Guide to Bulgaria Property

Introduction - on this page you will find links to details of Bulgarian homes for sale, Bulgaria rental accommodation, holiday homes and shared housing in Bulgaria.   Bulgaria is bordered by Romania to the north, Greece and Turkey to the south, and by Macedonia and Serbia on the west. Rivers flowing through are the Maritsa, Danube and Strouma, and its main range of mountain the Balkans. Made up of 28 provinces, with its currency the Bulgarian Lev, Bulgaria is a country of strong contrasts.  Total land area is 110,000 square kilometres. It has borders with Romania, Greece, Turkey, Macedonia and Serbia. The terrain is made up of plains, plateaus, mountains and hills of less than 600 meters above sea level. The main River is the Danube, which itself forms a natural border in the north with Romania. The river’s plateau is the area between the river and the Balkan Mountains in the south. It is an area of fertility and largely given to agricultural use. In the south the Balkan Mountains (part of the larger Carpathian Mountains) are about 450 miles long and stretch from the Sofia basin eastwards towards the Black Sea. Botvev Peak, at 2376 metres is the highest point of the Balkan Mountains and is in central Bulgaria. From the mountains, water drains into the Danube to the north and the Aegean Sea to the south. 43% of Bulgaria’ land is given to arable use, 38% is forested. The capital of Bulgaria is Sofia and is located within the Sofia Basin. A large part of Bulgaria is susceptible to earthquakes. Between 1900 and 1986 16 major earthquakes have happened in the country. Many towns and villages were heavily damaged. 

 

Bulgarian summers are dry and hot, attracting tourists to the 230 mile long Black Sea Riviera with its sandy Blue Flag beaches, and the winters are cold and snowy particularly in the dramatic Balkan mountains, resulting in the development of popular ski resorts. As a result the buy-to-let and holiday rental market is thriving all year round, especially as costs in both beach and ski resorts are still cheap.  A relatively small country with a population of 8 million, with Sofia as its capital, Bulgaria has seen massive changes over the last 20 years, both politically and economically. Old Byzantine and Roman ruins, quiet agricultural villages, and picturesque churches and monasteries now sit alongside modern property developments and modern bars, cafes and restaurants. The countryside is very unspoiled, with an abundance of flora and fauna, clear mountain air, and Bulgaria is known for its many medicinal mineral springs. Wine is its biggest export.

 

The Bulgarian Property Market - Investment in property in Bulgaria offers good potential, both in terms of capital growth and rental income. There is an abundance of countryside stone property just waiting for renovation at give away prices. Remember though that it is important to check whether it is feasible and cost effective to bring in utilities and communication links, and at what cost. There are still, however, bargains to be found.   Unlike established property markets in other countries, registering properties in Bulgaria in the past has been haphazard. As a result, old buildings often have no previous planning permission. It is not wise to buy without. Also building standards can vary widely in Bulgaria and may not be as good in the country. Use professionals to advise you, particularly good architects if you are intending to carry out your own build to ensure you choose a reputable builder/developer. Main property investor spots in Bulgarian beach areas are Bourgas in the south east and Varna and prices therefore may be higher in these regions than other areas. Apartment complexes are popular as a way of buying in to value.   There is a wide choice of properties available to buy in Bulgaria. From houses in need of renovation in rural areas to city apartments, from villas on the coast to chalets houses in the mountains. Property prices in Bulgaria have increased considerably in recent years but they are still relatively cheap. Generally inland is less expensive but as in all places there are Hotspots. Buying off plan is still the most popular way to buying in coastal regions or the newly established golfing areas. The potential buyer should be aware that growth in property value is slowing. However the entry of Bulgaria into the EU will undoubtedly continue to make investment in Bulgarian a worthwhile.

Well established ski resorts in Bulgaria are Borovets, 70km from Sofia, and Bansko, 150 km from Sofia and these type of resorts offer good rental opportunities. Borovets, with a large range of ski runs at 2,500 metres above sea level, attracts skiers of all levels and ages. It is well organised with lifts, pistes and recently floodlit evening skiing. Bansko is a new resort, with a winter sports stadium and cross country tracks. Investors in ski resorts like Borovets or Bansko can find a wide range of property from chalets, to houses and apartments. Most Bulgarian ski property is not on the slopes but a few kilometres away in small villages.  For those who prefer towns and the party life then the busy Bulgarian capital Sofia provides a wide range of modern houses and apartments.  Good growth prospects have been experienced in Bulgaria over the past few years, from 25 – 30% p.a. However, it is likely that this will slow down over the next few years as the country adjusts to life following its entry into the EU in 2007, and the real potential is probably in rental income which can only get higher.

How to Buy a Property for Sale in Bulgaria - Until recently, under the Bulgarian Constitution, foreign investors were not able to buy land direct in Bulgaria. To circumvent this, the most common method for foreigners was to set up a limited company which then owned the land and the buildings. With Bulgaria’s entry into the EU in 2007, the law was expected to change and the Investment Encouragement Act has now been passed to bring Bulgaria more in line with other EU counties.  The process to buying in Bulgaria is different to the UK but not necessarily anymore complicated. It is essential to employ a lawyer experienced in Bulgarian property law. Many developers will offer a step by step service as part of the package. If buying a house with land it is necessary to set up a limited company first and register as a director – this allows the buyer to own the land as well as the property. This is because non-nationals are not permitted to own land. This will probably change in the future due to EU law. It is not an issue with an apartment.

Once you have agreed a price for your Bulgarian property investment, a preliminary contract is drafted, and the buyer pays the seller a deposit of 10%. Checks are then carried out on the title documents, license and permissions, debts on the title and the contract itself. At completion, the contract is signed before a Public Notary and the balance of the purchase price paid. The property is then registered.   You can expect to pay the following costs for your property purchase: 2% State Tax - similar to a stamp duty and calculated on the purchase price, a Land Registry fee of 0.1% of the value, 1% for legal fees, and a Notary fee which will be calculated in accordance with the price stated in the Title Deed. Traditionally these costs would have been split 50/50 between the buyer and the seller, but nowadays it is a topic for negotiation.

As in some other countries, it is the practice in Bulgaria to declare a lower price on the Deed of Transfer in order to reduce Capital Gains Tax on re-sale. Bear in mind that this means your official documents won’t evidence the real money you paid, and will result in a higher CGT liability for you when you re-sell. It is important to discuss the pros and cons of this with the lawyer advising you.  There is a small annual property tax of 0.15% of the property value. If your property is part of a residential complex, then there will be an annual charge of around 350 euros for communal upkeep. If you need to raise finance to buy your property, Bulgarian mortgages are now available for foreign investors.   Other pitfalls are fairly standard. For example any one planning to invest in Bulgaria should carry out research into the area. It may not pay to go for one of the more popular locations. Prices do not grow as much in over developed locations. There is always the danger that a developer could go bust so choose carefully. It is also essential to ensure that correct planning permission is in place for any new developments.

 

Economy - The economy of Bulgaria has struggled after the fall of communism. There have been a succession of governments and political stability has been difficult to achieve. Corruption is a problem but not enough to prevent it from joining the EU in 2007. The main industries in Bulgaria are machinery, steel, metal and food processing. Many of the people are engaged in agricultural work but the legacy of communism has left production somewhat outdated. Bulgaria mainly trades with Russia Greece, Turkey and Italy. Unemployment is high at 15%. Many young people move out of Bulgaria and there is a concern for the population as the birth rate is falling. The unit of currency is the Lev.

 

Tourism and Entertainment – Bulgaria is full of cultural attractions, gardens, museums, monuments and historical buildings reflecting its turbulent past, from ancient to medieval to modern. Bulgaria ranks third in the world after Greece and Italy in the number of archaeological sites. With a history spanning over 13 centuries, the country has nine UNESCO World Heritage Sites. The Varna Necropolis, a 3200-3000 BC burial site, contains what many believe to be the oldest examples of worked gold in the world. Other Sites are the tombs in Sveshtari and Kazanlak, the churches at Boyana and Ivanovo, and the Rila Monastery, the old city of Nessebar, and the National Parks at Pirin and Srebarna.

 

Bulgaria is becoming increasingly popular to visit. It has always offered good value for money and due to its geography and despite its small size it has a variety of destinations to suit all tastes. The mountains provide good skiing and spas. Here the scenery is fresh and breathtaking. The capital city of Sofia has plenty to offer the sightseer in terms of architecture and places of historical interest such as the cathedral “St Alexander Nevsky” and St Sofia church built between the 4th and 6th centuries. Many short tours are available to take from Sofia. On the Black Sea coast can be found the resorts of Sunny Beach and Golden Sands. These are busy and lively resorts with excellent nightlife and fantastic sandy beaches. If it a little more peace and quiet you are seeking then Nessebar is the place to go. A small fishing town, many of the buildings in the old town date from the 11th to 14th centuries. Increasingly more and more developers are moving into this area of Bulgaria and there is a wealth of choice for the prospective buyer of Bulgarian property.

Bulgaria offers superb picturesque mountain scenery, with the Balkan mountains, and there are good well developed skiing resorts. The mountain air is crystal clear and the mineral spring waters starting their life in the hills have a reputation for improving arthritis and helping asthma. The highest peak in the Balkans is the Moussala on the Rila Mountain standing at 2,950 metres. In the same area is the world famous Rila Monastery dating back to the 10th century. Near the ski resort of Pamporovo is the Bachkovski Monastery, the second biggest monastery in Bulgaria and both monasteries are worth a visit.

The cities of Bourgas, Plovdiv, Sofia and Varna are all lively and all have many bars, cafes and restaurants. Many of the hotels on the coast offer watersport facilities. In Plovdiv, situated on the Maritsa River, the Old Town has an impressive open-air museum situated in the three hills of the ancient Trimontium. The ancient theatre is located there and is still used for performances.

There are many festivals and traditions in Bulgaria. One of these not to be missed is the Rose Festival in late May and early June each year, when the rose-picking seasons starts in the Valley of the Roses, which is the area between the Balkans and the Sredna Gora mountains. Bulgarian roses provide 70% of the world’s attar of roses used perfumes– and processions and celebrations take place in Karlovo and Kazanluk to celebrate.

  
History - Bulgaria is named after the Bulgars. In its past Bulgaria has been part of larger Empires. It was under Byzantium control from 1018 to 1185. Later it was part of the Ottoman Empire. The 19th century saw a rise in nationalism and in 1878 Bulgaria gained independence from the Ottoman Empire. From then on Bulgaria became involved in the larger wars of the Balkans. During the First World War Bulgaria aligned itself with the Austro-Hungarian and German Empires. During the Second World War it was forced into an alliance with the Axis powers. Following the defeat of the Axis powers in the Second World War, Bulgaria succumbed to Soviet influence and between 1944 and 1989 it was known as the Peoples Republic of Bulgaria under communist rule. After the collapse of the Soviet Union in 1989 Bulgaria become a parliamentary democracy. However it has experienced considerable difficulties adjusting to capitalism as the shortfalls of the past communist regime became apparent.   Centuries ago, Bulgaria, the land of Orpheus and Spartacus belonged to Macedonia. Since then it has seen many ‘masters’ from the Slavs to the Turks and the Ottoman Empire in the 14th century. In 1878 the country was liberated from Turkey. Bulgaria’s long history has left a wonderful range of priceless art, culture and architecture. Examples of this are the towns of Razlog and Veliko Tarnovo. A key site of interest is the Tzarevetz castle on the Yantra River, with medieval Bulgarian and Christian archaeology.

 

Culture - the economy of Bulgaria has struggled after the fall of communism. There have been a succession of governments and political stability has been difficult to achieve. Corruption is a problem but not enough to prevent it from joining the EU in 2007. The main industries in Bulgaria are machinery, steel, metal and food processing. Many of the people are engaged in agricultural work but the legacy of communism has left production somewhat outdated. Bulgaria mainly trades with Russia Greece, Turkey and Italy. Unemployment is high at 15%. Many young people move out of Bulgaria and there is a concern for the population as the birth rate is falling. The unit of currency is the Lev.

 

Climate - Even though it a small country, Bulgaria has a very varied climate. It lies between the continental and Mediterranean zones. There is plenty of snowfall, particularly in the winter and in the mountainous area. The north is generally a temperate climate with damp wet and cold winters. The south is Mediterranean.

 

Population Demographics – Bulgaria’s political history has been colourful, and continues to be volatile. A monarchy in the early 20th century, a referendum in 1946 abolished the monarchy and exiled the Czar. From 1954 to 1989 Bulgaria became a prosperous agricultural country under the communist leader Zhivkov, however following the collapse of communism in 1989, it has had a troubled ride to democracy. During the mid 1990’s Bulgaria suffered high inflation and economic instability, but has since achieved major economic growth and political stability. Bulgaria’s government is now a coalition between the Bulgarian Socialist Party, the Turkish Movement and the National Movement for Stability and Progress. Bulgaria became a member of NATO in 2002, joined the EU in 200, and is expected to adopt the Euro in 2012.   More than 98% of Bulgarians are Christian (Bulgarian Orthodox), with the rest Muslim or Jewish. Churches are usually quite ornate with gold painted domes topped by a cross and add to the picturesque scenery.  Bulgaria has a good education system with good standards. There are 39 universities, 25 colleges and over 450 secondary and technical schools throughout the country. Schools encourage the learning of a second language, usually English or German.   Healthcare in Bulgaria is in transition. Now that the country has joined the EU, there are targets to be met, but the range of care standards varies widely, and funding needs to be adjusted. Hospital standards are good, but rural facilities are often poor. Not all treatments are free. For this reason, the take up of private medical insurance is advised.
 

How to Get There - Bulgaria is two hours ahead of the UK. Now that package holidays regularly feature Bulgaria, there are plenty of flights from the UK. Airlines flying to Sofia include Easyjet, Wizz Air, and British Airways, and the flight time is around 3 hours.