A New European Program for Residency and Second Citizenship...How Bulgaria Compares Austria ~ € 10,000,000 Cyprus ~ € 2,000,000 Malta ~ € 1,000,000 (Gift) Singapore ~ SGD 2,500,000

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A New European Program

for Residency and Second CitizenshipBy Joel M. Nagel, Esquire

www.liveandinvestoverseas.com ©2018 Live And Invest Overseas, Inc.


• Population—just over 7 million (7,036,848—2018) • Language—Bulgarian (note: Cyrillic alphabet)• Currency—Bulgarian Lev (BGN)• GDP real growth—3.9% (2016—triple that of 2014)• Climate—Four beautiful seasons• Natural hazards—Floods, wildfire• Government—Parliamentary Republic• Legal system—Civil law• Capital city and population—Sofia—one and a half million

At A Glance:


• Extremely low cost of living• Exceptionally beautiful and historical country, with variety of

geographies• Real GDP growth has doubled in two years• 4.10% of GDP is spent on education (USA is only marginally

higher)• Favorable investment regime—low corporate income taxes• State eGovernment Agency created 2016 (establishing electronic

governance, coordination of national policies, strengthened cybersecurity)

• No foreign exchange control but some restrictions in place

Pros:


• Heavy dependency on energy import from Russia (rendering fragility)

• Dependency on export (rendering fragility)• High corruption in public administration• Not part of Schengen Area • No foreign exchange control but some restrictions in place• Although not like in the early 2000s, mafia are still present• Expensive to fly back to the United States or Canada frequently

Cons:


• Good medical universities yet poor national health care• National health care meets minimum EU standards—nonetheless,

lacking compared to other EU countries• National health system available to citizens & permanent

residents• Strong under-the-counter payments in national health care—84%

of outpatients reported under-counter payments in 2011• Affordable medicine but check availability/generic names

Health Care:


• Residents are taxed on their worldwide income• Nonresidents are taxed only on Bulgaria-source income• Capital Gains: taxed at corporate income tax rate/Bulgarian & EU

stock exchanges exempt/applicable if arising from a property • Taxation Treaty with the US: Yes• Taxation Treaty with Canada: Yes• Controlled foreign companies: No

Taxes:


• Real property tax: 0.01% to 0.45% depending on municipality—for residential & nonresidential property—paid annually

• Transfer tax: 0.1% to 3% depending upon municipality• VAT: 20% —reduced to 9% for hotel accommodation and 0% for

export & inter-community supplies• Insurance contracts: 2% tax on insurance premiums (excluding

permanent health insurance) • Wealth Tax: no• Inheritance Tax: 0.4% to 6.6% depending upon relationship of

beneficiary & municipality • Gift tax: 0.4% to 6.6

Taxes:


• Depending upon location in country, there are plenty of indoor and outdoor activities

• Sofia—capital city, at foot of Vitosha mountain, steeped in history & culture, contemporary avant-garde art scene, great public transport, fresh national produce, beautiful architecture, nearby mountain activities

• Plovdiv—Plovdiv—second largest city, ancient history, 2019 European Capital of Culture, situated on a plain, inland

• Varna—third largest city, Black Sea seaside resort, historical, business and port activity as well as beautiful beaches

• Sunny Beach—ranked most affordable beach resort in Europe (more so than Algarve), breathtakingly beautiful, cultural, historical

Lifestyle:


• No direct flight to the USA or Canada but can change at any major European capital

• Many low-cost European airlines make visiting other EU places easy

• Good international and national train connections• Reasonable road infrastructure across country—92.5% asphalt

covered• Sofia—excellent transport—metro, bus, tram, trolleybus

Accessibility:

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Budget

Housing CostsAverage Cost Per Square Meter $1,200

Buy From

$78,000

Property Taxes

0.01% to 0.45%

Basic Monthly ExpensesRent

$1,000

Gas & Electricity $100

Telephone (incl. internet) $10

Cable TV $12

Cell phone: $12

Food $130

Entertainment $200

European Union (Schengen Area)

1. Personal Background Documentation

Full Passport Copy

Birth Certificate

Marriage Certificate


Curriculum Vitae

Education Credentials

Diplomas

Certificates

Employment Letter

Bank Reference Letter


Police Clearance Report

FBI Clearance Report

Financial Requirements

Proof of € 1,000,000 or more in personal assets

Proof of Assets

Titled Property Deeds

Audited Financial Statement

Corporate Documents

Stock Certificates

Account Statements

Bulgaria Investment Requirements

BGN 1,000,000 (€ 511,292)

in a

Government Bond Portfolio

for a period of 5 years

1. Fast Track

An additional Investment of

BGN 1,000,000 (€ 511,292)

in a Government Bond Portfolio for a period of 2 years

~ Or ~

in the capital of a Bulgarian Company that is carrying out a

Priority Investment Project

2. Fast Track

Invest (at least) € 511,292 and obtain no less than 50 % of a Bulgarian Company, and create and maintain (at least) 10 jobs for Bulgarian citizens under a labor contract

Residency Requirements

Single Investment

Citizenship after 5 year

Permanent Residency

Fast Track

Citizenship after 1 year

Permanent Residency

How Bulgaria Compares

Austria ~ € 10,000,000

Cyprus ~ € 2,000,000

Malta ~ € 1,000,000 (Gift)

Singapore ~ SGD 2,500,000

(€ 1,610,000 current conversion)