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www.premierapartmentsbg.com Leaders in Bulgarian Property

Premier Property NewsSpring 2006

EXCLUSIVEBansko,Borovets & Sofia Offers

PLUSMortgage NewsBuyer BewareOther Opportunities

2 Premier Property www.premierapartmentsbg.com

p.16 Focus on Borovets

p.3 About Us

p.4 Country reviews

p.6 Focus on Bansko

p. 13 Buyer beware

p.20 Focus on Sofia

P.30 Local mortgage market

p.31 Focus on the Black Sea

p.35 Other opportunities

www.premierapartmentsbg.com Premier Property 3

About us

With Bulgarian property investments, apartments, and holiday homes appreciating at excellent rates, the team at Premier Property is leading the way with well-structured investments and provides a first class introduction to sim-ple investment for Bulgaria property buyers.

Our spring issue offers readers an inside look at the Bul-garian property market, providing essential information on buying a property, including legal and financial advise.

There are details on exclusive developments in Sofia & Bansko as well as opportunities for investors seeking to acquire larger assets in the local market.The Premier Property team invests in our own projects with a personal understanding of what it takes to make a smooth and successful investment in Bulgaria.

What you can expect:▪ Personal and friendly investment guide to Bulgaria▪ A team that takes the time to understand your wants ▪ Clear and precise property investment advice ▪ Exclusive Bulgaria property investments ▪ Bulgarian mortgage advice ▪ Bulgarian Investment management ▪ Bulgarian company incorporation ▪ Property tax structuring▪ Foreign exchange services

Premier Property Bulgaria Ltd was established in early 2004 in association with London based chartered surveyors, Latham Yeomans.

We hope you find our magazine both useful and informa-tive.

Regards, Team Premier

Welcome to our spring issue of Premier Property News magazine.

Our office is located in central Sofia on Maria Luiza Blvd.


Country Review

Bulgaria Overview

PoliticalPolitically, Bulgaria is one of the most stable countries in the Balkan region. The most recent Bulgarian elections were on June 25, 2005 but a mix of personal and political spats kept the various parties from joining together until Aug. 15.The new government (the Coalition of Bulgaria) enjoys a 169-seat majority in Bulgaria’s 240-seat Parliament - a wide enough majority to not only force through any legis-lation it deems necessary, but even to amend the country’s constitutional processes to ensure all relevant changes are adopted for EU membership. For the first time in a long while, European commentators are finding themselves marvelling at Balkan stability.

EconomicAlthough one of poorest of the new EU entrants, Bulgaria remains one of the most economically disciplined:▪ GDP growth of 6.3% , which is forecast to continue

for the next two years.▪ Unemployment fell to 11.7% in June 2005 and is

expected to continue to fall as foreign companies continue to outsource and utilise the skilled labour resources of the Country

▪ Greece has been outsourcing manufacturing facilities on a mass scale to Bulgaria

▪ Bulgaria has run a fiscal surplus for the past 2 years which has allowed gross government debt as a per-centage of GDP to fall from 77% in 2000 to 41% in 2004

▪ Bulgaria has maintained a currency board since 1997 which has pegged the local currency (Lev) to the Euro since 1997 (it is expected to formally adopt the Euro in 2009), and

▪ Bulgaria will receive €3,5bn in funds for infrastruc-ture development upon joining the EU

As a result of economic convergence and due to its low base, it is expected that Bulgaria’s per capita income will grow at the fastest rate of all the EU members over the next 10 years.


Country Review

TourismThe Country is increasingly on tour operator’s radar screens, with tourism numbers forecast to increase 15-20% in 2006.

In 2005 the European Union’s open air agreement comes into place, allowing all European based airlines to fly to any city. This should increase tourist numbers as flight prices become more competitively priced.

Coastal and mountain regions have already experienced 100% hotel/apartment utilization over the busy periods, thus it would appear that demand is outstripping supply in these areas.

China in negotiations to allow its citizens to travel to beach resorts for vacations. Chinese spent $15bil on travel last year.

The number of tourists to the country has increased steadily as the indicated in the graph below. Tourism in Bulgaria is forecast to grow from 4 million in 2004 to 11 million in 2020 (source: World Tourism Organization).

The key winter period from December through to the be-ginning of April averaged 183,000 visitors a month with a growth rate of 19% on 2003. This is expected to increase by 16% in 2005/6.

Press News“Bulgaria pocketed €705mil of revenues from international tourism for the first six months of the year, when 2,7 mil-lion foreign tourists visited it” Bulgar-ian Association of Travel Agent

“Flats in the Bulgarian capital, Sofia are temptingly cheap properties for sale in Bulgaria” Matthew Lynnm, a column-ist for Bloomberg News, in an article entitled “Bulgaria Looms as the Next Real-Estate Hotspot”.

Spain’s Ferry Group is ready to invest 100 mln euro in a golf course with adjacent hotel and residential compounds near the village of Katina, in the Sofia area, said the Sofia munici-pality.The number of British tourists who came to Bulgaria notched a growth of 39%, Danish - 34%, French - 28%, Russian - 13%.

More Press News

Source: - Bulgarian Govt. statistics

Bulgaria’s official tourist numbers


Focus on Bansko

About BanskoBansko is one of the fastest growing tourist hot spots in Bulgaria. Located 150km south of Sofia, the village is situated at the foot of the majestic Pirin Mountains and sits at an altitude of 950 meters. The mountain range is renowned for it’s reliable snow falls which normally allows for a December to April ski season.

Fact FileLocation: 150km south of the Capital city Sofia.Travel time: Three hour flight from the UK and two hour drive from Sofia.Climate: Short summers and long snowy winters.Skiing: Nestled at the base of Mt Vihren (2914 meters) the area has Bulgaria’s most consistent skiing. Snow is often over two meters deep between December and April and lasts well into May. Above the town on the northern slopes of Pirin are located the two main ski-centers: The low altitude Chalin Valog (1100-1600m); The high alti-tude Shiligarnika (1700-2500).Other activities: 17 hot pools and mud baths within 20 minutes drive of the town. Summer hiking and mountain biking Development: While €110 million has been spent on ski infrastructure in the last two years, there is plenty more development on the way.▪ Three new chairlifts, an eight person gondola planned

for 2005/6 season;▪ Several 5-star hotels in progress;▪ New border crossing with Greece only 45 minutes

away from heart of Bansko▪ Luxury 18 hole golf course designed by Ian Woosnam

to be completed by 2007;▪ The area is a UNESCO world heritage site, thus Ban-

sko is ultimately prevented from overdevelopment.▪ The Sofia-Bansko road is undergoing an extensive dual

carriage way and is expected to be completed by late 2006. This will reduce the travel time by around 40%.

▪ Bansko had 235 000 tourists in 2004 and growth is forecast at 15% for 2005

▪ Millions in infrastructure development allocated for Bulgaria’s bid to host the 2014 Winter Olympics

▪ Capital growth forecast at 16% per annum

BANSKO RIVALS EUROPE’S TOP SKI SPOTSThe Bulgarian resort of Bansko was voted Europe’s most improved ski resort in the first Great Skiing and Snowboarding Guide 2006 awards. The Daily Telegraph reported that the popular Bulgarian resort was listed in the new guide, written by the newspapers’ correspondent Peter Hardy and his wife Felice.The guide covers the world’s best ski areas, giving up-to-date and detailed informa-tion on lifts, passes and facilities as well as critical profiles of resorts, hotels and restaurants.Bansko, located in the Pirin Mountain, anticipates the opening of the new ski season scheduled to take place December 7 with the participation of ski legends Marc Girardelli and Rosi Mittermeier.


Crystal

The incredible location allows easy access to the Gondola, the shopping and dining areas of the old town only a few minutes drive from the golf course.

Prices start at €33,000 (Prices are inclusive of VAT)

FEATURES - Strategic location 150m to the gondola- Health Club- Building specifications agreed with Tour Operators requirements- Convenient covered parking - A property management contract is available for all owners

upon Building Competition

FINANCING- €1500 Reservation fee- 40% Deposit in April 2006 with nothing until completion- Up to 70% Financing available*- High forecast capital appreciation - Excellent investment opportunity, buying in the prime location

will ensure the best yields no matter what the rest of the market is doing.

* - Subject to personal credit check

An exclusive off-plan development offering an unbeatable location coupled with 5-star spa facilities.


A New Zealander in Bansko

Tour to BanskoBy Hugh Fraser

Photographs by Andy Lang, [email protected]+359 887 852 679

The road from Bulgaria’s capital to Bansko on an early winter morning can be an arduous challenge - the mist is as thick as pea soup at this time of year and the road is a work in progress. However, the 2.5 hour trip is well worth it. Some say it’s all about the journey, but here it’s all about the destination. Within minutes of arriving, we find ourselves in a traffic jam, but not just an ordinary one: a cart horse obstinately facing a dozen or so goats, both parties fighting for the right of way. Daily life in Bansko has taken a turn. The ways and attitudes of old find themselves colliding with the ways of new.

Rich in History

The old town of Bansko first became a popular destination with commercial traders during the Bulgarian Revival period of the 18th and 19th centuries. The Asian trading road stretched from Jerusalem to the Adriatic coast, with merchants transporting goods from the east in exchange for riches from the west. Geographically, Bansko, huddled in the heart of the three main Bulgar-ian mountains ranges, Pirin, Rila and the Rhodopes, was the perfect place to stop. The once quiet agricultural town soon became a thriving post welcoming travelers in either direction. After World War II, the town’s popula-tion was slightly larger that it is today, with a community of 11,000. The rural surrounds were very different. At the height of communism, 15,000 sheep and 3000 cat-tle were grazing in the fields and meadows. The region, renowned for growing tobacco along with a variety of fresh fruit and vegetables, exported tons of high-quality produce.Much of the wealth of Bansko was in cotton trade. The traders would come from Serres in Greece, via Bansko on their way to Trieste, Italy. The merchandise would ultimately be destined for France or Germany. The cotton market was controlled by the English, but the Bansko people had a side business making the town an essential stopping point on the cotton trail.At one time, the Glazne River flowing through Bansko was a raging torrent, particularly in spring. Many of the

local craftsmen would harness the water in primitive mechanisms and flour mills. At the beginning of the 20th century, Siemens built a hydroelectricity plant. A project is currently underway to restore the plant and produce electricity for the village. Today the river never reaches the high-water mark, as dikes were constructed here in 1930, when it burst its banks and flooded the town. Subsequently, irrigation techniques improved and large amounts of the water were channeled off.

The Town Is Alive

Thanks to the recent real estate and tourism boom, Bansko seems destined for a new heyday. Foreign-ers are now coming in droves to enjoy and admire the mountain trio’s sheer beauty, while shopping around for an inexpensive sky holiday retreat. Bulgaria has a certain magic of drawing people in. Derek Brown, a lively Scotsman who pulled up stumps from his homeland, gave up the life of bagpipes, Scotch whiskey and haggis and exchanged it for folk music, rakia and Shopska salad. After nearly four years living in Banya, a small village on the outskirts of Bansko, he now consid-ers himself a Bulgarian. He says: “Bulgaria is a drug, have it once and you are hooked for life.”



Derek and his wife June are owners of the Penbro Apartments, a place where everybody is welcome. What really makes it for them in Bulgaria? Derek says with the pride of a patriot, “It’s the small things. We are accepted as locals and we are always made to feel welcome. We get by with a basic knowledge of the language but if the roles were reversed in other countries, the hospitality would not be the same. For example, walking through the neighborhood, we are always invited in for a cup of cof-fee. After accepting several of these wonderful invitations we realized it means two hours of hospitality, nothing is in a hurry here.”Derek tells us that no one could have predicted the change was going to be so quick in Bansko. It reminds him of when he was a kid growing up in Scotland and watch-ing the development of Aviemore, history repeating itself 50 years on. “Sometimes life here is like going back in time. Cows, sheep and goats are regulars on the streets, as are horses and carts. At one stage, the Bulgarians wanted to ban farm animals and the horse-and-cart traffic from the streets, but realized that this was part of daily life in Bansko and decided to keep it as something typical”, Derek says. Another element of Bansko’s charm is the ability to step back in time. The Asian trade road was very significant to Bansko’s evolution. Parts of the ancient road can still be seen along with a reconstruction of a revivalist temple. Traditionally, the temples were constructed near min-eral springs, something in which Bulgaria abounds. The trans-continent travelers would stop at every 10 miles to light a candle and pray, and then continue on their journey. Many of the native Bansko inhabitants were pilgrims, the names of more than 20 local clans are prefixed by “Hadji” a symbol that one of their ancestors made the arduous trek along the Asian road to Jerusalem and back.

Development of Tourism

Once a quiet town, Bansko is now transforming at lightning speed. The view of farm animals trotting along 5-star ho-

tels, BMW’s and sports cars in the 16th century cobbled streets is quite fascinating. Watching a country evolve almost faster than one can keep up with is a part of mod-ern Bulgarian life. But culture and traditionalism are so deeply ingrained in Bansko, that the change doesn’t affect them.Unfortunately, at first glance one can miss these traits of Bansko, if overly consumed with the hectic construction activity. Centuries of captivating Bulgarian history are hidden behind the modern-day façade. Most of the key historical sites are huddled in the most inconspicuous nooks of the town and its surroundings. The Alliance for the Promotion and Development of Tourism in the Region of Bansko is a group trying to preserve local history and promote the area. We receive invaluable information from the alliances’ enthusiastic secretary, Vanya Grancharova. Her brief narrative on the origins of Bansko is followed by a tour of some fantastic historical sites that we would have certainly missed.Vanya says, with well-justified confidence, that: “Tourism undoubtedly starts with the beautiful scenery of the Pirin Mountains. Many visitors admit that the views are breath-taking, while the locals claim that they’re best in the world. ”Nature offers year-round treasures, highlighted with pristine snow in winter and magnificent flowers and wild life during the summer. A part of the Pirin forest is a listed UNESCO site, as the home to many significant and rare plant species.



Local Cuisine Our strenuous early morning journey to Ban-sko had whet our appetite. Excited to experience life in Bansko, we chose one of the old town Mehana’s for breakfast. These traditional Bulgarian styled taverns have the look of a community hunting lodge and are often decorated with national symbols; displaying colorful rugs and table cloths, bells and prized mountain game. The Bulgarians’ favourite past-time is to sit around a table, drinking, eating and sharing with old and new friends alike. These high-spirited get-togethers often continue well into the early hours of the morning. The first word that any newcomer to Bulgaria hears, even before ‘yes’ or ‘no’ is “Nazdrave”, which means “cheers” or “good health” and is shouted constantly throughout an evening. These historical settings are permeated by the sense of time standing still. Not wanting to miss out on some of the local culinary delights, we left our order to the waiter who brought a large plate of fried bread, very similar to French toast, accompanied by white cheese and home-made blackberry jam. One of the many trump cards of

Bulgaria is the low cost of eating-out; our bill including several strong cups of coffee was less than 12 BGN (6 Euro) for three people. Food in Bansko is a treat. The local mehanas proudly offer the specialties of the region. They are a deli-cacy not to be missed. Meals are often started with a salad that has undeniably come from a home grown garden. It’s taste disperses any doubt about Bulgaria’s reputation as the agricultural capital of Europe. A typical salad costs around 3 BGN, a main meal of chicken or pork - 7 BGN and may be accompanied by a pint of beer for 2 BGN or a carafe of house wine for only 5 BGN. Our 2-course meal with drinks at one of the off-the-beaten-track Mehana costs only 12 BGN (6 Euro) per head.

...Continues on page 14


Murphys Lodge

Focus on Bansko

Property details - Easy reach of the Gondola, and the Pirin National Park- Excellent payment plan with 70% finance available- Stylish modern design using local timber and rock- All apartments have terraces- Secure underground parking

Amenities- J.J.Murphy’s original Irish pub and restaurant with mountain views - Spa facilities

Property management- A property management contract is available for all

owners upon Building Completion.

- Guaranteed rental yield of 7% p.a for 2 years

- Annual Property Maintenance charge of only 7.20 Euro per sq meter inclusive VAT

Financial DataStudio apartments start at €60,0001 Bed apartments start at €71,000 2 Bed apartments start at €85,000100% of the price will appear on the Notary Deed for this development.

Bulgaria is coming back into fashion as a winter tourism destination, The Times said this week in an article focused on the upcoming ski season. The country offers good value entry-level skiing, the story said. It recalled that last season a third more people than the previous year decided to visit. ”Bansko’s growing popularity and the large amount of investments that have been poured there recently. As a sign of the quality, up market hotel group Kempinski has opened a property there” UK media


Focus on Bansko

Location Finder1. Crystal2. Murphys Lodge3. Lucky Bansko4. Gondola

Low property prices and inexpensive ski passes make Bulgaria one of the top destinations for flour-ishing ski properties, writes The Times in its latest edition.

Described as “ideal for a budget ski property”, Bulgaria is recommended for its season lasting from mid-December to late April and the challenge that its slopes offer for the occasional skier and for those with little experience.

“During the summer this sparsely populated, largely rural country offers a wealth of activities such as hiking, fishing and mountain biking, as well as the fabulous beaches of the Black Sea coast. The numer-ous historic towns, unspoilt villages, castles and churches are also waiting to be explored.”

According to research by the property investment expert Assetz, Bulgarian ski resorts offer rental returns of up to 12 per cent - because of their year-round attraction the returns are double those of their coastal counterparts.

Assetz lauds the rapidly expanding resort of Bansko, which combines a UNESCO World Heritage village with some impressive new lifts and longer estab-lished. A one-bedroom apartment costs from USD 40,000.

Thirty-six per cent more UK holidaymakers visited Bulgaria in 2005, leading to an influx of travel com-panies many of which are offering guaranteed rental schemes similar to those in France. However, Assetz advises property investors to research the history and reputation of the companies involved as they are not yet well established.

UK Investors Snap up Properties in Bulgarian Resorts


The Bulgarian property market is characterized by poorly clarified regulatory and tax policy resulting in inconsist-ent implementation and varying valuations (both market related and tax based); all of which if misunderstood may result in potential tax liabilities in future periods com-bined with lower debt/equity borrowing facilities been available to the acquirer. In this section we attempt to clarify and demystify the situation.

Notary SystemThe Bulgarian property system uses Notaries and a No-tary Act in order to transfer the ownership of buildings and/or land.

Upon completion of the property and prior to signing the Notary Act, the local municipal council conducts a tax evaluation of each property. This valuation represents the minimum value that must be reflected on the Notary Act. It is this value that at a minimum must appear on the Notary Deed in property transactions in Bulgaria.

Tax evaluation rates vary by region across Bulgaria but in general range from 25-50% of the full market value; this is however set to change in the coming months given the current tax valuations were set back in 1999.

Payment StructuresIn general developers require settlement to be made in one of two ways:

1. Part “on-shore” (meaning 100% of the payment comes into Bulgaria) and part off-shore; the tax valu-ation of the property (see above) is paid on-shore and the remainder of the balance is paid off-shore; or

2. Full payment on-shore. The payment structure has various knock on effects as further detailed below:

1. The on-shore payment is the amount reflected on the Notary Deed;

2. Notary fees are based on the amount reflected on the Notary Deed;

3. Local municipal fees are based on the amount reflect-ed on the Notary Deed; and

4. Local Mortgage facilities are based on the Notary valuation and not on the sale and purchase contract.

Example:Property to be acquired costs €100,000. Payment is 50% on-shore (tax valuation) and 50% off-shore.

A. €50,000 is paid into a Bulgarian bank account. The Notary deed discloses the final purchase price as €50,000. The following points are worth noting:

1. Current mortgage facilities allow for 70% of the no-tary deed to be borrowed – hence in effect the prop-erty is 35% mortgaged (50% of the 70% allowed);

2. Were the property to be sold after a period for say €120,000 the owner would be subject to a €70,000 capital gain (€120,000 less €50,000) resulting in a tax liability of €10,500 rather than €3,000; unless of course the property could be sold for a part on-shore part off-shore payment again.

B. €50,000 is paid off-shore. From a developers per-spective this payment structure avoids a VAT payment of €10,000 (€50,000 x 20%) as well as corporate taxes on the profits.

In general, if a purchaser wishes to reflect a value higher than the tax evaluation on the Notary Deed, extra costs incurred as a result of this action are paid by the purchas-er. These costs can include extra notary fees, municipal taxes and VAT. In particular for new build properties, a higher Notary Act price can increase the purchase price by up to 14% alone.

The Bulgarian Economy is growing steadily Strong growth in industrial production, em-ployment and credit has resulted in high GDP growth over the last few years. The economy has grown at an average rate of 4.8 % over the last five years and despite this, inflation has been reduced to the low level of 2.3 % in 2003. Foreign direct investment (‘FDI’) into Bulgaria has increased on a year on year basis over the past three years. FDI reached US$7.4 billion in 2003 from US$5.7 billion in 2002 (a 30% increase). The growth in the Bulgarian economy should underpin a strong property market and lead to increased Bulgaria property prices.

Buyer beware

Buyer Beware



Leading Ski Resort More recently Bansko has become known as one of the prime Eastern European ski destinations. Bansko ski tourism in the sense that we know it today was started with pioneer and Bulgarian downhill racer Mitko Balev. Now 66 years old, he remembers back to when he and his colleagues, driven by an all-consuming passion for skiing, set the first lift facility. It was merely a rope tow powered by a tractor at one end and lassoed around a tree at the other. “We loved skiing and were willing to do anything to get us up the mountain,” Balev recalls. Since that fateful day in 1970, the high-spirited locals climbed the moun-tain each day, working without pay to clear and prepare the slopes and ultimately secure their future. The year 1985 saw the construction of the first modern ski lifts. Five runs were cleared and two chair-lifts and a couple of t-bars were installed to form the foundation of a ski village. The pioneers worked tirelessly to promote the region and successfully bid to stage FIS European Cup races and the Balkan Championships from 1987 through to 1989. With this in mind, it doesn’t seem too bizarre for Bulgaria to be bidding for the 2014 Winter Olympics. The ski runs are lined with snow guns, reputedly the most per km of ski run in Europe. The Bansko slopes mainly comprise of intermediate runs.

However, to satisfy the more ardent skiers, the AlbertoTomba ‘black diamond’ run was opened for the 2003-04 season by the champion racer himself. British ski junkie Jamie said: “The front slopes may be a little tame but the back bowls keep us all challenged, that is if you don’t mind a walk at the end.” The resort now is home to a 2,400 person per hour Gondola, and an ensemble of 21 lifts that service the piste. It is sad to say the original Trac-tor tow is no longer in operation.

Sightseeing Throughout the Ottoman period, the high-spir-ited Bansko people remained active revolutionaries who were constantly striving to overthrow the foreign domi-nation. The magnificent Holy Trinity Church we visited was constructed under a shroud of controversy in just 2

...Continued from page 10



Islam. The priest declared that this church was for people of all denominations. The church was established as the most signifi-cant cultural centre of Bansko during the National Revival period. It was a fortress of the East Orthodox Religion and of the Bulgarian National Spirit. It is closely connect-ed with names of patriots, priests, writers, educators and national revolutionaries. A choir of twelve men chants each Sunday in The Holy Trinity church from 8 am - 12 pm. The entranc-ing harmonies transport us from the 21st century into the mystical past. Each Sunday, nearly 5000 people pass through the church to either attend a service or just light a candle. “Every Sunday there is at least one wedding, last Sunday there were seven,” said Ivan Kolev, the church’s priest of 28 years. In Orthodox tradition weddings are

forbidden one month before Christ-mas and throughout the Easter fast. By Bansko tradition, if a man was still single at 30 he was considered to be getting too old. The grandmas, who can still be seen sitting outside their houses, gossiping, would assist the helpless bachelor and “arrange” poten-tial brides, whether he liked it or not. The house of Neofit Rilski, the founder of Bulgarian secular educa-tion and first Bulgarian encyclopae-dist, is adjacent to the church. The house, transformed into a museum in 1986, is a wonderful visualization of life in Bansko in the 18th century. The house consists of school rooms with sand boxes that were used to draw simple letters, the presbyterium and the rooms of the priest, who was the father of Neofit Rilski. In the former barn, historical documents and some valuable manuscripts are exhibited in chronological order.

years, between 1835 and 1837, by a team of 300 local masters. The sanctuary remains one of the largest church-es in Bulgaria, stretching 42 meters long and 22 meters wide. At the time there was an unwritten law stating that no church was allowed to be higher or bigger than any mosque. Permission was sought and granted by Sultan Abdul Hamid to include a 30 meter high bell tower. Much of its initial stages of construction was kept hidden by the 10 meter high wall surrounding the church, in the hope that the Turks would not interfere in the undertaking. After the grand structure was completed, legend has it that the Turkish army was sent to destroy the structure. But the locals devised a cunning tactic to save the Church. When the Islamic army arrived, they discovered that the crucifix over the main entrance was surrounded on both sides by the crescent moon symbol of

...Continues on page 19


Focus on Borovets

Villa Park

Property management Cleaning and maintenance of the common areas of the building and the elevators, maintanenace of the garden and the open-air kindergarten, common lighting and electricity as well as all other services connected with the common areas of Villa Park.

Property details 5 minutes walk to ski lift and village centre

Managed spa center

Professionally landscaped gardens

Restaurant and bar facilities with outdoor areas

Financial DataStudio apartments start at €42,1201 Bed apartments start at €89,028 2 Bed apartments start at €117,216 % of the price will appear on the Notary Deed for this development.

Why Invest in Borovets?

The historic town of Borovets is easily accessible, being only 45 min drive from Sofia international airport (70 km). The most popular and established Bulgarian ski resort, Borovets is located at an elevation of 1,350m with pistes up to 2,600m.Built on the slopes of Mount Musala (2,925m), Borovets is Bulgaria’s oldest ski resort with access to one of the highest peaks in the Balkans. As a two-time host of the World Cup Alpine ski rounds, Borovets of-fers 23 ski runs and 14 lifts. Around 2m of natural snow is almost guaranteed between November and April, creating excellent conditions for snow sports including: skiing, snowboarding, cross-country skiing, ski jumps and biathlon, ski-doo, ice-skating etc. Its biathlon track is one of the best in Europe.Borovets was developed as a modern, high-class ski resort with luxury hotels, restaurants, discos, shops and a good choice of pistes and lifts. Borovets currently has 38 hotels and villas with a total of 5,500 beds. The aver-age temperature during the coldest month of January is -5 °C.

Amenities- 24 hour front desk and concierge- Safe-deposit box- Underground parking- Lift- Spa centre, heated swimming pool, fitness, saunas, steam bath- Ski storage- Restaurant, lobby bar- Shops- Laundry and ironing


Focus on Borovets

Borovets’ summer face by Hugh Fraser

BOROVETS is home to the first and most famous Bulgarian mountain resorts. Only 73km, and less than 50 minutes away from Sofia, the village sits at an altitude of 1350 metres at the base of Mt Moussala (2925m), the highest peak on the Balkan peninsula. Established at the end of the 19th century as a hunting village for the Bulgarian kings, Borovets is now renowned for skiing and winter sports. However, in the summer the Rila Mountain village transforms from a high-velocity, action-packed winter holiday location into a quiet, peaceful summer holiday location. The name Rila descends from the Slavic word “rula” which means “full of water”. The mountains are filled with more than 200 lakes and surrounded by wild mountainous terrain containing more than 2000 different species of flora. Borovets is an experience of beauty, nature and Old Bulgarian culture. More than half of the village’s numerous restaurants are closed in the summer, but do not despair there is still plenty to choose from to sample some local culinary delights. It’s worth taking a short re-connaissance walk around the streets before sitting down in one of the more high- profile restaurants. The choices are plenty and most offer time-honoured delights from salads to lamb on the spit. If the latter makes your mouth water, just make sure you ask for it directly off the spit or else you might not get what you expected. Taking a walk on the Rila Mountain is considered the number one summer activity. The signature hik-ing route to Chernata Skala, commonly known as Black Rock, takes visitors through century-old pine forests, passing flower-covered green meadows and across small

Super Borovets is a completely independent project from the existing resort of Borovets. The proposed resort will be around 2km from Borovets nearby the small village of Samokov. The proposal in its current form provides for follow-ing:▪ Construction of 2 luxury hotels above

1,400m in the Gvarediska Polyana region▪ 1,000 detached family houses▪ 3 new lifts are planned:▪ The first one will start from Bialy pliant and

will reach Slake Veda peakThe second one will connect Samokov with Musala peak. The peak itself will be the starting position of the largest pistes, which will be 24 km long (the longest in Europe)The third smaller lift will connect Beli Iskar with the Markudjicite which will in turn host 1,600 beds▪ Widening the current ski runs from 30m to

international standards▪ The ski equipment will have the capacity for

10,400 skiers per hour ▪ The total length of all pistes in the region

will reach 59 km▪ Completion in 2009Private investors are expected to invest €300mil into tourist infrastructure, lifts and ski-run, while the State will directly invest €75mil. The aim of the project will be to attract tourists through the whole year not just during the winter. Hence the following summer attractions are planned:▪ 18 hole golf course and golf centre ▪ 2 Aqua parks are planned at Maritsa and

Beli IskarAs the project is greater than €50mil spend, the State will build the necessary infrastructure (roads and drainage) in the area. In particular the road connecting Sofia with Samokov will be upgraded. The project forms part of the Bulgarian Govern-ments bid to host the 2014 Winter Olympics. Final plans for the bid will be submitted in January 2006.

Super Borovets


Focus on Borovets

picturesque streams. After the leisurely two-hour trek, you will find there are plenty of places to picnic while ad-miring the wonderful view. If the four-hour walk sounds like a bit much then adventurers can go on horseback or by horse drawn carriage. The hiking enthusiast can find a wide range of trails from easy to difficult and all generally well sign posted. Some of the more famous walks are to Mt. Mous-sala – six hours, and from the upper station of the Gon-dola – three hours, to Sitnyakovo Palace – 1.5 hours, to Chakur Voyvoda Chalet – 2.5 hours, to Saragyol Palace – three hours, to the Maritsa Chalet – 4.5 hours, to the Zavrachitsa Chalet – six hours. Gondola and chair lift will take you up for a cost of seven leva one way or 13 leva return. Borovets at this time of year doesn’t cater for the extreme sports tourist just yet, but with some imagina-tion and a mountain bike, there is plenty of challeng-ing terrain to satisfy. Or if you are feeling a little more physical, the Alpine & Mountaineering School is a close 40-minute drive, located in the Maljovitsa Ridge of the Rila Mountains. It is fully equipped, including an indoor

artificial climbing wall. The instructors are expert climb-ers and most of them are lecturers at the National Sports Academy. But all that said Borovetz in the summer is all about relaxation and taking time out to enjoy a little slice of nature’s paradise.

How to get there

By bus: Every 30 minutes, a bus/minibus departs for Samokov from the South Bus Station (Avtogara Yug). Approximately an hour later the bus arrives at Samokov Bus Station where a shuttle van leaves for Borovets every 15 minutes. In Borovets, the van stops in front of Hotel Samokov. For the return journey the shuttle van departs from in front of Hotel Ela. By car: If you choose to travel by car you have to take the following route: Sofia – Gorublyane – Pan-charevo – Samokov – Borovets. The resort offers ample parking with the largest guarded car park situated by the entrance to the resort. The Rila and Samokov hotels also provide 24-hour guarded parking facilities.



Tour.bg Magazine is offered only by subscription. Theprice of a one-year subscribtion for Bulgaria is BGN 45 (10 issues). Tour.bg also offers a special discount for a one yearbusiness package, which includes 5 subscribtions-BGN 195. The price of a one-year subscription for Europe is Euro 50 (10 issues). The price of a one-year subscription for the rest of the world is Euro 65 (10 issues). The price don’t include VAT. Please send your ordersby e-mail to: [email protected], or by calling (+359 2) 944 0163, 944 2298 You can already subscribe from the Catalogue of the Bulgarian Posts, Catalogue No.1757 If you wish to subscribe to Tour.bg Magazine on the territory of the UK, you may contact our exclusive cor-respondent-distributor for the United Kingdom, Ms. Nelly Stefanova at:

Right Move Enterprices Ltd.4 Shornells Way, London SE2 0LATel: 0044 2083120159mob.: 0044 7876505408fax: 0044 7092016905e-mail: [email protected]

...Continious from page 15

The Velianova House, built around 1720-30, was first opened as a museum in 1977. The house is typ-ical of the renaissance period in Bulgaria except that one of the early inhabitants, the artist and craftsman Veylan Ognev, added his personal touch with wood carvings on many of the ceilings and murals illustrating Istanbul and Venice. He adorned the exterior with paintings of the Blue Bird, the symbol of happiness. Ognov paid for the mansion with money he received for decorating the interior of the Holy Trinity church. A walk in the streets of Bansko is a feast for the senses – the sound of laughter, the whiff of hot charcoal mingled with the tantalizing scent of barbecue from a house or Mehana, the shafts of sunshine dancing on the snow-capped peaks. And with every further step, the magic of this town seeps into your heart, until you feel at home.

Article courtesy of


Focus on Sofia

About SofiaSofia, which sits on a 545m high plateau in western Bul-garia at the foot of the imposing Mt Vitosha, is the highest capital city in Europe. Because of its position at the very centre of the Balkan Peninsula, midway between the Adri-atic and Black seas, Sofia has always been at the crossroads of trans-European routes. Various empires, such as Roman and Ottoman, have left their marks, but some of the city centre was destroyed during WWII air raids. In recent years, the city has bene-fited greatly from the European Union’s ongoing Beautiful Bulgaria Project, which is gradually sprucing up historic buildings and energizing old neighborhoods.Sofia is the administrative centre of Bulgaria with a fast growing population of c1.7 million and the lowest un-employment rate in the country at 3%. The cities popula-tion is forecast to increase to over 2 million by 2010 with increased urbanisation and higher paying city employment.Given its central geographic location, the city is increas-ingly becoming a centre for multinational companies. The low cost and well educated labor force is attracting inter-national companies looking for cost saving opportunities.Sofia airport is due to open a new world class passenger terminal in 2006 with an expected annual capacity of 2,600,000 passengers by 2011. The city is aiming to be-come the Balkan hub for regional and international flights.

Sofia PropertyThe city centre has seen strong asset price growth in the last 3 years with land prices rising by up to 300%. The city is growing in a south-eastern direction within the bounda-ries of the city’s ring road. ▪ The overall market has been buoyant over the last 3

years with prices more than doubling in some parts of the city

▪ The increasing number of mortgage loans continues to stimulate the residential market despite the Central Bank’s new restrictions on credit growth

▪ High-end residential zones in the city centre and areas situated in the southern parts of the city, such as Loz-enets, have seen prices reach over €1,250/sqm

▪ Prices in the exclusive area of Boyana, situated on the slopes of Vitosha Mountain often reach €1,300/sqm

▪ We consider this market to be stable with a steady supply of developments in the planning phase. These developments are being marketed from €900sqm to over €1,300/sqm off-plan

“BEST SALARIES PAID IN BULGARIA’S CAPITAL - INDUSTRY WATCH”


Mount View

Property details The Mount View development consist 127 apartments, 110 car spaces spread over two buildings, with an all year round swimming pool and professionally laid on gardens. The development benefits from 8% common areas.

Mount View is located in the area of Vitosha an area with good infra-structure thats increasingly popular with local residents as well as foreigners given its location to the Business Park, city centre, airport and local ski-field.

Financial Data1 Bed apartments start at € 76,9002 Bed apartments start at € 111,786The price includes VAT and storage area100% of the price will appear on the Notary Deed for this development.

Investing in an apartment in Mountview Sofia is an amazing opportunity to own property in the EU encum-bant Bulgaria; at a low purchase price and at an ex-tremely low cost of ownership. The capital city of Sofia has experienced explosive property price appreciation in the past 12-18 month as foreigners are increasingly attracted to the city.

The Mount View development consist 127 apartments,

Financial Data1 Bed apartments start at € 76,900


How to Buy

THINGS TO DO WHEN BUYING CURRENCY FOR YOUR OVER-SEAS PROPERTYDo consult a currency specialistThe perfect strategy for your particular circumstances may be waiting for you but unless you speak to a special-ist in the foreign exchange market, you may never know it. High street banks are simply not equipped to provide this level of simplified sophistication.Do use market orders to make the most of the market volatilityIt is possible to place an order to buy your currency the top of the known range whenever and wherever that exchange rate becomes available. These are very useful tools; making full use of the fluctuations available in a 24 hour market.Do plan well in advanceLeaving your currency transaction until the last minute will almost always be costly. Even a few days of forward planning will open up your options and save you money through the capturing of market volatility.Do buy on a forward contract if the exchange rate is right.The exchange rate may well hit the perfect level for you months before you have to make a payment or complete on your property. Fix that exchange arte for the right settlement date through a forward contract before it falls and you miss out.Do ask as many questions as you need toFor most people, an overseas property purchase will involve the largest currency exchange in their lives and that can be a daunting prospect when foreign exchange is all a bit of a mystery. Having found a currency specialist, ask all the questions you need to before committing to a contract. Check that it is possible to extend the contract if you face a delay and that you can take early delivery if necessary. Check that there are no hidden admin charges and keep asking questions until you are content to pro-ceed.

Business Press News

▪ �Rupert Murdoch, chairman and chief executive of global media conglomerate News Cor-poration, is looking to Bulgaria for his next land grab, The Independent wrote.

▪ �News Corp, through its subsidiary Balkan News Corporation (btv), is planning to spend an estimated 50 million pounds on bolt-on ac-quisitions such as radio and outdoor adver-tising businesses over the next months.

▪ �Bulgaria has entered for the first time A.T. Kearney’s annual ranking of the most at-tractive locations for ‘offshoring’ of service activities such as IT, business processes and call centers. Bulgaria ranks 15th among 40 destinations included in the Global Services Location Index.

▪ �Greece is a leading investor in Bulgaria’s banking sector, holding 25%-30% of the market.

▪ �Greece is Bulgaria’s second-biggest foreign in-vestor after Austria and account for 10,2% of the foreign direct investments.

▪ �More than 1500 Greek companies have poured investments in Bulgaria, totaling EUR 1,8 M from 1992 till 2005, To Vima says.

▪ �More than 120 Turkish companies will join the delegation to represent industries like food industry, glass, leather, textile and apparel, electronic appliances, ICT & mobility soft-ware and hardware, system integration, chemical industry, mining, machinery, con-struction materials, furniture and tourism among others.

▪ �UK-registered company Orchid Developments plans to raise EUR 20 M from a flotation on the Alternative Investment Market of Lon-don to fund its business in Bulgaria, The Financial Times reported.

▪ �Some €6 bil direct foreign investments are expected in Bulgaria this year. This is a sig-nificant rise from last year’s EUR 5.3 B, said Pavel Ezekiev of the InvestBulgaria Agency.

▪ �Bulgaria Gross Domestic Product (GDP) for the second quarter of 2005 has grown by 6.4% compared to the same period last year.


Focus on Sofia

▪ �INDIAN COMPANIES EYE BULGARIA’S HI-TECH OPPORTUNITIES

Leading Indian companies are interested in investing into Bulgaria’s high technologies sector and a number of production operations.The new emerged following a visit of a delegation from Bulgaria’s Economy and Energy Ministry, led by Deputy Minister Kornelia Ninova, paid to New Delhi, India.▪ UK APACE MEDIA BUYS 50% OF BULGARIAN BROADCASTERBritain’s Apace Media plc, an intellectual property and branded content company, is to acquire a 50% stake in private Bulgarian cable and satellite broadcaster Diema Vision

▪ ICELANDIC MOGUL BUYS BULGARIA TELECOM, DEC 2005▪ UK FUND RAISES CAPITAL FOR BULGARIAN PROPERTY SITESBulgarian Property Developments PLC has proposed to raise up to GBP 40 M through the placing of new shares on the London Stock Exchange, the news service of the British bourse announced. News that investments in Bulgaria by the European Bank for Reconstruction and Development (EBRD) have recently vaulted past the EUR 1 B mark has underscored the burgeoning foreign interest in the country, the Oxford Business Group (OBG) reported. ▪ �SKI SPOTS ARE “THE FUTURE OF BULGARIAN

PROPERTY DEALS”Ski resorts are the future of Bulgaria’s real estate business, many UK experts believe.

Press News


Focus on Sofia

White flower

Property detailsSofia based White Flower Luxury Apartment complex comprises 132 apartments. It offers owners a new life style due to an exceptional combination of residential and recreational areas both inside and outside the building.▪ Strategic location (close to the city centre and Business

Park Sofia), in the proximity of Embassy residencies▪ Extraordinary design ▪ Ready to leave apartments▪ International environment▪ Completion set for 2006

Property management Includes Maintenance of all green areas; systems and infrastructure within the complex; 24 hour security; daily cleaning of common areas; building administration. Estimated at €5 psm per year.

AmenitiesRetail centre, health centre, 5 minutes to business park Sofia, 8 minutes to city centre, Zoo Park opposite the building, variety of choice for sport and outdoor activi-ties.

Financial Data1 Bed apartments start at € 74,8002 Bed apartments start at € 99,0003 Studio apartments start at € 149,000

A company has to be established to own an apartment in this development.


149 Tsarigradsko Shose Blvd. 1784 SofiaTel.: + 359 (0) 2 81 7 81 Fax: + 359 (0) 2 974 30 90

[email protected]

We would like to welcome you at the Best Western Hotel Expo during your business trip as well as during your vacation.

The Hotel is the perfect setting for business meet-ings, conferences, or

leisure.

Every member of our staff is here to make your time in our hotel and our city the very best it can be. We will do all we can to assure that your stay is a memorable one.

Focus on Sofia

TOURISM BAROMETER: Air carriers confirm flights to Bulgaria AIR carriers adding flights to certain Bulgarian destina-tions have confirmed in the past week the rising interest towards Bulgaria as a European tourist haven.In response to Bulgaria’s rising popularity among UK tourists, British Airways said on February 6 it would start flying from London’s Gatwick airport to Varna, on the Black Sea, twice a week from March 29. Return fares will start from 200 euro, excluding airport charges. Two more weekly flights will be added from June 6. Earlier, Wizz Air, the first low-cost airline to enter the Bulgarian market, said it would launch direct flights from the country’s capital Sofia and the Black Sea city of Bour-gas to London. Wizz Air will start flying four times a week from Sofia to London Luton Airport as of May. The air carrier will also fly three times a week from Bour-gas to London in the summer, from June 15 to September 18, when a large number of foreign tourists visit Bulgar-ia’s Black Sea resorts. Wizz Air entered the Bulgarian market last year. Now it operates direct flights between Sofia and Budapest and also offers connection flights via the Hungarian capital to London, Paris, Amsterdam, Frankfurt, Rome and Malmo in southern Sweden. Proof that air carriers’ interest towards Bulgaria was not in vain came on February 5, when the Bulgarian Airlines Association (BAA) said it expected a two-digit rise in pas-senger traffic through the country’s three main airports in 2006 due to growth of the domestic tourism sector and the prospects for the country’s European Union entry next year. The number of passengers travelling on scheduled and charter international flights to the southeast European country rose last year by 16.4 per cent to 4.853 million. “Growth in passenger numbers will surely continue in 2006 by at least the pace from last year, driven mainly by two factors: the growing offer of the tourism sector and Bulgaria’s forthcoming accession to the EU, hopefully next year,” BAA’s secretary general, Yovko Yotzev, told a meeting on February 5 attended by Transport Minister Petar Mutafchiev. He added that a stable trend of rising passenger numbers to EU-acceding states has been seen in the course of the previous waves of the enlargement of the Union. Tourism contributes about 12 per cent of Bulgaria’s gross

domestic product. Bulgarian air carriers transported two million passengers on international flights in 2005, 16.2 per cent up from 2004. Foreign companies experienced a 10-11 per cent growth in air passenger flow to and from Bulgaria, data shows.Mutafchiev also spoke during the meeting of tourism-driven interest about the concession of some railway stations in Bulgaria. According to him, companies from Spain and Italy have already approached the state admin-istration enquiring on the possible options. The stations in Sofia and the second largest city of Plovdiv might be offered to potential bidders, Mutafchiev said.And another initiative attempting to boost all forms of tourism traffic into Bulgaria was reported by local news-papers on February 2. A national tourism board will be created in Bulgaria to represent the common interests of non-government organisations and large investors in the tourism industry in their partnership with state institu-tions, said Poli Karastoyanova, executive director of the Bulgarian Convention and Visitors Bureau (BCVB).

SOURCE - SOFIA ECHO


Map of Sofia


Map of Sofia

12, Ivan Vazov Str.

6, Kurnigradska Str.

14, Vitosha Blvd.

149 Tsarigradsko Shose Blvd.

131 Maria Luisa Blvd.


How to buy

The Buying Process

1) Property SelectionHaving chosen the apartment you want and confirmed its availability; complete a reservation form and pay a €500 reservation fee. This can be done on-line on our web page www.premierapartmentsbg.com

Note: Your reservation fee is non-refundable. It will how-ever be deducted from the purchase price of your property upon receipt of the first instalment.

2) Use a Company or Not?According to the Bulgarian Constitution, foreign indi-viduals may purchase buildings/ apartments but not land. Therefore the preferred option for foreigners buying property in Bulgaria where they also wish to own the land is to set up a company which then owns the land and the buildings.The law is expected to change on this within the short to medium term with the expected entry of Bulgaria into the European Union (2007). Don’t however hold your breath as current amendments will only give EU citizens the right to acquire land directly in 2014. In the meantime a company is still required for land ownership.

Hence, there are 2 methods to acquire an apartment:▪ With a portion of land; or ▪ Freehold unit title (with no land).

Property Acquired with LandFirst step is the establishment of a locally registered company. This is a standard process that most local legal firms offer, and takes anywhere from a few days to several weeks. Allow around €750 for legal fees relating to the company formation and €500 pa for administration costs.

Key points worth noting are as follows:

▪ Articles of Incorporation must be prepared & signed by all shareholders in front of a Notary in Bulgaria; a Bulgarian Embassy or apostled in your home country.

▪ A local bank account must be established;

▪ The minimum share capital required is €2,600 (5,000 leva);

▪ Company taxes are calculated at 15% of net profit.

Property Acquired without Land

There is no need to set up a company. The apartment is acquired freehold and is owned directly by the acquirer. There is no need for the acquisition documents to be signed in Bulgaria or at a representative Embassy.

3) Sale & Purchase Contracts▪ Once you have selected your apartment and paid the

reservation, you will receive a preliminary sale and purchase contract.

▪ Check all the details are correct before signing 2 cop-ies; we recommend the use of an independent lawyer to review the contract before you sign;

▪ Return the documents to either our London or Sofia offices along with your initial instalment as detailed in the contracts within 30 days.

▪ Should you wish to arrange an inspection trip, we would be more than happy to assist you.

4) Construction & Final Completion

▪ Usually there are one or more interim instalment pay-ments to be made prior to the full completion of the property. We will notify you of the estimated payment dates.

▪ Upon completion of the property and payment of the final instalment, the transfer of title may occur. In Bul-garia, the property registry system works in conjunction with local Notaries.

▪ In order to take delivery of your property, you will need to sign the ‘Notary Act’. This is a standard form document transferring ownership of the property into your name.

▪ You will receive title deeds within 7-10 days of the Notary Act from the local council.

Note: If you are unable to attend the Notary Act in person, your legal representative may attend in your place.


How to buy

This individual will need to be a qualified Bulgar-ian solicitor in possession of a ‘Power of Attorney’ agreement. We are able to liaise with you to arrange this.

5) Additional Acquisition CostsLocal taxAccording to the Local Taxes and Fees Act, the tax payable upon the sale-and-purchase of an apartment is 2% local tax. The basis for calculating the tax is the higher of: ▪ The apartment’s price as specified in the notary deed,

and▪ The tax evaluation of the apartment.Such tax is payable by the purchaser, unless the parties have agreed otherwise.

Notary feesThe notary fees are determined in accordance with the tariff for the Notary Fees. There are various charges but you should allow €1,500-€2,000.

Legal feeEach lawyer or law firm is free to determine its fees, subject to certain constraints. There are also different schemes of determining the fees (e.g. on an hourly basis, a fixed fee etc.). The rates of the lawyers vary from €80 to €150 per hour. Total legal fees are between €500-€1000.

6) Other Expenses▪ Annual property taxes amount to 0.15% of the tax

value of the property (usually significantly below the acquisition price);

▪ Maintenance of your property is covered by the Management Contract and is charged at a fixed rate in euros per square metre per year; and

▪ Waste-collection fees are determined when you reg-ister ownership with the local municipality; rates vary from region to region.

Up to 50% rise in Bulgarian property tax valuations

Property tax valuations will increase by 5 up to 50% in 2006 under amendments to the local taxes and fees act.

Bulgaria’s parliament adopted the amendments on Wednesday, citing the increasing market prices over the last five years. The government, who tabled the amend-ments to the act, says property tax valuations have not been updated since 1999.

Property of tax valuation of up to BGN 1400 will not be subject to taxation as expenses in collecting the tax exceed its amount, the MPs decided.

The tax valuation will differ according to the regions in which they are located. The average increase in tax valu-ations in the capital Sofia is set at 30%. Property, located in villa zones some ten kilometers off the seacoast and the national resorts will see an increase of 50% in tax valua-tion, while those in resorts of local significance - 20%.

Municipal councils will have to set rubbish collection fees by January 31, the parliament decided. Rubbish collection bills are usually based on the tax valuation of the prop-erty.

National Theatre, Sofia


Local mortgage market

Financing a property purchase in Bulgaria

Bulgaria is a relatively new opportunity for property pur-chasing and as such the number of finance options are still very limited. This article will briefly explain your options and make you aware of a couple of areas where you should be vigilant.

If you are not able to purchase in cash (although buying in cash is not always the best option for a property investor) then you are left with two main options;

1) Secure a mortgage against UK property and buy in cash.

2) Secure a mortgage against a Bulgarian Property.

The first option is nearly always going to be the cheap-est. UK mortgages can be around 4.5% and you can often remortgage and raise extra money with very few charges. Our sister company Simplicity Financial Services ( www.simplicityfinancial.com 0114 276 0200) are independent mortgage advisers and have access to over 6,000 mort-gage products, they would be delighted to assist. They can also help with any UK mortgages or mortgages in other countries.

The second option of securing a mortgage against a Bulgarian property is a relatively new phenomenon and as such there are currently only three possibilities. These are provided via the Greek bank Piraeus and the two largest Bulgarian banks DSK bank and BulBank. The DSK mortgage is only available via Bulgarian Home Loans and is far easier to obtain than the other mortgages. If you are a UK citizen and earn a combined provable income (by a payslip or a bank statement) of at least £15,000 and have a clean credit record then you would qualify for a Bulgar-ian mortgage of up to €200,000 The interest rates are between 6%-7% variable and they are available on repay-ment only for a term of up to 20 years with a 70% mort-gage of the properties value available.

We soon expect more lenders to enter the Bulgarian mortgage market and we shall be working with them to ensure that we can offer their products to our clients.

So those are your options, but what about the dangers;

Firstly Bulgarian mortgages can take up to 12 weeks to complete and hence you must start the work early. Do not commit to complete on a Bulgarian property and expect a mortgage to be ready if you have less than 12 weeks. The charges for delaying completion can often be high.

Secondly, do not agree to purchase a property in Bulgaria or part with any non refundable fees until you are confi-dent you can get a mortgage or raise sufficient cash.

No matter how urgent the sales agent says it is, you should never part with non refundable monies until you have sorted out your finances. Sales agents can make it sound like it is easy to get a mortgage when the truth can be very different, this is not underhand just that they are not experienced in the mortgage market.

Thirdly, many property sales in Bulgaria are off plan and hence you will have to often pay not only a deposit but also staged payments. The DSK mortgage will meet staged payments but only for approved developers, so again make sure you are aware of your options before going ahead. Once the property is completed you can then always take a mortgage out for 70% of the valuation and repay money borrowed to make staged payments. Just make sure you have a plan. Be aware that in Bulgaria the valuation of the property is often lower than the purchase price and hence you may have to pay a larger sum using your own cash.

Finally, the process of getting a mortgage in Bulgaria is different to that in the UK, you will often need power of attorney to be in place in Bulgaria to sort out property insurances, completion of the mortgage and other legal requirements, this can be uncomfortable as giving some-one power of attorney is rare in the UK but it is common place in other countries.

Bulgarian Home Loans would be delighted to assist with your Bulgarian Plans please call us on 0114 252 5062 or visit our website www.bulgarianhomeloans.com.

We are the United Kingdom’s only specialist Bulgarian mortgage company.


Focus on the Black Sea

OverviewBlack SeaThe ancient Greeks called the Black Sea-Pontus euxinos, translated as hospitable sea. The coast was inhabited cen-turies ago with the earliest records date from 5th century BC. It is over 378 km long, with vast beaches made up of fine golden sand. Air temperatures in summer vary be-tween 23°C and 27°C, water temperatures between 17°C and 25°C. There are more than 240 hours of sunshine in May and September, and more than 300 in July and Au-gust. Nowadays it is a magnet for hundreds of thousands of Bulgarians and foreign visitors every year. The welcom-ing climate, the romantic beaches, and the modern resorts not surprisingly attract more and more tourists. The Black Sea coast is also one of the best spa areas in the country where the combination of sea climate, mineral baths, hot springs, and curative mud adds to the possibilities of holi-day enjoyment. The vast tourist complexes such as Sunny Beach and Golden Sands, newer resorts like Albena, and holiday villages such as Elenite and Dyuni compare fa-vourably with villa settlements in the Mediterranean.

Focus on S unny BeachSunny Beach is the largest Bulgarian resort, with its long and wide beach it offers a special environment.

The resort was awarded the prestigious Blue Flag Inter-national prize for proven ecological advantages. Sunny Beach features wide and warm sea with a gently sloping, sandy bottom and approximately 1,700 hours of sunshine from May to October. The daily temperature in summer can reach 30°C, but averages 27°C. With regular charted flights to Bourgas and Varna the accessibility is very good with frequent charter flights throughout the summer.

Located 35 km north of the city of Bourgas and 95km south of Varna, stretching along a spectacular half moon bay facing east, and with the Balkan Range located to the north creating a blend of sea and mountain range Sunny beach is an exceptional location. With Nessebar located on a peninsula to the south of the bay, lies a picturesque village of historical significance and fantastic architecture. With over 150 restaurants, bars, nightclubs, cafes and casinos located amongst more than 120 hotels and apart-ments complexes Sunny Beach has a vibrant and exciting

atmosphere. Here you can also find a shopping centre, and local arts and crafts. Sunny Beach offers a wide variety of activities with extensive range of water sports, and child friendly water parks and 24hr Kindergarten.

With over €550 million invested in Sunny Beach over the last 5 years it has transformed into the largest resort on the Black sea coast, with continual growth in the property market. With a location comparable to the south of France and the Spanish coast, Sunny beach will continue to grow.

“A regular bus line will connect Prague with the Bulgarian seaside resort of Primorsko this summer”.

“Russia is also launching a new charter flight to Varna was announced during the Moscow International Ski Salon.

“The number of US tourists choosing Bulgaria as a sum-mer holiday destination is constantly on the rise”

Evenimentul zilei daily

Press News



Festa Apartments

Festa Pomorie is a stunning beachfront 198, 1 bed apart-ment building positioned over 8 floors within easy reach of the historic old town of Pomorie

Property details ▪ Private beach front location▪ Hotel included in the complex and rooms be available for rental management by the Group▪ Price includes fully furnished rooms

AmenitiesSwim pool (in and outside)/ restaurants/fitness centre/spa centre

Financial Data1 Bed apartments start at € 73,400

Hotel Features

▪ 30 double sea facing rooms ▪ Café, gourmet bar and variety of restaurants▪ Fitness and spa center▪ All apartments have access to hotel facilities

Press News

Low-cost air carrier Norwegian Air Shuttle AS will start flights from Oslo to the Bulgarian Black Sea cities of Varna and Bourgas starting May 2006, the company said on January 19, 2006

The Sofia Echo



Ravda

Ravda is a small seaside resort on the Black sea, located only 3 km from Nesebar and 5 km from the Sunny Beach Resort. The unique location provides the essence and feel of a country village, while just minutes from the nearby tourist hotspots of Nesebar and Sunny beach that are filled with loads of entertainment.

The average monthly temperature during summer is 27C/ 71F. Ravda’s beaches have fine golden sand, sun-shades are provided for tourists and there are qualified lifeguards on duty. The busy fresh fruits and vegetables market is frequented by both locals and tourists who come from miles around to stock up on exotic and Bulgarian delights.

There are several big hotels in Ravda and many private rooms and small family hotels. The great number of restaurant, taverns and disco clubs guarantee that you will spend a lot of unforgettable nights in Ravda.

Private water transport to Bourgas and Nessebar can be obtained via local boatmen. Similarly to the southern seaside towns of Primorsko and Kiten, Ravda also has its own open-air ‘mini-train’, traveling at a low speed to the nearby town of Nessebar and back, a popular tourist attraction. There are regular bus lines to the other resorts in the area- every 30 minutes to Bourgas and every 20 minutes to Sunny Beach and Nesebar.

Property details “Ravda” is a beach front resort consisting of 53 fully complete apartments. Most apartments consist of a living room, kitchen, one or more bedrooms, bathroom and balcony with a magnificent view of the sea.

AmenitiesAqua bar/Tennis court/Cocktail bar/Pizza restaurant/Sauna/Garden

Property management Includes Security/Parking/Maintenance of the common parts, gardens and apartments

Financial Data1 Bed apartments start at € 47,5002 Bed apartments start at € 67,400 100% of the price will appear on the Notary Deed for this development.



Why Invest in PomorieWhile Sunny Beach has attracted the lions share of for-eign interest, attractive locations and reasonable prices are increasingly hard to come by. Pomorie is a historical village situated 15km south of Sunny Beach and some 15km from the Bourgas airport. Exact tourist numbers are difficult to ascertain, but cur-rent estimates are 3 million visitors over the key summer months 2003/4 period. This is expected to grow at 12% over the 2005/6 season. A luxury 18 hole golf course near by Pomorie is to be completed by 2007 . Two further golf courses are planned in the larger area. Sunshine up to 2,500 hours annually, with the average summer temperature of the air and water at 24°C. Because the sea water gets cool slowly the temperature in the autumn is about 21°C. Snowfalls are low as the snow holds no longer than 5-7 days. From the middle of October until the beginning of March the sea heats the air up. The average Spring temperature is about 14° C.

Pomorie is surrounded by 1,720 hectres of vineyards; 220 hectres of fruit gardens and 80 hectres of vegetable gardens provide plenty of fruits and vegetables. It is ru-moured that Pomorie’s medicinal mud and its properties are one of the most effective in the world. In the modern sanatorium base cases of bones and joints, gynecological, surgical, cardio-vascular, traumatic, skin, liver, nervous have been under treatment successfully all year round.

The beach is 7 km long and encircles the Pomorie Bay. The words like far from the beach and the sea are not ex-isting because they are a part from the life-town environ-ment that makes it extremely attractive. The breakwaters out of swimming zones lead out the cold streams of the way. Shallow and level seaside bottom with slight stop without reefs and cold sea streams is safe for diving. The sea area of the Pomorie Bay is preferred for sailing boats and the quay by the fishermen.

The incredible location allows easy access to the Beach, the shopping and dining areas of the old town. But this haven is still far enough away to experience the peace and tranquillity you require.

Press News

There is the village of Sarafovo, 6 km south of Pomorie. Bourgas Airport is near the village, the former receives interna-tional flights. The village is situated on the seashore and this in itself gives opportuni-ties for recreation. Lodgings are offered. There are pleasant beaches.Atanasov lake is located to the south of Sarafovo in a large lagoon. The waters of the lake are salty and thus used for salt mining.Eight km from the town is situated Sunny Beach resort.


Other opportunities

Other opportunitiesLondon Sofia Property was established 2 years ago to fa-cilitate investment in key opportunities that exist in the property markets of South East Europe. These markets currently offer some of the best returns in continental Europe. We believe that these potential returns, coupled with structural and legal reform programs currently in place as a result of EU entry ambitions should lead to as-set price inflation as a result of risk reduction.Currently the principal target country is Bulgaria. The Company primarily seeks to facilitate investment in projects with attractive rates of return using the criteria detailed below. ▪ Prime strategic locations▪ Infrastructure, and▪ Current and future contingent developmentsThe parent company, Latham Yeomans is a London based chartered surveyors practice which specialises in provid-ing advice and solutions across a wide spectrum of com-mercial and residential property projects.The following are some of the opportunities that we have on offer:

Development OpportunitiesTo date we have successfully raised €18 million for prop-erty development in Bulgaria. For investors seeking op-portunities from inception through to project completion on high end residential, commercial and retail develop-ments we offer the opportunity to invest via SPV joint stock companies specific to each development.

Retail Commercial Space – SofiaAs the regeneration of Sofia continues the city is increas-ingly on the radar screens of multi-nationals and large corporations. High streets are attracting big brand retail-ers while European business is increasingly outsourcing back office functions to the city given its high levels of education yet low wages.Investors are increasingly attracted to the local market given the potential investment yields (currently around 10%) while tenants seek to lock in prime locations while rates are still attractive. We have several opportunities for both tenants and investors to enter the market. For more information please contact us.

Bulk Purchase OpportunitiesInvestors seeking larger exposure to the Bulgarian market place are increasingly seeking opportunities through nego-tiated discounts on block purchases.

To date we have assisted investors in several such opportu-nities; obtaining off market prices with attractive payment terms.

Land - Opportunities Coastal▪ Stands from 1-50,000 sqm near Byala;▪ 3,000 sqm beach front near Sozopol;Mountain▪ Stands from 5-20,000 sqm 250m from the gondola in Bansko;▪ 8,000 sqm unregulated site on key artery in location of planned golf-course

“SHAMBALA CONSULT” LTD, provides highly qualified legal service and representation before the Competent Authorities on the following issues fromthe area of the Law of Estate:

Transactions with real estate and movable properties;

Establishing limited real rights;Joint ownership;Managing of real estate;Notarial procedures.

17 Alabin Str., 1000 Sofia, BulgariaPhone/Fax: +359 2 986 39 56, +359 2 986 40 87

E-mail: [email protected]; Internet page: www.shamcons.com

Sofia office:9-11 Maria Luiza Blvd., Floor 4, Office 3,

Sofia 1000, BulgariaTel: +359 2 923 9590 Fax: +359 2 923 9589

www.premierapartmentsbg.com

London office:11 Savile Row, London, W1S 3PG, UK

Tel: +44 207 437 9333 Fax: +44 207 437 9334

Bansko office:83 Pirin street, Floor 12770 Bansko, BulgariaTel: +359 888 444 978


Borovets office:Hotel Flora

2010 Borovets, BulgariaTel: +359 7128 2515


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