Sunny Beach is 35km north of Bourgas in the Nessebar Municipality of Bulgaria. Situated along the Black Sea, it runs from Nessebar in the south to Sveti Vlas in the north.

What's so special about it?

Sunny Beach is the English name for the resort area, its real name being the less friendly-sounding Slanchev Bryag. One of the main selling points of Sunny Beach is its 8km of sandy beaches, which have 11 Blue Flag awards. This year the Bulgarian government gave control of the ports at Pomorie, Ahtopol and Tsarevo to the municipalities. Residents of Nessebar hope the same will happen here and they aim to develop yachting tourism and sailing along the coast.

Best-kept secrets According to locals, Sunny Beach was established as a dedicated area for foreign visitors to bring money into the country, but as it was the communist era they were kept separate from the locals who lived outside the resort. However times have changed and a recent survey found that, in 2006, every second Bulgarian holidayed on the Black Sea coast and 41.5% chose the southern coast.

Who lives here?

In 2005 Sunny Beach had a permanent population of 1,572, but this rises to 320,000 in the tourist season. In addition nearly 28,000 Brits will be moving to the area.

Latest data shows Norwegians are also visiting in increasing numbers and next season Russian numbers are estimated to rise by 20%.

What's the property market like?

Figures show that the property market in Bulgaria is still very hot. Bulgaria's National Statistic Authority reported a 15% rise during the first half of 2007 and Knight Frank reported a 27% increase in a year. In Sunny Beach tourism is the main driving factor. Developers of the Royal Garden Mall say the Sunny Beach area attracts a million visitors annually, which creates about 60m in revenue. Buyers are also still investing and Bulgaria's National Bank reports that profits in the banking sector rose by 60% this year, residential home loans rose by 80% and corporate loans grew by 54.7%. Externally the Bulgarian Central Bank reported that Foreign Direct Investment rose to 4.3bn in 2006, representing 16% of GDP. In the future the Sunny Beach area will be the first to be hit by problems in Bulgarian as already agents and investors are seeing oversupply and are moving onto newer areas.

How do you go about buying property?

The Sofia Echo is the largest English newspaper and its bi-monthly PropertyWise magazine covers property across Bulgaria.

Property agents account for only 37% of sales. In Sunny Beach, getting a reliable agent is essential so choose one who is regulated by the AIPP or FOPDAC.

Foreigners cannot buy freehold until 2014, but the alternative is to set up a Bulgarian registered company. Buying costs can be high, up to 26%, according to the Global Property Guide (GPG). Once a property has been found, a price agreed and a deposit paid, a title search and survey are advised as legal risks are high and in some instances can be hard to confirm. On the GPG's Property Rights Index, Bulgaria scores 30%, one of the lowest in Europe.

Where are the best places to buy?

Along the Sunny Beach coast there is very little beachfront property available, so location is vital: tourists will not rent far from the sea unless it is very luxurious and buyers will not want to buy unless the cost is very low. Therefore the best investments are in areas close to Sunny Beach. At its ends are the towns of Nessebar, a beautiful Unesco heritage site, and Sveti Blas, one of the more glamorous areas. Obzor, 45 minutes from Sunny Beach, is also attracting the attention of British agents and European architects.

What's the rental market like?

Bulgaria's beach resorts are still popular with foreign tourists, especially those from the EU. In September it was reported that 179 foreign flights a day went through Bourgas airport. Rental rates have increased in recent years and the main tourist season is June to September, with August being the best month. Many properties offer 8% to 10% guaranteed rental returns.

What's the resale market like?

On Daft. ie, Bulgaria ranks just behind Spain and Portugal for international sales listings.

Many buyers purchase property on the promise of flipping or reselling for high returns so the resale market is overcrowded . . . bad for sellers, good for bargain hunters!

The big advantage of buying a resale, however, is that you get to see exactly what you are buying and where.

Average property prices?

Data from Bulgaria Property Wisemagazine found that in Sunny Beach prices were on average from 900 to 1,200 per sq m.

What is the tax situation?

Foreigners pay income tax on rental income of 10%. If you set up a company, corporate tax is 15%. Property tax is approximately 0.15%, capital gains tax is 15% and VAT is 20%. Ireland has had a double taxation agreement with Bulgaria since January 2001.