According to the Daily Telegraph, the Black Sea Property Fund, launched by Development Capital Management (DCM), is a seven-year savings plan giving investors the option of putting money into property shares which will have full exposure to the market, or a capital protected option underwritten by Foreign & Colonial.
While the latter option will potentially mean a lower return on investment, it guarantees to pay back investors’ capital outlay at the end of the term. The minimum investment has been set at £30,000.
The fund has been registered in Jersey as an offshore investment company, and will be listed on London’s small-cap stock market, the Alternative Investment Market (AIM).
The money invested in the scheme is effectively removed from an individual’s estate for inheritance tax purposes. The investment becomes subject to IHT upon maturity, although financial advisors are hopeful that a rollover option can be built into the scheme.
Bulgarian Economy
source: CIA World Factbook
Bulgaria, a former communist country that entered the EU on 1 January 2007, averaged more than 6% annual growth from 2004 to 2008, driven by significant amounts of bank lending, consumption, and foreign direct investment.
Successive governments have demonstrated a commitment to economic reforms and responsible fiscal planning, but the global downturn sharply reduced domestic demand, exports, capital inflows, and industrial production. GDP contracted by 5.5% in 2009, and has been slow to recover in the years since.
Despite a favorable investment regime, including low, flat corporate income taxes, significant challenges remain. Corruption in public administration, a weak judiciary, and the presence of organized crime continue to hamper the country’s investment climate and economic prospects.
Photo credit: Stella VM via Visual hunt / CC BY-NC-SA
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