Bulgaria: Opportunities for Investors
EU-Member-State Bulgaria joined the Community Internal Market that already counts nearly 500 million people and has a GDP of around EUR 10.8 trillion. In this enlarged area Bulgaria makes its own development contribution, which should be considered with the comparative advantages of the country in mind: its specific geographical position, the quality of its labor force, and cultural specificity. Taking into account all these, the country has the potential to attract further investments in the real estate, tourism, agriculture, and industry sector, continuing the trend of the last several years. It is also important to point out that the infrastructure in Bulgaria is still underdeveloped, and a lot of funds may be needed for the growth of this sector.
Given the framework provided by the Lisbon strategy for growth and sustainable development in the EU, Bulgaria has the potential to develop within the high technology sector, using its well-educated human resources, which should be retained in the country to the extent possible. However, it must be kept in mind that Bulgaria is a market economy, and the particular sectors depend on the specific market situation.
Investment Climate in Bulgaria
Predictability
> Five year average GDP: growth of 5.3%
> Budget surplus, low inflation, currency peg to EUR
> 90% private economy
> EU accession in 2007, NATO member
> Investment grade rating BBB+ (S&P/Fitch)
> Foreign direct investment at 16.7% of GDP (EUR 4.1 billion in 2006)
Quality
> 7% of workforce has engineering degrees
> Motivated and entrepreneurial attitude
> Strong institutional support for foreign investors by IBA
> No restrictions to capital flows
> Ample opportunities for all-season outdoor recreation
> Diverse cultural heritage and art activities
> World renown food and beverages
> According to the Global Services Location Index 2007 (AT Kearney) Bulgaria is the only European country in Top 10 according to financial attractiveness, people skills & availability and business environment
Competitiveness
> Highly qualified work force
> 10% corporate tax rate
> Tax exemptions and investment incentives for qualified invest¬ment
> Among lowest operational cost in a European market economy
> Duty free trade covering markets with over 550 million customers
> 61 double taxation treaties and 66 agreements on the mutual protection and promotion of foreign investment
Southeast Europe´s leader in attracting FDI
Source: Invest Bulgaria Agency
