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The property prices boom in Bulgaria

Friday, Mar 07, 2008

After 5 years of constant price increases, the boom in the Bulgarian property market continues. This hike goes on even now with cumulative growth of 10% on average but it varies from region to region. The rise in property price after Bulgaria’s EU accession is a natural process. These hikes are results from purely market mechanism - great demand and lower level of supply.
The capital city Sofia has naturally the biggest demand for property, followed by Varna, Bansko ski resort and the beach resorts on the Black Sea Coast. We have to mention also a few other bigger cities and regional centers in the country like the cities of Veliko Tarnovo and Plovdiv. This demand in Bulgaria’s biggest cities is being driven mostly by local buyers and investors.
Here are the top reasons to invest in property or business in Bulgaria
• Highly-skilled, multilingual workforce at Europe's most competitive wages
• Stable and predictable business and political environment
• EU membership on January 1, 2007 gives access to markets of over 500 million consumers
• The lowest operational costs and tax rates in a European market economy
• Industrial goods traded duty free between Bulgaria and the EU, EFTA, CEFTA and Turkey
• Excellent climate, natural scenery, food and hospitality
• Flat corporate income tax rate of 15% (2006 expected rate: 12%)
• VAT exemption on equipment imports for investment projects over Eur 5 million
• Annual depreciation rate of 30% for machinery & equipment, 50% for new equipment used in entirely new investment or expansion and 50% for software and hardware
• Acquisition of land and property through Bulgarian registered company with 100% foreign ownership
• Seamless administrative services through InvestBulgaria Agency
• 55 treaties for avoidance of double taxation
• 52 agreements on mutual protection and promotion of foreign investment

Source: www.welovebulgaria.com