general information · (iba) is a government institution providing information, contacts and...

GENERAL INFORMATION

Official name: Republic of Bulgaria

Area: 110 994 sq.m.

Population: 7.4 million

Capital: Sofia

Time zone: EET (UTC+2)

Official language: Bulgarian

Currency: Lev (BGN)

Fixed exchange rate: € 1 = BGN 1.95583

Corporate income tax: 10%

Personal income tax: 10%

VAT(standart): 20%

Type of government:

Parliamentary

democracy

Member of: EU, NATO, WTO

www.investbg.government.bg

WHO WE ARE?

(IBA) is a Government institution providing

information, contacts and project management support to potential investors.

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


WHY INVEST IN BULGARIA?

1. Political and business stability

EU, NATO & WTO member

Currency board Low budget deficit and

government debt

reasons to invest in BULGARIA 2. Low cost of doing

business 10% Corporate tax rate 10% Personal tax rate Lowest cost of labor Favorable office rents and low cost of utilities 3. Access to markets

European Union/EFTA

Russia Turkey/Middle East

4. Educated and skilled workforce

5. Government incentives


DID YOU KNOW THAT BULGARIA…?


MACROECONOMIC INDICATORS

6.90 5.80

-5

0.70

2

0.50 1.10

1.70 2.40

2007 2008 2009 2010 2011 2012 2013 2014 2015Q2

GDP Growth(%)

7.60

12

2.50 2.40 4.20

3 0.90 -1.40 -0.30

2007 2008 2009 2010 2011 2012 2013 2014 2015Q3

Inflation rate(%)

6.90 5.60

6.80

9.20 10.40

11.40 11.80 10.70

9.40

2007 2008 2009 2010 2011 2012 2013 2014 2015Q3

Unemployment rate(%)

1.20 1.70

-4.30 -3.20 -2.00 -0.70 -0.90 -2.80 0.20

2007 2008 2009 2010 2011 2012 2013 2014 2015Q1

Government deficit(%)


Croatia

Russia

Greece

Italy

Turkey

Hungary

Slovenia

Romania

Czech Republic

Belgium

Bulgaria

Hong Kong SAR

New Zealand

Singapore

65

62

61

56

55

54

51

48

44

42

38

3

2

1

BUSINESS ENVIRONMENT


FOREIGN DIRECT INVESTMENT

1,169,70

1,476,30

1,320,90

1,383,70

1,306,20

799,6

2010

2011

2012

2013

2014

2015Q2

FDI Inflow(€ mln.)

1,488,70

1,605,40

1,623,10

1,961,70

2,103,90

2,417,20

2,604,50

3,580,80

5,944,70

7,023,30

Italy

USA

Switzerland

Russia

Cyprus

Germany

UK

Greece

Austria

Netherlands

FDI by host country, 1996-2014(€ mln.)

18%

18%

17% 15%

11%

10%

7% 4%

FDI Inflow by Industry(€ mln.)

Real Estate

Manufacturing

Finance

Trade

Other

Energy

Construction

Telecom www.investbg.government.bg

Country

Income Taxe(%)

Corporate Individual

Social Security(%)

Employer Employee

VAT(%)

Bulgaria

Serbia

Romania

Hungary

Czech Rep.

Poland

Turkey

Slovakia

UK

Italy

Spain

Germany

France

10

15

16

10/19

19

19

20

23

23

27.5

30

30-33

33.33

10

10-20

16

16

22

18/32

15-35

19-25

0-45

23-43

24, 75-52

14-45

5.5-41

17.9-18.5

16.9

28.45

28.5

34

22.14

27

34.8

13.8

30

29.9

19.7

50

12.9

16.9

16.5

18.5

11

13.7

15

13.4

12

10

6.35

20.6

20

20

20

24

27

21

23

18

20

20

21

21

19

19.6

TAXATION RATE


COST OF DOING BUSINESS

3.75 € (m2/mon)

Industrial Rents

12.50 € (m2/mon)

Office Rents Salary(Min.) - 196 €

Salary(Avg.) - 450 €

Cost of Labor

One of the most competitive costs in Europe!


0.84(€/kWh)

Electricity

0.034(€/kWh)

Gas

1.09(€/1м3)

Water

INDUSTRIAL ZONES IN BULGARIA


THE GOVERNMENT SUPPORTS

Manufacturing

Research & development

Education

Healthcare

High-tech services

Warehousing and logistics

The Investment Promotion Act (IPA) and the Regulations for

Application of the Investment Promotion Act (RAIPA) introduce a

system of promotion measures for initial investments in tangible and

intangible fixed assets and creating new employment linked thereto,

according to the European Commission Regulation (EC) No. 651/2014.


Investments must be related to the following sectors:

THE GOVERNMENT SUPPORTS


Shortened administrative procedures

Preferential acquisition of state or municipal land

Financial support for professional training / education

Infrastructure subsidies

Labor cost subsidies

Individual administrative services

Benefits for certified investors include:

CLASS A

Services sector (incl.BPO)

- €1.5m or €0.5m and 150 working places

Manufacturing Industry

- €5m or €2m and 150 working places

Regions with high unemployment rate

- €2m or 25 working places

High-Tech Manufacturing


High-Tech Services


CLASS B


- €0.75m or €0.25m and 100 working places


- €2.5m or €1m and 100 working places





High-Tech Services

- €0.5m or 25 working places

PRIORITY


- €50m and 200 working places


- €50/25m and 200 working places





High-Tech Services


CLASS A, B & PRIORITY INVESTMENT CRITERIA


CLASS A, B & PRIORITY GOVERNMENT INCENTIVES

Knowledge + Incentives

GET SUCCESS

Information services

Shortened administrative procedures - The central and local government authorities will provide administrative

services shortened with one-third of the time period established by the law

Financial support of up to 25% for the vocational training for obtaining professional qualifications

Reimbursement of labor costs paid by the employer

On the request of certified investor the corresponding authorities may transfer ownership rights or establish a limited

ownership right over real estate (private state or private municipal property) without a tender

Only for Class A investment incentives: Consulting and individual administrative services.

Financial support for construction of technical infrastructure elements to the borders of the project site, needed for

implementation of one or more investment projects.

Institutional support

Financial grants of up to 50% for education and R&D projects and up to 10% for manufacturing projects

State tax exemption for changing the land status

Acquisition of real estate private state or private municipal property without a tender and at a price lower than the

market, but not lower than the tax assessment of the property

Establishment of public-private partnerships with municipalities, universities, other organizations from the

academic society and etc.

Only for Priority investment incentives:


IT development Back office

operations

Chemical and

metal Industry

Engineering Food

LEADING GLOBAL COMPANIES INVESTED IN BULGARIA


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INVESTBULGARIA AGENCY 31 Aksakov Street

Sofia 1000, Bulgaria

Tel.: ( +359 2 ) 985-5500

Fax: ( +359 2 ) 980-1320

E-mail: [email protected]

Web: www.investbg.government.bg

mailto:[email protected]

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