In previous posts we have had the opportunity to point out how Bulgaria is a country in great economic ferment. On the one hand there are the internals, the Bulgarians, who after decades of communism and after having entered the European Union in 2007 now see a bit of well-being on the horizon and are moving in this direction by opening new businesses and commercial activities.

And then there are foreign investors enticed to invest in new businesses in Bulgaria attracted by a favorable tax rate of 10%, the lowest in Europe.

And as always happens when the market for movable goods (agriculture, industry and services) grows, shortly thereafter the market for real estate (houses, shops, warehouses, etc.) used to house workers, employees, etc. also begins to grow.

It is therefore no coincidence that in Bulgaria the real estate market has been growing at an average rate of 5% per year since 2011, and therefore for 10 years. Simply put, this can be translated into the fact that an apartment purchased in 2021 for 100 thousand euros will most likely be worth 105 thousand euros at the end of 2022.

Therefore bricks in Bulgaria can be an excellent investment opportunity.

As? There are two main ways to do this.

  • The first way is to invest in Bulgaria while remaining in Italy. As? You can do this by purchasing properties in Bulgaria while maintaining your Italian citizenship and residence.
  • The second way, more radical but also more effective, is to move your residence to Bulgariabecoming full-fledged Bulgarian citizens.

The two approaches listed provide common methods and advantages and some very different elements which we will now examine.

In common there are the investment methods which, based on the experience of our agency (which we remember is in Sofia), can be implemented and concern the question of "what to invest in?". On what?

First of all on commercial and industrial properties: as we have said, Bulgaria is at the center of the interest of many European investors; we therefore need industrial warehouses, warehouses, processing and storage centers for goods that can be purchased and rented.

Secondly, it is possible to invest in the rental market: the nominal margins are not those of Milan and Rome but the purchase prices of the apartments (with 200 thousand euros you can buy one in the center of Sofia) allow entry to everyone in this world, not only to those with little capital available. This means earning very interesting percentages every year (between 5 and 10%) compared to the sales price thanks to rentals.

Thirdly you can work on buying and selling. It is bought at X and resold and X+Y; this is definitely the mode with the fastest results but also the lowest.

If the answer to the question  “what to invest in?” it is practically identical both for those who invest while remaining in Italy and for those who decide to move to Bulgaria, but the final profits are different.

Yes, because it is clear that those who decide to invest in Bulgaria while maintaining Italian citizenship will be subject to the progressive tax of the Italian State and will therefore see half of what they earn go away. It is a hypothesis to be evaluated but certainly not the best one.

If, however, you decide to move your economic activity to Bulgaria by becoming Bulgarian citizens for all purposes, including fiscal ones, the situation changes: as Bulgarian citizens, in fact, you will only be subject to an ultra-favorable tax rate of 10%, whether you do so whether you do it as a private individual or as a business. Only 10%.

It will all be said that it is all very beautiful; but how to start? Well, our first piece of advice is to avoid DIY like the plague. In fact, hundreds of Google searches will not be enough to answer basic questions such as:

  • What city should I invest in?
  • Buy or rent?

Instead, rely on specialized agencies such as VR and Partners. With our services we will be able to support you both if you decide to take residency in Bulgaria to enjoy the tax advantages mentioned above, whether you want to  set up your own business here, whether you decide to invest here .

In all phases you will be followed by Bulgarian and Italian consultants who, with knowledge of the environment, will be able to show you the best strategies for your business and to lighten your tax burden.

How do you start? It starts with a no-obligation phone call with one of our consultants. So start laying the first brick of your new investment in Bulgaria.