WHY choose Bulgaria?
Bulgaria is a member ot the European Union, NATO and WTO. As the 15th largest country in Europe, the potential for economic growth and possibilities for doing business in Bulgaria are numerous. Since Bulgaria joined the EU and during the last decade the economy shows consistent steady growth, driven mainly by private and public consumption and a good return on investment. During 2016 investments in Bulgaria saw a 23% increase. Bulgaria still has its own currency, the Bulgarian Lev, tied to the Euro. The country also has the third-lowest government debt in the EU and one of the lowest budget deficits, making Bulgaria one of the most stable countries in which to do business.
Strategic location and Access to markets
As one of the EU’s newest members (since 2007), Bulgaria is an emerging market providing very good potential for new investments. Bulgaria’s geographic location, as a bridge between the East and the West, is the EU’s outer border which makes it an important EU market. Due to its location Bulgaria provides direct access to key markets like: EU-zero tariff market with population over 500 million; Turkey-zero tariff market of near 80 million; Middle and Far East and North Africa.
Attracting foreign investments in the private sector is a top priority for Bulgaria. It ranks at an impressive 58th place in the World’s Bank’s Ease of Doing Business report. During the past years there have been done some improvements in the prospect for foreign investors, including investment immigration program, Bulgarian residency by investment in Real Estates and favorable taxes.
The Bulgarian Investment Immigration Program has been developed by the Bulgarian Government to encourage foreign investments by providing considerable advantages for individuals from non-EEA countries. Investors are allowed to obtain Permanent Residence Permit and can apply for a Citizenship. When you become a Bulgarian resident or citizen, then you can travel, live and work anywhere within the EU.
Other structural reforms has been done including trade freedom, implementation of competitive flat tax rates, and modernisation of the regulatory environment. High priority is also given to the attracting of foreign investment, including tax incentives for certain investment projects.
Bulgaria has some of the most favorable tax rates in Europe, which makes it a great investment destination.
- 10% corporate income tax
- 10% personal income tax
- 20% value added tax
- 0% capital gains tax (stocks, bonds, mutual funds)
Bulgaria has a simplified registration process for new businesses providing a minimum initial capital and a time frame of up to 2 weeks. Bulgaria has a huge potential to attract investors in sectors with high added value such as machine building, computer technologies, IT, research and development, manufacturing of car parts. Wages are low by European standards, and the labor force is well-educated, young and possesses pretty good language skills. Last but not least, EU membership provides Structural and Cohesion Funds financing opportunities.