INVESTMENTS IN BULGARIA

The Bulgarian economy is one of the constantly growing economies in the Balkans. The per capita income for 2014 amounts to 17.900 dollars, however the underground economy flourishes and therefore the GDP in terms of purchasing power is significantly higher than the official ($ 129,1 billion compared to $ 55,82 billion).
The unemployment is relatively low (11,2%) and the workforce, over the last years has improved in terms of quality, attitude and skills.
The country's exports are approximately at the same level with the Greek while the imports are almost half of the Greek, forming a marginally negative balance of trade.
The country is a producer and exporter of electric power mainly, because of nuclear plants that it has, although recently it has started to pay special attention to the Renewable Energy Sources.
Despite the fact that foreign investment in the country do not face currency risk, due to the pegged exchange ration of the local Lev (BGN) with the euro (ratio 1:1,954 in 2015), the lending rates of the local commercial banks range on an average of 11.14%.
The taxation of business profits is 10% (one of the lowest levels in the EU), the maximum level of income tax is at 15% and correspondingly the maximum level of VAT at 20%.
Greek investors are common in the country and the sectors which have drawn their greatest interest are the real estate, the energy, the industry, the tourism and the trade.

BULGARIA

2014

G.D.P. in purchasing power terms (billion $)

$129,1

G.D.P. in nominal values (billion $)

$55,82

G.D.P. growth in 2014

1,70%

Per capita G.D.P. in purchasing power terms

$17.900

Investments in fixed assets as % of the G.D.P.

21,10%

Inflation rate

-1,60%

Total borrowing of the economic units (bil. $)

$32,47

Exports (bil. $)

$27,9

Imports (bil. $)

$31,6

Total Foreign Direct Investments (bil. $)

$52,78

Work Force (mil.)

2,57

Unemployment rate

11,20%

% of people under the poverty threshold

21%

Energy production (bil.)

47,21 kWh

Energy consumption (bil.)

28,5 kWh

State budget incomes (bil. $)

$19,95

State budget expenditures (bil. $)

$22,03

State budget deficit as a % of the G.D.P.

-3,70%

Tax incomes as a % of the GDP

35,70%

Public Debt as a % of the GDP

25,30%

Foreign Dept (bil $)

$52,78

Lending interest rate of commercial banks

7,56%

Corporate tax rate

10%

Highest income tax rate

10%

Highest VAT rate

20%

Market value of publicly traded shares (bil.$)

$7,232

Insurance Contributions for employee

12,90%

Insurance Contributions for employer

17,90%

 Moreover, the attraction of foreign investors is a major priority of the Bulgarian government, which has reformed both the investment and tax legislation in order to make them more attractive to foreign investors.
In the Index of Economic Freedom, the country was ranked 55th in 2015. According to the above indicator, despite the promotion of major reforms, the dynamic growth is hampered by bureaucracy, phenomena of corruption and the problems arising from the functioning of the judiciary system.
In accordance with the relevant legislation, foreign citizens may hold up to 100% of the capital of a Bulgarian company.
The procedure for the establishment of the company is simple and includes the following steps:
a)    Registration of the company in the commercial register (with no need for a court decision), in accordance to the procedure that has been laid down for each type of company by the Commercial Register Act in 2008.
The statute, which is approved prior the registration of the company, should include those items which are considered obligatory for this type of company, according to Bulgarian law.
The time that is required to complete all procedures until the final registration of the company in the register, is estimated at around 1 month.
b)    After the one-stop commercial register, the company receives a dedicated code (Unified Identification Code), which serves any public purpose (social insurance, statistical, fiscal etc) and no additional registration is required any longer.

BULGARIA

2014

G.D.P. in purchasing power terms (billion $)

$129,1

G.D.P. in nominal values (billion $)

$55,82

G.D.P. growth in 2014

1,70%

Per capita G.D.P. in purchasing power terms

$17.900

Investments in fixed assets as % of the G.D.P.

21,10%

Inflation rate

-1,60%

Total borrowing of the economic units (bil. $)

$32,47

Exports (bil. $)

$27,9

Imports (bil. $)

$31,6

Total Foreign Direct Investments (bil. $)

$52,78

Work Force (mil.)

2,57

Unemployment rate

11,20%

% of people under the poverty threshold

21%

Energy production (bil.)

47,21 kWh

Energy consumption (bil.)

28,5 kWh

State budget incomes (bil. $)

$19,95

State budget expenditures (bil. $)

$22,03

State budget deficit as a % of the G.D.P.

-3,70%

Tax incomes as a % of the GDP

35,70%

Public Debt as a % of the GDP

25,30%

Foreign Dept (bil $)

$52,78

Lending interest rate of commercial banks

7,56%

Corporate tax rate

10%

Highest income tax rate

10%

Highest VAT rate

20%

Market value of publicly traded shares (bil.$)

$7,232

Insurance Contributions for employee

12,90%

Insurance Contributions for employer

17,90%

Do you know that...

  • Albania has the highest level of public debt in the region, according to a World Bank report. The level of public debt in Albania is close to the level of 60% of GDP, emphasizing that Albania is the most vulnerable economy with debt accounting for more than double the annual revenues

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