In this guide to Bulgaria, we try to give you important information about the country, its property and tourist markets and talk about some of the main factors affecting the economy and investments made in the country. We will take you through Bulgaria’s tourism industry, economy, EU accession, what the geography has to offer, its people and the investment areas we feel are the important areas and why.

Bulgaria is undoubtedly one of the hottest property markets in the world. It has plenty to recommend both the tourist and importantly the investor alike. It has many natural assets to attract tourists with beautiful beaches and World class skiing resorts. Yet it’s not just tourism that propels Bulgaria’s property markets; a strong economy, growing domestic wealth, maturing banking system and imminent EU accession have all made a major impact. In this guide we review some of the factors that have made Bulgaria a safe investment choice.

It is a beautiful un-spoilt country offering a great diversity of landscape from sandy beaches stretching along its 354 Km or 220 miles of Black Sea coast to high snow clad mountains, alternating with river gorges and vast valleys. You can find authentic Medieval towns tucked away amid lush vegetation as well as modern European cities such as Sofia, the capital, Varna, the country’s summer capital, Plovdiv and Burgas.

The Bulgarian people are warm and hospitable people, a peace loving and well educated race. The number of Bulgarians speaking English has increased considerably and is embraced by the younger generation with most people under around 40 able to speak at least some English. Bulgaria is 110,910 sq km, similar in size to England (130,422 sq km) but with a population of 7.8 million; less than the population of London.

The country has been named the top place to visit and has been placed among the 10 best international destinations by The Washington Post and voted number six in the “Places to Invest” by Channel Four’s Place in the Sun.

t the moment there are still opportunities to invest in some of the prime locations in the Country and there are still investment bargains to be had, although, this will not last forever and the window of opportunity may not be there for much longer as the global investment market continues its increasing interest in Bulgaria, with all of the comfort factors it offers in terms of a healthy economy, thriving tourism industry, EU accession and other factors which we will touch on later in this document.

Brief Overview of Bulgaria

• Property increases on average of 22% to 49% in hotspots with growth of 50%+ in hotspots
• EU member since January 2007
• One of the Top 10 holiday hotspots in recent years
• High economic growth rates
• Economic growth over 5.5% per annum
• Established democratic political system
• Stable currency pegged to the euro
• One of Europe’s most competitive tax regimes
• Low Cost Budget airlines fly direct from UK.

Basic facts about Bulgaria

Population: 7.800.000
Land area: 111,000 km2
Capital city: Sofia
Currency: Bulgarian Lev

Language

First language is Bulgarian
English, German, Russian and French are widely spoken, especially in resorts

Politics and culture

Parliamentary democracy
President is Georgi Parvanov
Communist domination ended in 1990
Joined NATO in March 2004
EU member since January 2007

Economy

Economically stable
Sustained GDP growth.
Good Economic growth
Received foreign investment of roughly 8 billion Euros
Low corporation tax at 10%
Falling inflation
Cost of living is at least 30% less than other European countries

Sofia Airport

Sofia airport is located 5km east of Sofia
3rd improvement phase from now until 2010
Transfer time to the ski resort of Bansko is currently around 2 hours

Coastal Airports

Bourgas and Varna airports serve the Black Sea resorts
Flights are available during the summer seasons from the following UK airports; London Gatwick, Heathrow, Luton, Manchester, Birmingham, East Midlands, Norwich, Doncaster, Leeds Bradford, Newcastle, Glasgow, Belfast

Visa and entry conditions

No entry restrictions apply to citizens from EU countries but UK and Irish citizens must have valid passport
Visas must be secured for stays over 30 days
Stays of more than 3 months will require a resident’s permit

Climate

Temperate climate with four seasons
A mild Mediterranean influence is felt in the more southerly regions
Summer temperatures reach 30°C plus.
Winters are cold offering skiing in the mountain resorts

Currency and banking

Official currency is Bulgarian Lev
Cash machines in main cities and resorts
Use banks and hotels to exchange currency
Credit cards are now widely accepted by hotels, many  shops and restaurants
Still largely cash economy

Communications

Three mobile phone providers in the country
No peak / off peak fare structure on mobile communication
Internet cafés becoming widely available

Key Factors:

Decreasing interest rates over recent years
Increased foreign direct and indirect investment in Bulgarian real estate
EU member in January 2007
Bulgarian membership in NATO
Growing economy
Rapidly expanding tourist industry
Increasing populations in Sofia, Varna and Bourgas
The largest foreign investment in the Balkan region
Corporate tax rate among the lowest in Europe
Stable political, social and economic environment
The coastline boasts 354 Km 220 miles of sandy beaches
Amanda Lamb announced Bulgaria as number 6 in the list of investment countries on Channel 4's 'A Place in the Sun'
There are over 1,700 hours of sunshine from May to October on the coast.
The diverse geography and climate means it offers ski and beach resorts.
The general cost of living is one of the least expensive in Europe, with Sofia still roughly half the price of Prague and probably the cheapest capital for property in Europe.
All major British tour operators have been on the Black Sea coast since 2005.
Significantly lower labour costs, compared to European averages
Bulgaria is undoubtedly the most stable country in SE Europe, so investment opportunities exist in both the short and long term.
In 1999 the Bulgarian Leva was tied to the German mark and subsequently the Euro on July 5th, 1999 at 1.955 Levas to 1 Euro, stabilising the currency & allowing economic growth.
There are several new golf complexes being built to develop the golfing market, with the world famous golfers Gary Player, Jack Nicklaus and Ian Woosnam, all designing and building world class golf courses in Bulgaria.
Away from the tourist spots eating and drinking are not expensive, with a pint of lager costing about 40p and a three course meal with wine, typically costing less than £5 a head.

Tourism

The number of British tourists in Bulgaria increased 39 per cent, Danish tourists increased 34 per cent more, French tourists, 28 per cent, and Russians, 13 per cent.

Bulgaria’s top three airports, in Sofia, Varna and Bourgas, have had a 20 per cent increase in passenger traffic as more and more tourists and business travellers flow in and out of the country.

The Government has committed €120million to develop Bourgas and Varna International Airports on its Black Sea Coast.