Bulgaria or Spain — where is it better to buy property?

If you have decided to purchase property abroad, the most affordable property prices in Europe are in Bulgaria, Spain and the Baltic states.
The most reliable investment is putting money into liquid property. In this way, the investor gains a source of regular income plus a pleasant bonus — the opportunity to holiday in their own home with a sea view. But for many, the phrase «villa in Spain» still sounds like a beautiful dream. This market seems to be constantly developing. The crisis has not affected everyone, and many people want to invest their money in property.

Over the last decade, buying property in European countries has become popular among citizens of Russia, Ukraine, Israel, Kazakhstan and America. There are also many Europeans who want to relocate because of the climate, mentality, and prices for services/products.  Investors around the world are considering the prospects of investing in resort and city property. They buy flats and houses. Purchasing inexpensive property in Europe is an investment that can generate a decent profit.

Comparative analysis of property prices in Bulgaria and Spain

The cheapest house in Europe can be bought in Bulgaria. The average cost of a square metre of property in Bulgaria on the coast ranges from 500 to 1,500 euros, and the average deal price on the coast is 25,000 to 50,000 euros. Prices for premium property and property in major cities (Varna, Sofia) start at around 1,000 euros per “square metre” and above.

Bansko is the most affordable ski resort. Bansko is a popular destination both for skiing and for buying property.

That is why the news of discounts of up to 30% on local housing, as expected, caused a great stir.

Property prices in Spain do not take into account the projected percentage increase. The average price of a property with an area of 90 sq.m is  220,800 euros. In smaller towns, the average price per square metre is 1,682 euros.

In Barcelona, the price per square metre of residential space is 4,433 euros. Second is Madrid at 3,627 euros/sq.m. The bronze medal goes to Sant Sebastià, at 3,609 euros/sq.m.

A Spaniard on an average monthly income has to work almost 8 years to be able to buy a home. In the Balearic Islands this figure is almost twice as high — 16.4 years.

Referring to the analysis conducted between the two countries, you can compare for yourself where it is cheaper and, based on your options, decide where to buy a flat or a house.

Bulgaria or Spain — where is it better to buy a flat to live in? Everyone who is faced with the question of where it is better to buy a flat considers the advantages of buying housing in Bulgaria or Spain. At the same time, it is necessary to visit these countries at least once in person, in order to decide on the purchase of a house/flat in the country that will match one's wishes and possibilities.

Pros and cons of Bulgaria

Advantages of Bulgaria:

• Location: South-Eastern Europe, access to the Black Sea, to European countries and Turkey. A compact country of 300*420 km with varied landscapes — mountains, coast, agricultural regions. Everything is close by. Flying in by plane from Europe, for example Varna – Vienna, at a price of 40 euros return, from Israel at a price of 60 euros. From Russia – excellent air connections – Varna, Burgas, Sofia, Plovdiv. From Ukraine by ferry, or by car from Kyiv to Sunny Beach in 14 hours. Excellent connections by bus and train.
• Climate. Mild, with clearly defined seasons, warm snow-free winters, and a not-too-hot, comfortable summer.
• Healthy lifestyle. Clean air, quality food products, mineral springs – 500! Mud-treatment centres and sanatoriums – 102!
• Europe, the economy, stability. An EU member since 2007 – European legislation.  Political and economic stability. A currency board since 1997, the lev pegged to the euro (previously to the German mark), the exchange rate does not change.
• The lowest taxes in Europe, just 10% of net profit. It is easy to do business.
• Residence permit in the European Union: for students, pensioners, investors, business owners.
• Ease of opening a bank account. No additional documents on the origin of the funds are required.
• Possibility of residence – D-type visa, followed by a residence permit and permanent residence, citizenship, on the basis of «Financially Secured Pensioner», through a representative office, investment (in the amount of 307,000 euros), or study.
• Linguistic and cultural closeness. No language barrier. Use of the Cyrillic alphabet.
• Education. Free schooling. Education of a European standard and a diploma recognised throughout the world.
• Low cost of living. Affordable prices for food, restaurants, services and transport. Utility bills are reasonable, paid by meter — you pay for exactly what you use. Water 1 cubic metre – 1.6 euros, electricity – 0.12 euros, night tariff 0.06 euros. On average for a one-bedroom flat this works out at around 50–60 euros in summer, and around 60–80 euros/month in winter. Property tax, together with the rubbish-collection fee, is calculated from the tax valuation of the property. For example, if a flat costs around 50,000 euros, you will pay no more than 60 euros per year.

Disadvantages of Bulgaria:

• Not in the Schengen zone. But anyone who has a Schengen visa can fly in «by air» and does not need to open a new one.
• With residence-permit status you cannot officially take up employment, but there is a way around this —  you can register your own company.

Pros and cons of Spain

All the above advantages of Bulgaria are also present in Spain.

But there are its own particular features — a longer season, the Mediterranean Sea, Schengen, the eurozone. A comparison of prices for food (restaurants/cafes) and groceries shows that in Spain everything is much more expensive than in Bulgaria.

For instance, to open an account in Spain you need to gather several financial documents in your main country of residence:

• a certificate from the employer (the company for which the applicant works). This document must contain information about the position, salary and the date from which the candidate has been employed. The company's contact details (address, telephone numbers) must also be indicated;
• a salary certificate stating the amount actually paid over the last 2 months;
• a bank statement showing the movement of funds for the last six months;
• information on taxes paid during the last reporting period;

These documents must be translated into Spanish.

So it turns out that it is not so simple, and in order to live in Spain with ease, one has to go through a long process to obtain a residence permit or permanent residence. The simplest way, of course, is to invest via the Golden Visa, by purchasing property for 500,000 euros.

Another factor that always influences the choice is the language: if you plan to live in Spain or even to come and go, you will need to start learning Spanish. In Bulgaria, everyone understands Russian, and there is no language barrier as such.

The costs when buying a home in Bulgaria are twice as low as in Spain. In Bulgaria the total percentage will be 4–5%, whereas in Spain it can be up to 10%.

Is it worth putting money into and investing in foreign property? Absolutely — yes. Where to buy property: Bulgaria or Spain? Based on their options and wishes, everyone decides for themselves.

Bulgaria Avenue will be delighted to help you choose the best offer on the Bulgarian property market, and will help you buy a house/villa or a flat by the sea or in the mountains inexpensively and profitably. If you also wish to consider Spain, get in touch and we will be able to recommend trusted partners with whom we work closely.