Bulgaria is seen by many investors as an attractive low-cost investment destination, with government incentives for new investment. There are several reasons why Bulgaria is an attractive place to invest. One of the main reasons to invest in Bulgaria is its favorable business environment. The country has a stable and transparent legal system that provides investors with legal certainty and protection. The country offers some of the least expensive labor in the European Union (EU) and low and flat corporate and income taxes. Bulgaria has a low corporate tax rate of just 10%, making it an attractive destination for businesses looking to minimize their tax burden. At 10%, the country’s corporate tax rate in Bulgaria is the second lowest in the European Union (after Hungary). Indeed, Bulgaria possesses one of the most competitive tax systems on the continent, with many of its rates comparable or lower than its neighbors in central and Eastern Europe. Bulgaria maintains tax treaties with many countries that could allow for special tax treatment for some international entrepreneurs. At a flat 10%, Bulgaria has the European Union’s lowest personal income tax rate. Also, the Dividend taxation rate of just 5%. Income tax is not progressive in Bulgaria.
The process of registering a company is extremely easy and not expensive. Within a week, it is possible to have a registered company that can start developing commercial activity.
Bulgaria is also known as the country with the lowest wages. Currently, the minimum wage is about 400 Euros, as the trend is to increase by around 25 Euros per year or two.
Furthermore, Bulgaria has a highly skilled and educated workforce. The country has a strong education system that produces a steady stream of highly qualified workers who are proficient in a variety of fields, including technology, engineering, and finance. This makes Bulgaria an attractive destination for businesses looking to hire workers with specialized skills. Our country has a system of language high schools and there are 54 accredited higher education institutions, so about 50% of the population speaks at least one foreign language. Bulgaria is at the top of the world rankings in mathematics. 3rd in the world of I.T. Specialists per capita and for that reasons maybe Bulgaria is in top 10 countries in the world with fastest mobile internet connection. Also in Bulgaria there are incentives for investment in certain sectors such as IT, research and development, and manufacturing.
As a country part of the European Union, properties in Bulgaria have some of the lowest prices per square meter in Europe. Bulgaria is the country with some of the most affordable opportunities for property acquisition, with Bulgaria ranking 7th in the highest percentage of residential property.
Additionally, Bulgaria has a strategic location at the crossroads of Europe, Asia, and the Middle East, making it an ideal location for businesses looking to access these markets and expand into them. The country also has a well developed transportation and logistics infrastructure, with major ports and airports, as well as a modern telecommunications network.
Stable currency- Although Bulgaria belongs to the EU it doesn’t use the euro as it’s officially currency, but it has proven as one of the more reliable currency in recent time. Moreover, the government expects to adopt the Euro in early 2024 or 2025, following joining the European Exchange Rate Mechanism (ERM II) in July 2020 and the EU’s Banking Union in October 2020. The adoption of the euro will mitigate currency risk and help reduce transaction costs with some of the country’s key European trading partners.
Additionally, Bulgaria has a growing economy and a stable political environment. The country has experienced significant economic growth in recent years, with a Gross Domestic Product (GDP) growth rate of around 4.2% in 2021. In the fourth quarter of 2022, gross domestic product (GDP) increased by 2.3% and gross value added (GVA) by 2.8% compared to the fourth quarter of 2021. This growth is expected to continue in the coming years, making Bulgaria an attractive destination for investors looking to take advantage of this growth.
Bulgaria expects to receive up to EUR 6.2 billion over a six-year period (2021-2026) from the EU’s post-COVID recovery grant funds to improve its economy in areas including green energy, digitalization, and private sector development.
Another thing- Bulgaria offers high quality real estate at some of the lowest prices in Europe with Property tax rates average of 2.5%.
In conclusion, there are many reasons to invest in Bulgaria. The country has a favorable business environment, a strategic location, a skilled workforce, and a growing economy. These factors make Bulgaria an attractive destination for businesses looking to expand and grow.
This article is written by
att. Nikoleta Kostova Todorova
Todorova Law Office
10 Drin St., Varna, Bulgaria
https://leges.bg/
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