SCHENGEN VISAS OFFICIALLY RECOGNIZED IN BULGARIA
By virtue of the Bulgarian Council of Ministers Resolution taken in January 2012 the Republic of Bulgaria shall recognize as equivalent to its own national visas all unified (Schengen) visas, long-stay visas (type D) and residence permits issued by EU members states for which the Schengen Agreements apply. All visa holders shall have the right to stay in Bulgaria within the legal terms and by observing the validity of the Schengen visa but no longer than 3 months for each 6 months period.
AGREEMENT FOR ECONOMIC COLLABORATION BETWEEN BULGARIA AND PAKISTAN
On 23.08.2011 an Agreement for Economic Collaboration between the Governments of the Republic of Bulgaria and Islamic Republic of Pakistan came into force. Its purpose is to develop and widen the mutually beneficial economic collaboration between the two countries in the fields of the industry, agriculture, energetic, tourism, culture, education, public health and other certain fields. With regards to its most effective execution, a special Intergovernmental Commission for Economic Collaboration shall be established which shall include representatives of both Bulgaria and Pakistan. The Agreement contains some steps which should help to intensify the economic collaboration. Some of them are: aid in the field of establishing of trading representation offices and branches of companies in the two countries, stimulating of the business-relationships, exchange of business information etc.
BLUE CARD FOR NON-EU SPECIALISTS IN BULGARIA
Any non-EU specialist can alpply for a Blue Card in Bulgaria as of 1st June 2011. Before its issuance, however, a special market test should be passed which is organized by the Bulgarian National Employment Agency. The Agency shall ascertain that for the respective position of high qualification specialists there are no suitable candidates from Bulgaria. In order to obtain a Blue Card the foreign specialist will have to have already established contact with an employer in Bulgaria. The EU Blue Card also allows its holders to bring their family members to the country.
ONLY BANK TRANSFERS IN PROPERTY DEALS IN BULGARIA - CONFIRMED
As of July 1 2011 all payments in property deals in Bulgaria amounting to more than 10,000 levs (a little more than 5,000 euro) shall be made via bank transfers only - according to the last Bulgarian law amendments. All amounts shall be transferred into an account chosen by the parties, incl. to a special bank account of a notary public. Another important amendment is that the parties shall be obliged to sign a special declaration confirming that the declared amount is the real price of the property. The purpose of these new measures is to stop the common practice of selling (actually declaring) properties at much lower than the real market prices.
NO MORE CASH PAYMENTS IN PROPERTY DEALS AND BUSINESS TRANSACTIONS OVER 15 000 LEVS IN BULGARIA
According to the new Law on Restricting Cash Payments in force as of February 22, 2011 amounts over 15 000 Bulgarian levs (7670 euro) shall be made only by bank transfer or via a deposit into a bank account. The purpose of this new law is to limit the number of false deals and VAT draining schemes. In future cash payment for the purchase of a real property will not be possible in case the purchase price is equal to or exceeds 15 000 levs. In case of any offence against this law found by the National Revenue Agency authorities the offender shall pay a fine within the range of 25 % and 100% of the cash transaction amount.
9 % VALUE ADDED TAX (VAT) RATE FOR BULGARIAN TOURISM
Bulgarian Parliament voted a flat 9 % Value Added Tax (VAT) rate for tourism sector in force as of 01 April 2011. So far rates have been 7 % for group organized tourism and 20 % for individual tourism respectively. The change was forced by a the requirement of the European Union for unification of VAT rates in tourism and risks of sanctions by Brussels in case the country does not comply with this requirement. Local tour operators and hotel-keepers opposed the new law of course, as most of the contracts with foreign tour operators for organized tourism for the summer season have already been signed, all prices calculated at 7 % VAT.
COMPANY RE-REGISTRATION DEADLINE EXTENDED
The deadline for re-registration of all Bulgarian companies has been now extended with a further year and currently expires on 31st December 2011. After this date all companies that have not been duly re –registered are to be liquidated and erased from any registers at the expense of the company owners.
BULGARIA IN THE SCHENGEN ZONE IN 2011
According to different sources, Bulgaria – the youngest EU member, will join the Schengen zone in 2011. Bulgaria would wish this to happen as early as March 2011 but there have been various speculations that the process will be delayed. Anyway, even according to the most pessimistic forecasts the joining must be a fact by the end of 2011.
2010
FLIGHTS TO BULGARIA NOW COST ONLY 33 EURO INCLUSIVE OF ALL AIRPORT FEES
The first airplane of the Irish airline Ryanair flying from London to Plovdiv landed on 2 November 2010 on the airport of Plovdiv - Bulgaria’s second largest city and a great tourist destination, situated between the ski resorts of Bansko and Pamporovo. This is the beginning of the first regular scheduled all year round air service provided by Plovdiv airport which now has the capacity to operate an air service for all types of airplanes and to attend up to 1000 passengers per hour. The low price is as a result of a government decision for a permanent reduction of landing fees of this particular airport. Regular charters from and to Moscow are scheduled at Plovdiv airport for this winter. The launch of a regular all year round route Plovdiv - Moscow is being negotiated at the moment. Apart from Ryanair, the airport is trying to attract some Turkish airlines and to launch new routes.
BULGARIA PRAISED IN A FOREIGN BUSINESS REPORT
Bulgaria is amongst the most hospitable places on Earth for foreign investments. This shows a report of The World Bank which examines barriers before foreign investments in 87 different countries around the world. Bulgaria receives highest score for its Public Trade Register which makes possible fast company registrations.
NO MORE CASH PAYMENTS OVER 5 000 LEVA
Cash payments amounting to more than 5 000 leva will be possible only via bank transfers. This is a provision of the brand new Cash Payments Act which is prepared by the National Revenue Agency but still not voted in Parliament. Severe fines could reach up to 100% of the amount of any cash transaction over 5 000 leva according to the new law provisions.
EVERY CONDOMINIUM TO CALL A GENERAL ASSEMBLY BY THE END OF JUNE, 2010
According to the Condominium act in force as of 01/05/2009 all condominiums are obliged to do the following:
1. To call a General Assembly of Owners;
2. To enter details of each owner in the Condominium into the Book of Owners;
3. To have the building registered with the special Public Registry of buildings and to have the Book of Owners presented before the relevant authorities;
The registration of the building is free of charge and is an obligation of the Manager of the Condominium. In the event that a General Assembly of Owners has not been held prior to the specified deadline, the Mayor of the Municipality shall be entitled to call a General Assembly and organize the election of a Manager. Unofficially the prolongation of this deadline is being discussed.
MAY 15, 2010, BANSKO WAS HIT WITH HUGE FLOODING
Glazne River overflowed at three places, causing severe damage. The road adjacent to the river has washed away in some parts. At least 10 hotels and twenty residential buildings in the South Western part above the Gondola have been damaged. Bansko Royal Towers, Cedar Lodge and Guiness hotel are among those which have been hit very hard. The emergency draining works are continuing. Many insurance claims are expected to be submitted.
FLIGHTS FROM EUROPE TO PLOVDIV TO COST ONLY 1 EURO
Flights from the biggest European capitals to the city of Plovdiv will cost only 1 euro. The offer comes from Ryanair which services about 63 million passengers a year. The airlines now negotiates regular flights to Plovdiv. As of May 1, the reduction by 50% of the airport taxes comes into force. It was approved by Bulgaria's cabinet and will be valid for 2 years.
NO MORE CASH PAYMENTS IN REAL ESTATE TRANSACTIONS IN BULGARIA
Bulgarian Parliament voted at first reading a ban on cash payments in real estate transactions as well as a few other changes to the Notary Act. Two major changes have been proposed - payment of purchase price in property deals to be by bank transfers only and both parties of the deal to be obliged to present a declaration that the price pointed in the title deed is the actual price that has been paid. The final word of Bulgarian Parliament is expected soon.
NEW CADASTRAL MAP OF BANSKO AT LAST
The process of updating Bansko cadastral map started a few years ago and now it has been complete. The cadastral map contains data about location, borders, size of properties and the estate rights on them. All property owners, especially those who are thinking of reselling their apartments, should make sure that their property is included in the cadastre plans. Notary completions on real properties shall be performed only after presenting of a cadastral scheme of the property for sale provided by the local office of the Cadastre Agency.
THE MINIMUM FOUNDATION CAPITAL FOR A LIMITED PARTNERSHIP IN BULGARIA - ONLY 2 BGN (1 EUR)
The minimum required capital of a limited liability company under Bulgarian law has now been decreased from 5000 BGN to 2 BGN ( about 1 EUR) thus making Bulgaria one of the countries in the world with the lowest minimum foundation capital. It is believed that this measure will create a more favourable legal climate for startups and will encourage entrepreneurship in Bulgaria.
TAXATION NEWS FOR PROPERTY INVESTORS
Since January 1, 2010 capital gains arising from the sale of a real property are taxable 10%. The gain is calculated on the difference between the sale price and the price of acquisition as per title deed. The new rule here is that gains arising from the sale of a private residence will be tax exempt only if the property has been owned for at least three years.
