Successfully investing in Bulgaria

published on December 7, 2018

  

How do you assess the current economic situation in Bulgaria?

The current economic situation in Bulgaria can be assessed as very promising. In 2017, Bulgaria – compared to the last 7 years – reported higher economic growth (an interim rate of approx. 3.6  per cent). The outlook for the current year is also positive, according to experts. This is particularly to be thanked to the country's financial stability and good investment environment.
  

How would you describe the investment climate in Bulgaria? Which sectors offer the largest potential?

Bulgaria continues to be very attractive to foreign investors, with German and Austrian investors at the top of this list. Bulgaria's good investment climate is stimulated by advantageous tax conditions: Bulgaria applies a uniform tax rate of 10 per cent for personal income and corporation tax. Investors are also lured by the low labour costs (average salary is about 575 Euro, while the minimum wage has been about 260 Euro since 1 January 2018) and the high availability of highly qualified specialists. An advantage for German investors lies also in the fact that Bulgaria has German-speaking employees and qualified specialists who completed studies abroad.
 
Due to its geopolitical location at the junction between Western and Central Europe and the growing Asian markets, Bulgaria is an attractive destination serving as a trading hub for the Balkans and the Middle East. Among the world's leading manufacturers, Bulgaria holds one of the top positions as a destination for outsourcing production activities. The service sector has the largest value-added contribution (of 67.4 per cent), followed by the industry (28.3 per cent) and the agricultural sector (4.3 per cent). In addition, the IT industry and the automotive industry have recorded particularly strong growth rates in recent years.
  

What challenges do German companies face during their business ventures into Bulgaria?

A foreign investor venturing into Bulgaria must face up to various challenges. The sluggish administration and bureaucracy are the greatest challenges requiring a lot of patience and time. As in any foreign market, foreign investors also find themselves confronted with a different corporate culture and a different legal system.
 

What impact do Germany and the EU have on Bulgaria?

For the first time since its accession to the European Union, Bulgaria assumed the presidency of the Council of the EU on 1 January 2018 (the Council presidency). As a community based on stability and with its internal market without borders and trade barriers, the European Union offers Bulgaria considerable economic assistance, free flow of capital, and free movement of workers. By placing the focus on consumer and climate protection and by running various EU aid programmes, the EU has an impact on the policies of the country's political and social development.

 

Bulgaria regards the Federal Republic of Germany as its key strategic partner in the EU. Germany has positioned itself as the most important trading partner of Bulgaria for years, as regards both import and export. Bulgaria's stable investment climate and a large number of German-speaking employees make the country particularly attractive to German investors. Since Bulgaria's accession to the European Union, Germany has established itself as the best destination for Bulgarians due to its favourable conditions for foreign students and the abundance of job offers.
   

In your opinion, how will Bulgaria develop?

Bulgaria’s political and economic development is moving in the direction given by the EU. Thus, the investment environment will remain very favourable also in future.
 

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