bulgaria-general_presentation_may_2015
BULGARIA:
Investment and Business Climate
May 2015
Who we are:
InvestBulgaria Agency is a government investment promotion arm, part of the Ministry of Economy
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?
Political and business stability
EU member
Currency board
Low budget deficit and government debt
Low cost of doing business
10% corporate tax rate
(0% in high unemployment areas)
10% personal income tax
Lowest cost of labor within EU
Favorable office rents and low cost of utilities
Access to markets
European Union / EFTA
Russia
Turkey / Middle East
Educated and skilled workforce
Government incentives
Did you know that Bulgaria…
…ranks first in the world in the production of lavender. For the past three years, our country has managed to surpass France from the first place and France is historically a leader in this field.
…is the best outsourcing destination in
Europe, according to Cushman &
Wakefield’s rating for 2015. In the world our country takes the third place.
…is the largest exporter of sunflower seeds worldwide in 2013. Our market share in the exports of this commodity in the planet is
17.8%.
…has accommodated about 50 companies producing components and systems for the global automotive industry. They are making different types of auto parts for brands like BMW, Mercedes, Audi, Ford, Volvo,
Peugeot, Renault, Dacia and others. In eight of every ten cars in Europe, the parts are produced in Bulgaria
Doing Business 2015
Source: Doing Business 2015
Going Beyond Efficiency
A World Bank Group Flagship Report
FDI Inflow into Bulgaria
Source: NSI
FDI Inflow into Bulgaria by industry
Taxation in Bulgaria:
Country
Bulgaria
Serbia
Romania
Hungary
Czech Rep.
Poland
Turkey
Slovakia
UK
Italy
Spain
Germany
France
Source: Worldwide - tax
Income Tax (%) Social Security (%)
Corporate Individual Employer Employee
10
15
16
10
10-20
16
17.9-18.5
16.9
28.45
12.9
16.9
16.5
10/19
19
19
20
23
23
27.5
30
16
22
18/32
15-35
19-25
0-45
23-43
24, 75-52
28.5
34
22.14
27
34.8
13.8
30
29.9
18.5
11
13.7
15
13.4
12
10
6.35
30-33
(effective)
33.33
14-45
5.5-41
19.7
50
20.6
20
VAT (%)
18
20
20
21
21
27
21
23
20
20
24
19
19.6
Business costs in Bulgaria:
€/GJ, 2014 €/kWh, 2014
Source: Eurostat
Salaries in Bulgaria:
Average salary by position, EUR per month
Labour cost /
Salary
In EUR, per month
% of the
Gross
Salary
Top
Management
Low High
Management
Low High Low
R&D
Engineers
High
Technicians
Low High
Skilled labor
Low High
Unskilled
Low labor
High
Net Salary
Employee
77,1% 924 1925 576 770 539 693 347 462 285 385 216 270
Gross Salary
Employee
100% 1200 2500 750 1000 700 900 450 600 370 500 280 350
Total Cost for Company
117,9% 1415 2948 884 1179 825 1061 531 707 436 590 330 413
Average gross salary by region, EUR per month
Statistical region North-West North Central
September 2014 347
Source: IBA Analysis, National Statistics Institute
350
North-East
383
South-East
378
South-West
501
South Central
356
Unemployment rate by municipalities
0% corporate tax in areas with unemployment 25% higher than the country average
Industrial zones in Bulgaria
The government supports specific industries under the Investment Promotion Act (IPA):
Investments must be related to the following sectors:
Manufacturing
Research & development
Education
Healthcare
High-tech services
Warehousing and logistics
Minimum investment amounts must exceed €2.5m
€1m in regions with high unemployment and €0.5m for investment projects in high-tech services
Benefits for certified investors include:
Shortened administrative procedures
Preferential acquisition of state or municipal land
Financial support for professional training / education
Infrastructure subsidies
Labor cost subsidies
Individual administrative services
Class A and B government incentives:
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
Incentives for priority investment projects:
All the incentives for Class A and B
Special incentives for priority 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.
Leading global companies have chosen Bulgaria:
IT development Back office operations
Chemical and metal
Industry
Engineering Food
Sofia 1000, 31 Aksakov Str.
Phone: (+359 2) 985 5500
Fax: (+359 2) 980 1320
E-mail: iba@investbg.government.bg
Web: www.investbg.government.bg
