Bulgaria AIF: A Regulated Path for Bulgaria GV
Last Updated on November 4, 2025 by Bulgarian Citizenship Team
An article by Andreas Beikos, Counsel at Bulgaria Fund Management, and former Head of the European Investment Bank for Bulgaria and the Western Balkans
Following my recent appointment as Counsel at Bulgaria Fund Management, I am pleased to share some insights into Bulgaria’s growing Alternative Investment Fund (AIF) ecosystem, our Fund’s structure, and the opportunities it creates for both investors and the country’s financial landscape.
A Regulated Foundation for Growth
Bulgaria Fund Management is a registered Alternative Investment Fund Manager (AIFM) under the EU Directive 2011/61/EU. The firm manages the Bulgaria AIF fund, a vehicle focused exclusively on Bulgarian assets — including listed equities, corporate bonds, healthcare ventures, distressed assets, and licensing projects with measurable growth potential.
Our guiding principle is straightforward: combine financial performance with regulatory compliance and transparency. The Fund was founded with an initial capital of BGN 3,000,000 (approximately €1.5 million) and operates under the supervision of the Bulgarian Financial Supervision Commission (FSC).
Recently, the Fund further diversified its portfolio by subscribing to a €700,000 TBI Bank bond at 7%, enhancing both the yield profile and stability of the portfolio. You can find detailed information about the Fund in its Key Information Document.
Balancing Risk and Reward
There is often a misconception that AIFs are inherently riskier than traditional exchange-traded funds (ETFs). In reality, the level of risk depends entirely on investment strategy and fund governance. An AIF investing in investment-grade bonds or bank deposits can be far more stable than an ETF tracking a volatile stock index.
At Bulgaria Fund Management, risk management and compliance are central to every decision. Our multidisciplinary team of financial, legal, and compliance professionals ensures that all investments are carefully selected and monitored.
Strategic Purpose: Investment and Residency
The Bulgaria AIF Fund offers investors not only the opportunity to grow their capital, but also to obtain Bulgarian permanent residency and, ultimately, citizenship.
Investors contributing €512,000 to the Fund benefit from full legal and administrative assistance — including due diligence, D visa processing, permanent residency (Bulgaria Golden Visa by Fund Investment), and later, citizenship applications. Within eight months, investors can receive permanent residency, and after five years, they may withdraw their investment — plus any profit — and apply for Bulgarian citizenship.
This makes Bulgaria AIF Fund the country’s first open-ended Bulgaria Golden Visa–compliant investment fund, combining regulated investment management with the advantages of Bulgaria’s investor immigration framework.
Why an AIF Structure?
AIFs offer greater flexibility than ETFs or mutual funds. They can invest across diverse sectors and adapt dynamically to market opportunities, without compromising regulatory integrity. Our focus remains on industries we understand deeply.
Governance and Oversight
The Fund’s governance structure reflects European best practices. As Advocate Vasil Markov, Field Officer for the Investment Migration Council (IMC) in Bulgaria, oversees compliance with international investment migration standards, ensuring that our Golden Visa–linked model remains transparent and globally aligned.
International Perspective
Though I am Greek by origin, my professional journey has long been intertwined with Bulgaria — including three years as Head of the European Investment Bank (EIB) in Sofia, the EIB’s highest country-level post. I have always felt a cultural and economic connection to this country, and I view the growth of the alternative investment sector here as a natural evolution within the EU’s broader financial framework.
Tax and Investor Considerations
For international investors — including those from the United States — the Fund may be PFIC-exempt (Passive Foreign Investment Company). However, U.S. investors should have their tax attorney contact Bulgaria Fund Management for clarity and proper assessment based on their individual circumstances.
Fund Performance
Bulgaria AIF – Fund achieved a 1.66% return over the last three months (July, August, and September). Since the Fund began operations in June 2025, the projected total profitability for the second half of 2025 is estimated at approximately 3.4%.
Looking ahead, projections for the full year 2026, based on the current investment portfolio, are expected to fluctuate between 5.7% and 6.7%. Investors can track the Fund’s performance at https://aif.bg/performance .
Final Thoughts
The Bulgaria AIF Fund was built not merely to facilitate residency, but to protect and grow investor capital responsibly. Our approach is long-term, data-driven, and fully compliant with European regulations. With a solid foundation, an experienced management team, and a growing investor base, we are only at the beginning of what promises to be an exciting and transformative chapter for Bulgaria’s investment landscape.
