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Overview Bulgaria is still a growing emerging market investment location, with good capital appreciation and is one of the newest members of the EU. The country has over 350km of coastline and probably the most popular investment location is Sunny Beach. In general, the infrastructure in Bulgaria is good and it has a good public transport network. The country sees very warm days in the summer with temperatures reaching up to 35 degrees Celsius. The resort area of Sunny Beach has excellent facilities and great nightlife, as well as many restaurants, bars and cafes. There are plenty of historical sites to visit as well as modern commercial centres and shops. Investor Statistics Investment areas in Bulgaria are seeing capital growth of around 15% per annum and living costs in Bulgaria are relatively cheap. Properties have building guarantees and standards of construction are high. As a member of the EU, benefits are obvious. Taxation Alexander Richards would always recommend that you consult a tax specialist regarding your personal circumstances. Since the 1st January 2007, the sale of one property per year is exempt from Capital Gains Tax. Beyond this, following its entry into the EU, capital gains tax is set at around 8-9%. A UK will is recognised in Bulgaria and inheritance tax is 0% if the property is to be passed to a direct heir of the deceased. Rental income is subject to tax at 10%, however 20% of the annual amount received is tax free. Financing Mortgages are available and typical rates are 7%, but expected to fall with EU membership. You can borrow up to 70% of the value of the property on a 20 year mortgage. Always consult a financial advisor for advice. |
Bulgaria
