特別会員寄稿

Why Bulgaria is your new top
investment destination
Bogdan Bogdanov
Executive Director, InvestBulgaria Agency (IBA)

Political and business stability
Bulgaria is a member of the European Union andNATO and in 2022 started negotiations for joining
OECD. Bulgaria is part of the EU single market of 500
million people and has trade agreements with over 80
countries in the world.
The stability of the currency is supported by thecurrency board, pegging the Bulgarian lev to the euroat the level of 1.96. Bulgaria has one of the lowest
government debts in the European Union (18.9 % ofGDP) and one of the lowest budget deficits (-1.5%) asof 2013. Bulgaria is working to join the Eurozone andthe Schengen area.

•Four major airports: Sofia, Plovdiv, Varna andBurgas• Two main seaports: Varna and Burgas• Numerous ports along the Danube River
Bulgaria provides an educated and skilled workforce.
25% of the population hold university degree; 50% of
the population speak at least one foreign language.
62.2% of the population is in working age (approx. 4.6million). Bulgaria is among the leaders in the worldrankings in mathematics and other scientificcompetitions.
The fastest growing sectors in Bulgaria are: automotive,mechanical engineering, health & life science, electronics,IT & BPO, robotics & mechatronics.

Low cost of doing business
Bulgaria has the most favorable tax regime in Europe.
Corporate income tax rate is 10%, the lowest in theEU. Personal income tax is 10%, flat rate. Industries inhigh-unemployment areas are granted 0% tax rate.
There is a 2-year VAT exemption for imports ofequipment for investment projects over €5 million,
creating at least 50 jobs, as well as 5% withholding tax
on dividends and liquidation quotas (0% for EU taxresidents). Bulgaria has one of the most competitive
costs of labor in Central and Eastern Europe. Thecountry provides favorable office rents and low cost ofutilities.

Strategic location
Located at the heart of the Balkans, Bulgaria is a
strategic logistics hub. Ease of transportation of cargo
is provided by:• Five Pan-European corridors (IV, VII, VIII, IX, X)
which pass through the country.

The automotive and mechanical industry accounts
for 11% of Bulgaria’s GDP with €4.3 Bn turnover.
Nearly 300 companies operate in this sector andemploy around 70,000 people. Bulgaria is among thebiggest automotive parts producers in Europe.
80% of the sensors in all European cars are made inBulgaria.
Health and life science industry is one of the strongest
in Bulgaria accounting for 15% of the GDP and 7.7%
annual growth. With more than 20,000 companies andorganizations in the sector it generates turnover of€13.5 Bn. The market value of pharmaceutical products
manufactured in Bulgaria amounts to €2 Bn. Bulgaria
has 9 medical and healthcare universities and 128
medical centers engaged in research activities. 1/3 ofthe students enrolled in medical and healthcare studies
in Bulgaria are foreigners, among whom a growing
number of Japanese students.

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Bulgaria is one of the 14 countries which participate in
the initiative MEGA (The Million European GenomesAlliance) to give access to 1 million genomes inEurope by 2020.

& BPO sector.
Two outstanding examples in IT & BPO are Bulgaria’s
first Unicorn – Payhawk and the Bulgarian company
EnduroSat.

Bulgaria also hosts the Institute for Computer Science,
Artificial Intelligence, and Technology (INSAIT) which
is set to become the research powerhouse of Eastern
Europe and one of the world’s leading research centers
for computer science and AI. Leading international
technology companies have already recognized theimportance of INSAIT. The Institute is funded among
others by Google, DeepMind and Amazon Web Services.

Payhawk is a fintech company that develops smart cards
and a platform that revolutionizes the processes offinancial departments and allows cost statements to beeliminated altogether. The company serves businesses
in 30 countries across a variety of industries, currencies,and payment methods.

The electronics sector is No. 1 sector in Bulgaria perexport and accounts for 11% of the total export ofBulgaria. The electronics sector enjoys 9% annual
average growth with annual turnover of €3.7 Bn.
There are 16 universities in the country with electricalengineering and electronics majors and each year
around 20,000 students enroll in engineering.
Bulgaria is in the Top 10 countries in the world with thefastest mobile internet connection. IT & BPO is thefastest growing sector in Bulgaria with € 3.3 Bn turnover.
The average annual growth of the sector is a staggering
19%. It employs more than 6,000 companies withnearly 80,000 employees. Bulgaria has excellent
traditions in IT and experienced specialists in the fieldof computer science and software engineering. Today
IT education is the most preferred major among
Bulgarian students. Currently, 35 Bulgarian universities(18 with ICT majors) prepare students for jobs in the IT
362023.3EnduroSat creates a new generation of software-definednanosatellites and provides space services to visionary
companies, universities, and research teams around theworld. Shared satellite service that allows launchingand orbiting sensors (cameras, communication systems,and electronics). The company aims to accelerate space
innovation by providing easy and fast access to spacefor entrepreneurs, scientists, and technologists.
In recent years Bulgaria has put an effort in developing
its robotics & mechatronics sectors to support andincrease the investments in machinery and automation.
This development will implement additional tools,programs, and campaigns which will empower themodernization of the Bulgarian industry.
The Bulgarian manufacturing industry boats 20.2%
growth – the strongest growth within the EU. The
main sub-sectors are food, textile, furniture, plastic
and metal production, and manufacturing of vehicles
and other transport equipment.

The InvestBulgaria Agency (IBA) is a governmentalorganization under the Ministry of Innovation andGrowth of the Republic of Bulgaria established to attract
investments to Bulgaria by applying various investment
incentives. The Bulgarian Government has allocatedmore than €20 Bn till 2030 for business projects.
Under the Investment Promotion Act, IBA provides
financial and non-financial incentives to the investors,
such as financial support for training; social security
cash back; construction of elements of the technicalinfrastructure; cash grants; shortcuts on administrativeterms; individual administrative and informationsupport; task force for institutional support; establishmentof public-private partnerships with municipalities,universities, and other organizations; acquisition of land,
which is owned by the Government or by Municipalities.
IBA supports the successful implementation ofprojects in various sectors, leading to the creation ofnew jobs, import and export, transfer of know-how to
the Bulgarian economy, etc. A good dialogue between
IBA and the business will facilitate more sustainable
and effective policies for the development and support

IBA and JOI concluded a MOU to promote Japanese FDI
towards Bulgaria in September 2023.
Photo: from left to right, Mr. Kosugi (President of JOI), H.E.
Mrs. Arabadjieva (Ambassador of Bulgaria to Japan) and
Mr. Bogdanov (Executive Director of IBA).

of investments in these challenging and complex times.
IBA is your reliable, long-term and competent partner
which will help you become familiar with the investment
climate and business opportunities in Bulgaria and will
support you at all stages of the investment process.
InvestBulgaria Agency (IBA)
iba@investbg.government.bg
https://investbg.government.bg/
https://www.facebook.com/InvestBG
https://twitter.com/agency_invest

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