Business & Real Estate

Bulgaria is no longer an unknown country for Europeans and among them, in a special way for the Spanish. Although Bulgaria stayed away from the events that shook the Balkans during the tumultuous 90s, it was not until recently that tourists have begun to look at this charming country washed by the waters of the Black Sea, and furrowed by the Balkan Mountains. The same happens with Spanish companies and investors. The entry of Bulgaria into the European Union, the arrival of aid funds and the pioneering presence of some Spanish companies that were established early in the decade in the country is driving the rapid development, from all points of view, the country and at the same time, the opening of large business opportunities. Bulgaria’s economy continues on a path of growth above the European average in the last five years. Bulgaria is a stable country from the financial standpoint and a strong economy and high political stability. Add to that that is the country of the EU-27 that comes from further back and therefore has the most work we can consider Bulgaria as a country for the Spanish fashion they want to do business abroad.

However, and focusing on the real estate sector, we must be wary of doing business abroad. In the case (Bulgaria), the investor moves first to the country will find hundreds of offers at first sight attractive due to low prices in comparison with Spain. However, a warning to seafarers, at the time of making a real estate investment will not only be essentially the type of property and price. We must give special priority to discern what type of investment is made, that is, if speculative (for resale) or property (to rent) to recommend what type of property purchase and where to buy. If the future intention is to resell, we recommend investing in the center of the capital Sofia and the sea on the southern coast of the Black Sea. If, however, the investment is to rent the above-mentioned areas we can add some districts of Sofia (for example, the student neighborhood) in which there is rental demand. In short, it is preferable to pay more per square meter are going to buy housing, local or office to buy only in price (ie cheap) and lose the ability to sell back excess supply or lack of demand according to areas that are now already beginning to be overfished. We must not rush into investing and dealing with good real estate professionals are familiar with the peculiarities of the Bulgarian property market and to offer their customers advice and a range of comprehensive services for maximum return on investment.

How to invest is important.
On the way should be investing in properties on the Bulgarian market (different in some respects to the Spanish market), an advisable option is to invest through a Bulgarian company, which may be a subsidiary of Spanish parent, because it is the only way to acquire ownership of land also and it allows us to recover all the VAT paid in the acquisition of property, which in Bulgaria is 20%. The Bulgarian subsidiary may be owned 100% foreign capital, with Spanish manager and head office in Bulgaria, the shape is very similar to the Spanish SL. Another fundamental reason why we recommend investing through a company is the low corporate tax rate that is in Bulgaria, only 10%. This very important factor in housing growth being experienced by the country.

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