Nowadays Bulgaria is experiencing a rapid development and a significant growth in prosperity. In addition to the fact that tourists from all over the world come here for taking rest every summer, there has been another tendency in Bulgaria. Many successful people acquire real estate here. And it is not surprising. The country possesses all the qualities not only for spending a few summer months there, but for living there all the year round. Bulgarian real estate market is constantly developed and grown, as investors concluded that it is very profitable to invest in Bulgarian property. Investment situation here is favorable. Spending money to purchase apartments, villas or land on the Bulgarian coast today, the investor can get up to 100% of profit by reselling their property later.
As generally known, when investing in foreign real estate it is necessary to take into consideration a number of factors: the dynamics of housing prices change, political and economic stability, the potential risks, as well as the cost and complexity (or simplicity) of the purchase procedure, etc. If to consider Bulgaria from these sides, we can distinguish several advantages, thanks to which the country is very attractive for investment in real estate today:
1. There are no serious barriers to the adaptation of Russian-speaking people. Bulgarians are traditionally friendly to the Russian-speaking visitors.
2. After long years of stagnation, the country is creating a new infrastructure with the help of the European Union. After joining this organization in 2007, the economy and real estate market will prosper. According to specialists’ forecasts, the property price growth will be 20-40% per year.
3. Real estate near the sea in the touristic zone always can bring income from rent. Using the own “resort house” it is possible to earn, giving apartments for rent while being absent: the owner is able to return 2.5% of the house price in a month.
4. The infrastructure is rapidly developed and soon Bulgaria will become a resort of the European standard in all senses of this word, including the price of the real estate, that is why making investments during this period is the most profitable.
5. Developers are offered very favorable terms for the credit and payment, alongside with a high level of quality. Besides, very often a developer himself organizes the commercial use of residential apartments in the newly built complexes.
6. The banking system has been developed greatly: 70% of all its assets belong to such world leaders as Citibank, RaiffeisenBank, INGBank, So-cieteGenerale, BanqueNational deParis, NationalBank of Greece, UniCredito Italiano, and others.
7. Low rates on mortgage credits are offered by local banks - from 6.5% in contrast to the situation in Ukraine.
8. The increase in alternative forms of financing of the real estate purchase: The presence of legislation in the area of investment companies - REIT (Real Estate Investment Trusts). In 2004 the first Bulgarian financial funds appeared, the country is already considered by major European financial giants that after joining the EU will be allowed to invest in Bulgaria.
9. Bulgaria has a steadily developing market economy (average GDP growth is above 4% per year, the country's inflation rate for 2004 is 6.1%, the economy growth over the same period is 5.5%). National regime for the foreign firms is quite enough judicial guaranty for unimpeded investments, their protection and gaining reliable income without any governmental interference. The gained profits can be easily transferred abroad after making tax payments.
10. The country has beneficial tax treatment (income tax and VAT): the rates are among the lowest in Central and Eastern Europe. When reinvesting the profits the tax rate is 0% (since 2002). There is no retroactive taxation in the country. 42 agreements on mutual protection and promotion of foreign investments and on the avoidance of double taxation were approved, that provides easy transfer of funds with minimal costs. You can get more detailed information about the attractiveness of investment projects for the Bulgarian real estate from the experts.
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