Bulgaria ranks eighth among the best countries in Europe for real estate investments

Bulgaria is confidently strengthening its position as an attractive destination for real estate investments. According to research by UK-based 1st Move International, the country ranks eighth among the best European countries for property investment, offering annual gross rental yields of 4.65%. In addition, the Bulgarian tax system is one of the most attractive in Europe. The tax rate on rental income is 10%, which makes Bulgaria particularly attractive for investors looking for the best balance between profitability and tax burden.

Lithuania, Hungary and Estonia top the list due to their high levels of profitability and moderate tax rates. In Lithuania, for example, the average rental yield is 6.44% and the tax on rental income is 15%. In Estonia, gross rental income reaches 4.5% with a tax rate of 20%.

Romania, ranked third, attracts investors with low additional costs when purchasing real estate, a minimum tax rate on rental income of 10% and a high gross rental yield of 6.46% per year.

Bulgaria offers investors a steady increase in property prices. According to Immigrant Invest, over the past five years the price of apartments of 100 m² has increased from 96,000 euros to 138,000 euros. The average price per square meter is 1,381 euros.

Despite the popularity of European countries for buying a home, some of them turned out to be the worst for investments:

• Belgium - high tax on rents (up to 50%) and high transaction costs.
• France - 18.28% tax on rents, 4.6% reduction in housing prices for 2024
• Greece - 33% tax on rents, high costs of buying a property.

Against this background, Bulgaria, with its low taxes and growing rental market, is becoming one of the best destinations for those looking to earn a stable income from real estate.

Therefore, when deciding whether to purchase real estate in Bulgaria, it is worth considering that Bulgaria offers favorable conditions for investing in real estate, thanks to the stable growth of the market, low tax rates and the possibility of obtaining a residence permit under certain conditions. These factors make the country an attractive destination for investors looking for effective capital investments in European real estate.