Bulgarian property

Don't want to confuse you in any way but from what I saw in the news the property market is back at pre-pandemic prices. In my opinion this means that there might be a considerable increase in the prices in the future.

Thanks Christov - had prices gone up when the pandemic hit early last year?    Why do you think prices might go up, once the pandemic is under control - obviously the implication is that there would be a high demand for Bulgarian property?  Why?

Mostly based on personal observations. I live in Burgas where there has been a lot of new infrastructure developed & I might dare to say it's becoming a pretty nice city. My guess is based on the fact wealthier Bulgarians from abroad are flocking back into the country because this is where they feel the safest & where their families are. I can't say much about the properties away from the sea because this isn't a market i'm well aware of.

Thanks Christov - yes it makes sense - a similar scenario is happening in New Zealand - where I live - citizens returning - not enough property for sale - so market prices rising.

I think the problem here isn't that there isn't enough property per se. It's more like there isn't enough well-built & maintained properties. Slowly but surely improving tho

Thanks Christov - most appreciated.

Yes and No!    Sofia is the new California where prices are going up and up and may someday end in a bubble. 

Burgas, Sofia and Varna are close to the same but some good deals are still available but I would agree that bigger city prices are close to or at pre pandemic levels.

Beach cities are dramatically overbuild with thousands of new properties competing with thousands of desperate sales of old properties.  The Beach cities could turn out like Palm Springs California where i sold my 210 M2 house on a golf course for $725,000 in 2006 and it is now on the market for %500,000 with no offers.   

I previously wrote that you can buy beach properties at -35% .   I was wrong,   It is more like -55% as sellers are desperate.  Now is a good time to buy and be stingy.

We have visited the three Ski Areas where one can buy a two bedroom apartment within 3 minutes walking to the lift for under E40,000.  The same in Vail or Aspen would cost $4 million.   I do not know enough about the ski areas but have purchased one for rental and the 4-6 weekends a year we will use it.

My feeling is that the pandemic will cause a lot of changes. As employers realise how much they can save on office space by having people work from home, there may not be the same need to emigrate to get a good job anymore.

is their a specific realtor that is recommended? we would like to be near the Sea but of course that would mean we would loose property. I would like to look at some properties in all three cities.

Perhaps you could consider Ben Collins @ CollinsEstates.com. He is honest and among the few that understands that repeat business is how he grows.     

My advice is to investigate before you nvest.   I am happy to help.  Ben is doing properties between Sozopol and St Vaas.   Varna is beautiful but is colder n the winter.   All are good spots to land.   Visit first and do not buy over the internet. 

I would be happy to look at any property in my area if you let me know what you are seeking!

I am semi retired and own hotels and not selling real estate.  This is the time to buy.

Wonderful.  We are currently living in the USA. We have a transport business and would want to extend that to Bulgaria.

Consider Orbit---a premier company in Bulgaria.   I have  client who is in logistics and has worked with them.  I have used the for several transports of vehicles and goods.  I have  personal relationship with one of the senior owners.   As always it is who you know.

It definitely is for sure, who you know..

I think a situation in Bulgaria is very different from New Zealand - we are originally from Ukraine, but lived in Kumeu, Auckland and are watching Bulgaria as a potential country to retire in the future. In NZ there are Chinese/Taiwan/Hong-Kong people who were driving the prices up for the last 5-10 years - may be not so much now but still it is immigration-in situation. In Bulgaria situation is very different - it is mostly immigration-out (at least for now). There are big crowd of Brits and Russian who have invested in costal Bulgaria and are now desperately looking to sell their houses and luxury apartments without luck, So I think the property prices in Varna and Burgas will continue to decline for the next 2-3 years,  The situation in Sofia is different, and it can be an indicator of what will come in the future for costal Bulgaria - but not so soon I guess

Possibly correct however I just sold a unit in my development for E1500PSM. It is first line beach front in St. Vlas.    That is only the most recent sale and I held out for it.   It was to a Bulgarian.  It is front line Beach front.  Four years ago they were E1900 PSM.    Who knows what the future will bring however it is my view that the more prices go up in Sofia the more it will help resort properties.

We've just finished diploma for economic, and analyzed situation with investments in Bulgaria. I absolutely agree. 
There are several countries are fighting for private investors in costal region, but Bulgaria doesn't. As result a lot of Russians, Ukrainians and others prefer Turkey and Spain. Business chooses between Poland, Lithuania and Bulgaria. But for business Sofia is preferable. We chose Sofia , because it is business center ((we are accountants and  ip lawyers ) . And as result square meters price is rising in Sofia. Maybe Plovdiv and Varna is OK too.
For  retirement , I prefer Bansko and Sofia (Bankya). It's my personal opinion.

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I own property in Bulgaria, so I hope the outlook is good! :-)

While tourism/economic output is down because of Covid, I see no reason why Bulgaria won't bounce back just as quickly as the UK or Spain or rest of EU.

And Bulgaria is due to adopt Euro soon (start 2024), and I think many countries experienced some price inflation when they switched.

My areas are Plovdiv (for city life), Bansko (ski town) and Dolno Izvorovo (mountain village in the Balkans), and I haven't witnessed price falls here.

Indeed, Covid has caused many to re-evaluate village life (I know I did), so I think there has been increased demand for village houses. My village is... well, booming, I guess! Pretty much every house has been, or is being, renovated... and a bunch of very fancy new builds have popped up too. (My new neighbour has a mansion of perhaps 450 m2, it's very tasteful and contemporary.)

I don't think Bulgaria is so cheap any more, the days of nice houses on Ebay for a few thousand pounds are long gone! I think bargain hunters can find less expensive property in Serbia or Turkey, perhaps. But the cost of living remains low, and property expenses (taxes, utilities, maintenance) are very manageable. So, I think, overall, it's still a very nice place to live on a budget/pension.

Is it "illegal for Russians to own a property in Bulgaria"?

This topical article from Novinite makes no mention of this; it says they are being forced to sell because of the depreciation of the Russian currency.

https://www.novinite.com/articles/20929 … +Sea+Coast

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Dear gwynj and EVTRA we are from England and invest in rural village life because we want Bulgaria to do well. We really hope Bulgaria will resist or not join the Euro as that means economic control from Germany and loss of identity. Common currencies lead to imposition of common policies and cultural change by the back door. Bulgaria needs its own currency.

I think FACULTY that particular issue is done and dusted. It will be official from 1 January 2024.

Bulgaria had joining the Euro as part of its EU accession treaty in 2007... and then the Lev joined ERM in 2020.  But they're required to meet the five euro convergence criteria, so it has taken a long time! As of today, I think it meets 4, and the 5th is 2 years plus in ERM.

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My education is a PhD in International Currencies and I have studied the impact on economies that have converted to the Euro.  In short, economic suffering will come to those earning fixed wages.   As realestate and autos are transacted in Euros there is no inflationary impact.   The consumer will experience inflation in food and service costs. 

A simple way to gauge the impact is the price of a cola at McDonalds.   If is a large cola currently costs 3,40 Lev it will change to 2 Euros as prices will be rounded up.   Keep an eye on that when the time comes.  This is what has happened in all countries thus far. 

The statement of coming under the control of Germany is likely true.   They could not dominate Europe militarily and have supported the EU as their method to gain control of social and economic standards.

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Johnavann wrote:

Yes and No!    Sofia is the new California where prices are going up and up and may someday end in a bubble. 

Burgas, Sofia and Varna are close to the same but some good deals are still available but I would agree that bigger city prices are close to or at pre pandemic levels.

Beach cities are dramatically overbuild with thousands of new properties competing with thousands of desperate sales of old properties.  The Beach cities could turn out like Palm Springs California where i sold my 210 M2 house on a golf course for $725,000 in 2006 and it is now on the market for %500,000 with no offers.   

I previously wrote that you can buy beach properties at -35% .   I was wrong,   It is more like -55% as sellers are desperate.  Now is a good time to buy and be stingy.

We have visited the three Ski Areas where one can buy a two bedroom apartment within 3 minutes walking to the lift for under E40,000.  The same in Vail or Aspen would cost $4 million.   I do not know enough about the ski areas but have purchased one for rental and the 4-6 weekends a year we will use it.

hello Johnavan,
     Thanks for sharing your experiences. I want to know three things.
  1. If I want to invest in a real estate, what type of visa should I get? ( I'm from Sri Lanka )
  2. After investing in a property, can I stay there? And how long?
  3. This path might lead to residency in Bulgaria, right?

Thanks

There are a number of posts that discuss the subject but to summarize quickly this is what I understand and have experienced

Foreigners meaning non Bulgarian citizens can own property if they set up a corporation

Use a solicitor and a notary to guide you through any transaction and spend some time in the country to determine where you would like to live

One thing that is surprising to me is that rural properties are receiving more interest from buyers

Perhaps this is because of the rising prices in major cities

Even the beach cities which are dramatically overbilled are experiencing price increases

Even though prices are higher than they were a year or two ago Bulgaria is still a great value

And a wonderful place to reside

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EVTRA wrote:

If you are looking for a golden visa out of purchasing a property in Bulgaria you are out of luck. There arr some program opening a business and employing Bulgarians but quite expensive.

If you are looking for such opportunity it is better to point to Greece or Montenegro. But we still talking 250k for Greece.

Hello friend,
      No such things. Looking for buying a property and get the residence permit. Can you tell me some properties are listed on the website around €54,000 and If I buy one of those I can apply for the D visa right?

  sea-view-complex-in-st-vlas
thanks

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Hello! I have heard that, without speaking Bulgarian, the likelihood of getting ripped off in some way is greater (as in any country where you don't know the language). That would put me off buying a property that is only on paper or even in the building stages. RE buying one of those coastal condos, I have read reviews of same properties on Booking.com etc. where tourists complain of filthy apartments, rude management and the like. And I think, why would I want to live in a place like that? Also, it seems that a condo with an on site garage is not easy to find.

@ASELA28SL welcome to the forum!

Unfortunately, as @EVTRA so wisely says, owning a property doesn't help on the immigration issue.

You can get a tourist (C) visa, pretty easily if you just want to visit (up to 90 days) to take a look around our beautiful country.

Otherwise, it's a two-step process: apply first for D visa in your local BG embassy (unfortunately, not in Sri Lanka, I think, so nearest probably India); fly over with your shiny new D visa and apply for your residence permit.

I think D visa might be possible as a freelancer, but depends whether they enforce the Bulgarian language requirement. Alternatively, the favorite with Bulgarian immigration lawyers is the TRO (Trade Representative Office). You register the TRO in Bulgaria for your non-Bulgarian company (could be in Sri Lanka, UK, USA). With the TRO done, you can then apply for the D visa. (There is full info on the D visa application under another topic.)

You can incorporate in UK/USA for $100 or so. The TRO registration is probably around 750 euros per year. We need to check on latest requirements relative to the foreign corporation (how long it has existed, whether it has traded). It used to be they just wanted it to exist, and be in good standing (up to date with appropriate annual fees paid)... but I heard they are toughening up a bit.

You are correct about many facilities.   It appears to me that the Developer, manager pockets the fees of about 1-13 EPSM and rarely maintains a property.   Many are like this but not all.   Prime Properties, like Venera Palace, Anastasia Palace in Sunny Beach  are the exception as is  Onyx, Arturo and Horizons in Sveti Vlas.  Interestingly there is little difference in price for purchase or maintenance fees in the current market, however the prime property owners are not accepting the offers that the run down property owners are accepting.  This is a fluid situation.  Those  prime property owners are able to sell and keep the values increasing. 

It is not like finding a needle in a haystack but underscores how important it is to visit the property.  I previously wrote about properties in Sveti Vlas that Russians paid E250,000 for 10 years ago and were selling at E80,000 last year.   The agent said it was because Russians are motivated to sell and most of the money used to purchase these was laundered.  I am not sure if that blanket statement is true.  I turned the unit down as the building was in such decay that it would soon be a tenement.   This was a Denivi Development who has a number of properties in Sveti Vlas that are all run down. 

One realtor Ben Collins specializes in purchasing rundown units and refurbishing the entire building.   Caveat Emptor!

I posted on this earlier and would only add that you consider what you hear and seek for yourself.  Many Bulgers speak English, however a foreigner is truly at a disadvantage till he/she learns the culture, the customs and the scams, all of which are abundant.  In this regards you ought to have a trusted attorney represent you and be by your side for every transaction and have it notarized..

Six years ago I had the same questions but have now carefully navigated my way through the challenges and enjoy Bulgaria immensely.

I AM NOT AN ATTORNEY AND AM NOT GIVING LEGAL ADVICE, BUT KNOWLEDGE FROM MY OWN SITUATION, THUS CHECK OUT THE FOLLOWING WITH A QUALIFIED ATTORNEY. 

As for Visa's there is nothing automatic and no Golden Visa as if the one's offered in Spain are really that much of a perk.  It is easy to obtain a long term Visa D and the requirements are simple.

1.  Produce a FB background check dated within 60 days of application.
2.  Obtain a short term 3 month Visa from the Bg Embassy in your district, This in not needed for a 90 visit however is required to upgrade to a Visa D.
3.  Have Medical insurance---cheap for catastrophic illness.  Medicare is not honored out of the USA, however absent a massive emergency I have concluded if there were something serious I would fly back to the USA within three days of diagnosis---Medical care in Bulgaria for 90% of the common maladies that we encounter is so cheap it is not worth mentioning.   Many Americans choose to go to Istanbul for major surgery as it is superior to many resources in the world and very inexpensive.  This includes Americans flying to Istanbul from the USA. 
4.  Direct your SSA payment to a Bulgarian bank in Lev which can be done through the US Embassy in Athens after you open a Bg bank account.
5.  Show that you have enough money to live one year at the average Bg Salary in the bank as savings--about $7,000.

The long term Visa D is renewed each year without a challenge provided the above are still current and you have no arrest record in Bulgaria.  After 5 years you automatically become a permanent resident. 

Only a Bulgarian citizen an own property registered and located in Bulgaria.   However a foreigner can open a non natural person account (Bulgarian Corporation) and purchase property through that registration. 

One last thing, for those who have never visited Bulgaria--Few neighborhoods look like Beverly Hills with manicured lawns and pristine architecture.   Many of my visitors say their first impression was their image of Bagdad, Juarez or a true third world country as was my first impression.   One must dig deeper to find the gems which are abundant.  Nothing in life comes easy however with persistence and dedication one car forge an almost fairy tale existence and enduring friendships.

Thank you, Johnavann, for this information. I read somewhere that during the five year period where you are waiting to get permanent residency, you are not allowed to leave Bulgaria for more than six months. Six months out of five years! That would be hard for us retired folk. Is that your understanding?

That is an excellent question and I have not heard that in the past

I have sent a request to my attorney who assisted me in obtaining my visa D and when I hear back I will let you know

That does seem to be quite restrictive so let's find out what the attorney says.  There has been a major revision to many many rules regulations and laws affective January 1, 2021 and this could very well be part of it

I also saw this on a different sight, Bulgarian-citizenship.com:
Obtaining temporary residence in Bulgaria and renewing it annually for a period of five years and residing physically in the country for 30 months in the last five years, you are eligible to apply for a permanent residence in Bulgaria. The Foreigners in the Republic of Bulgaria Act allows foreign nationals to apply for Visa D and Bulgarian temporary residence under more than 20 grounds.

Good point @NAOMI77!

Yes, after holding a temporary residence permit(s) for 5 years (subject to the physical presence requirement) you can apply for permanent residence. (Non-EU citizens usually get 1 or 2 year permits, so several renewals are required. EU citizens get 5 year permits, so it's easier for them.)

A permanent residence permit issued in an EU country is now typically issued as a "Long-term resident's EC residence permit", which allows freedom of movement to live, work, study and retire in any EU country in a manner similar to holding an EU passport. (Which means, just as with an EU passport, you still need to go through the registration/residence process after 3 months in your new EU country, but it's a formality.)

The permanent residence permit also provides a path to Bulgarian citizenship, if desired. However, like many countries, Bulgaria does have a language proficiency requirement.