The Bulgarian currency and economy, and other financial issues for Brits living in Bulgarian propert
Living in Bulgarian property means getting to grips with a rapidly changing economy and a rather different way of dealing with money. Cash is still the preferred option, and apart from some larger stores and hotels where Euros may be accepted, cash means Bulgarian currency.
Living in Bulgaria -- Bulgarian currency
The Bulgarian currency is currently the Lev (plural Leva, usually written as Lv) which is divided into 100 stotinki. The official code for the currency is BGN. Leva notes are available in denominations of 20,50,100, 200, 500, 1000, 5000 and 10000. Leva coins in use are 2,5 and 10. Some stores refuse old, worn or ´mended´ bank notes.
Since 2002, the Lev has been pegged to the Euro at a fixed rate of 1 Euro = Lv 1.955.
Living in Bulgaria - Bulgarian currency restrictions
The import and export of Bulgarian currency is prohibited. However, the movement of foreign currency is not restricted, provided you declare it at customs and (if its value is more than 8,000Lv) prove its source. Failure to declare it could result in confiscation of the cash and prosecution. Money transers are a lot easier.
A declaration form also needs to be completed if you withdraw more than 8000 lv from a Bulgarian bank account.
Living in Bulgaria - credit and debit cards
Credit cards are not widely accepted except in some of the larger, big city stores, car hire agencies, and petrol stations and in hotels and restaurants in tourist areas.
ATM´s can be found in cities, towns and tourist resorts and most credit and debit cards can be used. Banks are sometimes reluctant to sell Bulgarian currency as cash advances on cards.
Living in Bulgaria - travellers´ cheques
While travellers´ cheques seem a safe precaution, they are not always a convenient method of carrying funds, whether you are living in Bulgaria or just visiting. In Sofia and some of the biggest tourist resorts commission may be as high as 5% but small bureau de change offices, and even some banks, will not change them.
Living in Bulgaria - banking hours
Banks in Bulgaria open between 9am and 4pm on weekdays. Most foreign-exchange offices are open until 6 p.m but in the larger cities some are open 24 hours.
Bulgaria´s economy, and the growing market for Bulgarian property
Only a decade ago, the Bulgarian property market did not really exist. The country was struggling to emerge from Communism, inflation was running as high as 1000%, and unemployment was pushing 20%. Food shortages and power cuts were part of the daily misery for significant numbers of families living in Bulgaria below the poverty line. The very idea of Brits choosing to buy Bulgarian property was preposterous.
What a difference a few years can make! The economy has recovered to see GDP growing at an impressive 5.6% in the first quarter of 2006. Official reports cite the Bulgarian property market, and the construction industry that created it, as the two most dynamic sectors of the economy, and unemployment has fallen below 10%. With food shortages now a distant memory, consumer confidence has returned.
And so it should. The country is poised to join the EU in 2007/8 and foreign investment is pouring in. Practically everyone living in Bulgaria is already enjoying the benefits of infrastructure improvements.
Bulgaria´s main industries continue to be steel making, electronics, textiles and food processing. Tourism is also a major employer and there are sizeable export trades in clothing, shoes and agricultural products. Agriculture is still the largest sector, however, with about one quarter of the population living in Bulgaria employed in the production of vegetables, fruit, wine, cereal crops, tobacco, sunflowers and sugar beat.
Corruption and organised crime, which may account for up to 20% of the country´s GDP, are challenges that Bulgaria´s stable government has yet to overcome but are requirements for EU membership.
Inflation, too, needs to be contained. The cost of living in Bulgaria is increasing at an annual rate of 5% but early signs for 2006 suggest austerity measures and a salary freeze for civil servants may be succeeding. The rate in the first six months of the year was 2.9%.
Meanwhile, although prices of Bulgarian property are no longer rising at up to 40%, as they were in 2004, annual rises of 10-15% continue to make owning Bulgarian property an attractive option for investors. The Bulgarian currency, already pegged to the Euro, will probably be replaced by the Euro soon after membership, which will be another boost to the Brits living in Bulgaria
