Strategic Location

Situated in the center of the Balkans, Bulgaria is on the main roads between Europe and Asia. It’s easily accessible by land, air and sea which makes it an excellent logistics hub. Its convenient location in the southeast of Europe can serve as a bridge between Europe and Asia. Being at the border of the European Union it allows easy trade inside and outside of the EU. With nearly 2 mln people population, the capital Sofia is a hub for investments, international companies, construction and innovation.

5 Pan-European corridors
5 neighboring countries
4 major airports
more than 30 airlines flying to Sofia Airport
2 main seaports
more than 8 important river ports

Access to Markets

Due to its location, history and key relationships, Bulgaria grants easy access to numerous markets:

European Union – unrestricted duty-free access to the EU single market with nearly 500 million consumers
Middle East – market with high purchasing power and many high value opportunities
Former Soviet Republics – countries with high potential for economic growth
Turkey - zero tariff market with near 80 million population
Serbia and Macedonia – non EU markets with very well established trade relations with Bulgaria

Favorable Conditions for Doing Business

The economic conditions for doing business in Bulgaria attract many foreign companies and investments, both in goods and service oriented sectors. The costs of the human resources, utilities and office rents are among the lowest in the EU. Some of the advantages of doing business in Bulgaria are:

Favorable tax regime. Corporate income tax rate is 10%, the lowest in the EU. Industries in high-unemployment areas are granted 0% tax rate.
Low average salary – approximately 500 euro monthly net salary
Low utility costs – electricity prices for industrial clients start from 0,04 euro/kWh
One of the fastest procedures for establishing a company in Europe – process time is only three days
Office rents 7 -10 euro/m2 for class A and B business buildings

Human resources

The multilingual workforce and the balance between low cost and high quality of the human resources lead to numerous companies and investments in the BPO (Business process outsourcing) sector. Nearly 98% of high school students study a foreign language (usually English) and 73% study a second foreign language. With an average salary of 500 euro Bulgaria has the lowest labor cost in EU-28. Due to all of the above and the high IT literacy, the country is the IT outsourcing hub for the region.

7.1 mln population
3.4 mln workforce
500 euro average salary
3^rd place in the world in terms of certified IT professionals per capita

Macroeconomics

Bulgaria offers a combination of political and macroeconomic stability and incentives for doing business - stable parliamentary democracy, EU, NATO and WTO member
Bulgaria’s currency is fixed to the Euro under a currency board arrangement at the rate of 1.95583 BGN for 1 EUR
GDP
Inflation
VAT is 20% for goods and services, 9% in tourism
10% corporate tax, 0% tax in regions with high unemployment
2-year VAT-free period for import of equipment for investment projects over 5 mln euro or with at least 50 new working places
5% withholding tax on dividends and liquidation quotas (0% for EU tax residents)