Friday, 17 November 2017
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Why invest in Bulgaria? Print E-mail
  • Stable political environment & low country risk:
    • EU membership
    • NATO membership
  • Macroeconomic and financial stability:
    • real GDP growth rate - 6.0% (2008)
    • inflation rate, annual change - 7.8% (2008)
    • unemployment rate - 6.3% (2008)
    • no currency risk, local currency is pegged to Euro
    • budget surplus for the last 5 years (3.0% for 2008)
    • investment grade credit rating by major rating agencies
  • EU's most favourable taxes:
    • 10% corporate income tax rate; 0% in high-unemployment areas
    • 10% flat tax rate on personal income
    • 2-year VAT exemption for imports of equipment for investment projects over € 5 million, creating at least 50 jobs
    • depreciation of 2 years for computers and new manufacturing equipment
    • opportunity for R&D expenditure write-off
    • 5% withholding tax on dividends and liquidation quotas (0% for EU tax residents )
  • Strategic geographic position as a bridge between Europe and Asia
  • Labour force:
    • Highly skilled, multilingual work force
    • Europe's most competitive salary levels
    • 45,000 Bulgarian students in Europe
  • Europe's lowest operational costs
  • Free movement of capital
  • No restrictions on after-tax repatriation of profits
  • Up to 1 year minimum salary and reimbursement of social/health care security for employing young people and disadvantaged people through the Employment Agency
  • Government financial support for priority investment projects
  • Excellent climate, natural scenery, food and hospitality

Incentives under the Investment Promotion Act:

  • Information services and shortened administrative services
  • Individual administrative services
  • Preferential treatment upon acquisition of a right of ownership and limited real rights over real estate - private state or private municipal property
  • Financial support for vocational training of employees for the needs of the investment project
  • Infrastructure support to the borders of the investment     project site
  • State support for priority investment projects meeting one or more of the following criteria:
    • the volume of the investments to be at least three times the threshold amount for Class A certification (above 16 million EUR)
    • creating jobs in high-tech activities or in undeveloped regions
    • construction of industrial zones or technology parks

Operational costs in Bulgaria