Bulgaria is rapidly emerging property
market, after taking a participation in EU 2007, relatively
unexplored and untapped for property buyer and hence
offers the opportunity to maximise your capital growth.
The country has a lot of unique opportunities and
also: Established tourist industry. Last year the property prices
in Bulgaria have gone up with more than 25% in general.
Some real estates have gone up with 50% for one year,
especially the ones in Sofia, in the Black Sea beach
resorts (Sunny Beach) and in the ski resorts (Borovets,
Bansko). The improved economic conditions, political
and social stability in Bulgaria over the last 3 years
brought to a real boom of the prices of property in
Bulgaria. Rising property market and a huge
tourism potential in our country. Great potential for rent out a
property.
A great natural attractions - high mountains, beautiful
and clean Black Sea coast, preserved rural areas,
future popular golf destination,
minimum urbanisation, thousands years of history,
etc.
The law does not limit the extent or amount of foreign
participation in companies. Foreign individuals and
companies can open unlimited number of accounts in
any Bulgarian banks, in any hard currency or the local
Bulgarian Levs.
Change of the Constitution in 2007 according to EU
standards so that all foreigners who wish to acquire
property in Bulgaria will be able to do so personally,
so registering a local company will not be needed.
What are the living costs in Bulgaria? How much
one pays for house insurance, gas, electricity, local
and national taxes, to hire a gardener or a builder,
to drive a car?
Living costs
in Bulgaria are extremely low! For example: 1 bottle
of quality wine – 3.50 Euro; 1 large beer – 0.6 Euro;
Three course meal for two with wine – 14,90 Euro;
Quality cigarettes - 1,20 Euro.
House insurance: around 100-200 EURO per year
depending on the type of house, together with the
belongings and furniture inside. For a property of
price 30,000 EURO insurance against theft, flood
and fire costs about 125 EURO per year with
a decent insurance company like Allianz.
Gas: the gas system network is not developed in Bulgaria
yet. People here mostly use electricity to cook. For
heating: there are central heating systems in the
big cities: monthly costs for a 2-bedroom apartment
around 120 EURO. In the small places people use charcoal
and wood, which is even cheaper way to heat a house.
For electricity, when used for cooking, light or hot
water one pays about 30 EURO monthly. Local and
national taxes for owning a property: depending on
the place where the property is located, the most
expensive area is the capital Sofia, where the annual
taxes of 2 bedroom apartment are around 150 EURO per
year, but the rest of the country is around 80 EURO per
year.
To employ a gardener or maintenance man or builder
you will not pay much. The average salary in
Bulgaria is 250 EURO per month.
Driving a car in Bulgaria: There are few annual
fees that must be paid every year to drive a
car in our country:
1. Driver responsibility insurance: 30 EURO per
year
2. Road tax (depending on the engine power): around
50 EURO per year for a car of 2000 ccm. engine.
3. MOT: 12 EURO per year
Fuel prices: petrol: 1 EURO/L, diesel: EURO/L,
LPG: only 0.50 euro/l. Most of the cars in Bulgaria
are equipped with LPG systems, so cars are mostly
fueled with the non-pollutant and very cheap propane
gas. There are many petrol stations everywhere, many
garages to service the cars (very cheap though), many
good companies (eg. Allianz). Annual theft and accident
insurance for a brand new car is around 800-1000 EURO.
Bulgaria has the cheapest brand new cars in Europe.
For example the new Renault Clio costs only 6,500 EURO. Second
hand vehicles of any type and brand are available
too in very cheap prices.
How can I manage my property when I am not in
Bulgaria?
CountrysideBulgaria.com provide a complete turn-key
management service to the owners of holiday homes
in Bulgaria: Management & Maintenance (400 Eur per year)
- Owners who are not willing to rent out their property
are welcome to take advantage of our Management &
Maintenance service.
We will look after and keep your property in good
order at any time. This also includes key handling,
full organisation of paperwork, permanent communication
with the property owner at all time, visiting of the
property once on every two weeks to make sure that
everything is fine, representation of the property
owner before third party service providers (inclusive
electricity and water supply companies, electronic
security companies, etc.). Our local team will also
pay the utility bills and annual local tax on your
behalf. If any repairs are needed we can arrange for
a qualified technical person to visit the place and
fix the problem.
Please note that the annual charge does not include
the cost of the bills or services provided. For providing
the above services we charge annual management fee
of 400 Euros (including VAT).
Properties located outside the towns/resorts where
our local office is will be charged additionally at
0.20 Euros/km for covering the transportation costs.
The most important requirement which we have is that
the property is connected to an electronic security
system with live secirity guards (costs approx. 10
Euros per month + equipment). We also must have a
key from the property and a power of attorney in order
to provide these services. We reserve the right not to accept a certain property
for servicing. Management & Letting - Negotiable.
What is the CountrysideBulgaria.com's support
for investors like me purchasing a property in Bulgaria?
We can give you a fair advice and consult you, perform
examination of the market, etc.
We can make a survey for your property.
We can build or refurbish your property at the most
reasonable price.
We can help you with furniture buying.
We can manage your property.
We can advertise your rental property.
Sell your property when you feel it's time to do so.
We can help you buy a car in Bulgaria.
What is the legal treatment of foreign investors
in Bulgaria?
Equal rights and position of the Bulgarian
and foreign investors; Priority of those international agreements
that guarantee more favorable conditions for carrying
out business activities by foreign persons. Unlimited
foreign participation in all forms of business activity
registered in Bulgaria.
Can I obtain Bulgarian residence?
To obtain a permanent residence
one must spend 5 years in Bulgaria under the long-term
stay conditions and we can fully assist you in this
process. A long term stay permit is valid for 1 year
and is issued each year. During each year of stay
you are issued a Bulgarian Identity Card (the same
ID document that each Bulgarian citizen holds.) After
5 years under long-term permit one can apply for permanent
residence. Since each application is strictly individual
the process timeof obtaining a long-term stay conditions
can vary from 10 days to 3 months.
How can be established an enterprise with foreign
investment in Bulgaria?
Foreign investment
typically assumes one of the following forms: establishing
a joint venture with existing companies; acquiring
a company through privatization; setting up a new
(green field) venture or making a portfolio investment.
Which are the preferred types of business
organizations with foreign investment?
The most common
form of organization for foreign investors is a limited
liability company. Other types are general partnership,
limited partnership, joint stock company, sole proprietorship,
joint venture, branch, holding, cooperatives, representative
office. Limited liability companies, unlimited partnerships,
public limited companies, limited partnerships, holdings
and cooperatives are legal entities. Branches and
representations are not independent legal entities:
branches may engage in economic activities, they have
their own property and compile a separate balance
sheet; representations may not engage in economic
activities.
Is the extent or amount of foreign participation
in companies limited?
No
What are the guarantees for foreign investment
in Bulgaria?
National Treatment Most Favored Nation Status Priority of International Treaties Legal Guarantees against Adverse Changes
in the Law - the provisions of the Law that have been
effective at the moment of making the investment,
should be applied for any foreign investment executed
before the changes of the legislation setting up legal
normative restrictions for the foreign investment. Protection Against Expropriation - real
estate property owned by a foreign person can be expropriated
only on lawful grounds, for especially important purposes
of the State that can not be satisfied otherwise.
Who and how may obtain property rights over real
estate in Bulgaria?
Foreign nationals
and foreign legal entities may acquire ownership title
over buildings and limited ownership rights over property
in the Republic of Bulgaria.
Can foreigners acquire ownership rights over land
in Bulgaria?
Foreign individuals
can not own land (this is a Constitutional prohibition).
However, the Foreign Investment Law removed the restrictions
on acquisition of land by locally-registered companies
with foreign participation. By setting up or joining
a company incorporated under the Bulgarian legislation
foreign persons can acquire full land ownership rights
including ownership rights on agricultural land.
What are the regulations for the import and export
of currency by foreigners?
Obviously you will need your passport,
but also some Euros if you want to place a deposit
immediately. (You can bring up to 10,000 Euros each
into Bulgaria without declaring it if you have come
from another EU country.). We would suggest you bring
some sturdy shoes if you are looking at properties
in the country, as some may be less accessible than
others.
Can we pay by credit card or travelers’ cheques?
Travelers’ cheques are cashed
only in the big towns and they charge high commissions
on them. You can pay us using your credit or debit
card for your property. Normal cheques take about
4 weeks to clear and they are not suitable for payments,
especially for placing a deposit!
If our property is only going to be occupied
for about two months of the year, do we really need
to get good security for the rest of the time?
Yes, we
recommend you have special alarm system and private
property protection which costs 13-25 EURO per
month. There are few very professional companies in
Bulgaria providing such service.
Is there fees and commissions charged by CountrysideBulgaria.com?
To buy the land you have to set
up a Bulgarian company in which you are 100%
sole-owner. After that this company buys the property
with the land. We expect the law to be changed in
next 2 years because Bulgaria is already EU member
but for now this is the best way for buying a property
in Bulgaria. Now, practically each foreigner buy in
this way. The TOTAL amount of setting up of this company
will cost you 300 EUR - it includes everything,
the government taxes, set up taxes, lawyer fees etc.
After purchasing of the property your company does
not need any annual taxes or fees for existing
of your company.
The government fees in the purchasing of property
in Bulgaria is average about 2,5% from the
price (it includes government taxes, local fees, notary
fees etc.) but this fees has split between the
buyer and the seller. Also having in mind that
in Bulgaria on the property deed has declared the
tax evaluation of the property which is less
expensive than the market price. For example most
of the rural houses in Bulgaria which market price
is between 10,000 EUR and 30,000 EUR are evaluated
by the Government Tax Ofiice between 3,000 EUR and
10,000 EUR.
Our real estate agent fee is just 3% from
the amount but not less than 600 EUR. Furthermore,
we have not any other fees. If you want to buy a property in
your first visit to Bulgaria you can deposit it for
10% from the amount.
The annual taxes for a home in Bulgaria is
not expensive - between 50 Eur and 200 Eur
per Year depending of the property.
