This is the first question that comes into mind to an investor when planning to optimize his tax burden and respectively make his business more profitable. What will the gains be from such undertaking, is such a decision going to justify the costs that will occur, what can Bulgaria offer to my business that others countries can’t – such questions are important to be clarified in order for us to be of assistance to the foreign business.
In the last few years Bulgaria has been in the close focus of the investors’ interest. The political stability and predictability due to the NATO membership and to the EU accession, the stable economic perspective and the growing credit rating of the country and its institutions were only some of the elements attracting the investors’ interest.
External investors have been attracted by rapidly developing national industry, highly skilled workforce and significant new market. The Bulgarian government is taking considerable steps and has elaborated measures to meet the challenges of the global economic challenges and demands, to maintain Bulgaria’s financial and macroeconomic stability and constantly improve the business climate.
The reasons for choosing Bulgaria as the top destination for your investments are numerous and here we will list the most important of them that need to be seriously taken into consideration by future investors in Bulgaria.
• Stable political environment & low country risk:
• NATO membership
• EU membership
• Macroeconomic and financial stability:
• Real GDP growth rate
• No currency risk, local currency is pegged to Euro
• Budget surplus for the previous 5 years (-3.9% for 2010)
• Investment grade credit rating by major rating agencies
• EU’s most attractive taxes:
- 10% corporate income tax rate;
- 0% in high-unemployment areas
- 10% flat tax rate on personal income
• 2-year VAT exemption for imports of equipment for investment projects over € 5 million, creating at least 50 jobs
• Depreciation of 2 years for computers and new manufacturing equipment
• Opportunity for R&D expenditure write-off
• 5% withholding tax on dividends and liquidation quotas (0% for EU tax residents )
• Strategic geographic position as a bridge between Europe and Asia
• Labour force good characteristics:
- Highly skilled, multilingual work force
- Europe’s most competitive salary levels
- 45,000 Bulgarian students in Europe
• Europe’s lowest operational costs
• Free movement of capital, goods and people
• No restrictions on after-tax repatriation of profits
• Up to 1 year minimum salary and reimbursement of social/health care security for employing young people and disadvantaged people through the Employment Agency
• Government financial support for priority investment projects
• Excellent climate, natural scenery, food and hospitality