Property in Bulgaria by Biodar Real Estate
Rental Service (for Sunny Beach and Sofia regions only)
Biodar Real Estate offers now a flexible rental service for the owners of property in Sunny Beach and Sofia.
Apart from our rental services, all our clients can have their apartment listed for free in our partner website:
Rental in Sunny Beach
We rent out apartments in Ravda, Nessebar, Sunny Beach, Saint Vlas and Elenite.
We have experience with renting out a number of apartments in the area of Sunny Beach in the summer season of 2003. 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 in Sunny Beach.
Sunny Beach Rental Fees:
rental fee: 15% of the gross rental income
cleaning and maid service: 250 euro for season 2004
Rental in Sofia
In Sofia the rental potential for central apartments is about 10% per year. Nowadays it is not difficult to find tenants and we can help you with that.
Sofia Rental Fees:
one time fee: 50% of the first monthly rent
cleaning and maid service: 50 euro per month
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 Bourgas 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 price 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) one can expect good rental occupancy of the property 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 declare 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 effecting the transfer is presented a certificate proving payment of all Bulgarian taxes due.