Bulgaria: Investing

FDI in Figures

Bulgaria attracts a certain volume of foreign cash flows, but since 2009 their level has been badly affected by the global and European crisis, particularly in the sectors of construction, real estate, financial intermediation and manufacturing. Foreign direct investment fell notably due to the Greek crisis of 2011, Greece traditinally being an important investor in Bulgaria. Moreover, the European crisis dried up capital flows significantly.

Considering all the advantages that Bulgaria provides, notably its fiscal plan with one of the lowest tax rates in the area and its labor costs, the country remains well-placed for foreign investments to revive again in 2012. The revival will nonetheless only be driven by the improvement of the economic situation of the EU countries, particularly of Bulgaria's closest neighbors.

Why You Should Choose to Invest in Bulgaria

Strong Points

Bulgaria's strong points are:
- An advantageous taxation system for investors;
- A sizeable workforce that is skilled and cheap;
- Very low cost of living;
- Its membership to the European Union; and
- A strategic geographical position.

Weak Points

Even though the country has become attractive to investors and especially after its membership to the European Union, Bulgaria still has to take on a number of challenges:
- Inefficient bureaucracy;
- A very slow and inefficient judiciary system;
- A high level of corruption;
- The non implementation of the intellectual property and copyright laws; and
- A significant amount of the population having limited revenue.

Government Measures to Motivate or Restrict FDI

The Bulgarian government has established a very advantageous taxtation system in order to attract investors and the costs of creating a company have also been lowered. The government has undertaken the privatization of a number of companies. We can name the following, amongst the most attactive measures put in place:
- A fixed company taxation rate at 10%;
- Competitive labor force costs;
- A skilled active population; and
- The country's membership to the European Union and its access to the EU structural funds.

Procedures Relative to Foreign Investment

Freedom of Establishment

Bulgaria is the country in the region most open to direct foreign investment with no limitation.
For further information visit the Investment Climate section on the Factbook site.

Acquisition of Holdings

The proportion of foreign participation in new or existing businesses is not limited. Foreigners have the right to register any company types according to the Bulgarian Commercial Code, including legal type of businesses extending the benefit of Private Limited Company status to sole owners with a 100% foreign participation.

Obligation to Declare

The agency for the promotion of foreign investment in the country provides information on the necessary authorization for setting up.

Competent Organization For the Declaration

Invest Bulgaria: Bulgaria Investment Information site

Requests For Specific Authorizations

No specific requirements.
For further information visit the site Invest Bulgaria.

Investment Opportunities

Investment Aid Agency

Invest Bulgaria Agency
Invest Bulgaria

Tenders, Projects and Public Procurement

Tenders Info, Tenders in Bulgaria
Ted - Tenders Electronic daily, Business opportunities in EU 27
United Nations Development Programme, Current Tenders
Investnet, Selected tenders
Globaltenders, Tenders & Projects from Bulgaria
DgMarket, Tenders Worldwide

Other Useful Resources

Bulgarian Chamber of Commerce and Industry

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