Investing In Bulgaria

• Economic Growth   - 4.9% real economic growth (2002est.)
• Political Stability  - A Parliamentary democracy
• A European Future   - Already a full member of NATO, Bulgaria has
• been invited to join the European Union in 2007.

The rise in property prices, which are currently around 23% per annum, offers the same kind of potential as the early days of the Spanish property boom. Not without reason the Bulgarian Black Sea coast has been dubbed the “ New Spain ”.

Rental yields are better for apartments in complexes which means a guaranteed rental income for Black Sea property buyers of around 10 - 12%. Recent television coverage in the UK and the prospect of joining the EU in 2007 has increased the interest in Bulgaria considerably.  It is at the moment the fastest growing tourist destination in Europe.

The Bulgarian property market has already made impressive gains in the last couple of years with an average 2005 increase of 20-25%, some areas increasing by 30%.

Legal and International Guarantees for Foreign Investment
The Bulgarian Constitution and the Law on Foreign Investments provide national treatment to foreign investors which means that foreign investors are entitled to perform economic activity in the country under the same provisions applicable to Bulgarian investors except where otherwise is provided by law. In particular this principle covers the whole range of economic and legal forms of activities for accomplishing entrepreneurial businesses. The national treatment to foreign investors includes the participation in the process of Privatization and acquisition of shares, debentures, treasury bonds and other kinds of securities.

  Legal Guarantees Against Adverse Changes in the Law
The Law on Foreign Investments stipulates the principle that foreign investment made prior to the adoption of amendments in law imposing statutory restrictions only with regards to foreign investments, shall not be affected by these restrictions. The sense of the law provides for that foreign investments shall be guaranteed against subsequent legislative changes.

  Protection against Expropriation
The Bulgarian Constitution allows forcible expropriation of property in the name of the state or for municipal needs only if effected by virtue of a law provided that these needs cannot otherwise be met, and after a fair compensation has been ensured in advance. Expropriation under Bulgarian Law is governed by the Law on State Property and Law on Municipal Property.
The Law on Foreign Investments provides additional protection to foreign investors. The first added protection granted to foreign investors is that the expropriation may only occur for exceptionally important state needs, which cannot be otherwise met. Immovable property owned by foreign persons may not be expropriated for municipal needs.
As another protection for foreign investors the Law requires compensation in the form of another immovable property in the same location, and only given the foreign investor's consent, in another location, or by cash if the foreign investor prefers so. Compensation equals the immovable property's market price on the day of expropriation.

"Low property prices, beautiful countryside, historic towns and unchanged rural traditions. The cost of living is also surprisingly low and makes Turkey look expensive. The food is good and a meal out costs £5, a beer 50p, and an espresso 15p." (The Times 26 Feb 2005) For more information: www.bulgarianembassy.org.uk