Investors to Buy Properties at a Price as per Tax Valuation

Trud Daily, vol.131, 16.05.09, p.9

The Bulgarian state will attract investors by selling them properties and land at the price written down in the properties’ tax valuation. The deals will be concluded without a tender or a competition. The preferential treatment was introduced with changes made to the Investment Encouragement Act, adopted at first reading by the Parliament on May 15th.

Only priority investors will be able to buy at prices lower than market prices. However, they will have to comply with one of the following requirements:

- to invest a minimum of 96 million leva;
- to invest a minimum of 48 million leva in a municipality with unemployment rate higher than the average in the country;
- to invest a minimum of 33 million leva in high-tech activity;
- to create jobs in high-tech spheres, in regions that lag behind economically or in municipalities with unemployment rate higher than the average in the country. The minimum number of new jobs is to be defined in the rules and regulations to the law;
- to build industrial zones or technological parks.

The buying of properties at the price written in their tax valuation is quite lucrative for investors as these prices are a lot lower than market prices. According to real estate agents many serious investments have gone down the drain in the last few years because the price of land was speculatively made too high.

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