Last Updated on October 9, 2024 by Bulgarian Citizenship Team
Bulgaria Government Bonds
The government bonds option has been officially cancelled, and investors must now explore alternative investment routes to obtain Bulgarian citizenship. However, bonds still benefit those who already hold permanent residency (PR), allowing them to follow the standard track and apply for citizenship 5 years after PR is granted.
Unfortunately, amendments passed in March 2022 now require investors to pass a language test. Fortunately, our team can assist in securing an exemption from this requirement. Bond investors who have not yet obtained PR may also consider switching their investment to Bulgarian ETFs or AIFs as an alternative route.
You may have a look at the latest amendments of the Bulgarian Citizenship Act (2021 amendments) to find more about the new rules and investment options.
Government bonds are debt instruments issued by the Bulgarian or foreign governments to finance short-term and long-term government spending. Government bonds give their owners the right to receive money income by discounting the price below the face value or by payment of fixed or floating annual interest.
In Bulgaria, the Ministry of Finance together with the Bulgarian National Bank (BNB) regulates the terms and conditions under which are issued dematerialized government bonds on the domestic market. Trading in government bonds is mediated by primary dealers (banks and investment intermediaries) that have the right to acquire government bonds directly at the auctions organized by the BNB.
The Bulgarian government bonds are great opportunity for non-EU Investors to obtain Bulgarian citizenship by investment. Purchase of Bulgarian government bonds is one of the lowest risk investments. By buying bonds the investor actually lends money to the state for a certain period of time for which the investor receives interest in the form of a coupon paid up to him at regular intervals before the maturity of the issue.
Buying Bulgarian Government Bonds
Bulgarian government bonds are traded on the Berlin Stock Exchange, Frankfurt Stock Exchange, and Luxembourg Stock Exchange. A foreign investor may also buy Bulgarian government bonds through a chartered Bulgarian bank or licensed intermediary.
You may find all listings of issued Bulgarian government bonds here.
If a foreign national would like to buy Bulgarian government bonds through Bulgarian bank, the person needs to open a private bank account with the particular bank. The purchase of Bulgarian government bonds is completed within few days. The private account is opened on the spot within an hour. Thereafter, the Investor can deposit the required amount directly from his/ her bank account abroad and proceed with the purchase of the bonds.
Once the transaction is completed, the servicing Bank issues a certificate acknowledging the purchase and stating all details of the bonds.
For more details or assistance to buy Bulgarian government bonds, please feel free to contact us.
