To further diversify its portfolio, Bulgaria AIF has launched a new initiative in the real estate sector. Although construction and development projects are often perceived as higher-risk ventures, the Fund has adopted a controlled-entry model specifically designed to minimize exposure while ensuring capital efficiency. The Fund does not engage in construction or development activities, eliminating the risks typically associated with building licenses, project delays, or administrative corruption. Instead, the Fund focuses exclusively on trading completed, fully built properties, ensuring transparency, liquidity, and quick turnover of capital.

Innovative Real Estate Model

Under this approach, the Fund acts as an intermediary between buyer and seller. The Fund steps in as the official seller, acquiring the property from the original owner at the most favorable, discounted rate achievable. The negotiated discount is then shared between the end buyer (Bulgaria Golden Visa by real estate applicant) and the Fund, creating mutual benefit.

This model leverages Bulgaria AIF’s market position and volume-based efficiencies — including reduced agent commissions — to secure better terms than any individual buyer could typically achieve.

The Fund acquires each property only after a sales agreement with an end buyer is in place, ensuring that every transaction is backed by a real, committed purchaser. This structure allows the Fund to:

Alignment with the Bulgaria Golden Visa Program

This real estate initiative directly supports the Bulgaria Golden Visa by Property Investment route. All participating properties are fully eligible for the Golden Visa Program, ensuring compliance with residency and investment requirements.

Investors in Bulgaria AIF indirectly participate in and benefit from this strategy. By supporting Golden Homes Bulgaria, the Fund’s partner in the property sector, they help facilitate asset-backed, pre-financed transactions tied to verified end buyers.

The structure enables Bulgaria AIF to target higher returns than typical fixed-income instruments — currently averaging around 7% annually — while maintaining a conservative, asset-secured risk profile.

Next Step: Establishing a Financial House for Expats

Building on this success, Bulgaria AIF is preparing to establish a Financial House — a specialized lending institution designed to provide mortgage financing for expatriates investing or residing in Bulgaria.

Unlike traditional banks, this Financial House cannot attract public deposits but will focus exclusively on secured lending backed by real assets.

Key parameters of the lending program include:

• Financing up to 70% of property value,
• Interest rates ranging between 9.0% and 12.0%,
• Eligibility for foreign residents without local credit history.

This model provides the Fund with an attractive yield opportunity, underpinned by substantial collateral coverage. In the unlikely event of borrower default, the Fund would effectively acquire the property at a 30% discount, plus any instalments already paid — further mitigating downside risk.

A Commitment to Risk-Managed Growth

Through these initiatives, Bulgaria AIF continues to demonstrate its dedication to risk-managed growth and portfolio diversification.
By combining regulated financial strategies with real-economy investments, the Fund reinforces its long-term mission to support both investor value and the sustainable development of Bulgaria’s growing Golden Visa ecosystem.