Why Bulgaria

Macroeconomic stability:

• Political and economic stability
• Sustained GDP growth of 4.7-4.9 % per year
• NATO membership achieved in 2004
• EU membership set for 1 January 2007
• Very competitive labor cost compared to the rest of Europe
• Very competitive tax regime - 15% corporate profit tax as of 1 January 2005
• Well educated, highly trained English speaking workforce
• Strategic geographic location
• Full national treatment of foreign investment

Top tourist destination:

• Bulgaria voted No. 4 tourist destination worldwide by The Washington Post
• 22% average annual growth of tourist arrivals for 2002 – 2004
• 43% year-on-year increase in British tourists for 2003
• Well developed and constantly improving summer resorts
• Excellent skiing opportunities with guaranteed winter snowfall
• Unbeatable prices guaranteeing best value for money holidays
• 1600 thermal mineral water springs
• Rich historical and cultural heritage
• Easy access from Europe

Booming real estate sector:

• 25% price growth in the last 12 months
• Still lowest real estate prices in Europe
• Strong year round corporate letting market in Sofia
• Dramatic increase in demand for quality accommodation at Bulgarian resorts
• Strong drive for property purchase from Bulgarians living abroad
• Bulgaria on the agenda of top European real estate investment funds
  

"The Times" - Why Buy in Bulgaria?

Low property prices, beautiful countryside, historic towns and unchanged rural traditions. The cost of living is also surprisingly low and makes Turkey look expensive. The food is good and a meal out costs £5, a beer 50p, and an espresso 15p. And if Bulgaria joins the EU, there is the possibility that property prices could take off, rewarding early buyers.

Why not?

There are still restrictions on foreigners buying properties with land, which includes anything with a garden. The way round this is to set up a company, which can be arranged by agents. Such restrictions are expected to be removed as part of Bulgaria is preparation for joining the EU but there is some opposition, caused by fears that foreign buyers will snap up agricultural land. Bulgaria has problems with crime and corruption and although is more politically stable under the current Prime Minister, the former king Simeon II, there are some who are less enthusiastic about the reforms required to meet the standards set for EU membership.

What do the Bulgarians think of foreign buyers?

It would be understandable if Bulgarians have mixed views about overseas buyers regarding the country as good for cheap property. Houses for £20,000 may look like a bargain to UK buyers, but it is worth remembering that the average annual income in Bulgaria is about £1,000. Agents say that most people, however, welcome the foreign investment.

What are the costs?

Both buyers and sellers pay commission to estate agents, with charges ranging from 3 per cent to 6 per cent. There is also a form of stamp duty equivalent to about 2 per cent of the price.

What is on the market?

Properties come in a wide variety of prices. For anyone seeking rustic solitude a four-room house near Veliko Turnovo, in need of work and without water, could be yours for £5,000. Also available are assorted seafront properties - a new villa at Varna, where there is an airport, will cost you £49,000. A luxury, architect-designed seafront villa with a heated pool is offered at £172,000. For skiing enthusiasts there are new flats in Bansko from £12,000, while a five-bedroom house in the
town is priced at £46,000. Flats in the new golf resort on the Black Sea are priced from £30,000.

Getting there

There are direct flights year round from the UK to Sofia, with the Black Sea served by airports at Varna and Burgas. Out of season, however, when the charter flights from the UK are not operating, visitors to the Black Sea will need to fly to Sofia and take an internal flight.


More information

Visitors from the UK can stay without a visa up to 30 days in a period of 3 months. For longer visits you will need to arrange a visa. For information on visas and tourism in Bulgaria call the Bulgarian Embassy in London on 020-7584 9433 or see www.bulgarianembassy.org.uk

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