The Bulgaria Business Site

Transfer taxes

Apart from corporate tax (currently 15%), no other direct taxes are levied on the transfer of real property. The transfer is, however, subject to notary and municipal fees. The notary fees are paid on the higher of the market price or the book value of the property at varying rates, with the maximum being BGN3,500 (about EUR1,750). In addition, 2% of the market value of the property is paid to the municipality in which the real property is situated upon completion.

Capital Gains Tax

There is no Capital Gains Tax on the profit when a company sells the property, but the standard rate of corporate tax is applicable (currently 15%). Read the rest of this entry »

A foreign national or Bulgarian citizen (judicial or physical) can form a company. The person/persons will be liable for the company’s obligations to the value of his/her share in the company’s registered capital. The shareholders conduct preliminary discussions on the commercial activities they intend to engage in. Based on their agreement, Articles of Incorporation are prepared & signed by all shareholders.

A dedicated bank account is opened to collect all share capital. The minimum share capital required is 5,000 leva. Shareholders at time of registration must have paid at least 1/3 of their respective shares. It is required that at least 70% (3,500 leva) of the capital is raised at time of registration. Read the rest of this entry »

Once you identify a suitable property, a typical purchase process in Bulgaria could be broken down into the following stages:

- Place a deposit to reserve your plot

- Sign a preliminary contract

- Set up a company (you don’t have to set up a company if you are buying an apartment)

- Checks are carried out on: Title Documents, Licenses and Permissions, Debts on the Title, Terms of Contract

- Sign the Notary Act
Read the rest of this entry »

Forecasts in Bulgaria

Market mechanisms are about to affect the real estate market, and prices will grow only where the properties have real, lasting value. Driven by
steady demand, high-end properties will appreciate at a moderate rate. However, the prices of some overestimated properties are expected to
remain stable.

Investment in the residential sector is in the spotlight as developers and investors continue perceiving then as high-yield potential. Read the rest of this entry »

Why invest in Bulgaria?

• Bulgarian property prices are currently some of the cheapest in Europe
• Bulgaria is scheduled to join the European Union in 2007
• The Black Sea airports are about three hours flight from Britain
• All major British tour operators will be on the Black Sea coast next year. Some, such as Thompson, for the first time
• The Black Sea coast boasts 220km of sandy beaches and enjoys more than 1700 hours of sunshine from May to October
• Last year property prices rose by more than 30% - and that BEFORE accession to the EU starts to make the country wealthier. Remember, Spain and Ireland were backwater with supplies of bargain basement property before the EU started pouring billions into their economies
• The country’s diverse climate means it has both ski and beach resorts
• The cost of living there is one of the lowest in Europe - with a pint of lager costing about 40p and a three-course meal, with wine, priced at no more than £5 a head
• Bulgaria has recently joined NATO
• Its currency is stable and linked to the Euro Read the rest of this entry »

Bulgaria is situated in Southeast Europe and occupies the eastern part of the Balkan Peninsula. To the north, it borders on Romania, to the west on the
Republic of Macedonia and the Federal Republic of Yugoslavia, to the east on the Black Sea, to the south on Greece and to the southeast on Turkey’s European
part.

Occupying an area of 110,000 sq.km with a population of 8.4 million, Bulgaria’s topology is extremely varied from large plains and lowlands, low and high
mountains to valleys and lovely gorges. With so much beauty on such a tiny land, the sights and sounds are breathtaking - curious rock formations and mysterious
caves; sunny seashores with golden sands, quiet coves and romantic capes;majestic mountains with fiery peaks, mirror lakes and shady woods full of scent. Read the rest of this entry »