How to obtain a Bulgarian residence permit through the purchase of real estate

Foreigners can obtain a residence permit in Bulgaria by purchasing real estate in two ways. The first way is to buy real estate for at least EUR 305,900. The second is to own 50% or more of the shares of a Bulgarian company, investing in its capital from EUR 305,900, as a result of which the company acquires housing or other premises of the same value. The procedure for obtaining a residence permit in Bulgaria through the purchase of real estate is as follows: a foreigner must choose a suitable property, then sign a purchase agreement and formalize the ownership of the property, after which he can apply to the Migration Department of the Ministry of Interior and obtain the status of a temporary resident.

Among the advantages of this form of obtaining a residence permit is the possibility of buying a property with borrowed money, as well as renting it out profitably due to Bulgaria’s popularity among tourists. In addition, prices here are low compared to most EU countries. Immediately after the purchase of real estate you cannot apply for a passport of the country, but foreigners who have acquired a residence permit on a similar basis have the right to become citizens of the European Union in the naturalization process. See further in the article – details about the procedure of registration of residence permit and citizenship of Bulgaria after obtaining residence when buying real estate, as well as the necessary documents for this purpose.

Advantages of the procedure for obtaining Bulgarian citizenship

Ownership of an object of a certain value gives the right to obtain a residence permit in Bulgaria for staying in the country with further extension of the status and registration of EU citizenship in the future.

Advantages of obtaining residency status based on property ownership:

• Relatively low prices by European standards – 1 m2 costs on average EUR 1 000-1 540, but you can find offers for 500-600;
• Family members of a foreigner have the possibility to obtain a residence permit under the reunification program;
• By renting out a residential property you can make a profit of 4-6% per year, especially if it is located in Plovdiv, Sofia or Varna;
• The property can be inherited or sold over time at a higher value.

Who can obtain a residence permit through the purchase of real estate

The Bulgarian legislation, i.e. the normative act entitled “On Foreigners”, allows the granting of a temporary residence permit to third-country nationals on condition of the purchase of real estate. This right is granted to all persons who have purchased one or more objects for a total amount of EUR 305,900 or more. A person who owns 50% or more of the shares of a Bulgarian company, invested in its capital from EUR 305,900 and then the entity bought property for this amount, also has the possibility to acquire residence.

An applicant for a real estate residence permit must:

• Obtain a type D entry permit to stay in the country while the application for residence is being processed and pending the result of the case;
• Pay the state tax;
• Obtain health insurance valid in Bulgaria;
• Have a stable, regular and verifiable source of income that provides a profit of at least one month’s minimum wage, pension or scholarship in the Republic of Bulgaria;
• Submit a certificate of no criminal record from the country whose citizen the applicant is at present;
• Submit a document confirming the ownership of the property.

At the time of applying for the residence permit, the individual or a legal entity transfers the funds to a Bulgarian bank in the full amount of the value of the property. If the property was purchased with borrowed money, the amount of the repaid debt must be at least 75%. If all conditions are met, the foreigner is allowed to live on the territory of Bulgaria with a residence permit for one year with the possibility of renewal of the status.

What kind of real estate do you have to buy in Bulgaria to get a residence permit?

Local legislation does not specify the type of property – it can be residential or commercial. If there are several properties, it does not matter whether they are located in the same or in different settlements in Bulgaria.

Individuals may purchase land, including for agricultural purposes, but only if the country of which the purchaser is a citizen has signed and ratified an agreement with Bulgaria in accordance with Article 22 of the Bulgarian Constitution. Legal entities registered in the Republic of Bulgaria or in another EU country have the right to buy any land, including land for construction or agricultural activities.

How to buy real estate and obtain a residence permit in Bulgaria

1. Choosing the investment object. If an agency is involved in the selection of the object, the buyer and seller agree on the amount of the commission with the intermediary: it is usually a certain percentage of the transaction amount. Independent search for offers on various Internet resources allows you to avoid additional costs, but in this case there is a high risk of interaction with fraudsters. A potential buyer should carefully study the documents on the title to the property, as well as the records of encumbrances in the certificate from the property register. A foreigner should learn about the construction of the object in order to analyze its technical condition. Based on the aforementioned information, it will be possible to either find and correct errors or make sure that there are none.
2. Purchasing real estate. First of all, the parties sign a preliminary written agreement. The document specifies the conditions of the object, the costs, the terms of the finalization of the procedure before the notary. At the conclusion of the preliminary agreement, the buyer pays the seller a part of the price of the property – usually 10%. To sign the main contract, the parties go to the notary in the area of the settlement where the property is located. The lawyer draws up a deed and the parties sign it. Certified copies of the deed are given to the buyer and the seller. Once the transaction is legal, the property is registered in the land registry and the buyer is protected from possible claims by third parties. The new owner of the property must file a tax return within two months of acquiring ownership.
3. Obtaining a type D visa at the Embassy of the Republic of Bulgaria. This document is necessary because a residence permit can only be obtained with a long-stay visa. The application is processed in approximately 35 days. As long as the permit is valid (up to six months), the foreigner has the right to enter the country an unlimited number of times. Entry into the country is possible only through border checkpoints designated by authorized bodies. The foreigner is obliged to carry the necessary documents, as well as sufficient funds to stay in Bulgaria for the planned period. If necessary, the authorized representatives may take biometric data in order to verify the information on the identity.
4. Filing of an application for temporary resident status. The documents are accepted by the authorized office of the Ministry of Interior (Directorate “Migration”) and its regional offices, which can be found in the regional centers of Bulgaria. The applicant for a residence permit should apply in person for a long-term residence permit no later than 14 days before the expiry of the validity of the visa. The decision to issue a residence permit is made by the head of the main office or the director of the regional department.
5. Obtaining a Bulgarian residence permit. The applicant will be notified in writing of the results of the processing of his/her application. If the decision of the authorities is positive, the foreigner will also be informed how and when he or she can obtain a temporary residence card.

Documents required

To buy an apartment in Bulgaria for residence permit or other real estate, a foreigner only needs to provide an ID. In order to apply for a residence permit for real estate, you need:

• Copies of the pages of the national passport with personal data, photo, entry mark to Bulgaria, the document must be valid at least 3 months after the application for residence permit;
• Document on payment of the state tax;
• Proof of the residence address;
• Health insurance policy;
• Document certifying permanent, stable income in the amount of the minimum wage, pension or scholarship, sufficient to meet the needs without applying to the Bulgarian state authorities for social assistance;
• A certificate of no criminal record issued by the competent authority of the applicants’ country of origin;
• A certificate of ownership of real estate in the Republic of Bulgaria
• A document from the local bank confirming that the person has transferred the required amount for the purchase of the object or as an investment in the capital of the company, or a certificate that the outstanding part of the debt does not exceed one quarter of the total amount (if the transactions were made with borrowed funds);
• A document confirming that the company has acquired real estate of the required value (if applicable).

Registration of Bulgarian citizenship requires submission of a copy of the birth certificate, a certificate of no criminal record from the country of permanent residence, a document confirming that no criminal proceedings have been initiated by the local prosecutor’s office. It is also necessary to submit a certificate of income for the previous year, a certificate of knowledge of the Bulgarian language and a certificate from the medical advisory board of the medical institution in the place of residence.

Obtaining residence permits for family members

Bulgarian legislation does not allow a foreigner who intends to acquire a residence permit after purchasing real estate and his or her family to obtain a residence permit at the same time. The person must first obtain a separate residence permit valid for at least one year and then apply for family reunification.

Family members applying for a residence permit are considered to be the spouse and their unmarried children, including adopted children, who are under 18 years of age. It is also allowed to invite a child of the foreigner or his/her spouse from a previous relationship, including adopted, who is unmarried, under the age of 18 and dependent on the mother/father. The main condition in the latter case is that the host party has parental rights.

The reunification procedure implies that the immigrant applies to the main or regional office of the Migration Service with a prepared dossier. It is obligatory to provide proof of accommodation and means of support for relatives. The period of consideration of the application does not exceed one month. The data is sent to the Bulgarian Ministry of Foreign Affairs, which notifies the consulate or embassy of the Republic of Bulgaria in the country of residence of the foreigner’s family members of its positive decision. On this basis the relatives of the immigrant can apply for a visa within 6 months. After arrival in Bulgaria, not later than 14 days before the expiry date of the entry permit, the applicant submits the documents for the residence permit to the Main Directorate of the Migration Service or to the regional center.

Duration and costs of obtaining a Bulgarian residence permit

The package of documents is examined by the authorized body within 14 days from the date of its submission. If the information provided is insufficient, the Directorate of Migration will notify the applicant by letter that he/she must submit additional information within two weeks from the date of the notice, after which the review of the application will be extended by one month. If the applicant ignores the request without valid reasons and does not provide the missing data in time, the authorized body will stop processing the application. In order to obtain a residence permit in 2023, a mandatory service fee of approximately EUR 5 must be paid. The fee depends on the duration of the requested stay: for 6 months – approximately EUR 102, for 12 months – EUR 255.

Renewal of the residence permit and registration of Bulgarian citizenship

An immigrant can extend the status as long as he or she (or the company in whose capital the relevant investments were made) owns real estate. The reason for refusal to extend the residence permit may be that the permit was obtained fraudulently or that documents containing false information were submitted.

The main condition for obtaining a residence permit for a foreigner is to reside in the Republic for at least 5 years. Property owners may apply for Bulgarian citizenship 5 years after acquiring permanent residence. An application for a Bulgarian passport may be rejected if the person is a threat to national security.

Bulgarian real estate market

The main advantage of the Bulgarian real estate market is the low cost of the objects, if compared to most other European countries. For those who plan to acquire the Bulgarian residence permit after the purchase of a property, it means that for the amount of the investment threshold can be found a more favorable option in terms of area, condition, location, infrastructure, prospects for repayment and other various criteria.

Before buying real estate for further obtaining a residence permit, it is necessary to determine its purpose and location. For the purchase of commercial space, one should choose Sofia – an important center of business life. The cities of Plovdiv and Stara Zagora, which are transport hubs and where a large number of businesses are concentrated, are also suitable for the purchase of real estate for this purpose. In the region of Burgas there are enough favorable offers for the sale of land, especially for construction. If you want to buy real estate for permanent residence, you should choose Burgas, which is considered by Bulgarians and tourists as the most optimal place to live, relax and build a career. The return on investment is highest in Sunny Beach – between Varna and Burgas.

The list of major cities in Bulgaria and the approximate cost of living by location from the center is shown in the table below.

Investing in Bulgarian real estate: legal assistance

Independent participation in various legal proceedings is very risky and may involve a certain amount of difficulties due to the lack of experience and insufficient knowledge of the foreigner. For example, it is possible to incorrectly prepare documents, which will lead to additional time and effort. Seeking legal assistance will help to avoid possible subtleties. Lawyers know the legislation in detail, analyze the percentages of refusal to obtain this or that document or status, consult in detail on the problems that have arisen. The involvement of specialists in any process can significantly accelerate and simplify the process.