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In 2016 too, Bulgaria remains among the countries with the lowest tax burden on businesses, thanks to the 10% flat tax on profits and 5% on dividends.
During 2015, more than 60,000 Greek companies relocated to Bulgaria, incorporating under Bulgarian law and transferring their activities, both to avoid the serious problems caused by the freeze in the Greek banking system and because of excessive taxes imposed by the European Union and the International Monetary Fund.
The latest GDP estimates for 2016 suggest substantial growth of between 2.5% and 3%, while public finances, helped by increased foreign direct investment and strong export performance, are under control and will close 2015 with a lower-than-expected deficit, in any event below the 3% threshold.
Low inflation is also expected to rise as wages increase, avoiding deflation and strengthening Bulgaria's domestic economy.
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