Transcript of June 2014 Bulgaria Investment climate and business opportunities.
- Slide 1
- June 2014 Bulgaria Investment climate and business
opportunities
- Slide 2
- Investments and economic relations Why invest in Bulgaria?
Government incentives
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- FDI Inflow: Source: Bulgarian National Bank In million euro
Investments and economic relations
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- FDI Inflow: Source: Bulgarian National Bank Investments and
economic relations
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- The role of Italy as a trade partner for Bulgaria: Investments
and economic relations
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- .. Bulgarian trade relations Why invest in Bulgaria?
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- Political and business stability EU and NATO member Currency
board Low budget deficit and government debt Low cost of doing
business 10% corporate tax rate (0% in high unemployment areas) 10%
personal income tax Lowest cost of labor within EU Favorable office
rents and low cost of utilities Access to markets European Union /
EFTA Russia Turkey / Middle East Educated and skilled
workforce
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- Real GDP Growth: Source: Eurostat Why invest in Bulgaria?
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- Taxation in Bulgaria: Source: Worldwide - tax Country Income
Tax (%)Social Security (%) VAT (%)
CorporateIndividualEmployerEmployee Bulgaria10 17.9-18.512.920
Serbia1510-2016.9 20 Romania16 28.4516.524 Hungary10/191628.518.527
Czech Rep.1922341121 Poland1918/3222.1413.723 Turkey2015-35271518
Slovakia2319-2534.813.420 UK230-4513.81220 Italy27.523-43301021
Spain3024, 75-5229.96.3521 Germany 30-33 (effective)
14-4519.720.619 France33.335.5-41502019.6 Why invest in
Bulgaria?
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- Business costs in Bulgaria: Why invest in Bulgaria?
LocationPrice Q1 2013, EUR/sq m/month Office prime rent in Sofia
CBDClass A 10-12 Office prime rent in Sofia non CBDClass A 8 11
Office rent in SofiaClass B 5 8 Office prime rent in PlovdivClass A
4 - 6 Office prime rent in VarnaClass A 3 6 Office prime rent in
BurgasClass A 3 - 5 Prime rent for contemporary industrial space3-5
Industrial construction Prime industrial and logistics, Sofia
region EUR/sq m/350-450
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- Business costs in Bulgaria: /GJ, 2013/kWh, 2013 Source:
Eurostat Why invest in Bulgaria?
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- Potential fields of collaboration Services: Transport and
Logistics Information technologies Outsourcing of business
processes Health and tourism related to healthy lifestyle Industry:
Transport equipment and machine building Electronics and Electrical
engineering Chemical industry Food and Agriculture Resources:
Mineral bottled water Sea and winter resorts Balneology Why invest
in Bulgaria?
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- Government incentives
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- Legal framework for investing in Bulgaria: Equal treatment of
Bulgarian and foreign investors Thresholds of investments that need
to be covered in order to apply for investment certificate Class A,
B and Priority investment projects Business plan and several
standard documents required
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- Government incentives Investment incentives under the
Investment Promotion Act: Acquiring state or municipal land without
a tender procedure (investments Class A and B) Financial support
for construction of technical infrastructure elements (only for
class A) Acquiring state or municipal land without a tender
procedure on a lower cost, but not lower than the price evaluation
for tax purposes (Priority investments) Lower tax rate on changing
the status of the acquired land (Priority investments)
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- The incentives for class A and B could be: Shortened
administrative procedures Reimbursement of labor costs paid by the
employer Financial support of up to 25% of the entire costs for
specific training of minimum 50 employees The incentives for
Priority investment projects could be: All the incentives for Class
A and B Financial grants of up to 50% for education and R&D
projects; and up to 10% for manufacturing projects Government
incentives Investment incentives under the Investment Promotion
Act:
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- Legal framework for investing in Bulgaria: Government
incentives Tax incentives: 10 % corporate tax (flat rate) 0 %
corporate tax in areas with high unemployment rate 10 % personal
income tax rate (flat rate) VAT exempt for import of equipment for
investment projects
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- Thank you for your attention! Sofia 1000, 31 Aksakov Str.
Phone: (+359 2) 985 5500 Fax: (+359 2) 980 1320 E-mail:
iba@investbg.government.bg Web: www.investbg.government.bg