Last Updated on July 21, 2021 by Bulgarian Citizenship Team
Why should you consider buying the ETFs through a Bulgarian-based brokerage firm
Clients can buy the ETFs abroad using their local brokerage firm or bank. However, the procedure will be more cost- and time-efficient if the ETFs are purchased locally through a Bulgarian-based brokerage firm.
If you buy the ETFs through a Bulgarian-based brokerage firm, you will benefit in the following ways:
No apostille or embassy certification of the ETF purchase confirmations is required. For example, if you buy the ETF through a bank or brokerage firm in Singapore, you will need to legalize the confirmations by the Singapore Academy of Law and then courier it to the Bulgarian embassy in Indonesia for certification (this is because Bulgaria has no embassy or general consulate in Singapore). The documents certified by the Bulgarian embassy in Indonesia will be couriered to Bulgaria where further translation and notarization will take place. In the current COVID circumstances, this simple legalization and certification procedure may take around 2 months.
The apostille service is not delivered by your bank. In most cases, the service is provided by private firms that specialize in translation and legalization services. Even your stellar reputation bank in Switzerland will experience difficulties arranging the apostille on your behalf with the help of a third party. This is an expensive service, and considering the current COVID-19 situation, it will not be delivered in less than 2–4 weeks. While buying the ETF through a Bulgarian-based brokerage firm, your only obligation is to sign a contract (this can be signed electronically using an electronic signature—certain limitations apply based on the nationality of the client).
Whereas, we can send you samples of what documents should be issued by your foreign brokerage firm. Most brokerage firms do not provide by default the wording that will satisfy the requirements of the Bulgarian Investment Agency. This will require that you request for a particular wording on the documents to be issued or to edit the documents they have already issued for you. This is time-consuming and increases the risk of miscommunication and further delays in the process of obtaining Bulgarian citizenship by investment.
Bulgarian brokerage firms are experienced in producing the exact documents needed for the Investment Agency. Also, documents issued by Bulgarian authorities and private firms do not require legalization or certification, which further reduces the processing time.
Our service fees to assist you in obtaining Bulgarian citizenship by investment are lower if you purchase locally as it saves professional time.
Non-EU tax residents are obliged to pay 10% on the capital gains of the ETFs. For example, if you have invested 1,000,000 EUR in ETFs and later sell the ETFs for 1,020,000 EUR, you will pay 10% only on the increased value, that is, 10% on the 20,000 EUR gain or 2,000 EUR tax. Our firm can also assist you in becoming a tax resident of Bulgaria, declaring and paying your taxes in Bulgaria.
Even if you decide to buy the ETFs abroad, you can still rely on our support during the process of issuing and legalizing the ETF confirmation certificates.