General Information on Bulgaria

Bulgaria offers an astonishing array of landscapes, flora and fauna, recreational activities, and wildlife. You will discover the magnificent beaches - the numerous ski resorts - the characteristic villages and fascinating architecture - the natural spas and treatment centers - and not to forget: the delicious food! Modern facilities are in place yet the roads are empty and the people amazingly patient and helpful to foreigners.

Bulgaria is located in South-eastern Europe and borders the Black Sea between Romania and Turkey. In addition, it shares common borders with Greece, the former Yugoslavian Republic of Macedonia, Serbia and Montenegro. Strategically, Bulgaria provides a natural gateway to the large markets of CIS, Asia and North Africa.

The country benefits from a temperate continental climate with clearly marked four seasons. A mild Mediterranean influence is felt in the more southerly regions and the Black Sea coast with average summer temperatures of 30 °C and an average of 1700 sunshine hours from May to October. Winters can be cold in other parts of the country, hence its popularity as a destination for skiers.

The total population is about 7,8 million people with the highest concentrations living in the major cities or towns of Sofia (the capital), Plovdiv, Pleven, Stara Zagora, Sliven, Varna and Burgas (the last two being cities at the Black Sea coast which boasts 378 km (220 miles) of sandy coastline.

Traveling to Bulgaria is easy! International airports are located in Sofia, Varna, Plovdiv and Burgas and connect Bulgaria to the rest of the world.

Economy in Bulgaria

Bulgaria is a former communist country that became a NATO member in May of 2004 and is waiting for the European Union membership, which is expected to be granted in 2007. The country, since the fall of the socialist government in 1996 due to a major economic downturn, has experienced macroeconomic stability and positive growth rates since then (due, in part, to the introduction of a currency board in 1997) and it exists under what is now a stable parliamentary democracy with a majority in parliament and public consensus on key social and economic priorities. Currently, Bulgaria demonstrates a stable and predictable macro economic climate showing economic growth at 4.5% (one of the highest in Europe), annual inflation at 3.8% and strong growth figures in the tourism industry (up 10% in 2002 compared to 2001). It boasts low rates of taxation across the board and has one of the lowest cost centers in Europe even though the workforce is highly skilled and qualified.

The currency is the Bulgarian Lev (1 USD = 1,59 Lev, 1 Euro = 1.95 Lev) which is already pegged to the Euro.

Bulgaria is now under the monitoring of the International Monetary Fund. This means any fluctuations in the prices are not expected, and a stability of the economic development.

For a foreigner with stable currency the prices are really low. Just for instance - a coffee is like 20 cents, a beer - 50 cents, bread - 20-30 cents, a dinner at a fine restaurant - 10-15 USD. With such a price level Bulgaria is a paradise for lots of Western Europeans and American people who can enjoy crème de la crème without spending a fortune, but for much less than one can expect.

Legislation

Title to privately owned land and/or buildings is most commonly registered with a notary public in Bulgaria. Title can also be registered with the municipal land commission.

There is no any danger of claims for the restitution of non-agricultural land or buildings appropriated under communist rule as such must have been lodged with the Bulgarian government prior to June 1993. Agricultural land claims could have been lodged up until December 1996.

Foreign nationals can legally own a property in Bulgaria. Only for the ownership of the land they need to have wholly owned Bulgarian company and through it they can own or lease land in Bulgaria.

In July 2000, partly to eliminate negative economic trends and attract more foreign investment, the Bulgarian parliament approved government proposals that will ease regulations on the real estate market. The amendments in the Property Bill made it easier for foreigners to buy buildings.

The political system

There are two major parties in Bulgaria - the democrats and the socialists, who literally take turns in ruling the country. The other major activists on the political scene are the party of the minorities / DPS/, the agricultural party / BZNS/ and the ruling now party of the son of the last Bulgarian King - Simeon II. The parties may have different views on the educational system or the healthcare, but when is about foreign investments they act in consensus.

So, anyone can say, when it is regarding the real estates, and the foreign capital, absolutely any surprises are not expected.