Bulgaria Looking To Impose Golden Visa Residency Requirement
The government is shaking things up with a bold new bill in the National Assembly designed to overhaul permanent residency rules based on time spent outside the country. This groundbreaking legislation represents a significant shift in Bulgaria’s immigration policy, with far-reaching effects for many foreign nationals living in the country.
Under this dynamic proposal, any foreign resident who spends less than six months and one day in Bulgaria during the previous year will automatically lose their permanent residency status. This new rule applies to all permanent residency holders, no matter how they acquired their status. It's a game-changer, emphasizing the importance of being physically present in Bulgaria over simply avoiding long absences from the EU.
On July 27, 2023, the Council of Ministers gave the green light to this draft bill, Decision 575, signed by Prime Minister Rumen Radev. The very next day, it was registered in the National Assembly with reference number 52-602-01-29, kicking off its legislative journey.
In a twist for the Bulgarian golden visa program, the amendment proposes a major change. It swaps out an easy-to-meet absence rule for a more challenging presence requirement, which could be tough for foreign investors living abroad. Currently, investing BGN 1 million (€511,292) in a qualifying fund grants permanent residency without needing to live in Bulgaria. This new rule could dramatically reshape the landscape for potential investors eyeing the golden visa program.
Permanent Residents: From European Absence to Bulgarian Presence
Article 40, paragraph 1 of the Law on Foreigners in Bulgaria outlines the conditions for withdrawing a foreigner’s residency rights. Right now, item 6 affects both long-term and permanent residency holders, based on a 12-month absence from the EU. But with this bill, Section 17 revises item 6 to focus only on long-term permits, while introducing a new item 24 for permanent residency. This new provision measures presence in Bulgaria, shifting the criteria for maintaining residency. Now, permanent residents must spend most of the year in Bulgaria, rather than just avoiding a full year out of the EU.
Uncertain Future for Investor Exemptions
The bill retains exemptions for permanent residency granted on investment grounds, as outlined in Article 25. However, a narrower exemption appears in a December 2025 practitioner's article, which might limit its scope to long-term residency permits. This raises questions about whether the exemption will continue to protect individuals under Bulgarian law, especially regarding dual residency status.
Investors holding both types of residency could be protected from the 12-month absence rule. But those with only permanent residency would fall under item 24, which lacks exemptions. This means that investors abroad due to emergencies might not have the same protections as long-term residents.
Mandatory Withdrawal: A Familiar Safeguard May Not Apply
According to Bulgarian immigration practices, withdrawal under Article 40, paragraph 1 is mandatory. However, authorities must consider factors like residence length and family ties before imposing any measures, as per Article 44, paragraph 2. Directive 2003/109/EC allows member states to overlook long absences in exceptional cases, but it’s unclear if this applies to item 24, which governs EU long-term resident status.
Investment Thresholds Now in Euros
Section 11 of the proposed bill converts investment minimums from BGN to euros, following Bulgaria’s euro adoption on January 1. For example, BGN 1 million becomes €511,291.88. Despite the currency conversion, the financial requirements for investment remain unchanged, ensuring stability for investors.
Government Justification in a Single Sentence
The bill's explanatory memorandum attributes the permanent residency measure to the rising number of applications, necessitating stricter control over residency status. However, it doesn’t mention security concerns or European obligations as reasons for the change.
The memorandum outlines various topics, but permanent residency only appears in section two as an aim without a clear cause.
No Start Date or Transitional Rule
Section 38 of the bill doesn’t specify when Section 17 will take effect or provide any grandfathering provisions for current permit holders. If interpreted literally, a law published in late 2026 could affect residency status based on attendance requirements for permits held throughout a year without such requirements, creating uncertainty for current residents.
Extended Residence Permits Unaffected
Section 7 amends extended residence grounds by converting currency values, but item 24 doesn’t affect these permits, focusing solely on permanent residency. Bulgaria’s approach is unique, offering immediate permanent residency without residency obligations, unlike Malta and Cyprus, which require years of actual residence before granting citizenship.
Public Consultation: No Comments on Permanent Residency
The public consultation on the draft bill ran from April 1 to May 4, 2023, receiving 14 comments from various organizations. While they addressed topics like border screening and euro fines, none focused on permanent residency changes.
Committee Stage: Beyond Investors
No changes have been made to the bill yet, and it’s unclear if any will occur during the legislative process. Bulgaria’s residency program has transformed from a no-presence requirement to one with a presence condition, impacting not just investors but also spouses of Bulgarian citizens and long-settled foreigners. The introduction of item 24 doesn’t differentiate among these groups, likely facing opposition in committee discussions.
Current permit holders should closely monitor developments during the committee stage rather than reacting hastily. Those nearing the five-year mark for naturalization have a compelling reason to proceed, as losing their permit would reset their qualification period, potentially delaying citizenship.
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