Bulgaria FAQ's
What is the Exchange Rate?
The exchange rate is 1.5 euros to the £UK sterling (approximately).
What are the typical rental management charges in Bulgaria?
A rental management company will typically charge 10% of your rental income to look after the property, find tenants etc.
What is the maintenance charge?
The maintenance charge includes the maintenance and upkeep of all the facilities on the development and the maintenance and upkeep of all the communal areas. This ensures the development remains a luxury development and purchasers can continue to charge high rental amounts. The maintenance charges for Avalon Residence are expected to be 10-12 Euros per square metre per year
What is the currency?
Currently the official currency is the Bulgarian Lev (BGN) which is pegged directly to the Euro. The exchange rate is €1 = 1.95 BGN. Generally, the exchange rate is £1 = 2.95 BGN (approximately).
What is the time difference?
GMT +2
What rental returns can I expect?
Rental yields in Sofia were 10.5% last year, one of the highest of any capital city in Europe.
With the location and continued investment into the area rental yields will remain high.
Sofia offers an all year round rental market to employees working for any of the multi-nationals moving to or already in Sofia.
Why invest now?
Bulgaria is already emerging as an expanding economic market place but with EU entry, Sofia as the Capital, will provide a vibrant financial and commercial centre; which will continue to increase property values.
The evidence of capital growth in other countries who have entered the EU is a template that gives sound reason to the growth that can be anticipated in Bulgaria- upon joining the European Union, the cities of Warsaw (Poland), Prague (Czech Republic) and Bratislava (Slovakia) all climbed more than 10 places in the ‘Mercer cost of living’ survey. These cities, once they joined the EU, saw aggressive increases in property prices for the following three years; so now is the time to invest.
Between 2007 and 2009 Bulgaria will receive 4.6 billion euros from the EU which is the highest amount per capita for any accession country ever.
What about mortgages?
Mortgages are very difficult to obtain in Bulgaria. Standard payment over the period of the build is a typical way to pay. Mortgages will become more freely available over the next couple of years (with EU entry and the improvements in banking services); this will result in the market being opened up to more people and subsequent an increase in property prices, as investors can afford to buy their own property.
What taxes will I have to pay?
The costs involved in buying a property in Bulgaria are generally lower than most of Europe but you should allow for a figure of approximately 2-3% of the purchase price. For simplicity, always break taxes down into two sections, taxes due on completion which are one-off payments and ongoing annual taxes which are recurring each year.
Where can I fly from?
20 UK airports run flights to Sofia, including Gatwick, Heathrow, Stansted, City Airport, Bristol, Southampton, Birmingham, Newcastle, Leeds, Manchester, Glasgow, Edinburgh, Dublin and Belfast. Sofia looks set to become a major flight destination within the next 12 months. According to Sofia airport authorities, four European airlines – Air Berlin, EasyJet, KLM and May Air - are currently in talks regarding new flights to the Bulgarian capital. Air Berlin is proposing direct flights linking Sofia with the German capital, Berlin and is hopeful that it could begin operations on the route next year. EasyJet is keen to make Sofia a major regional base, offering flights from the city to Athens, Bucharest and Kishinev, Moldova.
What is there to do in Sofia?
Emerging Golf Tourist Destination
Construction of further Golf courses will undoubtedly lure more buyers into the property market, currently there are two 18 hole courses in Sofia - St Sofia Golf Club & Spa is situated in Ravno Pole which is 15 minutes from the capital and another in Ihtiman, 40km from Sofia, owned by Air Sofia. Air Sofia is also in the throes of constructing their third and fourth courses in the Lulin Mountains close to Sofia.
Skiing in Vitosha
The ski resort of Vitosha is just 10km away from the centre of Sofia and is the highest ski resort in Bulgaria (2290m). The mountain is a favourite for skiing in the winter and trekking in the summer and is the most accessible of all ski areas in Bulgaria. It starts to snow heavy in December and it is stable till late spring. The snow cover reaches a thickness of 1.5 m. The duration of the skiing season is 120 days and temperatures reach-4.6C in January.
Tourist attractions
The Alexander Nevski Cathedral
Situated in the Alexander Nevski square, this memorial church is considered to be one of the finest pieces of architecture in the Balkans and is certainly Sofia’s number one attraction. The church was built in honour of the 200,000 Russian causalities of the War of Liberation and is renowned for its structure; incorporating masses of gold leaf over domes and half domes and also for its 5000 strong capacity.
The Banya Bashi Mosque
The last surviving mosque in Sofia still in use; dates back to 1576. The mosque fell into disuse when the Communist government turned against the Muslim inhabitants of the country. With EU grants the Mosque has been renovated and re-opened.
St George Rotunda
Hidden away in a courtyard behind the Sheraton Hotel, this dainty red-brick building is the oldest surviving structure in the city which still serves its original purpose. Built by the Romans in the 4th century and situated amid the remains of the ancient town Serdica, the magnificent dome is a UNESCO world heritage site and now functions as a museum.
The Zhenski Pazar (Womens Market)
The Zhenski Pazar is the largest and busiest market in Sofia. The stall holders at the market were once all women but now male and female peasants from the surrounding hills travel to town each morning to sell their produce including cured meats and homemade halva. The atmosphere is chaotic and a bit dirty but fun.
The National Palace of Culture
The National Palace of Culture is the largest multifunctional complex in South-eastern Europe which incorporates 16 halls which host a range of different types of events including concerts, conferences, exhibitions and shows.
Located in very the heart of the capital, amidst a beautiful park with a magnificent view of Vitosha Mountain in the background, it is surrounded by museums, historical and cultural sites of interest, financial institutions and the best hotels and restaurants.
The Rakovski Street theatre district
No one should miss the Rakovski theatre district, just south of St Nedelya Square; a pedestrian haven surrounding the red, white and gold neo-classical National Theater Ivan Vazov, filled with cafes and theatres.
Voitosha Boulevard
The main shopping street, where you can find all the designer shops (Armani, Gucci) and luxury boutiques; ranked as the worlds 22nd most expensive commercial street.
Sofia Land
Sofia land is the first true amusement park to be built in the country, as well as one of the largest in Southern Europe; situated in a park close to the Sofia Zoo.
Other notable buildings
In the centre of Sofia you can also find; The International Art Gallery; The National Assembly, The Presidency; The Embassy; Sofia University and The Sofia Opera House; which are all stunning pieces of architecture.
