Why you have to invest in Bulgaria ?

More and more businesses have the question “Why invest in Bulgaria“. We will try to explain in few words the main reasons that you should do that.
As a member of the European Union, Bulgaria occupies its place in Central Eastern Europe as an attraction center for foreign capital.

Political and Business Stability

  • Bulgaria enjoys one of the most stable political and economic environments in Southeastern Europe
  • Government financial indicators are remarkable not only in the region, but on a pan-European scale
  • Bulgarian economy maintains its excellent performance despite global challenges
  • Bulgaria is the only country in Europe with a credit rating upgrade by Moody’s since the beginning of 2010
  • Bulgaria is a member of some of the most prestigious political organizations
    • European Union member since 2007
    • NATO member since 2004
    • WTO member since 1996

Low Cost of Doing Business

Bulgaria has one of the most favorable tax regimes in Europe. Corporate income tax rate is 10%, the lowest in the EU. Personal income tax is 10 %, flat rate. Industries in high-unemployment areas are granted 0% tax rate

  • There is a 2-year VAT exemption for imports of equipment for investment projects over €5 million, creating at least 50 jobs
  • Depreciation time for computers and new manufacturing equipment is 2 years
  • 5% withholding tax on dividends and liquidation quotas (0% for EU tax residents)
  • Bulgaria has one of the most competitive costs of labor in Central and Eastern Europe
  • Favorable office rents and low cost of utilities. Bulgarian cost of electricity for industrial users is 70% of the European average

Strategic Location

Located at the heart of the Balkans, Bulgaria is a strategic logistics hub. Ease of transportation of cargo is provided by:

  • Five Pan-European corridors ( IV, VII, VII, XI, X), which pass through the country
  • Transport program TRACECA, which connects Europe with Caucasian and Central Asian region
  • Four major airports: Sofia, Plovdiv, Bourgas and Varna
  • Two main seaports: Varna and Bourgas
  • Numerous ports at the Danube River

Access to Markets

Due to its location Bulgaria provides direct access to the following key markets:

  • European Union – zero tariff market with population of 500 million
  • CIS – still not well penetrated market with a high potential
  • Turkey – zero tariff market of near 80 million population
  • Middle East – a market with high purchasing power
  • North African Market

Highly-Skilled Human Resources

  • Work in Bulgaria force is well educated, highly skilled and multilingual
  • 62.2 % of the total population is in working age (appr. 4.6 million)
  • 60 000 students annually graduate from 51 universities
  • 98% of the high school students study a foreign language (usually English) and 73% study a second language (mainly German, French, Spanish, Russian)
  • 94% of the schools have Internet access

EU most favorable taxes

  • Bulgaria has a 0% tax rate for regions with high unemployment
  • VAT rate is 20%
  • Flat corporate Tax 10%
  • Dividend taxation rate is 5%
  • Bulgaria has signed over 50 Double Tax Treaties
  • Personal income Tax 10%

Read also: Bulgaria: TOP 10 Tax Destination200 Chinese Companies are Interested to Invest in BulgariaStrategic Planning

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