In the recent years, Bulgaria clearly undertook all the necessary steps to become one of the most attractive destinations in Europe for foreign investments. And this was a success. Bulgaria is nowadays considered as a strong investment center with numerous advantages and business opportunities that it has to offer. And this is getting a stronger tendency year by year.
What Should a Foreign Investor Consider When Thinking to Open a Business In Bulgaria?
- Lowest tax rates in Europe – Bulgaria takes pride of the fact that even in this hard times in terms of economics and politics, Bulgaria still remains the country with the lowest tax rates on income in Europe. Legal and natural persons enjoy the flat rate of 10% on their income. For more information on tax rates in Bulgaria, please click here.
- Very fast and hassle-free incorporation process – The procedure of company registration in Bulgaria is the fastest and the cheapest within Europe. It only takes 3-5 days for the Commercial Register to officially incorporate a new company.
- Economical, fiscal, political and bank stability – Bulgaria managed to keep its overall stability over the last years due to the many restrictions conducted by the Bulgarian Government. Being a member of the International Currency Board, the Bulgarian currency is considered much safer than the unified EU currency. The Bulgarian Lev is pegged to the EUR currency and its rate is always exactly 1 BGN = 1.95583 EUR. In addition, by strictly controlling the expenses of the state budget, the Bulgarian economy is indicating a steady growth every year. Most of the biggest European banks are presented in Bulgaria and the whole sector is indicating a very good liquidity and profit which contributes for the stability of the banking system and the more and more favourable conditions that it has to offer to citizens and business.
- Cheap and qualified labour force – The Bulgarian labour force is known to be highly qualified and at the same time the employer’s expenses for personnel are the lowest within Europe. A very high percentage of the Bulgarian youngsters have at least one higher degree and they speak at least one foreign language. A huge incentive is the fact that the statutory payments to the state budget are very limited due to the fact the maximum insurance base /the base on which taxes and insurances are paid/ for the year 2016 is only 2,600 BGN or approximately 1,300 EUR.
- Strategic geographic location – Bulgaria is located in the South Eastern part of Europe, very close to its door to Asia. It has prone to the Black Sea and two main ports – Varna and Bourgas. The climate is very favourable for all kind of agriculture and tourism.
- Many unexplored market opportunities – Due to the fact the up until the year 1989 there was a communism in Bulgaria and therefore no private initiative and business, the Bulgarian market can be defined as a developing one and many unexplored business sectors are here to be exploited. Moreover, being a full EU member, the potential market of new business’s production is significantly growing.
- Many incentives for foreign businessmen – For the purpose of encouraging foreign investments in Bulgaria, the government has implemented many incentives for foreign investors in terms of the tax payable and others. Businessmen need to comply with certain criteria in order to fulfill the requirements for this.