International companies consider to invest in Bulgaria, after UK voted to leave the European Union. There is a strong interest from foreign investors to move their operations in large industrial areas such as Sofia, Plovdiv, Burgas and even smaller cities in Northern and Central Bulgaria. The opportunity to minimize taxation and reduce business costs makes the country an attractive destination.
Why Bulgaria?
- Political and business stability of the country
Bulgaria is a member of the European Union and has a stable currency - BGN pegged to EUR with a fixed rate of 1 EUR = 1.95583 BGN.
Corporate income tax rate is 10%, the lowest in the EU. The VAT rate is 20%, with a reduced rate of 9% applying to hotel accommodation services. Exports and intra-community supplies are zero-rated. Bulgaria has currently Double Taxation Avoidance Agreements with 69 countries.
- Low cost of doing business
Bulgaria has one of the most competitive costs of labour in Central and Eastern Europe. At the same time the country is offering well educated, multilingual and talented workforce.
- Strategic location - Bulgaria is a strategic logistic hub
Pan-European transport corridors pass through the country. There are two major ports at the Black Sea – Burgas and Varna and a number of ports at the Danube river. All goods manufactured in Bulgaria are with EU origin and are exported to other member states without duty or VAT.
Most of the companies interested to invest in Bulgaria are coming from the automobile, pharmaceutical, cosmetic and food industries. It is expected that the number will continue to grow in other branches as well.
Bernstein is currently negotiating with several UK companies willing to move their operations and trade activities in Europe.
