James Gonzalez, market analyst at Obelisk, said property has been the country’s main economic driver, recording a turnover of £11.36bn in 2007. UK property investors accounted for 40% of all property investment in 2007, with Russian investors accounting for 38%.

Gonzalez attributed the growth to a strong mortgage market, high annual property revenues and Bulgaria’s independence from the current global financial crisis. “The US sub-prime crisis hasn’t hurt the Bulgarian financial market as there’s no cross-border banking, and consumer borrowing is continuing to grow at a steady rate,” he explained.

Gonzalez added: “In a bid to ensure a consistent flow of foreign direct investment, the Bulgarian government has made bold changes to the tax system. This will mean that both income and corporate tax will be charged at a highly competitive 10%. This new flat rate applies to all workers, investors and companies regardless of income or profit values, making Bulgaria an extremely tax efficient place to relocate or invest in.”