Bulgarian economy: is business possible?

Parent Category: ROOT Published: Thursday, 12 November 2020 Print
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Business opportunities in the Bulgarian economy

Bulgaria, as a member of the European Union, is a country with strong and clear laws and regulations. Here, the interests of each owner in business and each individual person are reliably protected, which is why Bulgaria is extremely attractive to investors.

There are several reasons to invest, open and develop a business in Bulgaria, the main thing is that the political and economic situation here is assessed by the world community as stable. The level of consumer prices is one of the lowest in Europe. In addition, Bulgaria has a well-developed banking infrastructure, and the profit after taxes is easy to transfer abroad. The reliability of bank deposits is guaranteed by Bulgarian law, which ensures unhindered implementation and protection of investments and income generation without any interference from the state. To support foreign investment and priority investment projects, a Foreign Investment Agency has been created in Bulgaria.

 

Where to invest in Bulgaria?

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The formation of a positive business climate in Bulgaria began in the 2000s, and the country's entry into NATO served as an incentive to increase investment flow. Bulgaria has become a country with a free economy. In addition, after joining the EU, the access to the markets of the EU and other Balkan countries was provided.

Currently, the lion's share of foreign investment is in real estate, much less - in industry, agriculture, services and trade. Few investors invest their capital in securities. For private investors creating your own business, is fraught with a number of problems. The minimum wage in the country is 100 Euros. Therefore, investments in the production of Bulgaria and even in tourism, the rapid development of which has been observed in the last decade, are made mainly by large companies.

As for the stock market, not everyone is capable of playing the stock exchange for their own benefit. To get a stable profit, you need to have the appropriate education and have certain skills and experience.

In connection with this situation, private investors and small companies are interested mainly in real estate investments. Investing in Bulgarian real estate is good because it is able to give a fairly quick return. Now you can buy a house in Bulgaria at a price comparable to the cost of a modest one-bedroom apartment on the outskirts of Moscow. But the growth in property prices in Bulgaria is 20-30% per year, which means that after 5 years you can sell housing with 100% profit.

At the same time, real estate tax is only 0.15% per year of its value. However, due to inflation, investing in Bulgarian real estate is the most beneficial at the construction stage. After all, prices are rising not only for real estate, but also for the maintenance of housing.

 

Investments in Bulgarian property

The most popular places for investors are the capital of Bulgaria - Sofia and the Black Sea resorts - Albena, St. Vlas, Sunny Beach, Golden Sands, Varna and Burgas. According to experts of the real estate market, in Varna, Sunny Beach, Golden Sands and Burgas, as well as in other large Black Sea resorts, the real estate market is close to saturation. That is why now small resorts - Kavarna, Obzor, Sveti Vlas, are becoming increasingly popular. Places on the coast, located near the Strandja Mountains, are also of interest. These mountains are traditionally popular with hunters and therefore this area is considered one of the most promising regions of Bulgaria in terms of real estate investment.

About five years ago, elite closed-type cottage complexes appeared on the Black Sea coast. Many experts consider this type of investment the most profitable in Bulgaria, as elite real estate will always be in price.

2-3 years ago, the investment boom began in the ski resorts, especially in Pamporovo, Borovets, Bansko and Vitosha. Now, construction of residential apartments, entertainment infrastructure, as well as balneological centers is in full swing.

Since 2006, demand for office real estate has risen. Moreover, if earlier in Bulgaria investors were attracted more by apartments withdrawn from the housing stock, now preference is given to areas in specialized office centers.

It is worth noting that for foreigners there are no restrictions on the purchase of real estate in Bulgaria. But you need to remember that when buying real estate, the owner of the premises does not receive ownership of the land. However, when registering a foreign company with Bulgarian participation (it is enough that 1% of the capital belongs to citizens or legal entities of Bulgaria), the land can be registered as a property. In addition, Bulgaria is currently bringing its legislation into line with European legislation, so by the time the country enters Schengen, a moratorium on the purchase of land by foreign individuals may be lifted.

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