Company tax is a flat 10%

Capital gains tax in Bulgaria is a flat 10%

There is a Dividend tax of 5% payable by the Company (the dividend is then considered franked)

Personal income tax is also 10%

Yes, V.A.T. in Bulgaria is 20%

Foreign persons may hold shares in Bulgarian companies.

Foreign persons may own property and if EU citizens may own non agricultural land in Bulgaria. Bulgarian companies can own any kind of land and property, and foreign citizens can own a Bulgarian company, a simple and inexpensive process. Be aware that under Bulgarian Title laws it is possible for a person to own a house but not the land under it, and vice versa.

Bulgaria has reciprocal tax arrangements with EU countries. You should assume that information will be shared.

There is no limit on the transfer of capital out of Bulgaria within the EU.

Yes, the accession of Bulgaria and Romania to the EU caused a flurry of activity, much of it speculative in advance of their actual accession. This property boom was characterised primarily by low cost ski resort and Black Sea apartments, and unsophisticated Bulgarian emerging entrepreneurs rushed to fill the demand. The clients were typically British and Irish salary earners and funded by second mortgages on the primary residence back home, credit card debt, and other short term mechanisms. Those customers are now significantly less represented in Bulgarian property sales.

The type of client now seen in the Bulgarian property market is quite different. They are typically both wealthy locals, as well as foreign, largely Russian and Greek, high net worth/high income professional and semi professional individuals of a type which have not been affected by the downturn. They are cash buyers, looking for premium property and willing to pay, and have no interest in discount apartments. The Bulgarian property market currently offers very few opportunities which meet the exacting demands of these clients. Zornitsa Mountain Village is almost unique in providing exactly what they require.

The key risks are:

1. The availability of Mike Marsh the MD and Project Manager. Mike is in excellent health but of an age (DOB 30/9/1954) which suggests health issues should be (and will be) insured against
2. The threat of political or economic upheaval in Russia, which would set back the marketing for an unknown period. The fallback position in this case is for the owners to operate the resort on a rental basis until the market recovers.