We are in the process of establishing a property management, maintenance and rental company. This company will offer a full range of services enabling you to let your property with complete peace of mind.
Bulgaria Property Investment Ltd now offers a property management service taking good care of your property on a regular basis. Our property management service covers most areas of Bulgaria and is also open to clients who have bought property with other real estate agents. By subscribing to this service you will enjoy complete peace of mind as we engage to:
Ventilate the property and check for any humidity and/or damage.
Check the installations for water, electricity, gas and ensure all appliances are in working order.
Take care of indoor and outdoor plants and keep the terrace tidy.
Pay the annual municipal and local taxes, fill out tax declarations. Pay the monthly bills for electricity, water and telephone.
Collect mail to leave inside property or re-post to an address of your choice.
Ensure prevention against problems such as humidity and flooding that can occur after heavy winter snow or rain. Cleaning before your arrival, key holding, regular property inspections, bill payments, preparing the property for the seasonal changes
Guide prices (not including VAT 20%):
1 Bedroom/studio 180 euro per year
2 Bedroom 220 euro per year
3 Bedroom 270 euro per year
Seaside house 320 euro per year
Countryside house 440 euro per year
This will be a service offered upon demand which will include structural repairs, painting and decorating, gardening, septic tank maintenance, servicing of household appliances, cosmetic alterations. All these services will be charged as per individual requirements, following agreement from the owner.
Ensure that tenants take good care of the property should you have decide to let it out.
Other services quoted on demand; advertising, airport transfers, property security, registration of arrival with local authorities.
Property Rental Management:
Will include: Holiday Rent collection, deposit of rental monies into your bank account, laundry and cleaning facility ever three and seventh days, inventory checked upon departure.
Will include switch on air conditioning/heating, water heater or floor heating before your/tenant's arrival.
By using our service, you can expect almost full rental occupancy in July / August and a good occupancy in June and September. Please e-mail us with the details of your apartment and the rental income you would expect if you would like to get to use our rental service.
Rental Fees: Rental fee: 15% of the gross rental income, cleaning and maid service 350 euro for season 2005
Rental income: The rental income depends on the type and the location of the property that you buy. The rental market in the bigger cities like Sofia, Varna or Burgas is quite competitive and developed. In Sofia and Varna, for example, you can expect an annual return on investment (ROI) of about 10% per year. However, this does not include the capital appreciation, which is about 20% per year.
On the other hand, at the resort areas on the Black Sea coast and the ski resorts the rental market is seasonal in nature. For example; in some areas like Nessebar, Saint Vlas, Sunny Beach. you can expect good rental income during the entire summer season (June, July, August) and weak occupancy during the shoulder seasons of Spring and Autumn.
Rental income taxation: Although rental income is subject to taxation by the Bulgarian Government, in practice not many of the private individuals, foreign or Bulgarian, who rent out their properties, declares that in front of the tax authorities. The basis of the taxable income of a company, investing in Bulgarian real property is the gross income derived from the property minus tax-deductible, property-related expenses and depreciation. Such expenses include repairs, maintenance, renovation and similar costs and interest on loans used for the acquisition of the property. A Municipal Tax at a rate of 10% of the profit is due. This is then deductible in calculating taxable profits which are subject to a flat rate of 25%. Foreign investors are guaranteed full repatriation of profits resulting from an investment in Bulgaria. The transfer abroad can be made only after the bank affecting the transfer is presented a certificate proving payment of all Bulgarian taxes due.
Fortunately this aspect of the market is maturing rapidly. You can arrange for your apartment to be let for the season by one of the large holiday operators, or we will advertise any property purchased from us FREE for one year. In some cases the developers continue to manage the estate including the contracting with the tour operators. This can save a lot of complications which is why we have tried to consider all aspects to ensure you have a trouble free experience.
Annual Property tax which is equivalent to U.K Council tax range from 50 Euro to 100 Euro depending on size and location of the property.
Electricity 0.05p per unit
Water charges around 10-15Lv. £3.50-£5.00 per month
Cable T.V £5.00 per month
Mobile phone charges pay as you go 20p per minute
Annual all in cost for running a house (approx) per year, 1100 Euro
Corporation tax 15%
V.A.T is 20%
In addition to the above we provide a range of other services that you may opt for such as:
Security service with a local security company.
Insurance package for your property with Allianz (http://www.allianz.bg/) or other major insurance companies in Bulgaria
Arrange your company's annual returns and present to the Bulgarian tax authorities