Political and Social Stability
In the last 15 years, Bulgaria has experienced a rather troubled transition from communism to democracy, however the progress which the country has made in the past 5 years is undisputable:
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The country joined as a full member the European union in 1st of January 2007
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Bulgaria became a NATO member in April 2004
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The Bulgarian national currency, leva (or BGN) is currently very stable and linked to the EURO
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Very low crime levels (in fact lower than the average in the EU)
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One of the countries in Europe with the lowest costs of living
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Bulgaria is praised on international level for its progress, legal, political and economic reform.
And this is what a serious investor would consider – a safe environment and profitable way to invest his money!
Economic Factors
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In 1997 Bulgaria entered into agreement with the IMF, which resulted in the creation of the Currency Board and a substantial decrease in the inflation levels, which are at present set at 7.7%
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As the market was liberalized, the foreign trade between Bulgaria, the EU and EFTA and CEFTA countries was substantially enhanced;
The GDP growth between 1999 and 2006 has increased from 2.5% to 5.3%
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The economic growth in 2006 was 6%.
More Investment Incentives
Corporate tax rate – 19.5% (down to 15% in 2005) and 0% in areas of high unemployment.
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VAT exemption for imports for investment projects over € 5 million Annual depreciation rate of 30% for machinery & equipment & 50% for software and hardware Substantial asset discount prior to the EU membership compared to the rest of Europ.
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Opportunity to buy land through a company registered in Bulgaria with up to 100% foreign ownership
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Institutional support for priority investment projects
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Adoption of International Accounting Standards
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51 treaties for avoidance of double taxation
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55 agreements on mutual protection and promotion of foreign investment.