IS IT SAFE TO INVEST IN BULGARIA?

Political and economic data

Political system: parliamentary republic;
Stable political environment & low country risk - NATO member since May 2004;
EU membership since January 2007;
Sustained GDP growth of 4.7-4.9 % per year;
GDP, 2005 – $71.67 billion;
Very competitive labor costs compared to the rest of Europe;
Very competitive tax regime - 10% corporate profit tax as of 1 January 2007;
Well educated, highly trained English speaking workforce;
Strategic geographic location on the trans-european transport corridor;
The Bulgarian currency, the Leva is pegged to the euro - reducing currency risk;
On track to join euro currency zone in 2009 ahead of many other central European countries that
joined the EU in 2004;
Recently signed Open-Skies accord allowing international airlines to fly to Bulgaria;
Budget airlines Wizzair and SkyEurope already fly to Sofia with Ryanair and Easyjet expected soon
after EU membership in January 2007;
Property prices remain amongst the lowest in Europe and are expected to increase further with EU
membership;
The Bulgarian tourist market is growing by 22% per year with opportunities for beach, ski, golf and
spa tourism;
Lower operational costs for water supply and construction works compared to other CEE countries;
Mortgages of 70% loan to value are readily available.


Major investment incentives

Corporate tax rate – 10% (5% decrease in 2007) and 0% in areas of high unemployment. A new scheme of 100 percent remission of corporate income tax for 5 subsequent tax years is granted to investors, carrying out production activities, including production of goods using client's materials, in regions of high unemployment. The conditions to be satisfied by the persons that may make use of the relief are as follows:

The sites of the taxable person should be located entirely within the administrative boundaries of the municipalities (according to a list annually approved by the Minister of Finance) where during the proceeding year the unemployment has been 50% higher than the average in the country for the same period;
80% of the average number of personnel hired under legal terms of employment in the year during which the relief is used, has a permanent address within the administrative boundaries of the municipality under the above mentioned list;
For the calendar year for which the remission of the tax is used the taxable person has no liquid and executable tax liabilities and liabilities for obligatory social and health insurance.

VAT exemption for imports for investment projects over € 5 million;
Annual depreciation rate of 30% for machinery & equipment & 50% for software and hardware
Substantial asset discount prior to the EU membership compared to the rest of Europe;
Opportunity to buy land through a company registered in Bulgaria with up to 100% foreign ownership;
Institutional support for priority investment projects;
Adoption of International Accounting Standards;
51 treaties for avoidance of double taxation;
55 agreements on mutual protection and promotion of foreign investment.


More Information Regarding Why To Invest In Bulgaria ...

Since 2001 Bulgaria and its resorts have become a desired destination for many foreign businessmen with its beauty, still merging market and its developing potential, growing bigger and bigger every year. Buying land in Bulgaria was impossible just 10 years ago but right now it is not just possible but a really easy and promising venture.

Our legal experts have rich long-year experience, profound knowledge and capability which allow them to be maximum helpful to you in your initiatives. Our fees for professional legal assistance and advice are based on how much time a certain activity takes and how complicated is the posed problem, and respectively a legal advisor with what qualification takes up its solving.
 

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