Guide to buying Bulgarian property and setting up a business in Bulgaria
The idea of setting up in business in Bulgaria motivates many buyers of Bulgarian property. While some have successfully purchased an existing business in Bulgaria, many others who want to start working in Bulgaria find they have to buy a Bulgarian property and establish their own business from scratch. Whichever route they take, they are pioneers.
Bulgaria is not yet an EU member, its economy is still adapting to free market conditions and there remain many obstacles to foreigners working in Bulgaria. However, if you are determined, have skills in your chosen sector and perhaps have already spotted an existing business in Bulgaria or a Bulgarian property suited to your plans, you should lay your dreams in front of a professional. An English-speaking lawyer will help you find the most suitable way to take your business plans forward.
What kind of business in Bulgaria?
Since working in Bulgaria is a relatively new concept to most Brits, you really must research your market carefully to make sure there is a demand for the product or service you are looking to provide.
Unless you speak Bulgarian fluently, you would be best advised to concentrate your efforts on the areas which attract the most tourists and ex-pats. This is why many Bulgarian property buyers opt for a bar or catering business in Bulgaria. All major tourist resorts and large towns will have a selection of this type of business for sale.
A catering business in Bulgaria is a popular option
Bargain Bulgarian property is certainly available, but if you want your catering business in Bulgaria to be successful, you must consider the condition, location and suitability before committing. In the catering market especially, the most important of these factors is location. Renovating or adapting a Bulgarian property can be done fairly cheaply, but if you buy a catering business in a Bulgarian backwater, you may never recover your investment.
Working in Bulgaria means earning Bulgarian currency.
The average daily wage of people working in Bulgaria is just 10-15 Leva (about 3-5 GBP) and your prices will have to reflect this. Even if your business is successful, and allows you and your family to enjoy a very comfortable lifestyle from your Bulgarian property, you need to remember that your earnings will be proportionally smaller in British sterling terms. In other words, retiring to Britain on the fruits of your labour in Bulgaria will rarely be an option.
Setting up in business in Bulgaria
Assuming you are buying Bulgarian property prior to setting up your business in Bulgaria, your lawyer will probably advise you to establish a Bulgarian limited company. This is a commonplace procedure and essential for all purchases by foreigners of Bulgarian property with land. It usually takes about four weeks to be organised and costs about €400-€600, including your lawyer´s fees.
If you are buying Bulgarian property before you start working in Bulgaria, make sure your lawyer records your new company´s main activity in a suitably vague term such as ´internal and external trading´. They usually do this anyway, whether or not the buyer is intending to set up a business in Bulgaria, but it is worth checking before the papers are formally submitted to the Company Registration Agency.
This loose description of your business in Bulgaria would cover you for most types of work except certain specialist services ie money lending where you would need to be more specific.
The limited company then becomes the owner of the Bulgarian property and the company can begin trading as soon as you are ready to start working in Bulgaria.
Still serious thinking of setting up a business in Bulgaria?
Both buying a Bulgarian property and launching a business in Bulgaria are major steps and need a lot of serious consideration. If, after some initial homework, you are sure you want to be one of the pioneers working in Bulgaria, you may find the British Bulgarian Chamber of Commerce a useful source of practical assistance.
