Bulgaria - Key Facts

Political stability and economic growth

Bulgaria is a democratic country with stable political environment. It is a member of EU, NATO and WTO.
Bulgaria has an open free-market system that is classified as an "upper-middle-income economy" by the World Bank. It is one of the fastest-growing European countries in recent years. Its gross domestic product is an estimated $102.3 billion (2011 est.) when calculated using the purchasing power parity (PPP) (CIA Factbook).
Bulgaria averaged more than 6% annual growth in GDP from 2004 to 2008, driven by significant amounts of bank lending, consumption, and foreign direct investment.
Bulgaria was ranked in the top ten performers in the world by Doing Business 2008 report due to its reforms concerning taxes, labour contracts and licenses.

 

Financial discipline

Even during the world economic crisis, Bulgaria has shown serious dedication to financial stability. Its government debt is the second-lowest in the European Union – 16.3% of GDP for 2011. (Eurostat)
The government deficit is also one of the lowest in the EU – 2.1% of GDP for 2011, compared to
4.5% of GDP for EU27 (Eurostat).
The stability of the Bulgarian economy is supported by a currency board introduced in 1997. The Bulgarian currency is pegged to the Euro at the level of 1.95583:1
Moody’s Long Term Rating is Baa2

 

Favourable Tax Regime

Bulgaria has among the most favourable tax rates in Europe, which makes it a great investment destination.

  • 10% corporate income tax
  • 10% personal income tax
  • 20% value added tax
  • 0% capital gains tax (stocks, bonds, mutual funds)
  • 5% dividend withholding tax (0% for legal entities)
  • 0% profit tax for REITs (real estate funds)

 

Great location

Located at the Southeast Europe, Bulgaria is a strategic logistics hub. It is bordered by Romania to the north, Serbia and Macedonia to the west, Greece and Turkey to the south and the Black Sea to the east.  Ease of transportation of cargo is provided by

  • Five Pan-European corridors ( IV, VII, VII, XI, X), which pass through the country
  • Transport program TRACECA, which connects Europe with Caucasian and Central Asian region
  • Four major airports: Sofia, Plovdiv, Bourgas and Varna
  • Two main seaports: Varna and Bourgas
  • Numerous ports at the Danube River

 

Workforce

Work force is well educated, highly skilled and multilingual

  • 51.3 % of the total population is in working age (approximately 3.3 millions)
  • 22% of the population has a university degree
  • 98% of the high school students study a foreign language (usually English) and 73% study a second language (mainly German, French, Spanish, Russian)


Sources used: http://www.investbg.government.bg/en/pages/why-bulgaria-84.html

 
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