BULGARIA

Bulgaria is situated at the crossroads of Europe and Asia in the heart of the Balkan Peninsula. It is a country of immense variety, both geographically and culturally. As a destination, the country has only received widespread recognition within the last couple of years. Many locations have yet to be discovered by international tourists and buyers.

Quiet, pastoral and famously fertile, Bulgaria has a territory of around 111 000 sq. km. but its population is only 8 million. The country also has a royal family, and the present monarch, King Simeon II, is a distant relative of the Queen of England.

Since 1989, when the communist regime fell, Bulgaria has managed to transform itself embracing democracy, and opening its arms to tourists and foreign investors. The economy is growing at 6% per year and unemployment is falling fast. Bulgaria has joined the European Union on 01/01/2007. Inward investment continues to grow, with international organizations such as the OECD predicting strong economic prosperity for the foreseeable future. With so much to offer some view Bulgaria as “the new Spain”. But because of its unique position and blend of European and Asian culture Bulgaria is unlike anywhere else. International interest in the property market was initially concentrated in the coastal beach resorts of the Black Sea. As the market developed and matured an ever increasing variety of property has become available catering to the differing interests and needs of international buyers. Prospective buyers can now choose between mountain ski resorts, historic villages, luxury apartments in the capital or coastal villas.

Bulgaria has had a rich and colorful history. Even tourists that are not religious are likely to be impressed by the country’s 160 monasteries. Remnants of Roman amphitheatres, Thracian tombs and Turkish fortresses will bring many memorable sights to history enthusiasts.

The different regions accross Bulgaria

Black Sea Coast

The modern beach resorts, situated on the golden sands of the Black Sea offer the visitors nature beauty, ancient history and modern architecture. They offer a budget alternative to more expensive European resorts while quality of service does not fall behind Western European standards. The Black Sea Coast beaches occupy approximately 130 kilometres. The area’s average air temperature is around 28 C. There are more than 240 hours of sunshine in May and September and more than 300 hrs in July and August.

Sunny Beach

Sunny Beach is one of the biggest sea resorts, with the longest and widest beach strip. It lies only 4 km north of the city of Bourgas, featuring wide and warm sea with gently sloping sand bottom. Among its advantages are: a wide semicircular bay facing east, a 8 km long and 30-60 m wide beach strip, fine golden sand, natural dunes among which 16 rare plant varieties grow, clean water and gently sloping sea bottom, calm sea without tides, invigorating air, carrying the freshness of the nearby mountains, sea breeze which make scorching days easy to bear and nights pleasant cool, and around 1700 hours of sunshine from May to October.

Sunny Beach sea resort offers various sports amenities, such as a yachting club, and aquatic facilities along the whole beach: instruction in yachting, wind surfing, water skiing, motor-launch cruises, para-sailing, hang-gliding, well-maintained and equipped tennis courts, tennis schools, skilled partners, tournaments. There are also stables and a riding school. In addition, the resort offers alternative sports, such as aquatic sports, bowling and mini-golf, volleyball on the beach and archery. Sunny Beach is mainly popular among young people. The Golden Orpheus International Festival of Popular Song, the Decade of Symphonic Music, part of the International Folklore Festival, fashion-shows and various beach competitions are held here.

The climate of the area is Mediterranean, explaining Sunny Beach's popularity with tourists since before the fall of communism. Since that time the resort's popularity has grown among German holidaymakers, who add to the already large numbers of Bulgarian and Russian visitors. More recently, Sunny Beach has begun to attract the attention of British and Scandinavian tourists, for whom it is a more affordable alternative to the established Mediterranean resorts.

Saint Vlas

Saint Vlas is situated at the foot of the Balkan Mountain surrounded by picturesque nature and beach line of total length of 1.5 km. The place where Saint Vlas is situated is the biggest tourist area in Bulgaria. The so called Riviera consists of Aheloy, Ravda, Sunny Beach, Saint Vlas and Elenite. What makes Saint Vlas a preferred destination for holidaymakers and investors is the winning combination of sea and mountain climate. Saint Vlas is just 4 km north of Sunny Beach, and around 1hr from Varna international airport.

Saint Vlas is one of the most fast-developing seaside settlements settlements due to the fact that the necessary social and technical infrastructure is available - kindergarten, elementary school, library club, a health center, cleaning station. The town is also famous for its brand new and beautiful yacht port, which is being developed close to the water base of the local fishermen. Saint Vlas is a modern beach destination, with brand new hotels and tourist infrastructure.

Bansko

Bansko ski resort is situated in Southwestern Bulgaria, in the foot hills of one of the most stunningly beautiful Bulgarian mountain ranges, the Pirin Mountains. It is located at an altitude of 1936 meters above sea level. Bansko, once mainly a stockbreeding and travelling merchant community, has nowadays become a centre of winter and summer tourism. It is the most developed and most popular ski resort in Bulgaria and has seen huge investment in recent years. Bansko property for sale is increasing in value, as it offers prime location, World class skiing, and top quality golf courses. Bansko property provides the investor with an unbeatable combination of mountain beauty, romance and a modern resort of international quality, with ski runs to suit all skill levels.

Golf Hotspots

Bulgaria is a holiday address, destined by nature. As calls for developing year-round destinations gain momentum in the country, new opportunities attract those looking for adventure and special interest tourism. Golf course development has recently experienced a boom, as Bulgaria’s image of a seasonal tourist destination is changing, and is gradually becoming a place of reference for the wealthy Europeans to spend their holiday. Currently three famous golfers, Gary Player, Ian Usnam and Jack Nicklaus are involved in designing 5 golf courses in Bulgaria. In 15 years time, there will be 40 golf courses in Bulgaria – on the Black Sea Coast, around Sofia, Elena, Gabrovo, Trun, and Miroviane.

Bulgarian climate and nature are a very influential prerequisite for the development of Golf tourism. The Golf season lasts from 8 to 10 months a year, and Bulgaria becomes a tough competitor to Spain, Cyprus and Turkey, where the temperatures in the summer are too high for playing.

Legal Advices

Buying Process

The client concludes a preliminary contract for purchase-sale of a real estate before the client pays the first installment for the deal. According to Bulgarian Civil Law, this guarantees him that, if he observes the contract's terms and conditions, and pays all installments (bounded with the stage of completion of the building) on time, at the end of the process he will become an owner of the property purchased. If the client buys an apartment in one of the already finished buildings, then the transfer of the possession is made directly by the notary and it's being brought into the property register. All payments are done with bank transfers, which is yet another guarantee for the safe and secure transactions. Please note that the client pays only for the construction stage that is already completed and money is asked in advance.

Additional Costs

The transfer taxes are 3% of the market value of the property, which is paid to the municipality where the real property is located. The notary fees are calculated either of the market price or the book value of the property. In addition, each year local council taxes must be paid that cover public lightening, refuge collection and so forth. These taxes are minimal and are typically less than 200 Euros.

Mortgages:

The ways that are available to finance the purchase are either to pay outright using resources such as savings, or to release equity in one’s current home by remortgaging, or one can take out a foreign or Bulgarian mortgage on the Bulgarian property.

Registration of Companies

MP Group Ltd provides help in registering own companies on the territory of Bulgaria. Please note that when you register a limited liability company, it is necessary to have a minimum capital of 2500 EUR. Any company can be owned and managed by a foreigner, and it is obligatory to register a company in order to buy and own land. MP Group will assist you in the preparation of any kind of documents connected with the activity of the company and the activity of the business. Furthermore our accounting department provides help in presentation of any kind of tax form and accountancy for companies registered with our help.

Registering a company in Bulgaria:

1. It is better to register a Limited Liability company, than a privately-owned one in meanings of tax and law regulations.
2. The amount of money needed for the registration is 600 Bulgarian leva- 300 for the state fees and another 300 for hiring a layer.
3. You will need at least 5000 Bulgarian leva of capital, which are temporally blocked by the bank during the process of registration.
4. Depending on the activity there might be a patent tax.
5. The monthly costs for accounting and transfers of the obligatory payments can vary from 50 Bulgarian leva to over 150, in case that the company is not registered under VAT Law.
6. In order not to be registered under the VAT Law, the company must not exceed a 50,000 Bulgarian leva turnover for the past 12 months. Above this turnover the VAT can be refunded, but the expenses for accounting will be higher.
7. You will need to buy a cash register (around 200 Bulgarian leva).
8. The first year the corporate fee must be paid on every three months, after that- every month in advance.
9. Accounting expenses, telephone, electricity and other bills, expenses for office equipment and consumables can be considered as expenditures for the company. It is not the same with cars, home appliance, installments on personal credits and etc.
10. It is obligatory to have an annual attestation for length of service by National Social Security Institute.
11. The money from personal labor are the income visible throughout the year. If they are low, applying for mortgage loan can be made difficult. If they are high, the profit of the firm is lowered.
12. Health insurances are transferred in State Receivables Collection Agency (SRCA). Payments, including taxes, can be made online. Declarations can also be presented online with digital signature.

MP GROUP advises…

MP Group believes that the following considerations must be accounted for before investing in Bulgaria:

• Bulgaria’s economic growth and stability;
  • GDP growth is now averaging 6% per annum
  • Bulgaria is now part of the European Union
  • High growth in inward investment
  • Significant reduction in unemployment over the past four years

• Location
  • There is currently a substantial investment in road improvements (by the EU) cutting down travel time.
  • Two new roads from Greece will be completed in 2009 thereby attracting more and more Greek visitors and investment
  • The Black Sea coast boasts 220km of sandy beaches and over 1700 hours of sunshine from May to October.
  • On-going news coverage is making Bulgaria a far more acceptable place to have a second home;

• Recognition of title
  • There is little point in buying property if there is any risk of losing title through corruption, legal ineptitude, irrational government proclamations or otherwise.
  • The rights to ownership in Bulgaria are strong with an excellent notarial system to ensure property rights.

• Liquidity
  • Liquidity is defined as the ability to be able to buy and sell quickly i.e. a ready market of buyers and sellers. There are many purchases in Bulgaria ensuring a ready market if you need to sell quickly, even before the completion of the property.
  • Tourism increases with an ever-growing pace and thus for premium locations, such as the places where the developments of MP Group are located, there should always be a ready market.