Bulgaria is a relatively immature country as far as the overseas property market is concerned and it will continue to evolve as it emerges into a full, free market and potential member of the European Union, of which it is scheduled to join in 2007. We anticipate that the Bulgarian property market will perform well over the next 5-10years, with growth rates of 8-9% anticipated in 2006, followed by up to 10% growth in 2007, perhaps more . As Bulgaria becomes more popular, tourism demand is rising but we may see a temporary oversupply of houses in the market suppressing rental yields in the short term but medium term and long term investors should achieve excellent returns. Buying in Bulgaria is easy and no more or less difficult than buying in any other foreign country, although you do need to pay particular attention to land ownership title.

There is one specific thing that is to be taken into consideration, which is that non-Bulgarian nationals are prohibited from owning land and can only own the buildings and not the land upon which the buildings are built. There is a way around this situation should the investor want to purchase land and that is by forming a Bulgarian limited company. A person buying an apartment does not need to do this because they would only own the apartment and not the land which does not affect their rights to that apartment. Even though the investor does not own the land, this is not a cause for concern, as the investor’s rights continue forever. If you wish to own land as a foreign individual, you can easily register a company in Bulgaria and buy property through that company at a cost of 550 Euros.

A company owned by a foreign person in Bulgaria is considered to be a Bulgarian legal entity and can acquire real estate ownership rights without any restrictions. All the necessary procedures for establishing a limited company can be completed in approximately one month if it is required. The legal situation for purchasing is summarised as follows;

• No land ownership for foreigners in Bulgaria
• Foreigners can own buildings
• Foreigners wishing to own land can do so through incorporating a limited company
• Bulgarian company incorporation costs 550 Euros approx.
• Bulgaria's ownership policy will be harmonised with the EU in the future