The company was formed specifically to create and market the Zornitsa Mountain Village project. It owns the land and the projects (both the village and the access road). The company is registered in Smolyan in the new Bulgarian Companies register. The EIK (Company number) is 200433765. The shareholders are KBT Ltd and GPT Village Ltd, the former owners of the land. Find out about the investment climate below or the specific investment opportunity.

Investment climate FAQ

What is the rate of Company Tax in Bulgaria?
Company tax is a flat 10%
At what rate is the capital gain on my shares taxed?
Capital gains tax in Bulgaria is a flat 10%
My capital return will be paid as dividends. Will these be fully franked?
There is a Dividend tax of 5% payable by the Company (the dividend is then considered franked)
What is the rate of personal Income Tax?
Personal income tax is also 10%
Does Bulgaria have a Value added Tax?
Yes, V.A.T. in Bulgaria is 20%
What are the restrictions on foreigners owning shares?
Foreign persons may hold shares in Bulgarian companies.
What about property?
Foreign persons may own property but may not yet own land in Bulgaria. Changes to the law to allow EU citizens to own land are in progress. However Bulgarian companies can own land and property, and EU citizens can own a Bulgarian company, a simple and inexpensive process. Be aware that under Bulgarian Title laws it is possible for a person to own a house but not the land under it, and vice versa.
Does Bulgaria have any reciprocal tax arrangements?
Bulgaria has reciprocal tax arrangements with EU countries. You should assume that information will be shared.
Can I expatriate profits?
There is no limit on the transfer of capital out of Bulgaria within the EU.
Isn't the Bulgarian property market flooded with low cost apartments? What is ZMV's strategic differentiator?

Yes, the accession of Bulgaria and Romania to the EU caused a flurry of activity, much of it speculative in advance of their actual accession. This property boom was characterised primarily by low cost ski resort and Black Sea apartments, and unsophisticated Bulgarian emerging entrepreneurs rushed to fill the demand. The clients were typically British and Irish salary earners and funded by second mortgages on the primary residence back home, credit card debt, and other short term mechanisms. Those customers have been decimated by the events of the last two years and have not returned to the market.

The type of client now seen in the Bulgarian property market is quite different. They are typically Russian and Greek, high net worth/high income professional and semi professional individuals of a type which have not been affected by the downturn. They are cash buyers, looking for premium property and willing to pay, and have no interest in discount apartments. The Bulgarian property market currently offers very few opportunities which meet the exacting demands of these clients. Zornitsa Mountain Village is almost unique in providing exactly what they require.

Key drivers for these two demographics are:


  • Climate - bright, sunny, in contrast to Russia
  • Can read the alphabet
  • Can get by with the language for holiday purposes
  • Can readily obtain EU travel visas if they own property (an important reason for them not to rent each year)


  • Climate - an escape from the extreme summer heat in most of Greece
  • Proximity - new border crossings open, and more to come
  • Familiarity - villages on both sides of the Rhodopi Mountains are very similar
  • Cost - the trauma in the Greek economy has not significantly lowered property prices, and Bulgaria is still a low cost option for them
  • Security - many Greeks, concerned about the potential return of Greece to the Drachma, are urgently looking to secure some of their Euro assets in property outside Greece
What are seen by the developers as the key risks/threats?

The key risks are:

  1. The availability of Mike Marsh the MD and Project Manager. Mike is in excellent health but of an age (DOB 30/9/1954) which suggests health issues should be (and will be) insured against
  2. The threat of political or economic upheaval in Russia, which would set back the marketing for an unknown period. The fallback position in this case is for the owners to operate the resort on a rental basis until the market recovers.
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Specific investment opportunity

The estimated building costs are approximately €1.0m. Other costs such as sales commissions do not require advance funding and any minor shortfall, if any, will be met by short term debt finance at the end of the project.

Estimated capital returns are in excess of €3m. Additionally, the residual property management business is projected to yield €120k per annum. You can calculate project returns based on your own estimates...

Building cost / m2
Sale price / m2

The owners are offering 66% of the company in return for the €1m investment, which equates to 13.3% of the shares per €200k investment package. Directorships are not included with the investment package.

Ready to invest?

Simply contact one of our team.

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Act now

The €1.0m estimated construction cost is to be funded by five €200k equity investment packages.

For more details please Contact us