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Private investors and HNWI

Private Investors and High-net worth individuals have a steadily growing interest in private investment sector in Bulgaria. Starting from Real estate investments for personal use or rental investment, their investment interests have widened to Commercial properties and running businesses (e.g., in the Hospitality and Balneology sector). The benefits are at hand – a safe legal and tax environment, a fixed currency exchange rate and a growing economy. Investor interest has started with European Union citizens and citizens of the former Eastern block countries and has now widened to a investors from every part of the world 

Your benefits

as a private investor in Bulgaria

Benefit 1

Option to receive a
"Golden passport"...

Benefit 2

Highest real estate investment returns ...

Benefit 3

Safe, transparent regulatory enviroment ...

Benefit 4

Currency hedge to the Euro due to fixed ...

Option to recieve a

"Golden passport"

As of 2020, Bulgaria is one of the only three EU countries offering an investor citizenship program. A Bulgarian citizenship via the program entitles foreign investors to free travel across the European Union

Requirements:
  • Invest at least 1 million BGN (approx. 511K EUR) in a local corporation (registered under Bulgarian trade law) that will invest in a "priority investment project", as defined by the Invest Bulgaria Agency of the Bulgarian National Government

OR

  • Invest at least 2 million BGN (approx. 1,02 million EUR) in Bulgaria AND have a permanent residency in Bulgaria for at least one year

Highest real estate investment returns

compared to Western and Central Europe

Bulgaria ranks highest with Greece amongst European countries on capital city prime real estate yield

Safe, transparent regulatory Environment as part of the EU

Bulgaria ranks 61st (2020) in the „Easе of doing business“ ranking prepared annually by the World Bank Group. To get a more differentiated picture, we have to look at the most relevant for HNWI of the 10 factors evaluated to comprise the index

Favorable factors:

Protecting minority investors – Bulgaria ranks 33rd with a transparent investment environment, having high disclosure requirements in comparison that benefit minority investors. Further, the level of rights and their enforcement rank high as well

Protecting minory investors (rank)

33

Score for protecting minority investors (0-10)

68,33

Extent of diclosure index (0-10)

10

Extent of director liability index (0-10)

2

Ease of shareholder suits index (0-10)

8

Extent of shareholder rights index

8

Extent of ownership and corporate transperancy index (0-10)

4

Extent of corporate transparency index

9

Enforcing contracts – Bulgaria ranks 42nd in this category. While leaving room for improvement, especially regarding the duration of lawsuits, the transparent legal framework and professional support available benefit foreign investors

Enforcing contracts

42

Score for enforcing contracts(0-10)

67,04

Time (days)

564

Cost (% of claim value)

18,6

Quality of judical processes index (0-18)

20,5

Protecting minority investors – Bulgaria ranks 33rd with a transparent investment environment, having high disclosure requirements in comparison that benefit minority investors. Further, the level of rights and their enforcement rank high as well

Less favorable factors:

Registering property – Bulgaria has a structured, yet very local process of registering property. With the right support from our partner network of lawyers and consultants, however, the process is transparent and can be navigated fairly easily from an investor’s point of view

Registering property (rank)

67

Score of registering property (0-100)

69,32

Procedures (number)

8

Time (days)

19

Cost (% of property value)

2,9

Quality of lan adminitration index (0-30)

19

Paying taxes – Despite the transparent, flat and fairly simplified taxation system, as well as the high level of digitization (e.g., based on the electronic signature process), the process of filing and paying can be time consuming. With the right support from our network of partner accounting, audit and tax consultants, however, the process can be made transparent and easy to navigate for foreign investors

Paying taxes (rank)

92

Score for paying taxes (0-100)

72

Payments (number per year)

14

Time (hours per year)

453

Total tax and contribution rate (% of profit)

27.7

Postfiling index (0-100)

71.02

Currency hedge to the Euro due to fixed exchange rate

Bulgaria is part of the European Union, however not yet part of the Eurozone. The local currency is nevertheless hedged towards the Euro by Bulgarian law – the Bulgarian Lev (BGN) has a nominal exchange rate fixed by law (Article 29 of the Bulgarian National Bank charter). The exchange rate is fixed to 1 BGN for 1 Deutsche Mark, which corresponds to 1 EUR for 1,95583 BGN

1€ = 1,95583 BGN