Bulgaria Golden Visa 2026: Permanent Residency Through a Euro-Denominated, Capital-Preserving Investment

Permanent Residency by Investment: The Core of the Bulgaria Golden Visa

The Bulgaria Golden Visa offers permanent residency against a regulated fund investment of EUR 512,000, with residency granted within 6 to 8 months. In 2026, the program has reached a new level of maturity and institutional credibility. Bulgaria currently remains the only EU jurisdiction providing permanent residency by a fund investment at this threshold. For investors who value certainty of status and speed of processing, this distinction is fundamental.

Euro Adoption and the Elimination of Currency Risk

A defining structural improvement in 2026 is the complete removal of currency risk. With Bulgaria adopting the euro as its official currency, the investment process has become materially more efficient and transparent. In previous years, capital flows were burdened by unnecessary conversions between Bulgarian lev and euro. These inefficiencies no longer exist. Subscriptions, investments, and repayments are now conducted entirely in euro, eliminating exchange-rate exposure and enhancing capital preservation.

A Strengthening Capital Market and EU-Level Oversight

From a market perspective, 2026 is shaping up to be a pivotal year for Bulgarian capital markets. The fixed-income segment is expanding in both scale and quality, driven by new MREL bond issuances and the refinancing of maturing bank bonds. This activity is increasing choice and liquidity for investors seeking predictable returns. At the same time, regulatory supervision has strengthened significantly. Banking licenses are now granted by the European Central Bank, while EU-level regulators continue to enhance oversight. Combined with Bulgaria’s 10 percent flat corporate income tax, the lowest in the EU, the country now offers a rare balance of low taxation and high regulatory standards.

Investment Philosophy: Capital Preservation Before Growth

Our Golden Visa fund Bulgaria AIF Fund is built around a conservative and disciplined investment philosophy. The primary objective is capital preservation, supported by stable income generation. The portfolio focuses predominantly on fixed-income instruments, where expected annual returns generally range between 5 and 7 percent, with upside occasionally reaching 7 to 8 percent. Growth is deliberately constrained in favor of predictability, diversification, and risk control. Crucially, the fund manager’s own capital is invested alongside that of clients to meet Golden Visa compliance requirements, ensuring full alignment of interests.

Protecting Investor Capital: Lessons Learned and Applied

Many investors approach the program with understandable caution, particularly those who have experienced delays or underperformance in other residency-by-investment programs. While those programs are not relevant here, the underlying concern—capital safety—is universal. Our response is structural rather than promotional. Risk is managed through issuer diversification, conservative exposure limits, and a focus on instruments with defined cash flows. This objective is best achieved through fixed-income investments, primarily bonds, which offer a lower-risk profile and greater predictability than equity-based strategies.

Why Bulgaria AIF Prioritizes Bonds Over Equities for Golden Visa Investors

Bulgaria is not an isolated market. As part of the global financial system, its capital markets move in close correlation with international trends. It is therefore no coincidence that bond investments have accelerated sharply since the beginning of 2026. As major global indices such as the S&P 500 continue to reach record highs, Bulgaria’s SOFIX index has followed the same trajectory.

While record levels are often perceived positively, they also warrant caution. Market records do not automatically reflect proportional growth in underlying economic value. In many cases, they indicate that a significant portion of future expectations has already been priced in, leaving limited room for further appreciation.

For investors without a deep financial background, this dynamic can be understood through the concept of market capitalization and net asset valuation. Market capitalization is calculated by multiplying the number of outstanding shares by the price at which those shares trade. For example, a company with one million shares priced at EUR 1 has a market capitalization of EUR 1 million. If only a single share is later traded at EUR 2, the entire company is suddenly valued at EUR 2 million, even though nothing fundamental about the business has changed.

This mechanism explains how equity markets can rise rapidly and set new records without a corresponding increase in real economic value. Prices move faster than fundamentals, and valuations expand more quickly than companies can realistically generate additional cash flow or productivity. When this gap widens excessively, markets begin to resemble a valuation bubble—driven by momentum rather than substance.

As our fund is designed specifically for Bulgaria Golden Visa applicants—with the objective of obtaining permanent residency, progressing to Bulgarian citizenship, and ultimately redeeming the full invested capital together with accumulated profits—we deliberately avoid taking equity risk in pursuit of marginal additional returns. Instead, we remain committed to a fixed-income strategy, prioritizing capital preservation, predictability, and long-term residency security over short-term market upside.

Improving Returns Through Execution, Not Speculation

Profitability in fixed income is driven by discipline rather than complexity. Like any professional investment operation, the fund evolved through experience. Early inefficiencies in execution were identified and eliminated, reducing transaction costs and improving net yields. Broker selection was refined, IPO subscriptions optimized, and pricing discipline introduced. These incremental improvements compound over time and help explain why a focused, lean structure can achieve competitive results, even as some long-established market participants struggle to deliver consistent performance despite charging higher fees.

Transparency as a Strategic Principle

We openly publish our holdings, the yields captured at entry, and the strategic rationale behind each investment. While this level of disclosure exceeds traditional industry practice, we believe Golden Visa investors should be treated as informed long-term partners rather than passive clients. Clear visibility into portfolio decisions strengthens trust and accountability. For reference, please see the portfolio structure of the Bulgaria AIF Fund.

Cost Efficiency and Integrated Legal Support

The fund is structured to minimize unnecessary costs. Management fees are fixed at 1 percent, payable only after 6 months from the date of capital deposit. Legal assistance for permanent residency and family reunification is included, eliminating separate legal fees that would otherwise amount to EUR 15,000–20,000. When investment returns, fee efficiency, and immigration-related savings are considered together, investors achieve a combined effective benefit of approximately 10 to 12 percent, even in moderate market conditions.

Outlook for the Bulgaria Golden Visa in 2026

Application volumes in 2026 are expected to reach record levels by Bulgarian standards, while remaining well below those seen in larger historical programs elsewhere in Europe. This measured growth supports regulatory stability and consistent processing timelines. As of early 2026, only two fully compliant Bulgaria Golden Visa funds operate—one focused on equities and one, ours, dedicated to fixed income. In a small and concentrated market, fixed income remains the more suitable choice for investors prioritizing capital preservation and predictability.

Beyond the Golden Visa: A Long-Term Institutional Approach

Our organization operates as an active law firm alongside the fund management business, giving us daily exposure to regulatory, compliance, and legal realities. The fund itself is intentionally passively managed, reflecting the limited number of high-quality bond opportunities each year. In such a structure, most of the work lies in compliance, due diligence, and disciplined oversight rather than frequent trading. Fees are therefore aligned with substance rather than marketing.