The Bulgarian economy has shown a successful and rapid recovery from these shocks and has achieved impressive growth rates of 7.6% in 2021 and 3.4% in 2022, outperforming the EU economy in the first year.
Business development in Bulgaria is also on an extraordinary upswing, especially The service sector is growing exponentially. The unemployment rate is falling steadily since its peak in 2001 and is now almost 5 times lower than at that time. The fact that Bulgaria has been a member of the European Union since 2007 provides much greater stability and security for its economy and property market.
Bulgaria is known for its beautiful landscapes, historical monuments and key strategic location in South Eastern Europe. This creates the perfect conditions for a thriving tourist The country has hundreds of kilometres of Black Sea coastline and an abundance of real estate has been built there recently. Obviously, buying property in these areas is guaranteed to provide investors with huge rewards through rental income. The development of tourism tourism in and the construction of houses in the mountainous areas of the country also makes this area attractive for investors. Less so, at some points the demand still seems to be greater than the supply.
Average rental income is currently 4.6% in Bulgaria and the fact that tourist arrivals to the country are more than have tripled since 2020, presents even better opportunities for holiday rental income properties.
Unsurprisingly, the country’s financial account (total investment) is soaring- from -616 million in 2021 to +689 million in 2022. Accordingly, the property price index in Bulgaria showed increases of 4.6%, 8.7% and 13.8% in 2020, 2021 and 2022 respectively, reflecting the great opportunities for growth investments.
Despite this exponential growth compared to the rest of the EU and even the region, the property prices in Bulgaria remain extremely affordable, making the country an ideal choice for for any investor, especially as a starting point. The average price per square meter of property in central areas of the major cities is set at just €1,150 and in the suburbs and small towns only 790 euros.
Bulgaria’s favourable tax regime is another attractive factor: it is set at only 10% for rental income as well as from the sale of real estate.
In addition, those properties that are owned for more than 3 years are exempt from paying any tax. These tax policies are very attractive for investors looking for profitable businesses.
