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 Destination, 200 Chinese Companies are Interested to Invest in Bulgaria, Strategic Planning
