Investments in Bulgaria & # 8212; that can be useful.
The investment methods of modernity in many ways began to differ from what was familiar and predictable literally a few decades ago. And this difference does not only concern the fact that a lot of highly technological tools and assets related to innovations have appeared in the investment market, especially financial ones, but also with the expansion of the geography of their use.
It was not surprising that now it is possible to invest in any sectors of the economy, companies of almost any country and region of the world. Such a unique investment system allows virtually anyone to not limit themselves in the freedom of where to make their investments in order not only to get a decent income, but also to acquire additional options related, in one way or another, with investments.
For example, to live and work regardless of where the capital is invested, to obtain residence and citizenship, and simply going on vacation, to know that somewhere there is a country or a place where you can feel financially secure and independent.
This article will tell you about the prospects for the investor in Bulgaria (see Investment Practice: How to make money from investments abroad: options), as one of the most popular places not only for tourists, but also for many compatriots who have decided a part his life to spend in a fairly comfortable place, in one of the corners of Europe.
The more attractive Bulgaria is for an ordinary investor.
From an investor’s point of view, for which the issue of securing profitability and security of capital is not in the last place, Bulgaria, as a country with a developing economy and even more part of the European Union (besides a member of such a well-known alliance as NATO), offers a number of advantages, first of all:
A comparatively good level of quality of life in many respects, from security on roads and streets, to accessibility of health care, education, etc. The relatively low level of corruption, which allows business (especially small) to feel most comfortable there. A good system of protection by the state, its legal and judicial institutions of private property rights, which not only meets the EU standards, but also creates an attractive investment climate in the country. The developed financial system of the country, which is tightly integrated with the European one, which guarantees the standard of quality of work of banks, strass or investment companies of the same level as in the European Union. The country’s steadily growing economy makes it possible to talk about the influx of foreign investment, which is undoubtedly a big plus for Bulgaria, where money finds itself a real and useful application. For example, according to the European Statistics Committee (Eurostat), in the first eleven months of 2016, foreign investment in Bulgaria amounted to 1.46 billion euros (3.3% of GDP), which is 252 million euro more than from January to November 2015, when a 1.217 billion leva was invested in the country. A relatively liberal tax system that allows for an investor or an entrepreneur not to worry about how to develop his business.
In general, thanks to the consistent and prudent policy of the Bulgarian authorities and all the support provided to it within the framework of the Union State of Europe, in this country, in many respects, something similar to Russia in the recent past, you can not only have a good rest, but also earn, and investments will help to combine business with pleasure.
Where and how can you invest in Bulgaria.
Since Bulgaria differs little from the usual European country, in terms of investment there is a wide choice for the development of any direction and for any capital.
As for an ordinary person or a novice investor, the following forms of investment or obtaining passive income (rents) can be most accessible:
A traditional bank deposit for those who particularly relies on receiving passive income from money received even from the sale of a Moscow apartment, as an option of rent, is practically not suitable. Rates on deposits practically do not guarantee any profit. Therefore, investors who prefer this type of investment or rent, it is best to receive interest on their bank deposits in Russia, through their card accounts or the bank-client system.
Residential Properties. In Bulgaria, a fairly dynamic real estate market (see Investments in overseas property: advantages and risks) and it is characterized by a low price level, and serious competition among landlords (rentiers). Most of the demand for residential real estate is formed by residents of the CIS countries, and for example, in 2015, 49.6% of the total investment or 25 million euros in 2015, the Bulgarian property invested by the Russians. The cost per square meter has a fairly wide range of & # 8212; from 250 to 1000 euros. Which of course is several times lower than in the Moscow Ring Road and other major Russian cities.
As it follows from practice, the average Russian buys an apartment for the purpose of investment with a value of about 35,000. 40 000 euros. Plus the repair and related costs for buying an apartment for the purpose of leasing business & # 8212; It will take an average of about 50-60 thousand euros. With an average rate of rental rates and taxes, utility payments, the payback period of such investments is approximately 15-17 years.
Commercial real estate or ready business. On average, in the growing Bulgarian market, especially in the field of tourism and hospitality, the rate of return is about 20%. 30%, which for the conditions of Europe looks very attractive.
As an example, you can use the option of buying and opening a small hostel (20-30 seats) in Varna:
Initial costs of purchasing, registration & # 8212; 77 000 euros Repair, taxes and maintenance -25 000.
The average revenue for this hostel will be about 7-9 thousand euros (with additional, for example, excursion programs, meeting at the airport, etc.). After deducting overheads and costs, net profit in a good season will be approximately at the level of 4-5 thousand euros per month, which will allow you to reach full payback in 2 & # 8212; 4 years.
For those who do not want to communicate with real business or simply have other priorities in life, the financial market of the country can be used as a source of income that can provide accommodation in Bulgaria, which is also developing quite dynamically, like the country’s economy. For what it’s worth only look at the graph of the SOFIX index of the Bulgarian Stock Exchange in Sofia (The Bulgarian Stock Exchange).
The total capitalization of the stock market in Bulgaria is about 10 billion dollars, which for such a small country looks very, very decent. If there is an interest, then you can buy shares on the stock market of Sofia yourself, for example, through the local broker Karoll Financial Group or through investment brokers of leading European banks.
You can also use special investment funds that work in the capital market of Bulgaria and all of Europe (for example, the Brillstraits Foundation). There is no need to manage the capital itself – it will be done by professionals. The average commission rate for such funds is of the order of 10 & # 8212; 15%, which is significantly lower than that of Russian similar mutual funds and other managers.
Buy shares of such funds or conclude a contract of the DU (trust management), it is possible in most Bulgarian banks, and special obstacles (including the language barrier) for the Russians here will not be.
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