The Bulgarian Economy:

» Decreasing interest rate trend: from 13% in 2004 to 6.5% in 2008
» Increased foreign direct and indirect investment : 4.1 billion EUR for 2006, 5.2 billion EUR for 2007
» Government incentives: corporate tax at 10 %, Income tax cut to 10% (June 2008).
» Stable macroeconomic indicators: strong GDP growth ( 5.3% on average between 2002 and 2006), unemployment rate at 8.6% in Oct 07 (16% in 2003)
» Highly competitive Business environment: lowest operating costs in eastern Europe:
» Growth potential: stable political and economic environment
» Capital appreciation: + 35% in 2005, +18% in 2006, +29% in 2007, (+15% expected 2008)

Rental yields in the city have been improving and are fuelled by foreign corporate investment in the capital. Agents in the city have indicated that corporate lets and migrating Bulgarians from other parts of the country are boosting the rental demand, a trend set to continue as further investment is made in the city.
Agents have indicated that investors should expect a 6.5% rental yield.
The legal and financial sectors in Bulgaria are becoming more established, offering improving mortgage vehicles and a stable purchasing structure.

Typically new build acquisitions are funded by stage payment purchasing but Mount View development exclusively offers one initial deposit of 35% with no further funds required until completion. Unlike many Bulgarian built apartment blocks, the Mount View development will offer an exceptional finish throughout, including kitchens, bathrooms and light fittings.


Payment Plan: Payment terms are designed to attract investors with just 35% deposit and balance due upon completion.

» 1500 Euros non refundable reservation fee
» 35% on signing of preliminary contract (within 28 days of reserving)
» 65% on completion (expected Autumn 2008)

This payment structure allows the buyer of the property to apply for a loan for the last instalment of 65%. Most of the banks that grant loans to foreign citizens for buying property in Bulgaria require Certificate of Use, which guarantees the entire completion of the Complex and putting it into operation.

The trend in the real estate market is up for 3 main reasons: increasing EU funding and FDI for the 2007-2013 periods approved by the leaders of EU countries (EUR 11.113 B), increasing average disposable income for Bulgarians (+ 15% in 2007), decreasing interest rates on mortgages (from 14% in 2003 to 7% in 2005).

Foreign ownership in Bulgaria: Under the Bulgarian act on Foreign Ownership, foreigners are not allowed to own land but may own buildings. Foreigners can however own land by setting up a Bulgarian company to hold the Bulgarian property for them. The situation is summarised below:

» No land ownership for foreigners in Bulgaria.
» Buildings can be owned by foreigners.
» Foreigners wishing to own land can do so through a company.
» Bulgarian company incorporation costs less than £500.
» Bulgaria’s ownership policy will be harmonised with the EU in the future.
» We recommend company ownership for security of your investment.