Political and business stability

• Bulgaria is a member of the European Union, NATO and WTO.
• The stability of the currency is supported by the currency board, pegging the Bulgarian lev to the euro at the level of 1.96.
• Bulgaria has one of the lowest government debts in the European Union (18.9 % of GDP) and one of the lowest budget deficits (-1.5%) as of 2013.

Low cost of doing business

• Bulgaria has the most favourable tax regime in Europe. Corporate income tax rate is 10%, the lowest in the EU. Personal income tax is 10 %, flat rate. Industries in high-unemployment areas are granted 0% tax rate.
• There is a 2-year VAT exemption for imports of equipment for investment projects over €5 million, creating at least 50 jobs.
• Depreciation time for computers and new manufacturing equipment is 2 years.
• 5% withholding tax on dividends and liquidation quotas (0% for EU tax residents).
• Bulgaria has one of the most competitive costs of labor in Central and Eastern Europe.
• Favorable office rents and low cost of utilities. Bulgarian cost of electricity for industrial users is 70% of the European average.

Strategic location

Located at the heart of the Balkans, Bulgaria is a strategic logistics hub. Ease of transportation of cargo is provided by

• Five Pan-European corridors (IV, VII, VIII, IX, X) which pass through the country.
• Four major airports: Sofia, Plovdiv, Varna and Burgas
• Two main seaports: Varna and Burgas
• Numerous ports along the Danube River

Access to markets

Due to its location Bulgaria provides direct access to the following key markets:

• European Union – zero tariff market with population of 500 million
• CIS – still not well penetrated market with a high potential
• Turkey – zero tariff market of near 80 million population
• Middle East – a market with high purchasing power
• North African market

Human resources

• Work force is well educated, highly skilled and multilingual.
• 62.2 % of the total population is in working age (approx. 4.6 million).
• 60.000 students annually graduate from 51 universities.
• 98% of the high school students study a foreign language (usually English) and 73% study a second language (mainly German, French, Spanish, Russian).
• 94% of the schools have Internet access.

Source: InvestBulgaria Agency (IBA)