Bulgaria Guide
Profile
Bulgaria is a small, picturesque country situated in southeastern Europe, which occupies the northeastern part of the Balkan Peninsula. With origins dating back more than 13 centuries, it is known as one of the cradles of European civilization. Part of the Eastern Bloc after World War II, today Bulgaria is a democratic unitary constitutional republic, a member of NATO, and recently became a full member of the European Union in 2007.
Due to its location, Bulgaria is known as the link to Eastern and Western Europe and borders five countries: Romania to the north mostly along the Danube, Serbia and the Republic of Macedonia to the west, and Greece and Turkey to the south, as well as the Black Sea, which comprises its entire eastern border.
From the Balkan Mountains to the Black Sea, its geographic landscape is enveloped in extremes, with the Balkans running west to east through the middle of the country. Hilly terrain and plains are found in the southeast, along the Black Sea coast in the east, and along Bulgaria 's main river, the Danube in the north. Bulgaria ’s current population is nearly 7.7 million and its largest city and capital is Sofia.
Weather
Bulgaria has a temperate climate with four distinct seasons, highlighted by cold damp winters and hot dry summers at the extremes. During the summer months, the temperatures average 75 F (24 C) and benefit from low to moderate humidity, with May and June being the wettest months. A maritime climate can be experienced along the coast. Winter temperatures average around 32 F (0 C), with November receiving the greatest average precipitation. More Info >>
Economy
Since Bulgaria joined the World Trade Organization in late 1996, the country has emerged from a number of unfavorable conditions that helped stunt its economic growth and has since benefited from a stable market economy with GDP growing consistently at 4% to 5%, plus increased foreign investment. As of 2007 the economy continues to grow steadily at above 5% a year. The country boasts the second highest standard of living in Southeastern Europe in terms of GDP per capita, inflation is under control and unemployment is steadily declining.
Future prospects are tied to the country's increasingly important integration with the European Union member states. The country entered the European Union in January 2007 and as a result of its upward mobility, is expected to join the Eurozone sometime between 2010 and 2012, with plans for the Bulgarian Lev to be replaced by the Euro during that time. By comparison, the majority of EU member states, which are currently struggling with the Eurozone criteria, are expected to join the single currency union later than 2011.
Industry is very important to the economy. Bulgaria is a major producer and exporter of electricity and the country is among the top ten in the world for agricultural production per capita, and remains on the upswing in recent years, based on information provided by the National Statistical Institute of Bulgaria.
Tourism
Bulgaria is rich in cultural and archeological sites and offers plenty of opportunity for cultural tourism all throughout the country. The most popular form of tourism takes the form of numerous, family friendly resort offerings. Owing to its favorable location that yields seasonal popularity from the mountains to the sea, Bulgaria continues to enjoy an upsurge in tourism growth as visitors from neighboring countries seek an attractive and affordable vacation destination.
Travelers, particularly those from Western Europe, can choose from a variety of outings throughout the year, from the burgeoning summer and ski resort locations, spa resorts, and in recent years, a new trend in a more localized or “Ethno” tourism where visitors can explore living among the locals. For the last several years, the country's tourism industry has seen a double-digit growth trend.
Land of Opportunity
 Foreigners can purchase property in Bulgaria directly or through a local company, but cannot own the land outright. Only Bulgarian residents and entities can own land, while non-residents may only acquire buildings. Therefore if foreign citizens want to invest in property in Bulgaria, they must register as a Bulgarian-based company. The law does not limit the extent or amount of foreign participation in companies. Foreign individuals and companies can open an unlimited number of accounts in any Bulgarian bank, in any hard currency or the local Bulgarian Lev.
Bulgaria has gone through tremendous economic and industrial development in anticipation of and now after its admittance into the European Union. It is already renowned for its rich history and natural beauty both of which have lent to its appeal as a popular tourist destination welcomed for its plentiful seasonal attractions. While much of the country's real estate gains climbed quickly during the days preceding ascension to the EU, it remains very much an investor friendly country with a stable business environment. Slow and steady is the likely scenario for forward looking investors.
back to top
Selling Points
The increase of tourism in the country has had a major impact on the real estate market, owing much to Bulgaria's varied topography, taking advantage of an abundance of natural attractions from the mountains to the coast to the unspoiled rural areas in between. Combined with the country’s recent ascension into the European Union, the groundwork has been laid for continued development of both the tourism industry and property market in step.
There has been discussion that the Bulgarian Constitution will be changed to permit foreigners to purchase property individually without the necessity of registering a local company first. This limiting of restrictions should increase the appeal for foreign purchasers that may have previously avoided such transactions for fear of legal hurdles and perceived inefficiencies. Once the law is changed, it is very likely it will provide a catalyst for an even stronger surge in property prices.
While many gains have been made by Bulgarian property investors the last few years, it is still a country that’s ripe for a breakthrough in the years to come. Bulgaria is a politically stable country with a growing economy, and the longer term effects of EU membership should have a far reaching impact on the country’s developmental structure, widening the potential for international trade, tourism and economic well-being.
Bulgarian laws are improving and changing in accordance with the laws in the countries of the European Union and the country already has one of the most liberal foreign investment laws in the region. The fact remains, Bulgaria is still a very inexpensive proposition to most of the rest of Europe for real estate investment and growth potential. The country’s maturing real estate market has maintained a steady a 20-24% annual growth rate that should only increase in time.
back to top
Business Opportunities
Recently, the Bulgarian parliament implemented measures aimed to stimulate the Bulgarian economy, which had already grown 6% during 2008, by decreasing the minimum foundation capital for limited liability companies. These measures in combination with already low taxes in Bulgaria make investing for business a potentially lucrative option. Here at Vinnie's World, Bulgaria is one of our primary areas of focus and through our local resources and network of professionals, we can assist you to locate the ideal commercial property, establish or extend your business operations in Bulgaria and guide you through the entry process. Learn more at our section for Bulgaria Business >>
• • • • • • •
Please Make a Selection Below to Learn More « Coming Soon »
back to top
|
