The other day National Statistical Institute of Bulgaria distributed preliminary data on the pace of housing construction in the second quarter of 2017. According to the NSI, 585 houses were commissioned, the number of apartments in which amounted to 2,576 units. The number of apartments in 2017 increased by 323 or 14.3%. The leaders in terms of construction rates were the cities: Varna – 102 houses (822 apartments), Burgas – 101 houses (919 sq. m.), Sofia (with suburbs) – 67 houses.
Two-room apartments are most actively bought in Bulgaria today. They are 42.5% in newly built buildings, 28.3% in 3-room buildings. The least rented five-room apartments are 3.3%. The average usable area of apartments in 2017 decreased compared to the previous year from 84.5 CZK. m to 82.3 Tĸv. Most of the houses, according to the statistics of the NSI, are built of reinforced concrete – 74.5%, brick buildings – 24.3%, "panels" – 0.5% and 0.7% of other materials.
Bulgarians return to their own market
On the issue of the attractiveness of the Bulgarian real estate market in the eyes of immigrants from post-Soviet countries, the opinions of local experts are divided. Some brokers Approvesthat the "newcomers" from the countries of the former USSR still remain the main not only sellers, but also buyers of apartments on the coast. But at the same time, they note that with the decrease in prices (the elite segment in Nessebar and Pomorie has sunk especially noticeably), more and more buyers are among the Bulgarians themselves. According to the observations of realtors, apartments with an area of 60-70 sq.m are most in demand in the local coastal real estate market, the cost of which varies between 600 and 700 euros per square meter. In most cases, such apartments are bought to make a profit from renting.
By the way, we recently wrote, for which the owners of apartments rented out without paying the relevant taxes should prepare. Namely, that the Bulgarian fiscal authorities will begin to control this type of still mainly "shadow" business. So far, apparently, they are studying the best practices of their Greek colleagues, but more on this below.
Not all Bulgarian experts agree with the statement that citizens of the "post-Soviet" states remain the main players in the country's seaside real estate market today. In particular, the chairman of the national association "Immovable Property" (Real Estate) Irena Parvanova statesthat such buyers no longer play a key role in the local market. Mrs. Parvanova is convinced that the main investors in the growing urban and still decreasing in price resort real estate today are the Bulgarians themselves. At the same time, the expert does not deny the presence of a certain interest in coastal facilities on the part of Russians and Ukrainians. Less often, according to her, apartments are bought by citizens of Great Britain, Ireland, Greece and other countries. Objects in the areas of spa resorts are most often interested in immigrants from Asia, mainly Chinese citizens.
Head of the NGO "Immovable Property" Also confirms The aforementioned opinion that the main goal of buyers is to rent out housing. According to her calculations, the profitability of such an enterprise, taking into account seasonality, is about 4-5% per year, which at first glance seems to be a good alternative to deposit deposits. Interest on them in Bulgarian banks, as you know, varies from 0 to 1% per annum. For more information on the topic of the expediency of keeping funds in banks in Bulgaria, we Highlighted here. In of this publication We talked about an alternative investment tool – shares of Bulgarian companies.
Counting carefully
For our part, we also advise you to remember about the high probability that from the next season the Bulgarian authorities will begin to "hunt" for "shadow" landlords and force them to pay a new tax.
Related initiative since this year, it has already been implemented with might and main in neighboring Greece. In the country, there are mass inspections of apartments owned mainly by foreigners – Bulgarians, Macedonians, Serbs. In summer, such apartments, as a rule, are rented out to compatriots. According to the Greek authorities, illegal "tax-free" renting leads to the fact that foreign landlords create "disloyal competition" for the local hotel business.
Sensational statement Bulgarian Deputy Prime Minister Valeri Simeonov about the upcoming taxation of Russian "private owners" is obviously inspired by the relevant interests of the hotel business in Bulgaria and will be implemented taking into account the Greek experience. It was not possible to introduce the tax already in the current season, as the Deputy Prime Minister wanted, due to legislative formalities. According to Bulgarian lawyer Evgeny Mosinov, the initiative requires amendments to the Tax Code, which are made only for the next calendar year.
So far, it is not possible to calculate the potential tax costs of landlords, since the amount of the patent tax is determined by the regional authorities at their discretion. But where they will look for tax evaders is more or less clear. For example, one of the hotel managers on the Bulgarian coast, Georgi Mitsov, suggested monitoring sites like aribnb.com. It will not be difficult to "figure out" landlords on Facebook. Therefore, if the owner of the apartment has a need to give public announcements, then it will be easier to "pay taxes and sleep peacefully".
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MC "Window to Bulgaria"
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