BULGARIAN BLACK SEA COAST

The Bulgarian Black Sea Coast is the place to be in summer. For travellers who want to experience the beauty of a European beach resort without paying outrageous prices, there's nothing like the 235-mile Black Sea coast of Bulgaria. Much of the coast is covered by long beaches with fine white sand. The sea itself is non-tidal, less salty and warmer than the Mediterranean. The coast is also dotted with mineral springs with curative properties, used as part of the facilities in the health and spa centres and the hotels, some of which are open to the public too. Add the abundance of sunshine and the Black Sea Riviera is the unspoilt place in the sun.
Eleven of the beaches received the BLUE FLAG in 2003 recognition for their environmental and safety standards. The whole coast is dotted with private villas and houses in proximity to the resorts offering the best of two worlds - privacy and opportunity for nightlife in the commercial resorts.
The resorts have been purpose-built away from the cities but near enough if you wish to find out how the locals live.

Some of the main seaside resorts are Sunny Beach, Golden Sands, Albena, St. Constantine, Elenite, etc. Two of the most popular coastal towns are Sozopol, an artistic community famous for its ancient architecture, folk festivals and art galleries, and the ancient port town of Nessebar, with dozens of Byzantine churches and unique 19th-century houses.


Varna and Burgas are the largest airport cities on the Black Sea coast. Other popular towns and resorts (from north to south) are Kavarna, Balchik, Obzor, St. Vlas, Ravda, Pomorie, Primorsko, Kiten, Tzarevo, Ahtopol and Sinemoretz.

Búlgaría: The Ten Reasons

1. Feeling welcome in a foreign country. This is the thing everyone considers when taking the crucial decision to move abroad – either permanently or for a few weeks a year. The feedback we have received from you over these last 5 years indicates that first BulgarianProperties and later your new neighbours have turned out to be extremely helpful and nice people who have done a lot of things to make you feel at home. Some of you have even said that the attitude of the locals was one of the things that helped you integrate much easier than you had expected.

2. Will I receive the necessary level of professionalism, help and advice that I need when searching for a property? Your comments say that this is one of the most worrying issues when buying a real estate (not only abroad) and you say that you did receive it from BulgarianProperties. Most of you comment that your real estate agents guided you step by step through the process thus alleviating the stress and even making the process fun.

3. Smooth and easy procedure when buying my property. We know what it is like to see a property on the internet, to like it and to want to own it. The fact that it is abroad is a minor detail; at least that is what we can see from your feedback. You say that the procedure was made extremely smooth by BulgarianProperties who guided you every step of the way.

4. Can I buy property without ever setting foot in Bulgaria? In todays progressive world, and with the help of the Internet, everything can be achieved without even leaving your armchair! Although buying property is not the same as buying a watch or a dress, according to your e-mails BulgarianProperties has managed that task quite well. Some of you have bought your dream real estate with the push of a few buttons on the keyboard and the skillful guidance of our real estate agents.

5. Paperwork! Now this is a dirty word when talking about property purchasing. Especially when you have set your mind on buying a home abroad. You sit and worry whether you will receive the necessary advice, whether you will be helped adequately in the specific country, whether it won’t turn out to be too expensive. The conclusions we made from your feedback are identical – all of you are now the proud owners of a home/homes in Bulgaria saying that the paperwork was, in fact, made quite easy by the staff of BulgarianProperties!

6. Up-to-date information. As you know, the legislation in a country changes constantly and the most important thing when thinking of purchasing a home is to find the right people who know all the changes and can provide you with adequate advice. From what we have been reading in your comments we can see the result: happy homeowners gratified by the speedy receipt of sufficient and current information from the experienced associates of BulgarianProperties.

7. Expedience/efficiency in replying. After a decision to buy is taken comes the gathering of information. We know how excruciating it is to be kept waiting for too long to receive a reply therefore we have a policy according to which we reply to our clients within 24 hours of their inquiry. We believe it is important to provide our clients with as much details as possible in order to make them feel secure in their choice. Your e-mails say to us that this policy works, and quite well at that.

8. Friendly attitude. This is something that can most definitely make the potential buyer choose to work with a company and the lack of it - to make them avoid this company. BulgarianProperties, after five dynamic years of operations on the real estate market, have numerous fans and friends thanks to the open approach and many smiles which we can feel even through the e-mails.

9. Making you feel our most important client. This is a winning strategy and now we can already tell you our little secret – EACH AND EVERY ONE OF YOU IS, IN FACT, OUR MOST IMPORTANT CLIENT. All of you are special to us and we would like to thank you for being our clients and friends through the years!

10. All arrangements are already made by us: travel, accomodation, legal advice, viewings of the property, etc. A hassle-free visit. This is what every client wants, no matter what they are buying. Especially when it comes to purchasing a property in a foreign country and BulgarianProperties know how to organise your visits best. We read quite a few of your comments saying that you were afraid that not everything would run as smooth as you hoped but that in the end you left with a smile on your face and a title deed in your pocket.

Bulgaria Still Tops Investors' List

www.holidaylettings.co.uk

 

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Bulgaria, Turkey and France are the three countries set to see the biggest growth in demand among overseas property investors, a new survey has found.

Fly2let.co.uk reports that the NatWest International Personal Banking League of Buying Abroad found that 75 per cent of mortgage brokers expect to see an increase in the number of people looking to buy in Bulgaria in the next three years. Turkey, with 56 per cent, and France , with 46 per cent, were also expected to see a rise in demand.
Portugal, at 41 per cent, and Spain, with 31 per cent, completed the top five locations expected to be popular with investors.

"With the expansion of the EU, better transport links and an increase in low cost airlines offering cheap available flights to countries all over the world, the choice when buying abroad has increased significantly," Mike Freer, head of business development at NatWest, said.

Búlgaría: Dobrinishte Resort Gains Ground on Bansko

Dobrinishte resort has been attracting investor and tourist interest in recent years. Some see it as an alternative to the front-runner Bansko because of its reduced construction and the ski zone just above the resort, which includes a 5 km long piste - starting from Bezbog chalet and passing by Gotse Delchev lodge – as well as a two-seat lift and a number of drag-lifts.

Real estate agency analysts report a considerable interest in Dobrinishte over the last year. The resort offers the opportunity to develop active winter tourism and explore the mineral springs' potential. Plans are afoot to erect a large ski area in Dobrinishte, encompassing new ski-runs, tourist tracks and a hotel. The developers vowed not to allow massive construction in the resort.

Búlgaría: Sozopol's news

Dnevnik daily reports that the new mayor of the town of Sozopol on Bulgaria's Black Sea has presented the amendments to the urban zoning plan, which would see 10km of coastline between Sozopol and Chernomorets built up into a an upgraded luxury version of of Sunny Beach resort.
Panayot Reizi, decided in November 2007, and new chief architect Roumen Aleksandrov announced plans for the building of beachfront villas, an aqua park, three golf courses and a small runway for charter planes. The suggested developments have been included in the revised general zoning plan of the city of Sozopol and would be presented to the municipal council within the next two weeks.
The planned holiday facilities would be built on privately-owned agricultural plot that is not in regulation still. Construction will be limited in size to small farmstead-type houses with no more than 2-3 floors. Under the revised zoning plan, the Sozopol area should have no more than 150 000 inhabitants during the peak of the summer season.

Golf Tourism Development to Attract Affluent Tourists to Bulgaria

sofiaecho.com

 

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Bulgaria has turned to golf, a sport not too popular in the country until now, looking to attract affluent tourists, AFP reported.

"Golf tourism development is very important - the regular tourist usually spends from 50 to 100 euro a day, while the golf tourist would rather spend from 400 to 500 euro," a Bulgarian investor said, quoted by AFP.

"Without quality golf courses Bulgaria will remain a cheap destination. It will continue to attract tourist flows, but without any major impact on the economy", he said.

Bulgaria's Black Sea coast and its mountain resorts are popular among more "modest" tourists from Western Europe and those from the former Soviet countries. At the same time savvy investors have anticipated Bulgaria's strong potential as a golf destination.

Climate and nature are similar to those in Spain, one of the most popular golf destinations in the world. Only three golf courses are now functioning in Bulgaria, while 15 are still in the pipeline.

View our offers near golf courses

Rural Properties in Bulgaria – attractive second homes and also a good investment

A lot has been said about the property market in Bulgaria and about the pros and cons of buying a property in this country.

Indisputably, Bulgaria offers:
• A great variety of geographically different areas to suit all tastes.
• The property prices are still below the average minimum in other EU countries.
• Investment in properties in Bulgaria is the most profitable in the world according to statistics for 2007 when the prices increased with around 28%.

These are all facts supported by specialized statistics and analysis.

The property markets in the capital, the ski and beach resorts have been widely discussed as these are the places with the greatest concentration of investment interest and highest returns on investment.

What about the rest of the country? It is interesting to know what the small settlements offer in terms of a chance for a new life and property investment? This article aims to uncover the important aspects about buying rural properties in Bulgaria.

1. Why do foreigners buy rural properties in Bulgaria?

Most of them are attracted by:
• low property prices;
• mild climate;
• low cost of living;
• hospitable Bulgarian people and
• chances to start a new life in a modernizing country with great opportunities.

Bulgaria has been an EU member since 2007, which means easier adaptation for EU citizens to the life in Bulgaria.

Many foreigners like the “back to basics” way of life in Bulgaria:
• living in a quiet, friendly village, not commercialized;
• having a huge garden;
• planting and growing vegetables for a healthy diet;
• having fruit trees in the gardens;
• inviting friends for dinners;
• having more free time and relaxation, away from any noise and pollution;
• slowing down the pace and finding the true things in life;
• socializing and learning new things;
• and many more, because Bulgaria offers something for everyone.

2. Where do foreigners buy rural properties?

The answer of this question can be: “All over the country”.
For the ones who don’t know a lot about Bulgaria these are the towns and villages around the following regional centres: Burgas, Varna, Veliko Tarnovo, Gabrovo, Karlovo, Plovdiv, Stara Zagora, Elhovo, Yambol, Kardjali, Haskovo, Sliven, Vidin, Pleven, Sofia and Montana.

Our section Towns and villages gives a lot of information about the peculiarities of each area.

3. Why are rural properties a good investment?

The statistics usually concentrate on the best investment locations in Bulgaria. However, rural properties have also appreciated in value quite a lot over the years although this is not the main reason why people buy rural properties. Truly, they don’t yield the highest returns on investment, but are a safe investment asset as well as an excellent choice for a second home for vacations or a new life.

Here is what BulgarianProperties’ statistics for 2007 compared to 2006 shows for the rural properties around the following regional centres (the figures reflect only the rural properties price increases):

Plovdiv and Stara Zagora:
2007 price increase: 37% ; Average price in 2007*: 14,000 Euros
Elhovo, Yambol and Sliven:
2007 price increase: 26%; Average price in 2007: 13,600 Euros
Varna:
2007 price increase: 24%; Average price in 2007: 55,260 Euros
Burgas:
2007 price increase: 19% ; Average price in 2007: 31,000 Euros
Montana:
2007 price increase: 19%; Average price in 2007: 6,230 Euros
Kardjali:
2007 price increase: 17%; Average price in 2007: 16,000 Euros
Vidin:
2007 price increase: 16% ; Average price in 2007: 10,500 Euros
Central Balkan area:
2007 price increase: 13%; Average price in 2007: 14,200 Euros

*These are all average prices which serve as indicators for market analysis. There are more and less expensive properties in any of the listed areas.

The statistics are based on completed deals in 2007 compared to 2006 and reflect the real match of supply and demand for rural properties in the different areas. This is the price increase only for 1 year. The numbers will be much higher if we calculate the price increases of the rural properties since 2003 when the property market started booming.

The most expensive areas in 2007 remain Varna and Burgas. The cheapest areas are still Montana and Vidin. Vidin is a prospectively very attractive area with the building of Danube Bridge II and the growing investment in the area. The prices in the other areas tend to become similar with the underestimated areas like Plovdiv and Stara Zagora quickly catching up with the rest with higher price increases.

So, we can say that rural properties are a very stable investment option as it yields a double-digit appreciation per year, which is better than what any bank can offer. More and more newly renovated rural properties are coming to the market for sale, which helps the buyers, who want to buy something that is ready to move in to.

Although the highest returns on investment can be expected from Sofia city properties and the beach and ski resorts (where the properties can also be rented), the rural properties should not be underestimated in terms of safety and value appreciation.

Rural properties in Bulgaria offer numerous chances to experience a new way of life, back to basics, surrounded by the beautiful Bulgarian nature and are at the same time are a good investment protecting the value of the savings people have.

Bulgaria - World Leader for Property Investment

Bulgaria property investment has proven to be the country's economic driver with a record-breaking turnover of €11.36 billion in 2007, investment company Obelisk International says.

As the world's strongest property market in 2007, Bulgaria property investment has made a huge €2.36 billion increase on 2006 figures, and is successfully keeping up the momentum for 2008.

Many local and international property experts predicted the year's increase to reach 25% to 30% however by September the market had actually risen by 32% and many major cities, such as Sofia, are already recording impressive growth this year.

The huge property price rise has been largely attributed to a good mortgage market, high annual revenue of properties and the weak impact of the world's financial crisis on Bulgaria. The Bulgarian financial market has not been impacted by the US sub-prime crisis due to no cross-border banking, with consumer borrowing continuing at a steady growth rate.

Búlgaría: One Billion Euro Invested in Bansko

It has been calculated that in the last 5-6 years about 1 billion euros have been invested in Bulgaria’s winter resort of Bansko. The reason for the great development boom in the resort is the favorable investment climate the local authorities have created, the town’s Mayor Alexander Kravarov said. He added that when the developers are given good working conditions and receive the needed cooperation from the various institutions they do not have to be attracted as they come by themselves.

The projects on which the Municipality of Bansko is working are many. The main projects are related mostly to the development of the areas and the construction of roads, water mains, sewerage, dams for drinking and irrigation water. They are executed in Bansko but also in the neighboring town of Dobrinishte and the adjoining villages.
After the construction boom of immeasurable scale and the just about total exploitation of unoccupied plots of land the demand of properties in the municipality is at a standstill, Mayor Kravarov explained. He also said that this is quite normal due to the international market crisis.

“We depend on the policy of the banks, on the interest rates and on the granted loans,” the Mayor underscored. “The prices of the plots of land here are between 30 and 400 euro per square meter. Foreigners and big construction companies are the groups looking for investment possibilities at the moment. But it must be added that the small construction companies are also quite interested.”

 

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7 reasons to buy a property in Bulgaria in 2008

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Bulgaria offers one of the best taxation laws in Europe to stimulate economic activities, foreign business and property investment. The country is now part of the EU and all EU citizens benefit from special taxation treatment. They are taxed as local persons and can take advantage of the attractive taxation in Bulgaria. Here we explain how.

We emphasize on the most important issues in this article. For additional customized advice and comments, please send us your enquiry.

There are two groups of tax liable persons – physical persons and companies. Physical persons’ taxation is explained in Section I and corporate taxation – in Section II of this article.

Section I

I. Physical persons’ incomes taxation in Bulgaria – this is applicable to physical persons who own apartments in Bulgaria.

Property owners, who have houses or plots of land in Bulgaria, please read section II. Corporate taxation is applicable in your cases as you have established limited companies in order to own property in Bulgaria.

The law makes a difference between the physical persons who are local or are citizens of EU countries and those who are citizens of countries not part of the EU. Thus, we will point out the taxation for each of those 2 groups:

1. Taxation for incomes of physical persons who are local or are citizens of EU countries or countries that belong to the EU economic area.

TAX FREE INCOMES

1. Incomes received from the sale or exchange of up to one residential property per year. It is not necessary for the owner to have lived in the property but it needs to be a residential property, not land. There is also no requirement for the term of possession of the property – this means it can have been bought at any time, even during the same year.

This gives very good opportunities for property investors who buy for investment and resale as their incomes will not be taxed.

2. Incomes received from the sale or exchange of up to 2 residential properties as well as agricultural land or forests (there is no restriction on the number of land and forests) if the above properties have been possessed by the person for more than 5 years.

Apart from property incomes, there are also a number of other sources of income which are tax free. Some of these are the incomes from deals with public limited company shares traded on the Bulgarian stock exchange. Any interest gained on funds in personal savings accounts in Bulgarian banks or international bank branches in Bulgaria are also tax free.

WHAT IS NOT AN INCOME (and is thus tax free)?

The law doesn’t regard as an income the properties which are inherited or donated. The company shares received from non-monetary installments into trading companies are also not an income.

TAXABLE INCOMES

1. The sales or exchange of more than 1 residential property per year.

2. The sale or exchange of agricultural land or forests no matter of their number if they are owned by the seller for less than 5 years. This is something that doesn’t apply for foreign persons as they cannot own land as physical persons and they need to set up limited companies, thus they need to refer to section II for corporate taxation issues.

3. Property rental incomes


2. Incomes taxation of physical persons who are not local or are not citizens of EU countries or countries that belong to the EU economic area.

All incomes from the sale, exchange, rent or any other property right, which is paid for, received by persons who are not local and are not citizens of EU countries or countries in the EU economic area, are taxed. The tax rate is 10% and is collected and paid by BulgarianProperties if they serve as an agent in the deal.

3. Dividend tax

The dividend tax rate is 5% and it is applicable for incomes received in the form of shared profit by all Bulgarian or foreign physical persons when the source of income is Bulgaria. This means that if a person owns (or has a share in) a company in Bulgaria and this company trades in the country and shares profit, the physical person owner (or shareholder) of the company is taxed with 5% dividend tax, which is collected and paid to the state by the Bulgarian company, which shares the profit.

Section II

II. Corporate incomes taxation in Bulgaria

Corporate incomes taxation is applicable to the net profits of Bulgarian companies from their trading activities. This means that if you are a foreign person and you have established a company in Bulgaria in order to buy a house or land, when renting or selling the property on behalf of the company, you are entitled to pay corporate tax.

The tax rate is 10% and is calculated on the difference between the total incomes of the company for the year less the total expenditures. All Bulgarian companies submit tax declarations and pay their annual corporate taxes by March 31st each year.

There are no tax free corporate incomes and no matter how long the property is owned by the company, the company always pays taxes in case of property sale or rent.

IMPORTANT: All Bulgarian companies must submit tax declarations by March 31st no matter if they have traded or not – this is compulsory and all companies should have an accountant to take care of this. If you need help in finding an accountant, please let us know.


III. SUMMARY

7 reasons why you should invest in property in Bulgaria in 2008:

1. No tax on the profit from resale of 1 apartment per year.
2. No tax on the profit from resale of 2 apartments owned for more than 5 years – for long-term investments.
3. No tax on the interest gained from personal savings in Bulgarian banks.
4. Flat rate of as low as 10% for all taxable incomes – one of the lowest in the world!
5. Flat rate of as low as 10% for corporate profits – one of the lowest in Europe!
6. Double taxation agreements with many countries in the world.
7. Flat rate of as low as 5% for dividends shared by Bulgarian companies – a very good incentive to start business operations in Bulgaria.

And an additional one – a stable property market with the greatest price growth in 2007 in the world!

In the next issue we will point out the major trends and most interesting facts about the property market in Bulgaria in 2007 according to the BulgarianProperties Annual Report.