Interview with Advocate Petar Markov: Bulgarian Financial Markets and the Rise of the Bulgaria Golden Visa
Today we spoke with Advocate Petar Markov — a part of the team behind the law firm of Advocate Markov, CEO of Bulgaria Fund Management, operator of the first Bulgaria Golden Visa Investment Fund – Bulgaria AIF Fund, and creator of multiple niche platforms including Bulgarian-Citizenship.com.
Advocate Markov, what should investors expect from the Bulgarian financial markets in 2026?
As a lawyer, my perspective on the capital markets is shaped by observing government policy. The EU — and Bulgaria as part of it — is focused on developing deeper, more liquid, and more competitive capital markets. This is essential if Europe wants to remain competitive with the United States.
Innovation — whether in AI, robotics, or defense — requires capital. Sustainable economic growth requires capital. This is a simple and universal truth, and one does not need to be a financial expert to understand it.
Bulgaria is gradually aligning with this European vision. The country is improving regulations and encouraging the development of investment vehicles, financial instruments, and institutional structures that support a modern capital market ecosystem.
What measures is the Bulgarian government taking to enhance the Bulgarian capital market?
Bulgaria is pursuing a multi-layered strategy to strengthen its capital market, combining regulatory incentives, infrastructure development, digital innovation, and targeted capital attraction.
A key priority is building an investment culture among the local population. Public institutions and market participants increasingly promote long-term investing, which is already reflected in growing retail investor participation.
At the same time, digital innovation in the banking sector is lowering barriers to access. Bulgarian banks are expanding digital investment services, with First Investment Bank offering a mobile platform comparable to Revolut that provides direct access to the Bulgarian Stock Exchange, making capital markets more accessible to retail investors.
Bulgaria also benefits from a highly favorable tax regime, including a 0% capital gains tax for individuals on securities traded on regulated EU markets, extended to the BEAM Market to support SMEs and public-market financing.
From 2026, Bulgarian government bonds are expected to be issued and traded on the BSE, opening the market to retail investors. Even the lowest-yielding bonds would outperform near-zero bank deposit rates.
Finally, the introduction of the Bulgaria Golden Visa through regulated fund investments is designed to attract foreign capital directly into the domestic capital market, with meaningful potential impact even at modest volumes.
Bulgaria is increasingly seen as a rising star in the Golden Visa market. Why?
This development has two key aspects.
First, for the same amount of investment, Bulgaria offers permanent residency, compared to only temporary residency in Portugal. Additionally, if you proceed through Bulgaria, you will obtain a permanent residency card in hand within 6–8 months, while processing in Portugal is much longer. Current appointments for biometrics in Portugal take 3–4 years, followed by a few more years for the residency card to be issued.
Second, Portugal fund managers have taken the wrong direction. Instead of focusing on developing Portugal’s financial markets and local economy, Portugal funds have turned into a money machine for fund managers and international consultancies that receive hefty commissions. To support this structure, most funds adopted closed-end formats, locking investor capital for 5 to 10 years, charging high management fees, and in many cases delivering questionable or negative returns.
What is the investment strategy of the Fund you manage?
While Bulgaria AIF Fund is designed to be Golden Visa–compliant, our priority is to build a competitive, professionally managed investment fund. We already outperform well-established fund managers without employing high risk strategies.
Many applicants have prior investment experience but are not yet familiar with the Bulgarian market. As a result, they tend to prioritize capital preservation over equity exposure to companies they do not know. Fixed-income investments therefore align best with their risk profile and expectations.
Additionally, Bulgaria AIF is an open-ended fund with a fixed 1% annual management fee, no subscription and no withdrawal fees. If investors wish, they can withdraw — including accumulated profit. We do also assist our clients to obtain permanent residency complementary.
Some say that the Bulgaria Golden Visa is not stable. What is your view?
There are no objective reasons for the Bulgarian Golden Visa program to be considered unstable. Bulgaria’s national policy is focused on strengthening domestic financial markets and attracting sustainable investment. This vision goes beyond any single government, much like Bulgaria’s strategic objectives of joining the Schengen Area and adopting the Eurozone. Regardless of the governing party, these goals remain clear and are consistently pursued.
What measures should be taken to genuinely strengthen the Bulgarian and EU capital markets?
My view may be considered drastic, but reciprocal measures are fair and necessary. US citizens are subject to higher taxation when investing outside the US (for example, under the PFIC regime). A similar regime should apply to EU citizens investing outside the EU, including higher taxation and strict reporting requirements. Such measures would redirect substantial capital from the US back to European Union markets, strengthening EU capital markets and driving significant economic growth.
What is your opinion on Christine Lagarde’s proposal for a unified EU stock exchange?
The idea promoted by Christine Lagarde—moving toward a unified EU stock exchange and a European equivalent of the U.S. Securities and Exchange Commission is a clear step in the right direction. A single, harmonized capital market would significantly improve liquidity, visibility, and investor confidence across the EU.
What should we expect from Bulgaria AIF in 2026?
In 2026, we will continue to diversify and further strengthen our bond portfolio. While we have so far attracted professional investors, we expect to welcome our first institutional investor, a Bulgarian-based pension fund.
From a performance perspective, Bulgaria AIF achieved a return of over 3.5% during our first six months of operations. Our objective for 2026 is to deliver no less than 7% for a full 12 months of operations, while maintaining a disciplined and conservative risk profile.
