buying in bulgaria

[Jain and Chris]

Just ought to clarify something about what the Brits call Capital Gains Tax.

1. If you own property as an individual and sell one property in a tax year (or two properties in a year if you have owned them for five years), then there is no capital gains tax in Bulgaria

2. If you own property through the vehicle of a Bulgarian company and the company sells a property, then there is 10% Corporation Tax to pay in Bulgaria. Corporation tax is always payable on all a company's profits after allowable deductions.

Mick, some of those figures are a bit out.
Community charge - what the Brits would call poll tax or rates - these depend upon the municipality of each area. We pay 40 euros a year for a three bed detached of about 140 sq.m in a town which includes sewage, rubbish collection, street lights, etc
The maintenance costs seem high to me too
Water and electric - again that's high
Rental expectations - yes, very variable

Cheers

[overseas wills]

I think it really is up to the individual where they want to buy and the reasons for buying. Bulgaria is still in its infancy with regards buying and has only just become a memebr of the EU hence the interest.

Bulgaria offers many things and very importantly the friendliness of the people. I have property in Bulgaria and last year (beiginning of October) visited Spain after many years. I could not believe the cost of holidaying compared to Bulgaria. In addition the town we stayed in (near Salou) was closing for the winter so it wasnt really offering me anything better than what I had been used to.

Good luck.

[mickthepropertyguru]

Originally Posted by Jain and Chris

Just ought to clarify something about what the Brits call Capital Gains Tax.

1. If you own property as an individual and sell one property in a tax year (or two properties in a year if you have owned them for five years), then there is no capital gains tax in Bulgaria

2. If you own property through the vehicle of a Bulgarian company and the company sells a property, then there is 10% Corporation Tax to pay in Bulgaria. Corporation tax is always payable on all a company's profits after allowable deductions.

Mick, some of those figures are a bit out.
Community charge - what the Brits would call poll tax or rates - these depend upon the municipality of each area. We pay 40 euros a year for a three bed detached of about 140 sq.m in a town which includes sewage, rubbish collection, street lights, etc
The maintenance costs seem high to me too
Water and electric - again that's high
Rental expectations - yes, very variable

Cheers

Ya i have put question marks on some of the figures as i don't exactly know what they are but I'm looking for ye guys who own a property and reside there to give an insight into average costs so i can update the list and give a fair reflection.
What average figures would you put the outgoing expenses at for a one bed apartment in Sunny Beach ? Are there any other costs/Tax related to Bulgarian property ? Thanks

[rabarbaro]

Yes, I add that , if you rent by week, you have to consider also the cleaning costs and the laundry washing, as well as the risk of having something ruined, or things deterioreted...
In the end, if you live nearby it has a meaning, otherwise not....
better buy in a city and rent the apartment all the year round.....

[Sooky]

Originally Posted by Lysos

focus, why do you want to buy in Bulgaria ?. Elsewhere on this & other forums 'investors' are bleating that they cannot give away their purchases. As you are Irish I recommend you read the postings on "Askaboutmoney". If you still want to buy there are thousands of people around to bite your hand off; it's a buyer's market. Actually, outside the main cities it would seem there is no market. Hands up, does anyone know anyone who is planning a self catering holiday in Bulgaria ?.

I agree with this - my sister has two properties for sale in Bulgaria. One a new build pool house and the other a large plot she was going to develop into an activity vcentre, so both ends of the price scale - no interest what so ever. She is also having difficulty getting estate agents to take them on their books.

[Ray Sammut]

I am new to this and to all blogs but I am finding it quite usefull.

I have two pieces of land - one near Bourgas and the other one near Veliko Tarnovo (on the Stamboliiski Lake) each having an area of 13600sq.mts.

I have planned to build twelve detached villas on each of the land. And I need to sell the properties off-plan before I can start building them.

I would appreciate to have some good guidance how I can market and sell these properties.

Originally Posted by runchev

Hello Focus,

Yes, the development SD6 has just started.
We have sold a few apartments from this developer, it is well known and sells cheap apartments. the quality is not the best, but comparing to other prices it is reasonable to buy there.
The developer has also started building near Sofia, so he is expanding his developments.

If I can be of use, please contact me and I can help you as well with this service of buying an apartment there. And can answer you questions as well.
Regards.

[Fletch]

Hi Ray, I think at the moment is not best time to try to sell in Bulgaria we have lived here now for over 12 years, we live 7kms inland from Sunny Beach and the market at the moment as it is world wide is almost at a stop. We have just managed to get our plans passed to build an off plan villa in our village it has taken us over 12 months to get the project togther we have not started to market the villa yet as I dont think it is the right time if I can be of any help please let me know

[survivalbulgaria]

I think that the moment with easy off-plan sales is gone now. Even with secured mortgages (for 50% - 60% of the price) the sales are struggling now so if you do not have the money to complete them then it is better to wait.

[Jain and Chris]

Hi Ray

I think the comments on the board so far are probably quite correct, in terms of don't sell anywhere in the world now if you can avoid it.

However, what you are selling does not necessarily fall within the bounds of everyday property, such as a house for holidays or investment. It is different, with nearly 14000 sq. m. on each plot, so you could sell the land as is, so to speak.

I think if you price sensibly you will certainly attract a potential investor who is looking to buy and hold, or is looking to develop in the medium term.

If you prefer to develop yourself, then you really need some damn good marketing for putting out off-plan projects at the moment (and I'm not just talking about Bulgaria at all but any country). I'd be happy help if I can.

All the best, JnC