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Corporate/Institutional investors

Since Bulgaria’s entry into the EU in 2007, the popularity of the country as an investment destination for Corporations and Institutional Investors has steadily grown. They value Bulgaria’s access to the European Single Market, the transparent and favourable tax environment, as well as the access to a highly-skilled and well educated workforce. Thus, the FDI by Corporates has steadily climbed to reach new all-time highs as recently as 2019. Examples from different high value-add industries comprise Lufthansa Technik (Aerospace and Mechanical Engineering), Aurubis (Metals and Mining), Telenor and Telekom Austria (Telecommunications), Lidl and Kaufland (Retail and Trade), vmware (Software Development), OTP Group (Banking and Finance) amongst many others 

Investing in a Business footprint in Bulgaria has many benefits

Benefits at a glance

Stable political, fiscal and business enviroment

Investor-friendly tax
enviroment

Excellent regional position in CEE with access to markets

Excellent quality
to cost ratio

Highly-skilled
workforce

Focus on high-value
add industries

Ease of International Trade

Making Bulgaria the ideal Logistics hub

Bulgaria ranks 21st (2020) in the category “Trading across borders” of the annual “Easе of doing business“ index prepared by the World Bank Group. The structured, highly digital and quick process and the low costs to import and export facilitate the work in the sector. This makes Bulgaria a worthwhile investment destination for retailers, logistics providers and various other types of production companies

Trading across borders (rank)

21

Score for trading acress borders (0-100)

97,41

Time to export

Documentary compliance (hours)

2

Border complience (hours)

4

Cost to export

Documentary complience (US$)

52

Border complience (US$)

55

Time to import

Documentary compliance (hours)

1

Border complience (hours)

1

Cost to import

Documentary complience (US$)

0

Border complience (US$)

0

A supportive incentivizing Government to Foreign investors

The Bulgarian government continues to actively expand incentives to attract foreign investment. One example is the certification scheme of the Investment Promotion Act, giving additional benefits based on volume and workplace creation

Clearly defined incentive schemes with clear benefits are provided. Further, the government bodies and agencies actively cooperate with foreign trade chambers and organizations, as well as with the private sector to attract and support foreign investors end-to-end

Class B

10-100 Jobs

500K - 2.50M*
  • Threshold incentives provided
  • Short cut on administrative terms
  • No tender - no competition for acquisition of state/municipal land
  • Social security cashback
  • Individual services offered
  • Financing technical infrastructure
  • Public-private partnership possible
  • No tax on changing land status
  • Depending on the industry and region of investment

Class A

25-250 Jobs

1.00 - 5.00 M*
  • Public-private partnership possible
  • Short cut on administrative terms
  • No tender - no competition for acquisition of state/municipal land
  • Social security cashback
  • Individual services offered
  • Financing technical infrastructure
  • Public-private partnership
  • No tax on changing land status
  • Depending on the industry and region of investment

Priority Class

50-150 Jobs

50.00 M*
  • Threshold incentives provided
  • Short cut on administrative terms
  • No tender - no competition for acquisition of state/municipal land
  • Social security cashback
  • Individual services offered
  • Financing technical infrastructure
  • Public-private partnership possible
  • No tax on changing land status
  • Depending on the industry and region of investment

Further, the government bodies and agencies actively cooperate with foreign trade chambers and organizations, as well as with the private sector to attract and support foreign investors end-to-end

Lower Capital investment requirements

i.e. for Real estate and development of Office space

Office space rent is priced significantly lower than the European and CEE average. In fact, at 12-14 EUR per square meter for high quality office properties, Sofia is the cheapest European capital for renting office space. At the same time, office real estate offers attractive, above average investment yields, upwards 7-8%, only matched by Bucharest and Istanbul. In comparison, other CEE capitals yield between 2 and 6%

  • Attractive commercial real estate at strategic logistical locations with access to utilities is still available for purchase at reasonable prices
  • Agricultural land in Bulgaria boasts one of the highest soil qualities in Europe, while Prices are still amongst the lowest in the EU, with an increasing trend