FAQ

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

What is the property purchasing process?

Once you have found the property and determined whether it is being sold with or without land, you then negotiate and agree a final price with the owner/developer. Contracts are then drawn up and your solicitor will start the process for the standard checks, searches, title documents, debts on file and terms of contract. Once this is all finalised you then sign the Notary Act (Contract to Purchase) in front of a Bulgarian Notary Public and the Final Legal Contract.

What types of properties are on the market?

Bulgaria has a wide variety of properties available from country homes and mountain chalets to seaside apartments. Not only is buying a property in Bulgaria a great investment as the prices are steadily increasing but the properties are considerably lower in price than those elsewhere in Europe.

What are the property prices?

Prices are really dependant on the particular type of property and location you are looking for. As a guide though, new build properties in some of the coastal areas can start from as little as ?20,000.

What is the law on foreigners owning a property?

Under the Bulgarian act on Foreign Ownership, foreigners are not allowed to own land but may own buildings. Foreigners however can take ownership of land by setting up a Bulgarian company to hold the property for them. This is a simple and inexpensive process which is normally undertaken by your lawyer. This is a quirk of Bulgaria which is likely to change over the next few years as Bulgaria gets closer to its EU membership.

What is the Bulgarian legal system like?

The legal system in Bulgaria is very good and generally their professional fees are substantially less than in other parts of Europe.

What are the costs involved in buying a property?

Taxes for each property depend on its price. As a guideline however, the combined state and local taxes will usually equate to around 3.5% of the purchase price. It is worth noting that, whilst there is no obligation on the seller, it is common practice in Bulgaria for these costs to be split between the seller and purchaser.
Based on a property price of ?50,000, the following approximate costs will apply:
Legal fees ?400
Country Tax (Stamp Duty) ?1,000
Notary Fees, translation fees ?250

What about the taxation?

As with any purchase it is important to obtain qualified advice with regard to the legal and taxation issues associated with any proposed property acquisition. Bulgarian Property Estate are not qualified to give such advice, however for your convenience we have included below links to a selection of tax specialists. These are provided for information only and Bulgarian Property Estate has no input, control nor responsibility for the information contained therein.
PriceWaterhouseCoopers - Bulgaria Tax Summary
Rowbotham - Bulgaria Country Profile

Can we open up an overseas bank account?

The opening of a bank account in Bulgaria is a simple process. In normal circumstances your passport will act as proof of identity and is all that is required to open an account. You are often offered the option of opening your account in a choice of currency denominations i.e. Lev, Euro, Dollar or Sterling. Although it is necessary to have a Lev account to facilitate the payment of bills etc it is often useful to combine this with a foreign currency account and/or credit card facility.

What are the management costs of my property?

For apartments within managed developments, charges will vary according to the level of services and facilities provided. As a guideline however, for a two bed apartment in one of the coastal resorts an annual charge of around ?350 per annum can be expected. Bulgaria presently has mains gas on the Northern part of the coast which is slowly expanding southwards. The main bill is electric which is similar to the prices paid in the UK. Bulgaria also has a council tax which is very reasonable at approx ?100 per annum, depending on the location - rural is cheaper. Water charges are around ?5 per month with Cable TV at ?5 per month also.

What is the currency?

The national currency of Bulgaria is the Lev which is now pegged to the Euro at a rate of €1 = Lv 1.955. Most transactions nowadays can be done in either Lev or Euros.

What is the cost of living?

The cost of living in Bulgaria is very low; in fact it is statistically one of the lowest in Europe. With a pint of beer rarely costing more than 50 pence and a three course meal including wine coming in at less than ?8, you can afford to indulge.

What is the food like?

Bulgarian food is close to traditional European cuisine with a Bulgarian menu including bread, yogurt and fresh milk, cheese, tomatoes, paprika, potatoes, onions, beans and fruits, brandy and red or white wine. Bulgarians also love their salads - a salad and Rakia (Bulgarian spirit/schnapps, usually made from grapes) are the obligatory start to the meal.

Some typical Bulgarian specialties and meals:

Shopska salad - prepared from diced tomatoes, fresh cucumbers, green peppers, topped with feta cheese and seasoned with olive oil and parsley
Mlechna salad - prepared from strained yogurt seasoned with olives, crashed walnuts, finely diced garlic and parsley
Tarator - cold served soup from yogurt, fresh cucumbers, seasoned with walnuts, garlic and dill
Sirene po Shopski - feta cheese, diced tomatoes and onion topped with egg and cooked in pottery
Kebapche - minced meat rolls seasoned with traditional spices and fine herbs and barbequed
Kuyfte - minced meat balls seasoned with traditional spices and fine herbs and barbequed
Shish Kebab - grilled skewered meat, onion and paprika
Banitsa - baked pumpkin pastry filled with cheese or meet
Creme Caramel - delicious dessert prepared from fresh milk, eggs and caramelized sugar, similar to the classic French creme brulee.

Restaurants: Wide variety of cuisines is offered. Along with traditional Bulgarian dishes, many restaurants offer Italian, French, Greek, Chinese, German, Arabian, Hungarian, Latin American, Indian and Russian food.

Drinks and prices: You can buy alcohol from any local store or pavilion on the street. Some of them are open 24 hours.

Example prices...
Tea 20p; Coffee 25p; Lunch (simple 2 course meal) ?2.50; McDonalds Burger from 30p; Sandwich 50p; Bottle of beer 50p; Pint of lager 50p; Bottle of wine ?2.50; Ice cream 40p; Soft drink 30p.

What is the weather like?

The climate is continental with Bulgaria enjoying long hot summers and generally mild but variable winters. The summer temperature averages around 28C/82F. March and October are often changeable but can be fine, whilst early November can be extremely pleasant with no wind and temperatures around 21C/70F. On the Black Sea coast winter temperatures are seldom below zero due to the warming effect of the sea.
Inland Bulgaria experiences typical cold continental winters and has excellent ski resorts which have snow from December to April.

What is the language/Do they speak English?

The first language is Bulgarian however the majority of Bulgarians speak English as their second language and they welcome the British tourists with open arms.

Do they have a health service?

Most Bulgarian hospitals are very basic compared to those in the UK, however in most of the tourist resorts you will find a polyclinic where tourists can receive medical attention. There is a charge for these services which varies from resort to resort, but costs are generally low. Please, keep all receipts for insurance claims, but be aware that most policies have an excess. You must always contact your Insurance company immediately to inform them of any accidents or claims.

Formalities;

For clients holding a full 10 year British passport entering Bulgaria on pre-booked arrangements and staying one month or less, it is not necessary to obtain a visa. (If you hold travel documents or passports of other nationalities, you should check with the respective consulates whether a visa s required).