Living
Costs
It is very difficult to compare living costs in Bulgaria as they are extremely
low! For example, the food is generally half the price as in the UK.
The home and contents insurance on a property price of Forty Thousand
Pounds, for example, would be approximately One Hundred & Thirty Pounds
per year, with a reputable company like Allianz.
The mains gas system is not developed in Bulgaria yet, so electricity
is mainly used for cooking and heating, although calor gas is available.
A typical electricity bill, when used for cooking, lighting and hot water
is approximately Ten to Twenty Pounds per month.
As in the UK local property taxes vary from place to place, the most expensive
being in the capital Sophia, where a two-bedroom apartment would cost
around One Hundred Pounds per year, but the rest of the country is around
Fifty to Seventy Five Pounds per year.
Property alarm systems are available which cost around Ten to Fifteen
Pounds per month.
To drive a car in Bulgaria there are three annual taxes that must be paid:
1. Driver responsibility insurance: Twenty Pounds per year
2. Road Tax (depending on the engine power): around Thirty Pounds per
year for a car with a 2000cc engine.
3. MOT: Eight Pounds per year.
The fuel prices are around Fifty Pence per litre for diesel and for LPG
only Forty Pence per litre. Most of the cars in Bulgaria are equipped
with the LPG systems, so cars are fuelled with the non-pollutant and very
cheap propane gas.
Annual theft and accident insurance for a brand new car is around Four
to Five Hundred Pounds. Bulgaria also has some of the cheapest cars in
Europe. For example the new Renault Clio costs only Four Thousand, Five
Hundred Pounds.
Taking money in and out of Bulgaria is restricted to Five Thousand Lev
(around Eighteen Hundred Pounds) without having to complete a customs
declaration. For further information on these laws visit the Bulgarian
National Bank website at www.bnb.bg
Legal Information
Since the introduction of the Currency Board in 1977, Bulgaria
has been a politically stable country with a developing economy.
The preferential conditions and guarantees for foreign investors
have generated excellent business opportunities and investment
growth potential.
Bulgaria real estate prices are by far, lower than other
destinations in Europe and the acceptance of Bulgaria in the
European Union provides unprecedented growth potential that
will certainly boost the prices of real estate in the near
future. The Bulgarian market and real estate are still unexplored
and undeveloped to a certain extent, which makes it very attractive
and profitable.
Bulgaria has one of the most liberal foreign investment laws,
regarding real estate as well as foreign investors. According
to the Bulgarian Constitution and Legislation, foreign persons
and companies can invest in real estate, either personally
or through a local legal entity. Generally speaking, foreigners
can acquire only buildings but not land.
As far as houses, villas, flats and limited ownership rights
(the right of use, the right to build a house etc.) are concerned,
you can directly purchase them as a person. When purchasing
real estate and land, you set up a company that will be the
owner of the property. Setting up a company in Bulgaria is
very easy, all you need is a good solicitor or barrister at
law.
Foreign organizations have the right to open bank accounts,
denominated in a Bulgarian or foreign currency. There is also
no limit to the company stake they possess. Moreover, there
is a special regime of respect towards the foreign investor
on the part of the Bulgarian legislative system, which is
a gesture of tolerance to those who are interested in Bulgaria
and want to benefit from its future. The last two Bulgarian
governments have done their best to attract foreign investors
to their economy, including those wanting to buy real estate.
