CANBUL INTERNATIONAL INVESTMENTS Ltd.

FREQUENTLY ASKED QUESTIONS!

Is it better to buy off plan apartment in Bulgaria?

Ordinary buying off-plan property in Bulgaria is more attractive because new apartments and houses are built to a higher standard with more facilities on the complexes that appeal to foreign buyers and holidaymakers. Other reason to buy off-plan is because the new property will not be built for another 12-24 months and you are buying into a development at an early stage - it is more cheaply and in some cases buyer can require additional extras for the interior or room disposition. The prices for similar properties for sale in Bulgaria would be significantly higher, as the past trend showed a good capital growth for properties in Bulgaria.

What kind of tax I owe for my property in Bulgaria?

Amount of taxes and fees varies from the place where the property is located in Bulgaria. For the properties owners there are 2 kinds of tax - property tax (is paid annually based on 0.15% of the property value - the valuation is made from tax department and is different from market price) and annual fee for garbage transportation (it is calculated based on value of the property and depends of place and municipality - vary from 1.6 to 5 per 1000).

Should I wait until 2006/2007 to invest?

Absolutely not!!! The market will show gains in 2007-2009 for sure. However, the large gains are to be made up to 2007. Then Bulgaria will be member of European Union and prices will rise to levels similar to other European countries! Follow link more info to find cheap and low priced Bulgarian Properties!

What is the local feeling towards foreigners owing property?

The Bulgarians are warm and friendly people in spite of difficulties in their life. Bulgarian people are very tolerant - there is not hostility between different nationality, religions or cultures. The Bulgarians are happy to see people bringing wealth and foreign investment to their communities especially if the foreigners are not stuck-up with their riches.

Are there any restrictions on buying property in Bulgaria for a foreign national?

There are no restrictions on buying property in Bulgaria for a foreign national. You can buy as many apartments in Bulgaria as you can afford!
  
How long does buying a property in Bulgaria takes?

Buying a property in Bulgaria varies depending upon the type of property you buy (villa or apartment), also if the property is new or re-sale. For properties for sale with land you would need to incorporate a limited company in Bulgaria, which takes time. Generally it will take 3-5 weeks to buy a

What are the procedures when buying a property in Bulgaria?

The procedures vary depending upon the type of property you buy - villa or apartment. Foreign nationals cannot own land in Bulgaria directly. This means that a lot of properties for sale in Bulgaria require limited liability company incorporation before you can proceed with a purchase. This law is likely to change in the near future to comply with EU legislation.
What is available on the market?

The majority people who are buying property in Bulgaria are looking for holiday/second homes often with a view to retirement in later years.
Are there any restrictions for foreigners?

According to the Bulgarian Constitution foreign individual persons can buy buildings but not land. Therefore the most common method for foreigners buying property in Bulgaria is to set up a company, which then owns the land and the buildings. We expect the law to change within the short to medium term as Bulgaria opens its doors fully in line with its expected entry into the European Union (2007).

What are the living costs in Bulgaria? How much one pays for house insurance, gas, electricity, local and national taxes, to hire a gardener or a builder, to drive a car?

It's not possible to compare living costs in Bulgaria and Western Europe. Living costs in Bulgaria are extremely low! For example the food is generally twice cheaper than UK. House insurance: around 100-200 . EURO per year depending on the type of house, together with the belongings and furniture inside. For a property of price 30,000 . EURO insurance against theft, flood and fire costs about 125 . EURO per year with a decent insurance company like Allianz. Gas: the gas system network is not developed in Bulgaria yet. People here mostly use electricity to cook. For heating: there are central heating systems in the big cities: monthly costs for a 2-bedroom apartment around 60 . EURO. In the small places people use charcoal and wood, which is even cheaper way to heat a house. For electricity, when used for cooking, light or hot water one pays about 30 . EURO monthly. Local and national taxes for owning a property: depending on the place where the property is located, the most expensive area is the capital Sofia, where the annual taxes of 2 bedroom apartment are around 150 . EURO per year, but the rest of the country is around 80 . EURO per year. To employ a gardener or maintenance man or builder you will not pay much. The average salary in Bulgaria is 200 . EURO per month.

Is it safe to invest in Bulgarian property?

Yes:
- The Bulgarian Economy is growing steadily - Strong growth in industrial production, employment and credit has resulted in high GDP growth over the last few years;
- Bulgaria Property prices are relatively low
- Relative security - Bulgarians forever moan amount petty crime, yet crime levels in most towns and cities, Sofia included, are incomparably low by comparison with major world cities.
- Low Currency risk - The Lev has been pegged to the Euro since its introduction at a fixed rate equivalent to 1 EUR to Lev 1.9558. From 1997 the Lev was pegged to the DM at a rate of 1 Lev to 1 DM.
Are there cheap Bulgarian properties on the market? What are average prices for property in big cities in Bulgaria comparing with cities from other countries?
Yes. You can find a lots of cheap Bulgarian Properties. Bulgaria Property prices are relatively low - Property in the better residential areas of Sofia sells for around €1,000 – 1,200 per square metre (roughly £67 – £82 per square foot). To give regional comparisons, the best residential property in Zagreb, Croatia sells for €2,200 – 2,500 per square metre, in Belgrade, Serbia €2,000 – 2,200 per square metre, in Romania for over €1,500 per square metre and in Athens, Greece for €7,600 – 8,800 per square metre. It is clear that Bulgarian properties are significantly cheaper than many other countries in the Europe. If you compare with London, property in a number of residential areas (such as Knightsbridge, Kensington and Chelsea) can sell for approximately €16,000 per square metre (£1,000 per square foot).
 
Can I rent my Bulgarian property?

A good quality ski chalet or seaside villa can generate excellent short-let yields. There are many websites that manage the marketing and provide reservations systems for ski chalet rentals.