Bulgaria has been hogging the second home spotlight for the past few years as western Europeans discover its vast investment potential. 2004 saw a huge increase of 25% in property prices with some hotspots seeing a rise of up to 50%. Bargain homes are being snapped up like hot cakes. Situated in south east Europe, occupying the eastern part of the Balkan Peninsula, Bulgaria borders Romania to the north, the Republic of Macedonia to the west and to the south, Greece.

The country offers summer sun and winter snow with a temperate climate showing a clear distinction between the four seasons. The real action, in property terms, is found in the ski and beach resorts and rapidly entering the frame, golf resorts. Bulgaria is a fast-growing ski destination with three major resorts in the shape of Bansko, Borovets and Pamporovo. The season is a lengthy one with almost-guaranteed consistent, heavy snowfall between December and April. Although you’d be pushing it to compare Bulgarian skiing with established resorts such as the Alps, this is an excellent location for beginners and intermediate sportsmen and off-piste cross-country skiing is enormously popular with many trails leading through stunning pine forests.

The southern part of Bulgaria has a Mediterranean influence and summer temperatures can reach the low 30s in centigrade The Black Sea beach resorts cover 370km of coastline, dotted with hotels, bars, restaurants, water-skiers and windsurfers. The most popular area is Sunny Beach covering an 8km semicircular stretch of coastline. The sand is golden, the water calm and Sunny Beach also holds the prestigious Blue Flag for proven ecological advances. Dubbed the ‘Marbella of Bulgaria’, Sunny Beach is becoming the must-visit beach holiday destination of Eastern Europe.

Bulgaria has had a rough ride over the past centuries from wars with the other Balkan nations to communist uprisings and economic crises. However, the past now appears to be just that, the past. When Zhikov was leader of Bulgaria between 1954 and 1989 the country became one of the most prosperous in Eastern Europe, and now, under democratically elected President Georgi Parvanov, progress continues with NATO membership being a landmark achievement in 2004.

Buying process for foreigners

If you’re buying an apartment it is usual for it to come without land therefore you do not need to worry about the fact that under the current constitution foreigners cannot directly hold title to land. If you’re buying a villa, chalet or house you will need to register a Bulgarian Limited Company and this will then own the property and the land on which it sits. It costs between €500 and €700 to establish a company and a good estate agent in Bulgaria will offer this service to you. Laws are currently going through the Bulgarian Parliament to make changes to the constitution and it is believed that by 2014 foreigners will be allowed to directly own land.

At this point, if you haven’t already instructed a lawyer you should do so and it should be a lawyer independent of your vendor and estate agent as you need to ensure your lawyer looks after your interests only. This contract should be reviewed by your lawyer before you sign it and it should contain all the conditions of the sale. Once signed it’s customary to pay a 10% deposit which is non-refundable if you withdraw from the sale, refundable if the vendor withdraws or refundable if the conditions of the sale relating to the satisfactory completion of searches etc., are not met. Clearly once you’ve signed the contract and paid the deposit you must insist that the property is taken off the market - this may sound obvious but it is important to insist upon this point! This is an incredibly important step and one that should not be overlooked or rushed when buying property in Bulgaria. Your real estate agent may offer to conduct the title searches etc., for you but it is preferable to have your lawyer check the title deeds, check that all licences and permissions to buy/sell are in place, ensure there are no outstanding debts on or legal claims against the property and to check the terms of the final contract. Both the purchaser and the vendor meet at the offices of a notary public and sign the final contract in his presence. At this stage the transfer is complete and state and municipal taxes are due as is the final balance of the purchase price if you’re buying a completed property. If you’ve bought off plan the payment terms will have been detailed in the contract and you will likely make the first of a series of stage payments that will continue throughout the build process