investors may purchase real estate directly or through a Bulgarian company. The investment must reach the minimum threshold of €312,000.

2. Apply for a Type D Visa: After purchasing the property, investors must apply for a Type D visa at a Bulgarian consulate in their home country. Required documents include proof of ownership, financial means, and health insurance.

3. Apply for Residency: Upon obtaining the Type D visa, investors enter Bulgaria to complete the temporary residence permit application process, granting them the right to live in Bulgaria and facilitating access to other EU member states.

This pathway is attractive to investors seeking residency in Bulgaria without active business operations, and it allows them to benefit from potential returns in Bulgaria’s real estate market.

Comparison with other Real Estate Residency Options in Europe

With a minimum investment of €312,000, Bulgaria offers one of the most affordable pathways to residency through real estate in Europe. This makes it highly accessible compared to Greece (€800,000) and Hungary (€500,000), where the investment thresholds are significantly higher.

Popular destinations like Spain, France, Portugal, and Italy do not offer dedicated residency pathways through real estate investment. Instead, residency in these countries often requires alternative investments, such as business creation or capital transfer, which can involve higher costs and more complex requirements.

Alternative Investment Pathways for Immediate Permanent Residence

For those interested in larger investments that have an impact on the local economy, Bulgaria offers two additional options that lead to permanent residency. These pathways are crucial for obtaining permanent residence through significant financial contributions.

1. Investment in Long-Term Assets and Employment:

• Requirements: An investment of €256,000 in long-term assets within a Bulgarian company, with the additional requirement of creating at least ten full-time jobs for Bulgarian citizens.

• Process: After the investment and hiring requirements are met, investors may apply for a Type D visa, followed by an immediate permanent residence permit upon arrival in Bulgaria. This pathway is ideal for investors who wish to make a moderate financial commitment while contributing to local job creation.

2. High-Capital Investment Option:

• Requirements: For investors seeking an expedited route to permanent residency, Bulgaria offers an option to invest at least €3 million in a Bulgarian company. This investment must be in a private company, where shares are not publicly traded on a regulated market.

• Process: With this significant investment, investors bypass temporary residency and qualify directly for permanent residency. After fulfilling the €3 million investment requirement, applicants can apply for a permanent residence permit through the Bulgarian Immigration Department.

These alternative pathways provide options for high-net-worth individuals who wish to establish residency in Bulgaria while making substantial economic contributions. The high-capital investment option, in particular, is a fast track to permanent residency, appealing to investors who prefer to avoid lengthy residency processes.

Application Process for the Type D Visa

Importance of the Type D Visa

For all residency options, the Type D visa is essential as it allows non-EU citizens to enter Bulgaria to complete the application for temporary or permanent residency. This visa, valid for up to six months, provides the necessary time for applicants to fulfill residency requirements in Bulgaria. The Type D visa is thus a foundational step, as Bulgarian residency permits cannot be issued without it.

Documents Required for the Type D Visa Application

To apply for the Type D visa, applicants must gather and submit a set of documents, typically including:

1. Passport: A valid passport with a copy of the main page and any previous Bulgarian, Schengen, or other visas.

2. Financial Proof: Documentation proving that the applicant has sufficient financial means to support themselves during their stay in Bulgaria, such as bank statements or income documentation.

3. Medical Insurance: A health insurance policy covering the full duration of the applicant’s stay, valid within the EU, with a minimum coverage of €30,000 to cover medical and repatriation costs.

4. Proof of Accommodation: Evidence of accommodation in Bulgaria, which can include a rental lease, property ownership documents, or a hotel reservation.

5. Additional Documentation: Depending on the residency pathway, applicants may need to provide additional documents, such as proof of business registration (for LLC and TRO applicants), property purchase documents (for real estate investors), or investment certificates.

Processing Timelines and Submission

• Submission: Type D visa applications must be submitted in person at a Bulgarian embassy or consulate in the applicant’s home country or current country of residence. The applicant will need to schedule an appointment and hand-deliver all required documents.

• Processing Time: Processing typically takes up to 30 business days from the date of submission, though this may vary depending on the consulate’s workload and specific circumstances. It is advisable to apply well in advance of any planned travel to Bulgaria.

Once approved, the Type D visa allows for a six-month stay in Bulgaria, during which the applicant must complete the necessary steps for a temporary or permanent residence permit.

Transition to Permanent Residency

For those who hold Bulgarian temporary residency, obtaining permanent residency is the next significant step. Bulgarian permanent residency offers enhanced benefits, including greater stability and an eventual path to citizenship, which grants full EU rights.

Requirements for Converting Temporary Residency to Permanent Residency

To qualify for permanent residency in Bulgaria, temporary residents must:

1. Maintain Residency for Five Consecutive Years: The applicant must have held a valid temporary residence permit for at least five years without significant gaps. To satisfy this requirement, temporary residents are generally expected to live in Bulgaria for a minimum of 30 months over this five-year period.
2. Financial Stability and Health Insurance: Applicants should demonstrate ongoing financial stability and proof of health insurance coverage for themselves and any dependents.

Advantages of Holding Bulgarian Permanent Residency

Permanent residency in Bulgaria provides a range of benefits:

• Unrestricted Stay: Permanent residents can live in Bulgaria indefinitely without the need to renew their residency annually. They only need to renew the expired plastic card.
• EU Mobility: Bulgarian permanent residency allows easier access to the EU, granting visa-free or simplified entry into countries within the Schengen Area.
• Family Reunification: Permanent residents can sponsor eligible family members, such as a spouse and children under 21, for Bulgarian residency.
• Pathway to Citizenship: After holding permanent residency for five years, residents become eligible to apply for Bulgarian citizenship by naturalization, which offers full rights as an EU citizen.

Steps to Bulgarian Citizenship

1. Hold Permanent Residency for Five Years: Permanent residents must maintain this status for at least five consecutive years to qualify for citizenship.
2. Language and Integration Requirements: Although Bulgarian citizenship requirements are less stringent than in some EU countries, basic language proficiency and integration into Bulgarian society may be beneficial.
3. Submit the Citizenship Application: Once eligible, applicants can submit a citizenship application, which is reviewed by the Ministry of Justice. Upon approval, the applicant will gain Bulgarian citizenship, granting full EU mobility, voting rights, and access to additional benefits as an EU citizen.

Transitioning from temporary residency to permanent residency—and ultimately to citizenship—provides a secure, progressive pathway for individuals seeking long-term residency or full citizenship in Bulgaria.
 

Obtaining a Bulgarian residence permit can be a complex and time-consuming process, but it can also provide numerous benefits, such as access to the European Union, a high standard of living, and a favorable business environment. To increase the chances of a successful application, it is essential to understand the eligibility criteria and requirements for each type of residence permit. 

For more information on investment programs in other countries, we invite you to explore the comprehensive resources available on our website.