Continued from Investment citizenship application terminated (part 1).
This article is about the possibility to claim financial compensation for damages for cancelled citizenship by investment applications. As result of the mass legal actions by large number of investors, we firmly believe that some of the legal amendments of 2022 will be declared to be non-constitutional. Consequentially, the possibility to obtain citizenship, based on the investment done, will be revived for those who have taken timely legal action.
Revising the compensation amount as per the Law on State and Municipal Liability for Damages
In our previous article on the topic, we wrote that part of the compensation one should claim for the state is:
Interest of 10% p.a. (the legal interest for delays in Bulgaria) for the time the investment has been existing. If an investment has been done in bonds, the coupon of the bonds should be deducted from the 10% interest, as it has (or will be) received by the applicant.
After careful analysis of decision 9160 of 12.08.2021 of the Supreme Administrative Court, we are now slightly revising our position. We believe that the coupon of the bonds should not be deducted from the 10% interest. Any other income, such as generated profit from bank deposit under management, etc. should be not deducted as well. All these should be considered as risk reward, as the investor is bearing the credit risk from eventual default of the issuer.
More and more claims against the State
More and more citizenship investors are deciding to sue Bulgaria for the cancelation of the citizenship program. This should definitely result in a request from the Supreme Court to the Constitutional Court to declare certain texts in the new las as non-constitutional. This in turn will enable the applicants (those in the last phase) to ultimately obtain Bulgarian citizenship. Timing however, is of extreme importance.