Why invest in Bulgaria?
Cost of Doing Business in Bulgaria
Bulgaria offers foreign investors some of the world's most competitive business costs. Real estate investment has produced a plentiful supply of modern offices at very competitive costs. Corporate taxes and labour costs are quite low for European standards. Privatization and deregulation are creating sophisticated public utility and telecommunications industries.
Bulgarian Workforce
Bulgaria's working-age population consists of around 4.8 million highly educated and skilled men (52 percent) and women (48 percent). The literacy rate in Bulgaria is 93 percent. A high percentage of the work force has completed some form of secondary, technical, or vocational education. Many Bulgarians have strong backgrounds in engineering, medicine, economics and the sciences. The aptitude of workers and the relative low cost of labour are considerable incentives for foreign companies to invest in Bulgaria.
Cost of Assets in Bulgaria
Compared with other European countries, Bulgaria is still very cheap. There are still some excellent bargains to be had when looking for property here. Each year the prices are going up and right now is the perfect time for investors to put their money in brick and mortar and in a few years when the Euro is fully accepted here, the property prices are said to look to more than double in price. Making it a good return on your investment. The price of renovation work is also really cheap so whether you decide to renovate your house and get a larger market when selling or to just keep hold of the house and flip it when prices increase. You are set to make a good profit.
Education in Bulgaria
Bulgaria has a traditionally strong education system. Children go to school from the age of 7 ands stay on till 18 years old. There are over forty Higher Education institutions in Bulgaria offering degrees at the undergraduate and graduate level. There are nursery schools available from the age of 2 years old and this gives children a relaxed atmosphere to learn the language when coming to live here. There are also schools which teach 100% in English for the English speaking students.
EU and NATO Member
Bulgaria is a full member of NATO and entered the EU in 2007. The country has already closed all of the negotiation chapters specified by the EU institutions. Very interesting is the pre-EU membership discount on asset prices that businesses still enjoy in Bulgaria.
Strong Economic Growth
In its annual 2002 report, the European Commission assessed Bulgaria as a fully functional market economy, with a high degree of macroeconomic stability and working market mechanisms. The Bulgarian economy is working under currency board (1 Bulgarian Lev=1.95583 Euro), which provides for a stable and predictable macro economic environment. Careful fiscal discipline and strong foreign investment has provided for sustained economic growth for the last 7 years.
The expected economical growth (GDP per capital) is about 5 percent per year. The state owned section of the Bulgarian economy is about 20 percent.
With many local and foreign investments, the financial system is stable and banks are expanding their landing.
Taxes in Bulgaria
Bulgaria is making a considerable effort to offer the lowest corporate taxes in Europe. Corporate tax rate in 2007 went down to 10% and is already 0% in areas of high unemployment.
Foreign Investment in Bulgaria
Foreign investment in Bulgaria has never been so dynamic and so massive. During recent years, a significant number of international companies have opened offices in Bulgaria, just to name a few: Solvay, Umocore, Italcemente Group, Liebherr, Kraft, Nestle, American Standard, Philip Morris, Metro, Lindner, Praktiker and SAP, mr bricolage, Kaufland, Penny market and now lidl.
As a result of a liberal financial policy and continuous economic growth, Bulgaria has become very attractive to foreign investments. In addition, local companies are also increasing their share of business in Bulgaria and abroad.
Strategic Location
Bulgaria has a very strategic geographic location. Its position on the European continent allows investors to reach the entire market of the European Union and the markets of central and eastern Europe, which represent a total population of 853 million.
Political Stability
With its parliamentary republican political system, the political situation in Bulgaria is stable and the legislature, the executive and the judiciary are independent of the parliament. As of Jan1, 2007, Bulgaria is a part of the European Union and has harmonized its legal system in line with the EU requirements. In April 2004, the country became member of NATO.
Quality of Life
Bulgaria and its capital Sofia offer a cosmopolitan quality of life that is regarded as among the highest in Europe. First time visitors to Bulgaria are often surprised by the diversity and stunning natural beauty. For years a real effort has been made in order to preserve the country’s rich and unspoilt flora and fauna. As a result, today’s Bulgaria is ecologically one of the purest countries in Europe, with exceptionally clear air and water resources. There are 7 national parks, more than 3000 protected natural sites and 17 bio-spherical reserves (the greatest recorded number in Europe). There are also 419 protected animal species and 63 protected types of plant.
Not only is the quality of life in Bulgaria good, but the cost of living is one of the lowest in Europe. A meal for two, made from organically pure products and including a bottle of nice wine will not cost you more than ten Euros.