One of the most common questions from international investors considering Bulgarian real estate: “How is my money protected?”
The answer is structural — and it starts with three letters: SPV.
What Is an SPV?
A Special Purpose Vehicle (SPV) is a separate legal entity — in Bulgaria, typically an EOOD (single-member limited liability company) — created specifically for one project or investment.
When you invest through VIG, your capital doesn’t sit in VIG’s general corporate account. It goes into a project-specific SPV with its own bank account, registration number, articles of incorporation, shareholder register, and financial statements.
Why Does This Matter?
Isolation. If VIG operates nine projects, each project sits in its own SPV. If Project A has a problem, Projects B through I are legally unaffected. Your investment in Project B is walled off by corporate law.
Transparency. Each SPV has its own financial statements. You can see exactly where your capital went, what it’s doing, and what it’s produced. No commingling with unrelated business activities.
Legal clarity. Your rights as an investor are documented in the SPV’s corporate documents and your investment agreement. If there’s ever a dispute, the legal position is clear because the entity is purpose-built with one function: your project.
How VIG Uses SPVs
Every VIG investment — whether VIGROW co-investment, VICLUB, or direct allocation — is structured through a project-level SPV. This isn’t optional. It’s a non-negotiable operating standard.
What About Tax?
Bulgarian SPVs (EOODs) benefit from the country’s 10% flat corporate tax rate — the lowest in the EU. For EU investors, there is no withholding tax on dividends distributed to EU parent entities under the EU Parent-Subsidiary Directive.
Non-EU investors should consult their local tax advisor regarding any additional reporting or tax obligations in their jurisdiction. Bulgaria has double-tax treaties with 60+ countries.
The Bottom Line
SPV structure is not a VIG innovation — it’s global institutional best practice applied at every ticket size. The difference is that VIG makes it standard for all investors, not just institutional ones.
Your capital. Your SPV. Your legal protection.
This article is for informational purposes only and does not constitute legal advice. Consult a qualified legal advisor for guidance specific to your situation.