Bulgaria is located in the south east of Europe, on the eastern part of the Balkan Peninsula, bordering the countries of Romania to the North, the Republic of Macedonia and Republic of Serbia to the East, and to Greece and Turkey to the south.
As a developing nation, Bulgaria has become increasingly popular with property investors, as it contains homes convenient for mountain and beach resorts.
The country has also become easier to access in recent years, with greater availability of flights to the country, with international airports in Sofia (the country's capital) and Varna. The resorts in Bulgaria are largely unspoilt compared to the popular commercialised resorts in Spain and the Canaries, and as the country is developing, property prices are very cheap compared to the UK.
Foreigners can buy property in Bulgaria, as well as land with the right to build. However, foreigners cannot buy land. Acquiring property was made easier in 1997 by the Foreign Investment Act, which lifted the requirement to approve all purchases through the Ministry of Finance.
It is possible to buy land, however, through a Bulgarian registered company. This allows commercial activity to be pursued in Bulgaria by foreign nationals wishing to pursue commercial activities in Bulgaria.
There are some regions in Bulgaria where buying property is not quite as simple. Where a potential property is located 15 km from a border (note that coasts are also considered borders), or in an area deemed to be important to national security, foreigners cannot purchase properties without special permission from the Council of Ministers. Any request to the Council of Ministers must be considered within 45 days. Many agents specialising in Bulgarian properties will apply for permission as part of the conveyancing process.
Bulgaria is a fairly new market for property investments, and as a result finance options are limited. If you cannot buy a property in cash, you have two mortgage options – securing the mortgage against either a UK property, or against a Bulgarian property. Securing the mortgage against a UK property will almost certainly be the cheapest option, with remortgaging not usually being subject to many additional charges. Most banks have facilities for overseas mortgages, with large numbers of mortgage products available.
Bulgarian mortgages are still quite expensive, as only 3 lenders offer them - one Greek bank, and Bulgaria's two largest banks. To get a Bulgarian mortgage, proof of a combined income of up to £15,000 p/a will be required, in addition to a clean credit history. If you meet both of these criteria, you should qualify for a mortgage up to €200,000. The interest rate will typically be in the region of 6-7%, and are available for a payment term of 20 years only.
Should you take out a Bulgarian mortgage, be aware that they can take up to 12 weeks to complete - be aware of this, and do not complete on a Bulgarian property and expect a mortgage if you have less than 12 weeks available, as the penalties for delaying completion are high. Also, do not agree to pay any non-refundable charges or fees unless you are confident you can raise the cash or obtain a mortgage - no matter how urgent the sale is said to be, you should never part with any money until you are sure you can raise the necessary funds. You may also need to appoint someone to hold power of attorney - this isn't standard practice in the UK, so it may be a little unusual, however it is required in order to sort out insurance and other legal issues.