invest ulgaria agency · iba services: macroeconomic data on bulgaria data on operational costs...

INVESTBULGARIA

AGENCY

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.

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.

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.

The largest exporter of sunflower seeds worldwide in 2013. Our market share in the exports of this commodity in the planet is 17.8%.

DID YOU KNOW THAT BULGARIA

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

INVEST BULGARIA AGENCY

INVESTBULGARIA AGENCY 31 Aksakov Street

Sofia 1000, Bulgaria

Tel.: ( +359 2 ) 985-5500

Fax: ( +359 2 ) 980-1320

E-mail: [email protected]

Web: www.investbg.government.bg

mailto:[email protected]

1. Political and business stability

EU, NATO & WTO member

Currency board

Low budget deficit and government

debt

reasons

invest in BULGARIA

2. Competitive cost of doing

business

10% Corporate and Personal tax

rates

Competitive cost of labor

Favorable office rents and low

cost of utilities 3. Access to markets European Union / EFTA

Russia

Turkey/Middle East

4. Educated & skilled workforce 80 000 students abroad

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


5 INVEST IN BULGARIA


0.1

1.6

0.2

1.3 1.5

3.0 3.4

2010 2011 2012 2013 2014 2015 2016

GDP Growth (%)

3.0 3.4

2.4

0.4

-1.6 -1.1

-0.8

2010 2011 2012 2013 2014 2015 2016

Inflation Rate (%)

10.3 11.3 12.3 13.0 11.4

9.2 7.3

2010 2011 2012 2013 2014 2015 2016

Unemployment Rate (%)

GDP: 46.95 billion EUR

GDP per capita: 7149 EUR

Budget Deficit: -3.1% of GDP

Government debt: 27.2% of GDP

Exports, FOB: 52.1% of GDP

Imports, CIF: 59.2% of GDP

Trade balance: -7.1% of GDP

MACROECONOMICS DATA

Source: bnb.bg, worldbank.org

MACROECONOMIC INDICATORS

1169.7

1476.3

1320.9

1383.7

1160.9

2534.8

[VALUE

]

2010

2011

2012

2013

2014

2015

2016

FDI Inflow, 2010 - 2016 (€ mln.)

342.9

349.1

398.6

447.1

492.7

541.7

709.6

890.0

1906.0

3688.0

Czech Republic

Turkey

USA

France

Belgium

Switzerland

Luxembourg

Russia

Italy

Netherlands

FDI by host country, 2010 - 2015 (€ mln.)


FOREIGN DIRECT INVESTMENT

www.investbg.government.bg Source: doingbusiness.org

BUSINESS ENVIRONMENT


61

58

51

50

47

39

36

33

32

24

10

4

3

2

1

GREECE

ALBANIA

MONTENEGRO

ITALY

SERBIA

BULGARIA

ROMANIA

SLOVAKIA

SPAIN

POLAND

MACEDONIA, FYR

HONG KONG

DENMARK

SINGAPORE

NEW ZEALAND

Doing Business Ranking

www.investbg.government.bg Source: bnb.bg, worldbank.org

TAXATION RATE

Income Tax (%) Social Security (%)

Country Corporate Individual Employer Employee VAT (%)

Bulgaria 10 10 17.9-18.5 12.9 20

Serbia 15 10-20 16.9 16.9 20

Romania 16 16 28.45 16.5 24

Hungary 9 9 28.5 18.5 27

Czech Rep. 19 22 34 11 21

Poland 19 18/32 22.14 13.7 23

Turkey 20 15-35 27 15 18

Slovakia 23 19-25 34.8 13.4 20

UK 23 0-45 13.8 12 20

Italy 27.5 23-43 30 10 21

Spain 30 24, 75-52 29.9 6.35 21

Germany 30-33 14-45 19.7 20.6 19

France 33.33 5.5-41 50 20 19.6

Cyprus 12.5 20-35 7.8 7.8 19

From 2.5 € (m2/month)

Industrial Rents(Sofia)

From 12 € (m2/month)

Office Rents(Sofia) Salary(Min.) - 215 €

Salary(Avg.) - 468 €

Competitive Cost of Labor

One of the most competitive costs in Europe! www.investbg.government.bg

0.069(€/kWh)

Electricity

0.032(€/kWh)

Gas

1.09(€/1m3)

Water

Source: ec.europa.eu/eurostat, bnb.bg, worldbank.org, colliers.com

COMPETITIVE COST OF DOING BUSINESS

0% corporate tax rate in zones with unemployment 25% or higher than the average


UNEMPLOYMENT IN MUNICIPALITIES


INDUSTRIAL ZONES IN BULGARIA


ISSS PRIORITY SECTORS

ICT

Electrical equipment

Machines

Textile clothing

Chemical products

Products from rubber, plastic and other nonmetallic raw materials

Food


INFORMATION TECHNOLOGY

The Sector:

More than 17 500 specialists work in The Sector

1.86 % of GDP was generate by The Sector in 2015

20 600€ annual wages per Employee

Advantages:

Established traditions and experience in the sector

One of the fastest growing sectors of the economy

The revenues of Bulgarian IT Companies grew by 11%

Over 4 300 students get a degree in IT each year

Bulgarian Internet speed is one of the fastest in the world

Successful examples:

BUSINESS PROCESS OUTSOURCING

The Sector:

More than 30 000 people work in The Sector

3% of GDP was generate by The Sector in 2015

8 000 € annual starting salaries per Employee

Advantages:

Bulgaria offers qualified and cost-effective workforce and

advantageous rents of commercial space

BPO sector generates over € 964 million revenues Bulgaria

is the best outsourcing destination in Europe

The average BPO company in Bulgaria provides services

in more than 25 languages




ELECTRONICS

The Sector:

More than 45 000 people work in The Sector

6 000 € annual wages per Employee

Advantages:

Availability of experienced engineers

Qualified assembly workforce at affordable cost

Easy access to EU, Russian and Middle East markets

More than 75% of the production of the Electronics

manufactured in Bulgaria is exported

Bulgarian universities are working together with the

companies in the sector to create qualified workforce



MACHINE BUILDING

The Sector:

More than 200 000 people, working in The Sector

18% of GDP was generate by The Sector for 2015

5 000 € annual wages per Employee

Advantages:

Established traditions and experience in the sector

Continuous growth between 2000 and 2015

Qualified work force at affordable price

Easy access to the markets

Networks of technical universities and colleges

Available physical infrastructure



CRITERIA FOR CERTIFICATION

CLASS A

Minimal Investment € 1.00 M – 5.00 M

Minimal job number

25 – 150 (Optional)

CLASS B

Minimal Investment € 500 K – 2.50 M

Minimal job number

10 – 100 (Optional)

PRIORITY

Minimal Investment € 10.00 M – 50.00 M

Minimal job number

50 – 150 (Compulsory)

THE CRITERIA DEPENDS ON:

Employment establishment

Economic activity of the project

(manufacturing, services, high-tech)

Location of the project

(underdeveloped regions)


ADMINISTRATIVE INCENTIVES Applicable for all types of projects: A, B and Priority

Information services

Shortened administrative procedures - The central

and local government authorities will provide

administrative services shortened by 1/3rd of the time

period established by the law

Acquisition of real estate (private state or private

municipal property) without a tender procedure and

competition

Establishment of public-private partnerships with

municipalities, universities, other organizations from

the academic society and etc.

Consulting and individual administrative services,

provided by the Agency (exception for class B)

Institutional Support by establishing an

intergovernmental group to deal with possible

obstacles for the investors (applicable only for Priority

projects)


Applicable for all types of projects: A, B and Priority:

Financial support for the vocational training for

obtaining professional qualifications.

Reimbursement of labor costs for social security

paid by the employer.

Financial support for construction of technical

infrastructure elements to the borders of the

project site, needed for implementation of one or

more investment projects. (applicable for projects A

and Priority)

Acquisition of the real estate with no tender and at a

price lower than the market, but not lower than

the tax assessment of the property (applicable for

Priority projects).

Financial grants for education, R&D and

manufacturing projects (applicable for Priority

projects).

State tax exemption for changing the land status

from agricultural into industrial (applicable for

Priority projects).

FINANCIAL INCENTIVES

IT development Outsourcing Chemical and

Metal Industry Engineering

Food&

Beverage


COMPANIES INVESTED IN BULGARIA

http://www.google.bg/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=IfluMAHaXfoS6M&tbnid=CZyHgsIPYx0uDM:&ved=0CAUQjRw&url=http://www.prweb.com/releases/2007/02/prweb502855.htm&ei=x4gjUdCqFIThqgHi4ICoDg&bvm=bv.42553238,d.eWU&psig=AFQjCNEMpTM3LI7QGU8O3Fa6NURh0N1YZA&ust=1361369656184773

http://www.google.bg/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=uqeGXa869aFnYM&tbnid=9mXAEUQuix_4RM:&ved=0CAUQjRw&url=http://www.neilsquire.ca/latest-news/partnership-blooming-city-booming/&ei=6IgjUdOfPIasqAG8hYDgAg&bvm=bv.42553238,d.eWU&psig=AFQjCNFT6jkTD_NNNZPtyYjYuwKe_uzJsw&ust=1361369702069439

http://www.google.bg/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=eAYFI9GtqVgE0M&tbnid=IlI1CoLDGAuMkM:&ved=0CAUQjRw&url=http://www.bigmat.be/FR/PRODUITS/Maconnerie-Cimentage-exterieur-detail-71&ei=_IkjUbLcFqSayQGilIDIDA&bvm=bv.42553238,d.eWU&psig=AFQjCNEhpP51k_E-46s3bud2GElRirPWjw&ust=1361369977498039

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http://www.google.bg/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=_dl3W0bNRR2IUM&tbnid=QuNoJCpE29faVM:&ved=0CAUQjRw&url=http://myweb.tiscali.co.uk/beerglasscollector/Molson_Coors.htm&ei=MIwjUc7IOcOoyAGgsoG4BA&psig=AFQjCNFPL_ORN2FIIBPbK7KI5ATNVTsYZQ&ust=1361370526568561

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WHAT BULGARIA OFFERS

Investor REDUCE COST

- Competitive cost of labor

- Lowest tax rate in EU

REDUCE RISK

- Political Stability

- Economic Stability

GOVERNMENT INCENTIVES

INCREASE COMPETITIVENESS

- Staff qualification

- Improving productive capacity

GOVERNMENT AS A PROACTIVE

PARTNER

INVESTBULGARIA AGENCY 31 Aksakov Street

Sofia 1000, Bulgaria

Tel.: ( +359 2 ) 985-5500

Fax: ( +359 2 ) 980-1320

E-mail: [email protected]

Web: www.investbg.government.bg

mailto:[email protected]

invest ulgaria agency · iba services: macroeconomic data on bulgaria data on operational costs...

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