Why Bulgaria?

Political and business stability

• Bulgaria is a member of the European Union, NATO and WTO
• The stability of the currency is supported by the currency board, pegging the Bulgarian lev to the euro at the level of 1.96

Low cost of doing business

• Bulgaria has the most favourable tax regime 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

Human resources

• Work 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

Bulgaria is ideally located to provide easy access to the markets in Europe, Russia, the CIS countires, Turkey and the Middle East

• Bulgaria is a member of the European Union which stands for free movement of goods
• Five Pan-European corridors pass through the country
• TRACECA (TRAnsport Corridor Europe – Caucasus – Asia) links Bulgaria with Central Asia

Bulgaria offers easy access to the EU, Russia and the CIS countries, and the Middle East at the same time

Source: InvestBulgaria Agency analysis

Bulgaria is an entry to the growing markets of Southeast Europe

• Bulgaria has strategic central positioning on the Balkan peninsula
• The region is one of the last regions with potential for rapid growth. The economies have grown in size from $468 billion to $655 bln between 2005 and 2010

Bulgaria is a favourable place to do business

• Lowest costs of utilities and fuels in Europe
• Lowest price for rents of industrial and office space in Europe
• 10% flat corporate tax – among the lowest in Europe
• Competitive labour costs
• About 3 000 university students graduate from transport and logistics related majors per year

As an EU-member Bulgaria applies favourable tariff and tax regulations

• Bulgaria applies the EU tariff arrangements covering a market of more than half of the world’s population, including EFTA, Russia, Turkey, the Middle East and North Africa
• Bilateral treaties for avoidance of double taxation with 68 countries, including all EU countries, Norway and Switzerland,  Russia and the CIS countries, Turkey, the Middle East and North Africa

Bulgaria has established a very comprehensive infrastructure

• 6 Motorways, some under development
• 230 Railway stations with capability for loading/unloading cargo
• 4 international airports
• 2 major seaports on the Black Sea
• 4 major river ports on the Danube
• 60 industrial zones, some under development

The infrastructure is constantly being improved

• 70% of allocated road, rail and industrial zone infrastructure development funds are available
• Over EUR 2 bln will be invested in Bulgaria under the Operational Program Transport
• The 5 main motorways will be completed, the max speed supported by the railway tracks will reach 160 km/h
• Ship transport conditions in critical areas on the Danube river are improving
• Construction of several freight villages is planned

*Information is taken from http://www.investbg.government.bg/