The purpose of investing in most cases is to improve the financial situation, as well as to raise own funds for future needs. By investing, you can manage your money, which can increases with time because of different factors.
In recent years, with the rise in residential property prices, Bulgaria has become an attractive destination for investment. The average profitability for the capital city and the other big cities is about 5% for different regions, types of construction, size of real estate and other factors.
We are going to look at some reasons for which is good to start investing in Bulgaria.
- Part of NATO and EU
As a part of NATO and the European Union, Bulgaria is a politically and economically stable country.
Bulgaria is part of the EU since 2007 and constantly updating its legislation and following the trends of the other member countries.
The goal is to encourage investment and the whole process by clarifying and clearing business procedures.
- The good geographical location
Bulgaria is strategically located in the East and the connection with the other countries part of the EU is very easy. The growing markets of the real estate properties in neighboring Turkey and Greece, proximity to Russia and the Middle East are also good advantages for this rising country.
There is an opportunity to become a Bulgarian citizen after buying a property in Bulgaria.
This will give you a lot of possibilities everywhere in Europe because it gives you the right to live, work and study or to have land or property in every single country part of the European Union.
- Flexibility in the lending
If you are a European Union citizen or work in Bulgaria, you can avail yourself of a mortgage loan for future investment.
Currently, the average mortgage lending rate is around 3%.
- Excellent tax conditions
In recent years, Bulgaria has attracted a lot of foreign investors, because it ranks among the countries with the lowest income tax in Europe – only 10%, and property taxes in big cities are about 2.5%.
- Developed transport and tourism
Bulgaria has 4 major airports that connect it to many destinations around the world. They are located in big cities – Sofia, Plovdiv, Varna, Burgas. As well as two major ports – in Varna and Burgas.
There are 4 seasons in Bulgaria, which favors the development and investment in real estate. Because of the big interest of the tourists, Bulgaria is a preferred destination for tourism, as many people invest in vacation homes.
All the places and seasons are good because the country is rich of mountains, where people love skiing during the winter or take a break of the heat during the summer, as a lot of seaside villages which are perfect for a beach day during the summer as well as the winter is milder there than in the other big cities of the country.
- Highly developed IT sector and workforce
The IT sector is developed in the country and due to the high salaries, the employees of these companies have an ideal client profile for renting a future property.
Highly qualified people are a very large part of the Bulgarian society.
The younger generation speaks good English as well as other languages such as German, French, Russian, Spanish, Italian, as these languages are often taught in schools where they catch the interest of the youth, so they refine them in the future.
- High yield through the platforms Airbnb and Booking
Over the past few years, tourism in the big cities has grown because of the great historical heritage which Bulgaria has.
Buying a property in the capital city or some of the other big cities, as well as properties near the popular places for tourism, you can get high yield through the Airbnb and Booking platforms, which are getting very popular in Bulgaria lately.
- Starting a business is easy
Starting a business in Bulgaria is not expensive. Yes, you need documents and approving the whole process, but not many expenses.
The minimum capital is € 1 for limited liability companies, which is a factor for many people to realize their business idea. Bulgaria is a good option for foreigners as well because there are no special requirements and there are no other restrictions if you are not a Bulgarian citizen.
The other advantage is the quick registration of the companies, which happens within 3 days of the submission of the documentation.
- Fast and easy involvement in the community
People in Bulgaria are one of the most hospitable people, so it is extremely easy for foreigners to integrate.
The food is also not to be missed as Bulgaria has a great variety of local food, which has not changed much over the years and is an integral part of Bulgarian cuisine.
There is also western and eastern food for the ones who don’t like the Bulgarian one.
However, before you start investing, it is important to start spending less than you earn, have some money saved up for at least a few months, and have no credit obligations.
This is the best case scenario, you will not have unnecessary financial worries and will be ready to start investing.
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