INVESTING IN BULGARIA
In the Balkans, Bulgaria is the best place to increase one's investments, diversify or reorient production, gain competitiveness in emerging markets and reach Southeast Asian and Arab markets easily and at limited cost.
The strengths are as follows:
1) Political stability: guaranteed by Bulgaria’s accession to NATO in 2004 and to the European Union in 2007. EU membership is fundamental for businesses within the Community. Indeed, free movement of people, capital, goods and services within the Union is a fundamental principle of the union of the European people. This gives the entrepreneur-investor assurance of harmonised laws and legal protection, as well as a trend towards secure development in Europe’s peripheral countries, which will develop much faster in the coming years to catch up with the common market;
2) The lowest taxation in the EU. In 2008 Bulgaria adopted a simple, modern tax system: both legal entities and individuals are taxed at a flat rate of 10%, while dividends are taxed at 5%; there are no taxes on production.
3) Low-cost electricity: despite increases in recent months, electricity in Bulgaria is the cheapest in the EU. Bulgaria produces abundant electricity and can therefore export it. Low energy prices further enhance the competitiveness of manufacturing activities.
4) Low labour costs: Bulgaria has the lowest labour costs in the 28-country European Union. When properly motivated and paid, Bulgarian labour delivers excellent returns.
5) Low logistics costs: thanks to European funds, Bulgaria has acquired extensive industrial areas, with new ones under construction. Low logistics costs help avoid severe financial difficulties during the start-up phase.
6) Low start-up costs and rapid implementation: setting up a company in Bulgaria is easy and inexpensive. The Bulgarian Chamber of Commerce is fully computerised and costs are very low. Given the simplicity of the basic legal framework, it is always useful to consult professionals with advanced standards to establish the structure best suited to one's requirements.
7) Motivated and educated young people: Bulgaria has good universities throughout its territory. Many young people have already had professional or educational experience abroad; their knowledge of English is very good. Young people want to develop and achieve the prosperity of their European peers, and are therefore highly motivated. Foreign investors can easily find qualified personnel.
8) Located in the heart of the Balkans, Bulgaria is a strategic crossroads between Europe, Southeast Asia, Turkey and Russia. Trade is supported by Bulgarian entrepreneurship's historical tradition of international commerce.
9) Monetary stability: the Bulgarian lev is linked to the euro through international treaties under a fixed exchange rate system of BGN 1 = EUR 1.95;
10) Economic stability: Bulgaria has very low public debt, which in 2014 should not exceed 20% of GDP. Despite the economic crisis that swept Europe in 2009, Bulgaria did not increase its debt and contained public expenditure. A deficit that is not excessive means that Bulgaria is free from banking control pressures and can afford to grow without being subjected to blackmail. Bulgaria also complies with the Community deficit/GDP limits and, in the coming years, will be able to concentrate on development, research and infrastructure without having to resort to fiscal expropriations to meet commitments to reduce public spending and government debt, which will mortgage the economic recovery of Europe’s most important economies.
Bulgaria has many strengths which, to achieve the best results, need to be supported by professional and innovative skills capable of meeting the challenges of international markets.
The union between Italy and Bulgaria will offer a more secure source of success in the coming years for all entrepreneurs who manage to overcome differences and decide to face the challenges of internationalisation.
The international law firm De Amicis & Petrova will be pleased to accompany you on this path.