InvestBulgaria AgencyInvestBulgaria Agencywww.investbg.government.bgwww.investbg.government.bg

Bulgaria – your investment decisionBulgaria – your investment decision

Italian Forum 07.06.2010Italian Forum 07.06.2010Mrs. Valentina AlexandrovaMrs. Valentina AlexandrovaDirector of Investment and legalDirector of Investment and legalservices departmentservices department

EU membership and NATO membership Currency board EU’s most favourable taxes:

•10% corporate income tax rate• 0% in high-unemployment areas•10% flat tax rate on personal income

Europe’s most competitive operational costs Well-educated and highly-skilled labour force 45,000 Bulgarian students in Europe Government financial support for priority investment

projects Linking Europe and Asia Excellent climate, natural scenery, food and

hospitality

Why Bulgaria

Source: BNB, IBA

Record FDI Inflow in 2006 – 2008, EUR m

* Preliminary Data

Greenfield+Expansion

866 1 103 903 9801 851

2 7363 152

6 222

9 052

3 213*

6 697*

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

5.36.6

5.8

3.0

5.0

3.0 2.5 2.51.0

4.84.1 3.8

2.3 2.2 2.0 1.8 1.3

19.6

3.0

9.5

1.2-1.7

BULGARIA SERBIA ROMANIA UKRAINE POLAND CZECHREP

HUNGARY SLOVAKIA TURKEY LATVIA SLOVENIA

2008 2009

FDI to GDP, %, 2008 – 2009

Source: BNB, Bank Austria Creditanstalt

Bulgaria leads CEE Countries in Terms of FDI to GDP Indicator

Source: BNB, IBA

Austria the Netherlands Greece Un. Kingdom Germany

16%

5903.8

12%

4642.7

9%

3419.7

8%

3036.7

7%

2526.3

Cyprus USA Hungary Italy Russia

5%

1921.1

3%

1310.2

3%

1276.4

3%

1170.0

3%

1088.1

FDI Stock by Country,1996 – 2009, %, EURm

5 914

4 159

4 038

3 225

2 988

2 288

2 019

1 890

1 601

1 474

Гърция

Русия

Австрия

Италия

Германия

САЩ

Великобритания

Унгария

Франция

България

Кои са най-големите държави-инвеститори в България зависи много от начина на отчитане

Топ 10 държави за 2005-2009, според местоположението на corporate HQ1

ПЧИ, € млн.

4 509

3 786

2 786

2 401

1 845

1 276

929

880

879

825

Австрия

Холандия

Великобритания

Гърция

Германия

Кипър

Русия

Унгария

Испания

Ирландия

“Официалния” топ 10, според държавата – пряк източник на инвестициите

ПЧИ, € млн.

Отчитането на ПЧИ според държавата, от която инвестициите са влезли в България, създава нереалистична картина за най-големите инвеститори

Източник: БНБ, БАИ

1) Според данни за първите 200 инвеститора

2390.7

1728.6

2172.0

2480.9

6319.0

6762.5

8252.7

7272.6

Other

Telecom

Electricity, gas and water

Construction

Trade

Manufacturing

Finance

Real estate

Source: BNB, IBA

22%22%

19%19%

18%18%

17%17%

7%7%

6%6%

5%5%

6%6%

FDI Stock by Sector, 1996 – 2009, %, EUR m

Treaty for avoidance of double taxation

between Bulgaria and Italy

Italian investments (1996 - 2009)

1170. EUR m

The biggest Investments in Finance,

Energy, Cement Industry, Textile and

Trade

Italian Investments in Bulgaria

Investor Sector Value

UniCredit Group finance USD 422 mln.

Enel energy EUR 270 mln.

Italcementi cement industry EUR 200 mln.

Gruppo Miroglio textile EUR 200 mln.

Edoardo Miroglio trade USD 27 mln.

Safil textile USD 18 mln.

Major Italian Investors in Bulgaria

Miroglio – Textile

in Bulgaria since 1998 investor of the year 2001, 2007 biggest Italian investor in Bulgaria

total investments – € 200mln 2600 employees turnover 2007 – € 140mln investments in:

spinning, weaving, knitting, twisting, dyeing, printing 11 sites – Yambol, Sliven, Nova Zagora, Svishtov, Elin Pelin, etc 15mln kg yarn, 7mln m wool fabrics, 13mln m knitted fabrics p.a. exports 55% to EU

newest € 37,7mln project – revival of Yambol textile industry 2006-7 class-A investment certificate 2006 government support 2007 – € 1,070mln for infrastructure

in Bulgaria since 1998 one of the leading foreign investments in Bulgaria for past 20years

total investments – € 200mln 501 employees sales revenue – € 284mln privatization and expansion investment in cement production:

Devnya Cement AD (Devnya)

– class-A investment certificate 2007 for € 185mln expansion

– will be biggest ITALCEMENTI plant in EU Vulkan AD (Dimitrovgrad) produce 2,5mln tons p.a. export 1mln tons to EU and USA p.a. ISO 14001:2004

Italcementi – Cement Industry

10%

16% 16%19% 20% 20%

Bulgaria Romania Hungary Slovakia CzechRepublic

Turkey

Source: IBA

* 0% for manufacturing companies in areas with high unemployment

Comparison between Bulgaria and Europe

Corporate income tax rate, 2010

All classes (A&B) Information services and shortened 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

A class Individual administrative services

Infrastructure support to the borders of the investment project site

Incentives under the Investment Promotion Act

No sector restrictions

Council of Minister decision

Conditions:

investment more than 50 Million Euro

or investment in depressed regions

or investment in High-Tech

or investment in industrial zone construction

Incentives

VIP treatment

Special Incentive Package

Priority Investment Projects

10% corporate income tax;

0% for manufacturing companies in areas with high unemployment

10% personal income tax, flat rate

Opportunity for R&D expenditure write-off

Depreciation of 2 years for computers and new manufacturing equipment

2-year VAT exemption for imports of equipment for investment projects over € 5 million, creating at least 50 jobs

5% withholding tax on dividends and liquidation quotas (0% for EU tax residents)

Up to 1 year minimum salary and reimbursement of social/health care security for employing young people and disadvantaged people through the Employment Agency

Investment Incentives in Bulgaria

Европейски съюз

Европейски фонд за регионално развитие (ЕФРР)

ОП „Развитие на конкурентоспособността на

българската икономика”

Проект на БАИ по ОП “Развитие на конкурентоспособността на българската икономика”

Име: Популяризиране на Предимствата за инвестиране в България

Стойност: 21 408 304 лв.

(85% финансиране от ЕФРР, 15% национален бюджет)

Продължителност: 36 месеца

Идентификационен №: BG161PO003-4.1.01-0001

Цели на проектаОбщи цели: Увеличаване на обема на привлечените преки чуждестранни

инвестиции и икономическият ефект от тях Подобряване на бизнес средата и инвестиционният климат в

България

Специфични цели: Изграждане на положителен имидж на България като инвестиционна

дестинация Повишаване на познаваемостта на страната сред чуждите

инвеститори чрез:•Маркетингова стратегия•Аналитични информационни материали•Директен инвестиционен маркетинг и ПР•Подобряване на качеството на обслужване на инвестиционния

процес в България и чужбина

Проект на БАИ по ОП “Развитие на конкурентоспособността на българската икономика”

Популяризиране на Предимствата за инвестиране в България

Основни Компоненти по реализацията на проекта: Компонент 1: Осигуряване на актуална аналитична

информация за инвестиционните процеси и идентифициране на целеви сектори за насърчаване на инвестициите в България на база на конкурентните й предимства

Компонент 2: Провеждане на целенасочена маркетингова програма за насърчаване на инвестициите в целевите сектори

Компонент 3: Диверсифициране и стандартизиране на пакета от услуги и разработване на информационна система

Проект на БАИ по ОП “Развитие на конкурентоспособността на българската икономика”

InvestBulgaria Agency is a Government investment promotion arm, part of the Ministry of Economy, Energy and Tourism.

IBA services: Macroeconomic data on Bulgaria Legal advice Data on operational costs Regional information: industrial zones and infrastructure, data on

unemployment, skilled labour force and level of education Recommendation of investment project sites Identification of potential suppliers, contract manufacturers and

joint-venture partners Personalized administrative servicing Liaison with central and local governments Liaison with branch chambers and NGOs

InvestBulgaria Agency

InvestBulgaria AgencySofia 1000, 31 Aksakov Str.Phone: (+359 2) 985 5500Fax: (+359 2) 980 1320E-mail: iba@investbg.government.bg Web: www.investbg.government.bg