More investors stripped of Bulgarian citizenship

Bulgaria has stripped citizenship of more foreign nationals who obtained citizenship for investments.  In 2018, two investors from Egypt and Israel stripped Bulgarian citizenship in 2018 through investments, while in 2019 this figure has quickly increased to eight, making a total 10 investor citizenships revoked by Bulgaria.

The State Agency for National security reported violations during a procedure for acquiring citizenship, as well as a failure to fulfil obligations undertaken as a basis for applying for Bulgarian citizenship, said Bulgarian News agency, Sofia Globe.

The Minister of Justice requested the President to revoke the citizenship of two foreign-born nationals. This makes a total of 8 citizenships revoked in 2019 alone for investors, with reasons being documentary fraud and not maintaining the investment.

• June 2019 – 3 Russians, 1 Kazakh
• July 2019 – 1 Egyptian, 1 Pakistani
• Sep 2019 – 1 Egyptian, 1 Israeli

Art. 22. (1) Naturalization on the basis of which Bulgarian was acquired citizenship may be revoked if the person:

• used the data or facts which gave rise to the acquisition of Bulgarian citizenship, which has been found to be incorrect by law, and / or
• has concealed information or facts which, if known, would have been grounds for refusal to acquire Bulgarian citizenship, and / or;
• SG No. 16/2013 did not support the investments that occurred grounds for acquiring Bulgarian citizenship for at least two years, from the date of naturalization – in the cases under Art. 14a, para. 1. (2) (Supplemented, SG No. 11/2012, amended, SG No. 103/2016) Repeal of naturalization is only permissible until 10 years have elapsed since its acquisition Bulgarian citizenship, except in cases where the data and facts under para. 1, v. 1
  and 2 relate to the person’s involvement in terrorism, and provided that the person does not remain
  stateless

Reasons for cancellation of Bulgarian citizenship:

• for reasons of public order and security;
• legal violations imposed prohibitions on entry and residence in the Schengen area;
• declared international search for a purpose arrest and extradition on the basis of a European arrest warrant;
• to hide facts and data on court and criminal registrations;
• measure imposed on expulsion for illegal entry and stay in a foreign territory;
• criminal registrations in police databases;
• use of false documents for the purpose of obtaining a visa; entered into force
• convictions for forgery of an official document, fraud, violations and illegal activities in some Schengen countries;
• announced Persons wanted by Interpol.

Bulgaria previously granted citizenship to investors who invested atleast €1m in bonds or real estate. One of the important criteria is to maintain investments for five years. Investors eligible for passport in two years or more and must hold permanent residence permit.

In early 2019, Bulgarian justice ministry tightented citizenship checks, including requiring an interview and proposed a draft plan to abolish citizenship granted for investments. The scheme is not abolished yet, still active and running.

In 2018, alone Bulgaria granted fast track citizenship to 29 investors against investments.

The Fast-track procedure (Article 14a of the Bulgarian Citizenship Act) is  for  third-country nationals who

• have had a permanent residence permit for more than а year fulfilling the requirements
• having attained the age of 18 years,
• and not having been sentenced by a Bulgarian court for a wilful crime prosecuted ex officio by the state, and
• not subject to pending criminal proceedings for such an offence, unless the person has been rehabilitated) and
• who have increased their investment under the same terms of the law to a value of at least BGN 2 million (EUR 1 million); or to additionally invest in the capital of a Bulgarian commercial company no less than BGN 1 million (EUR 500 000) for a priority investment project implemented by the company, certified under the Investment Promotion Act.

The EU commission analysis report  on Bulgaria said the Investors’ schemes granting residence and citizenship to third-country nationals investing in Bulgaria were first introduced in the Bulgarian legislation in 2005. Since then, the investors’ schemes have been further developed by introducing amendments to the relevant legislation in 2009, 2013 and 2015.

Number of successful applications for extended residence (Article 24(1)(19 and 20) and permanent residence (Article 25(1), 6, 7, ,8, 13 and 16) and the income generated (2012 – 2017)

Source: European Commission report on investor citizenship schemes