I
B
A

Official name:
Area:
Population:
Capital:
Time zone:
Republic of Bulgaria
110 994 sq.кm.
7.4 million
Sofia
EET (UTC+2)
Official language:
Currency:
Bulgarian
Lev (BGN)
Fixed exchange rate: € 1 = BGN 1.95583
Type of government: Parliamentary
Member of: EU, NATO, WTO www.investbg.government.bg

( IBA ) is a Government institution providing information, contacts and project management support to potential investors .
IBA services:

Macroeconomic data on Bulgaria

Data on operational costs

Regional information

Personalized administrative servicing

Legal advice

Liaison with central and local governments

Liaison with branch chambers and
NGOs www.investbg.government.bg

1. Political and business stability

EU, NATO & WTO member

Low budget deficit and
5 reasons to invest in
BULGAR IA
2. Low cost of doing business

10 % Corporate tax rate

10% Personal tax rate

Lowest cost of labor

Favorable office rents and low
 Currency board government debt cost of utilities
3 . Access to markets

European Union/EFTA

Russia

Turkey/Middle East
4. Educated & skilled workforce

80 000 students in foreign countries

25 % of population hold university degree

46 % of population speak at least one foreign language
5.
Government incentives

Social security benefits

Tax benefits

Vocational education benefits www.investbg.government.bg

The best outsourcing destination in Europe, according to
Cushman & Wakefield’s rating for 2015. In the world our country takes the third place.
Accommodated about 50 companies producing components and systems for the global automotive industry. In eight of every ten cars in Europe, the parts are produced in Bulgaria
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.
The largest exporter of sunflower seeds worldwide in 2013. Our market share in the exports of this commodity in the planet is
17.8%.
www.investbg.government.bg

0,1
2010
2,4
2010
9,2
2,3
1,6
GDP Growth(%)
1,3
1,5
0,2
2012 2011 2013 2014 2015Q2
4,2
Inflation Rate(%)
3
0,9
-1,4
0,6
2014 2015Q3 2011 2012 2013
Unemployment Rate(%)
10,4
11,4 11,8
10,7
9,4
MACROECONOMICS DATA ( 2014 )

GDP : 42 billion €

GDP per capita
: 5 912 €

Budgete Deficite : -2.8% of GDP

Government debt : 27% of GDP

Exports, FOB : 51.7% of GDP

Imports, CIF : 61.1% of GDP

Trade balance : -9.4% of GDP
2010 2011 2012 2013 2014 2015Q3
Source: bnb.bg, worldbank.org
www.investbg.government.bg

FDI Inflow(€ mln.) FDI by host country, 1996-2014(€ mln.)
2015Q2
2014
2013
2012
2011
2010
944,3
1 306,20
1 383,70
1 320,90
1 476,30
1 169,70
FDI Inflow by Industry(€ mln.)
Real Estate
7%
4%
18%
Manufacturing
10%
Finance
Trade
Other
11%
18%
Netherlands
Austria
Greece
UK
Germany
Cyprus
Russia
Switzerland
USA
Italy
Energy
Construction
Telecom
15%
17%
3 580,80
2 604,50
2 417,20
2 103,90
1 961,70
1 623,10
1 605,40
1 488,70
7 023,30
5 944,70 www.investbg.government.bg

Singapore
New Zealand
Hong Kong
SAR
Bulgaria
Belgium
Czech Republic
Romania
Slovenia
Hungary
Turkey
Italy
Greece
Russia
1
2
38
38
42
44
48
51
54
55
56
61
62
Source: doingbusiness.org
www.investbg.government.bg

Country
Bulgaria
Serbia
Romania
Hungary
Czech Rep.
Poland
Turkey
Slovakia
UK
Italy
Spain
Germany
France
Income Tax(%) Social Security(%)
Corporate Individual
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
Employer Employee
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
VAT(%)
20
20
24
27
21
23
18
20
20
21
21
19
19.6
Source: bnb.bg, worldbank.org
www.investbg.government.bg

Electricity
0.0682(€/kWh)
Gas
0.0321(€/kWh)
Water
1.09(€/1м3)
Industrial Rents(Sofia)
From 2.5€( m 2 /mo)
Office Rents(Sofia)
From 10
€(m 2 /mo)
Cost of Labor
Salary(Min.) - 196 €
Salary(Avg.) - 450 €
One of the most competitive costs in Europe!
Source: ec.europa.eu/eurostat, bnb.bg, worldbank.org, colliers.com
www.investbg.government.bg

BULGARIA
Romania
Netherlands
Austria
France
Czech Rep.
Hungary
Germany
Poland
Croatia
Italy
Greece
UK
EU-28(2014)
COUNTRY
ELECTRICITY
(€/kWh) 2015
0.0682
0.0707
0.0721
0.0731
0.0755
0.0761
0.0778
0.0809
0.0833
0.0869
0.0949p
0.1037
0.1435
0.0917
COUNTRY
BULGARIA
Romania
Hungary
Poland
Czech Rep.
Croatia
Greece
UK
Italy
Germany
Austria
Netherlands
France
EU-28
Source: ec.europa.eu/eurostat
LABOUR COSTS
(€/per hour) 2014
3.8
4.6
7.3
8.4
9.4
9.4
14.6
22.3
28.3
31.4
31.5
34.0
34.6
24.6
www.investbg.government.bg

www.investbg.government.bg

RATE
0% corporate tax in areas with unemployment 25% higher than the country average!
www.investbg.government.bg

The Bulgarian legislation introduces a system of promotion measures for initial investments in tangible and intangible fixed assets and creating new employment linked thereto, according to the legislation of EU.

Investments must be related to the following sectors:
 Manufacturing
 Research & Development




Education
Healthcare
High-tech services
Warehousing and logistics

The government incentives for:



Class B Investment Projects
Class A Investment Projects
Priority Investment Projects www.investbg.government.bg


INVESTMENT CRITERIA

GOVERNMENT INCENTIVES
Manufacturing Industry
-
€2.5m or €1m and 100 working places
High-Tech Manufacturing
- €1m or 10 working places
Services sector
- €0.75m or €0.25m and 100 working places
High-Tech Services
- €0.5m or 25 working places
Regions with high unemployment rate
€1m or 10 working places

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.
www.investbg.government.bg


INVESTMENT CRITERIA

GOVERNMENT INCENTIVES
Manufacturing Industry
- €5m or €2m and 150 working places
High-Tech Manufacturing
-
€2m or 25 working places
Services sector
-
€1.5m or €0.5m and 150 working places

Include all the Incentives for CLASS B .

Consulting and individual administrative services. Investors will be able to authorize
Agency officials to obtain any documents for implementation of the corresponding investment project.

Financial support for construction of technical infrastructure elements to the borders of the project site, needed for implementation of one or more investment projects.
High-Tech Services
-
€1m or 50 working places
Regions with high unemployment rate
€2m or 25 working places www.investbg.government.bg


INVESTMENT CRITERIA

GOVERNMENT INCENTIVES
Manufacturing Industry
€50/25m and 200 working places
High-Tech Manufacturing
- €15m and 100 working places
Services sector
- €50m and 200 working places
High-Tech Services
- €10m and 50 working places
Regions with high unemployment rate
-
€25m and 100 working places

Include all the incentives for CLASS A and B .

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.
www.investbg.government.bg

REDUCE RISK
- Political Stability
- Economic Stability
GOVERNMENT AS A
PROACTIVE
PARTNER
INCREASE
COMPETITIVENESS
- Staff qualification
- Improving productive capacity
REDUCE COST
- Competitive cost of labor
- Lowest tax rate in EU
GOVERNMENT
INCENTIVES www.investbg.government.bg

GLOBAL
IN
IT development Back office operations
Chemical and metal Industry
Engineering Food www.investbg.government.bg

I NVEST B ULGARIA A GENCY
31 Aksakov Street
Sofia 1000, Bulgaria
Tel.: ( +359 2 ) 985-5500
Fax: ( +359 2 ) 980-1320
E-mail: iba@investbg.government.bg
Web: www.investbg.government.bg