Country Profile: Bulgaria

Currently in the spotlight as one of Europe's hottest new holiday destinations and most popular property investment locations. The appeal is easy to see as Bulgaria has an irresistible combination of low prices, beautiful coastlines and fantastic skiing.

Since 2003, the real estate market in Bulgaria has boomed. It has shaken off its Communist past and embraced capitalism. With EU entry beckoning in 2007, the country is highly dynamic and forward moving. EU money is already entering into the country with new roads being built and infrastructure being improved.

Although property is currently centre if attention in Bulgaria, the boom is not one sided. The economy has consistently improved with the national average increase being over 6%. Certainly much better than the UK's sluggish 2% (and high debt levels).

The rental market in Bulgaria is also developing well and is steadily on the increase. With new apartments and villas being built to good standards and with desirable facilities, the rental market has flourished in the last two years. In prime resort areas throughout the country, rentals returns are typically around 7% per annum. With the help of professional rental companies, regular occupation can no doubt be achieved.

Property Laws

Currently, all freehold property in Bulgaria must be purchased via a Ltd company if you are a non-Bulgarian national, however; this law is to be abolished with EU entry. Foreigners may purchase leasehold property in their own names.

As many of our property that we sell are freehold, our local partners assist with setting up a company. It is a relatively simple process that takes around 3 hours of your time. You must bring with your passport, company set up fee which is around 775 Euros and a deposit for your company account. This deposit is 2600 Euros and will remain yours. It can be withdrawn after the company has been legalised which takes 21 days.

Many people are concerned over the state of Bulgarian property laws- i.e. whether their property could be repossessed, as in Spain? Property laws in Bulgaria are very strong and in fact, the percentage of property ownership is much higher than in UK. UK property ownership is 76% whereas in Bulgaria it is 92%.

It takes an act of Parliament to repossess your property and in the unlikely event of this happening, you would be compensated with a property of equal value of your choice. In England, a law has just been passed recently that states if you have an unoccupied property for 6 months, your local council are entitled to take it and rent it out at their discretion for a period of up to 7 years. Therefore; owning a property in Bulgaria is actually safer than in the UK and many other developed markets such as Spain.

It is our view that Bulgaria is maturing into a long term attractive holiday and retirement property market.

For further details on the prime areas of Bulgaria, please feel free to browse the links below.

The Coast

The Mountains and Skiing