Bulgarian Investment Advantages
Bulgaria has some of Europe’s most competitive business costs for foreign investors. Investments in real estate have created a large supply of modern offices at very competitive costs. For European standards, corporate taxes and labor costs are fairly low.
Taxes in Bulgaria
Bulgaria is making a considerable effort to offer Europe’s lowest corporate taxes. In 2007, corporate tax rates fell to 10% and 0% in high unemployment areas.
Value Added Tax (VAT)
With some exceptions, the amount of VAT in Bulgaria is 20%. Some deals involve free or VAT purchases / land purchase, shares purchases, etc /. Some are with VAT in a smaller amount.
Taxation of Individuals
Personal income tax rate: A flat rate or 10% on the taxable income
Corporate income tax
All companies and partnerships are liable to corporate income tax. These includes non-incorporated partnerships. Corporate income is taxed at the rate of 10%.
Bulgarian Workforce
About 4.8 million highly-educated and skilled men (52 percent) and women (48%) make the working-age population of Bulgaria. In Bulgaria, the literacy rate is 93%. Some kind of secondary, technical, and vocational education is completed by a high percentage of the working people. Many Bulgarians have extensive experience in engineering, medicine, business and science. The employee skills and the relatively low labor cost are significant incentives to invest in Bulgaria by foreign companies.
Cost of Assets in Bulgaria
Bulgaria is cheap compared to Western European norms.
Investors can still find certain excellent market values and there are plenty of opportunities.
Business Supporting Environment
Bulgaria provides some of the most competitive business costs to foreign investors. Investment in real estate has created a wide range of modern offices at very competitive costs. For European standards, corporate taxes and labor costs are relatively low. Privatization and deregulation create sophisticated public utilities and telecommunications.
Education in Bulgaria
The Bulgarian system of education is traditionally strong. In Bulgaria there are approximately 40 institutions offering degrees at the undergraduate and graduate level.
EU and NATO Member
Since 1 January 2007, Bulgaria has been a complete NATO member and a full EU member.
The political system and democratic institutions of Bulgaria are strong.
Strong Economic Growth
Bulgaria, with a high level of macroeconomic stability and functioning market mechanisms, was evaluated by the European Commission as a fully functional market economy The Bulgarian economy works under a currency board which provides a stable and predictable macroeconomic environment (1 Bulgarian Lev=1.95583 euro). In the last seven years there has been steady economic growth with reasonable care for fiscal discipline and strong foreign investment.
The expected economic growth is approximately 5 percent per year (GDP per capital). The state owned section of the Bulgarian economy is about 20 percent.
The financial system is stable and banks are increasing their landing with many local and foreign investment.
Strategic Location
The geographic location of Bulgaria is very strategic.
Its position on the European continent allows the whole EU market and the Central
and Eastern Europe markets with a population of 853 million, to be reached by investors.
Political Stability
The political situation in Bulgaria is stable with its parliamentary republican political system and the legislature, the executive and judiciary are independent from the parliament. Bulgaria has been a member of the European Union since Jan1, 2007 in line with the requirements of the EU in its legal system. The country joined NATO in April 2004.
Quality of Life
Bulgaria provides a cosmopolitan quality of life which is among Europe’s best. The diversity and astonishing natural beauty often amaze visitors to Bulgaria for the first time. In order to maintain the country’s rich and unspoiled fauna and flora, a great effort has been made many years. As a result, Bulgaria today is environmentally friendly and with exceptionally clear air and water supplies, one of the purest countries in Europe. Seven national parks, over 3000 nature-protected sites and 17 bio-sphere reserves are present (the greatest recorded number in Europe). There are also 419 protected animal species and 63 protected types of plant.
The quality of life in Bulgaria is not only good but the living cost is one of Europe’s lowest.
Dinner for two made from organically pure products with a bottle of nice wine is not more than EUR 7 or 8.
Foreign Investment in Bulgaria
Bulgaria’s foreign investment has never been so dynamic and massive. A significant number of international companies have opened offices in Bulgaria, just to name a few: Solvay, Umocore, Italcemente Group, Liebherr, Kraft, Nestle, American Standard, Philip Morris, Metro, Lindner, Praktiker and SAP.
Bulgaria has become very attractive for foreign investment as a result of a progressive financial policy and continued economic growth. Local businesses in Bulgaria also increase their share in the market.
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