Buy & Sell Bulgaria Insight Newsletter

Varna, being the 3^rd largest city in Bulgaria, has the highest rate of construction of new buildings in the past couple of years, in comparison to other towns in the country.

For many years now the Sea Capital is one of the most attractive destinations to locals, as well as to foreign investors. The opportunities, which the city offers with its sea outlet, are many.

Apart from the transport connections to Russian and Ukrainian Black Sea ports, the city is also one of the most popular tourist destinations in Bulgaria as well as abroad. Every summer season Varna and the surrounding tourist complexes are visited by thousands of holiday-makers from Russia, Germany, the Scandinavian countries and many others.

In the past couple of years many construction companies and private investors are looking towards Varna and the region, where most of them have succeeded in realizing major projects.

Eurolink Investment Group is one of the major investors in the Varna region. Their vision is to create a brand new city, New Varna, which will become a preferred place for living, raising children and retiring. They aim to create a modern and environmentally friendly city, which will offer high standards and quality of living to its inhabitants. Below are some of the Group’s projects:

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ΕΠΙΣΗΜΗ ΑΝΑΚΟΙΝΩΣΗ

Πληροφορούνται οι κατοχοι τεμαχίων γης στίς περιοχές PANORAMA-SPRINGFIELDS-OLD VINES-MARINA HILLS-GOLF HILLS-ACROPOLIS στην ενορία Κωνσταντίνοβο της Βάρνας που έχουν εκδηλώσει πρόθεση να πουλήσουν τα τεμάχια τους στην κοινοπραξία STERLING-STERN-ZENITH JV ότι:

1- Θα πρέπει ΑΜΕΣΑ να προχωρήσουν στην επιβεβαίωση της πρόθεσης τους, αποστέλλοντας γραπτό μήνυμα στα γραφεία της κοινοπραξιας στη ηλεκτρονική διευθυνση sterling.stern.zenith.jv@gmail.com.

2- Για να γίνει δυνατή η μελέτη και αποδοχή μιας τέτοιας πρόθεσης από την κοινοπραξία είναι απαραίτητο να αποσταλούν από τους ενδιαφερομένους  μια σειρά από έγγραφα που σχετίζονται με την κυριότητα και κατοχή του τεμαχίου.

3- Τα έγγραφα αυτά τα οποία εκδίδονται επίσημα από τις Βουλγαρικές Αρχές, μπορούν οι ενδιαφερόμενοι να τα εξασφαλίσουν έναντι πληρωμής από οποιοδήποτε δικηγορικό γραφείο, αρκεί να δοθούν οι σχετικές οδηγίες και να πληρωθεί το τέλος από τον ενδιαφερόμενο ιδιοκτήτη. Το τέλος αυτό ανάλογα με το δικηγορικό γραφείο μπορεί να κυμανθεί από 500 - 1000 ευρώ.

4- Το νομικό τμήμα του Ομίλου μας αναλαμβάνει την έκδοση των πιο πάνω εγγράφων, έναντι προπληρωτέας αμοιβής η οποία έχει καθοριστεί στα 500 ευρώ. Δέον να τονισθεί ότι ο Ομιλος μας δεν έχει καμιά υποχρέωση να εκδόσει τέτοια εγγραφα ούτε και οι ιδιοκτήτες τεμαχίων είναι υπόχρεοι να χρησιμοποιήσουν τις δικές μας υπηρεσίες.

5- Σε καμία περίπτωση το νομικό τμημα του Ομίλου δεν πρόκειται να αναλάβει την έκδοση των πιό πάνω εγγράφων εάν προηγουμένως ο ενδιαφερόμενος ιδιοκτήτης δεν προκαταβάλει το σχετικό ποσό είτε στα γραφεία μας στη Λευκωσία, ή στα Κεντρικά γραφεία του Ομίλου στη Βάρνα - Βουλγαρίας.

Για περσότερες πληροφορίες, παρακαλούμε να επικοινωνείτε με τη Δ/δα Αναστασία Πιπερίδου, δικηγόρο στο τηλέφωνο 22371512.

How to buy a home during a crisis

Revolutions often take place in a time of crisis. Some significant changes took place in Bulgaria since the beginning of the crisis in the real estate sector. Developers and real estate agents affirm that now it is the buyer to dictate the rules on the market. But does he know it?

Demand for homes is a steady constant. It is to remain in Bulgaria with or without a crisis. Official statistics show that 96% of Bulgarians own the properties they live in. Hardly ever more than 2/3 of the population worldwide and in most developed countries, in particular, lives in their own homes. The big dilemma a buyer faces is: should I buy now? Housing prices have tripled since 2002. At present the average price has reached 680 euro/sq m, while it was just 160 euro/sq m seven years ago. Prices continuous uphill led to a construction boom in the big cities. So currently customers are faced with numerous options to choose from. In 2008 over 21,000 houses & flats have been completed, a number which is slightly more than twice the amount of properties built in 2004. A lot of developers are disposed to give discounts in order to get rid of the excess of units they have available. Along with opportunities, buyers and real estate market participants have encountered some challenges, as well. In the past three years buying a property was never related to tackling such a long list of questions. Shall I obtain a loan? Of what amount should it be? Should I take the risk of buying a larger property? What if I lose my job? What if banks don’t approve my income? Do deferred payment schemes really work? Are they safe enough? Is off-plan buying cheaper? (I still remember those ‘pyramids’). What if the developer goes bankrupt? Prices are falling now. What if tomorrow they fall even faster?…

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As you may already know, there is a new law for the Trade Register that came into force on 01.01.2008. This law refers to the registration of new business companies in Bulgaria as well as registrations of all existing companies in the new online trade register. According to this new law, all existing companies must be registered in the new register by 31.12.2010. If this is not done, they will be removed from the register of companies in Bulgaria resulting in loss of their assets (properties for example).

The new Trade Register is hosted by the Registration Agency and is planned as a unified data base of all companies in Bulgaria and their details, which will be publicly accessible and centralized. This is a needed and helpful change in the administration and the results will soon be seen.

All companies, re-registered after 01.01.2008, are obliged to publish their annual financial reports in the new Trade Registry before 30.06.2009.

Companies, which are currently re-registered, have to publish their annual financial reports for 2007 and 2008 within a 3 months period from the re-registration. If they fail to do so, they will have to pay a penalty of approximately 3000 levs.

Our lawyers can help with this service, from answering questions to preparation and submission of the necessary documents. You can contact them for advice and to organize the process, at: legal@buy-sell-bulgaria.com.

Radio Focus, 12 June, 2009  

The initial project for a new General Town Plan (GTP) of Varna was approved by the Minister of Regional Development and Public Works, Asen Gagauzov, and admitted to public discussions and consultations during the joint working conference of the National Expert Counsel for Territorial Structure (NECTS) and the Municipal Expert Counsel for Territorial Structure (MECTS), which began yesterday, announced a reporter from radio Focus, Varna. The participants at the meeting accepted the generalized stand, proposed by the Director of Territorial Structure and Projects Department of the Ministry of Regional Development and Public Works (MRDPW), Lidia Stankova, that the major part of the proposals and the notes to the project have been reflected, it is stabilized and the procedures for public discussions and consultations for the GTP and the ecological assessment of the project can be revealed with the shortest possible delay. The working group agreed that the additional notes and propositions put forward during the 2-days conference, will be submitted to the designers and they must be reflected in the final version of the project, along with the opinions and recommendations which will arise during the discussions and consultations. The decision was made on the basis of all standpoints covered at the conference by experts from NECTS and MECTS, Varna, the regional associations of the Chambers of Architects and Engineers, from regional municipalities and independent appraisers. Lidia Stankova generalized that according to all raised opinions the acceleration of the procedures for public discussions and consultations, as well as procedures for adopting the project will have a stabilizing effect and will be to the benefit of the local public.

The working group also agreed that a proposition for the signing of the prepared scheme for combining procedures provided in each of the four laws concerning the admittance of the GTP project, should be directed to the Mayor and the Minister of Regional Development and Public Works.

The initial GTP project should be admitted by the end of the year at the earliest. This became obvious at the conference. The launching of the procedures will be announced in a ten-day-period from signing the conference protocol. However, experts commented upon the possibility that terms may be lengthened due to the fact that during the consultations and discussions negative standpoints may occur, which will lead to amendments being made to the project. According to the Team Leader of the department working on the ecological assessment of the GTP, Ljudmil Ikonomov, discussions may be prolonged in case they are carried out with the intervention of additional methods acknowledged by the European Union as reputable practices, which would legally stabilize the project.

Interview by Veselina Sapundzhieva, 26^th May, 2009

Translation: Lili Gospodinova, PR of Eurolink Investment Group

Prof. Nikiforov giving a lecture at a conference held by Eurolink Investmenmt Group in 2008, The Eagle Has Landed

Prof. Architect Ivan Nikiforov is a Doctor of Architectural Science and the team leader of the group of specialists who prepared the General Town Plan (GTP) of Varna. He has a long professional experience gained from his engagement in developing many towns. A couple of days ago he was granted the prestigious award ‘Varna’ for his work on the GTP and his book ‘History of town development’.

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Sofia News Agency, 19 May, 2009

US Ambassador to Sofia, Nancy McEldowney participated in the Bulgaria-US renewable energy forum, held Tuesday in Sofia. Photo by BGNES

The investments in public-private projects for energy efficiency in Bulgaria will amount to BGN 9 B.

The data was reported by Bulgaria’s Deputy Prime Minister and Foreign Minister, Ivaylo Kalfin, during the Bulgaria-US renewable energy forum, held in Sofia.

Kalfin pointed out that in 2010 only, energy efficiency investments will reach at least EUR 500 M, adding that by 2020, 16% of all energy produced in Bulgarian would come from renewable energy sources, approaching the European Union goal of 20%.

The Deputy PM further said that many US companies entering the Bulgarian market work in the renewable energy sector.

The American Chamber of Commerce, on their part, noticed the increased interest from US small and medium businesses towards Bulgaria’s economy, deemed by experts a very positive trend since in times of crisis this type of enterprises are more flexible and manage to remain on the market.

US Ambassador to Sofia, Nancy McEldowney, stated she sees Bulgaria becoming in the future the energy center of the Balkans. The Ambassador had some advice such as replacing the electric bulbs in each Bulgarian household with energy saving ones in order to preserve energy resources.

Novinite.com, May 26, 2009

Sunseeker Superhawk 43 Quantum of Solace, James Bond’s yacht, has been shown in Bulgaria’s Varna. Photo by A Team

Sunseeker Superhawk, the model of James Bond’s yacht, was shown in Bulgaria’s Varna during a yachting parade.

Bond’s yacht was exhibited during the traditional Bond Label party, an annual event bringing together celebrities and wealthy Bulgarians.

The Agent 007 yacht Sunseeker Superhawk 43 Quantum of Solace from the limited edition specially created for the Bond movie Quantum of Solace was the top attractions of the event organized by A Team agency. Bond’s yacht is imported by LZ Yachting.

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Bulgaria Gazzette, 24^th May, 2009

Varna will have a multifunctional culture center before 2019, when the city is expected to become the European capital of culture. The news was announced by the chairman of the Municipality council Borislav Gutsanov.

The new art center will replace the old harbour Varna-east and will be the analogue of the Australian Sidney Opera, said Gutsanov. Still, the project will not copy the architecture of one of the symbols of Australia. The concert hall is the key point of the make-over of the harbour complex into an attractive, culture center.

To complete the project, the municipality will announce an international competition, which will likely attract prominent architects from all over the world. The lack of a proper-size modern concert hall that is suitable for spectacles and music performances of various ranges is one of the serious problems for the people of art in Varna. It is also a major stopper of visits of foreign artists.

In what many see as a doomsday scenario for investors in northern Cyprus and justice for those forced to flee when the island was split some years ago, the European Court of Justice (ECJ) has handed out a ruling which will shake the very foundations of the Cypriot property market. A situation regarding land ownership has been ongoing for some time although very few people believed we would actually arrive at a definitive ruling in favour of those forced to flee in 1974 when Turkish forces invaded northern Cyprus.

Background to the ECJ ruling

When the island of Cyprus was effectively split in 1974 after Turkish forces invaded the north of the island there was literally a free for all regarding property and land ownership in the region. After the eventual introduction of a United Nations peacekeeping force across the boundary between north and south Cyprus we saw a significant property market start to develop. However, since 1974 there have been various attempts to reclaim land which was lost when Greek Cypriots were forced to abandon their properties and their lives in northern Cyprus.

Interestingly European Union law was suspended in 2004 when Northern Cyprus joined the EU bloc although yesterday’s ruling has effectively negated any potential protection offered by the earlier action. The ECJ has ruled that the suspension of European Union law does not stop other EU members from upholding judgements against northern Cyprus, which is only officially recognised as a country by Turkey.

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Sofia News Agency, May 6^th, 2009

Bulgaria’s colours were sanctified as the country celebrated Saint George’s Day as a day of the bravery of the Bulgarian Army. Photo by BGNES

Bulgaria celebrated on May 6, the day of Saint George the Victorious, the valour of its army. May 6 has been pronounced Day of the Bulgarian army with a decision of the Bulgarian Cabinet in 1993. Since 1998 it is being marked as a national holiday.

“Bulgaria’s armed forces stand guarantee for the country’s security,” President Georgi Parvanov said in his address at the grandiose military parade on Alexander Batenberg square in Sofia.

In his words the Bulgarian army is a symbol of strength, patriotism and high morale.

The president pointed out that Bulgaria has a strong, modern European army, which not only protects the country’s territory, but is also a predictable and worthy partner in securing international peace and stability.

Politicians and militaries bowed heads to pay respect to Bulgarian warriors who died at the battlegrounds and the country’s colors were sanctified.

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By Ralph Atkins in Frankfurt, April 29^th, 2009

The first significant rise in eurozone economic optimism for almost two years has created a slightly less bleak backdrop for emergency measures to be unveiled by the European Central Bank next week, which could see new policy tools deployed to fight the crisis.

The increase in the European Commission’s economic sentiment index for April added to evidence that the worst of continental Europe’s recession is over. But with the ECB not expecting a return to growth until next year, it is expected to press ahead with another cut in its main policy interest rate from 1.25 per cent to 1 per cent next Thursday.

Dear Partners, Clients and Friends,

We would like to inform you that our Head Office in Varna, Bulgaria will be closed in the period May 1^st, 2009 (The Labour Day) - May 6^th, 2009 (St. George’s Day, Day of the Bulgarian Army) due to the National Bulgarian Holidays. Should you have any urgent queries, please contact our Office Manager, Ms. Nedyalka Aleksandrova (tel.:+359 894 417 675) or our Cyprus Office (tel.: +357 22 37 15 12), which will be closed on May 1^st, 2009 only.

Dear Partners, Investors, Friends,

Today, April 22, 2009, Eurolink Investment Group made a substantial donation to the University of Alberta - Canada, Department of Medicine for the DCA Research on cancer treatment. We invite all of you to join us on this very important and crucial for the humanity health cause for we believe in the sacred value of human life and the right of better and happier living and are sure you share this fundamental belief of ours completely.

Make your own donations for the DCA Research. Save a human life!

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By Christopher Violaris, CEO, Eurolink Investment Group Plc.

It is by now obvious that the world economy has entered into a recession the depth and the duration of which only very few are prepared to risk a forecast and much less are those who dare to identify the causes. Seeing the consequences affecting our lives and actually knowing that we will pay for them, others more and others less, this become obvious as the problem unfolds and a serious question comes up! But the answer and its cost, is for us all to pay. The question is, “I am not guilty for anything, above all for the economic crisis, why should I pay the mistakes of others”. The question becomes more acute after the discovery that those who caused the economic crisis, not only will not ‘pay’ but the ‘evil’ is that they have been paid or will be paid generously for their disastrous mistakes! How then can someone protect himself from the crisis and how to protect his fortune and property? To answer this key question, we must see why, how and what caused the economic crisis.

As the crisis unfolds, the causes that provoked it become more visible. Specifically, the last two decades have brought about dramatic changes and economic upheavals such as the collapse of the Soviet Union and communism, the global monocracy of the USA, the dramatic industrial growth of China, India and other countries in the Far East, the two Gulf wars and the return of Russia as energy superpower, this time.

Generally all these events have cultivated a climate of euphoria and a sense of economic security, which in turn led to a rampant consumerism and to fatal dance of borrowing. In short, people were buying whatever they found before them, not concerned if what they had purchased was beneficial and useful and if the price paid represented the actual value of what was bought.

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By Krishna Guha in Washington and George Parker in London

Published: March 18 2009, Financial Times

Britain’s recession could be deeper and longer than in most other parts of the world, according to draft International Monetary Fund forecasts that cast a shadow over Gordon Brown’s election hopes for next year.

The IMF will on Thursday tear up forecasts it made for the world economy only weeks ago and predict a more severe slump, including a deeper recession in the UK that continues into 2010.

The fund’s economists have responded to the pace and severity of the downturn to cut further gloomy forecasts for growth in 2009 that it made in January.

Teresa Ter-Minassian, an adviser to Dominique Strauss-Kahn, IMF managing director, on Tuesday dropped a strong hint of what to expect on Thursday when new figures are released.

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The Irish President, Mary McAleese (middle) and to the right Mr. Christopher Violaris, CEO of EIG, and Mr. Oisin Creagh, Director/Architect of Murray ÓLaoire Architects

Bulgaria’s leaders, President Parvanov and PM Stanishev, welcomed the President of Ireland, Mary McAleese, to Sofia Wednesday 25^th March, 2009.

“The large number of Irish who visit Bulgaria are the natural bridge between our two countries because the contact between people is the most important thing, and it has been growing steadily in the recent years”, President McAleese said during her meeting with Stanishev.

On Thursday, 26^th March, 2009, Ireland’s President opened a seminar entitled “Bulgaria and Ireland - European Partners” at Sofia University, followed by a business lunch hosted by Enterprise Ireland, held at the Alexander’s Ballroom, Radisson SAS Grand Hotel Sofia. The event gathered Irish and Bulgarian business leaders aiming to reflect the strong trade, investment and cultural links shared by Ireland and Bulgaria. The CEO of Eurolink Investment Group, Mr. Christopher Violaris, made very beneficial contacts with major Irish investors and exchanged views together with the Group’s Assosiates Mr. Oisin Creagh, Director of Murray ÓLaoire Architects and Mr. Frank O’Dowd, golf designer of Intergolf Inc, regarding our projects and the creation of New Varna. Mrs McAleese expressed her opinion that Bulgaria has positioned itself on the world intellectual scene. She made many comparisons between the two countries and noted that despite the significant distance Bulgaria and Ireland have similar values and history. In her words, the economic and cultural exchange between Ireland and Bulgaria proves their similarity. ‘We understand each other in the depth of our souls, as if we have known one another our whole lives’, said the Irish President. McAleese pointed out that many people from Ireland wish to visit Bulgaria. According to her more than 70 000 Irish citizens have traveled to the Black Sea country in 2008.

Later on the same day, Mrs McAleese visited the Centre for Autism and attended an Irish community reception. She will complete her visit to Bulgaria by traveling to the southern city of Plovdiv, and the Bachkovo Monastery on Friday, 27^th March, 2009.

Paradoxically, President McAleese’s visit to Sofia ends just before the Ireland-Bulgaria World Cup 2010 football qualifier taking place on the forthcoming Saturday.

1st April is a Public Holiday in Cyprus. On this day all Greek Cypriots celebrate their National Day. The Holiday commemorates the anniversary of the start of the liberation struggle of the Greek Cypriots against British colonial rule in 1955. On this day secondary school pupils as well as students of higher institutes attend church services.

Happy Holiday and Congratulations on your Victory!

14^th March, 2009, Sofia Weekly

The euro has started taking over from the lev, as the main currency preferred by Bulgarian businesses and property owners, data shows. Bulgarian National Bank (BNB) figures released for January 2009 showed a huge rise in euro denominated loan portfolios. Euro denominated housing mortgages in January totaled BGN 22.9 mn in comparison with BGN 106 mn in December 2008. At the same time, households borrowed BGN 21.6 mn less lev denominated credits, following a drop of BGN 4.9 mn in December. In October and November, euro loans grew by BGN 9.8 mn and BGN 111.3 mn respectively. Euro loans totaled BGN 9.9 mn and BGN 153.1 mn. Over the past five months, the share of euro denominated household mortgages expanded from 45.6% to 48.1% of the total mortgages in Bulgaria. The trend is mirrored in the consumer credit market, where euro denominated loans account for only 12% but rose for a third month in a row as BGN denominated credits dwindled, the Bulgarian daily newspaper Dnevnik reported.

In this season of new beginnings, new hopes and new joys, which fills us with warmth, it is time to get together with friends, family and loved ones and celebrate. Wishing to all our clients, partners, friends and family every happiness, prosperity and continued success!

Happy Easter!