Bulgaria’s government has tabled a bill that would introduce a physical presence requirement for permanent residents, potentially including those who obtained permanent residence through investment.

Under the proposed measure, any permanent residence holder who spends less than six months and one day in Bulgaria during the previous calendar year would face withdrawal of their status. The proposal would mark a significant shift for Bulgaria’s Golden Visa, which currently provides permanent residence through a qualifying investment without an obligation to live in the country.

From an EU Absence Test to a Bulgarian Presence Test

Under the current rules, permanent and long-term residence holders may face withdrawal after 12 consecutive months of absence from the European Union as a whole.

The proposed bill would separate the two statuses. The existing provision would continue to apply to long-term residence permits, while a new provision would specifically address permanent residence holders.

The key change is that absence from the EU would be replaced by physical presence in Bulgaria.

Investor Exemption Remains Unclear

The bill retains an investment-related exemption within the provision governing long-term residence. However, it is unclear whether this protection would extend to investors holding permanent residence alone.

Under the proposed new provision for permanent residents, no exemption is expressly provided for investors. As a result, permanent residence holders obtained through investment could potentially fall under the new six-month-and-one-day presence requirement.

Mandatory Withdrawal and Legal Uncertainty

The withdrawal of residence under the relevant provision is described as mandatory rather than discretionary.

At the same time, the bill leaves several legal questions unresolved, including whether existing permanent residence holders would be subject to the new requirement and how exceptional circumstances would be treated.

The proposed measure would therefore create greater compliance requirements and uncertainty for existing and future permanent residents.

Investment Thresholds Remain Unchanged in Real Terms

The bill converts the existing investment thresholds into euros following Bulgaria’s adoption of the euro.

The main investment amount of BGN 1 million becomes €511,291.88, while BGN 2 million becomes €1,022,583.76 and BGN 6 million becomes €3,067,751.29.

The conversion does not change the investment thresholds in real terms; it simply reflects the fixed euro conversion rate.

No Commencement Date or Transitional Rules

The proposed legislation currently contains no specific commencement date or transitional provisions addressing existing permit holders.

It also does not specify which calendar year would be used to assess physical presence.

This creates uncertainty over how the requirement could affect individuals who already hold permanent residence if the legislation is eventually adopted.

Impact on Bulgaria’s Golden Visa

The proposed reform could significantly alter the risk profile of Bulgaria’s Golden Visa.

The programme has traditionally been attractive because it offered permanent residence from day one, no physical presence requirement, and a five-year path to citizenship.

Introducing a requirement to spend six months and one day in Bulgaria each year would substantially reduce the programme’s flexibility for international investors who do not intend to relocate.

Current Status

The proposal is still at the legislative stage. It must go through committee review, first reading, amendments, and second reading before becoming law.

Therefore, the Bulgarian Golden Visa programme has not been terminated, but the proposed legislation signals a potential shift toward stricter physical presence requirements for permanent residents.

Summary

The proposed legislation would replace the current 12-month absence rule from the European Union with a Bulgarian presence requirement for permanent residents.

A qualifying investment of BGN 1 million (€511,291.88) currently provides permanent residence outright. If adopted in its current form, the new rule could significantly change the programme’s appeal by requiring holders to spend more than six months per year in Bulgaria.

However, the bill has not yet become law, and its final provisions may change during the legislative process.