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INVEST
BULGARIA
PRODUCTION
PLACE BULGARIA
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NEST
Agency - Invest in Bulgaria - Your Strong Partner for Bulgaria |
The
business location Bulgaria is very profitable for international
investors. Optimal access to the grwoth markets auf Eastern
and Southeastern Europe, a highly educated and motivated workforce,
state-of-the-art infrastructure and a high-tech environment
go without saying in Bulgaria.
Moderate
corporate taxation, attractive research incentives and efficient
public services make the framework for the economic success
of companies.
Social
and economic stabilit, combined with high test quality of
life, make Bulgaria the ideal location for your investment. |
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Productivity
& Quality |
The
level of industrial productivity in Bulgaria has historically
been high, and is now on a par with that of Germany. Bulgarian
industry has succeeded in posting higher productivity gains
than Germany in recent decades. |
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Education |
Bulgaria’s
educational system is numbered among one of the best in the
world – and it is largely oriented toward the needs
of the business world. Serving this end are a practice-oriented
educational system for skilled workers, a diversity of vocational
schools and a close cooperation between institutes of higher
education and the business community – all unique in
the world. |
Taxes |
One
of Bulgaria’s foremost attractions as a business location
is its business-friendly tax system. Profits are taxed with
a standard tax rate of 10 percent - a strong showing even
in comparison to the older and the new EU member states. |
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Business
Subsidies |
Bulgaria
offers foreign investors a wide range of subsidies for small
and medium-sized enterprises (SMEs), research and development,
company start-ups, investment and new technology. These extend
from cash grants and preferential rates of interest through
to the provision of guarantees. These exceptionally generous
provisions enable companies to take up support programs tailored
to their specific requirements.
Priorities
for business support
Support
of research and development activities;
Strengthening of the competitiveness of SMEs;
Improvements in regional structures;
Promotion of environmental protection;
Promotion of training and staff development.
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Infrastructure |
Bulgaria
is not just the geographical heart of the New Europe –
it’s also assuming a central position in the eyes of
many international concerns as a distribution center and logistical
hub between West and East. The
premise for more dynamic economic space is a good functioned
infrastructure. On the Telecommunication sector is Bulgaria, compared to the other CEEC
at the top places. Modern Cable networks and High
speed data transmitting connect the whole country. The modern
Energy guarantee the supply with electricity, oil and in the
future with gas on the whole territory. |
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Quality
of life |
Culture,
environmental quality, high living standards, security, classic
dwellings and shopping - Bulgaria has it all and more, when
it comes to everyday quality of life. |
Bulgaria:
East - West business interface |
Bulgaria’s
central geographical position provides ideal access to the
emerging markets of Russia, Central & Eastern Europe and
Asia. The modern highways and freeways, and dense network
of air routes mean that all areas of West, Central & Eastern
Europe are quickly reachable from Bulgaria.
Thanks to Bulgaria’s membership in the European Union,
not only can all the benefits of the single market be exploited,
but the country’s role as a crossroads between North
and South, East and West provides strategic advantages for
companies involved in international trade. Experienced Bulgarian
freight forwarding companies, and excellent transportation
links via road, rail, inland waterway and air ensure good
logistics.
Apart
from its ideal geographical location, Bulgaria has the additional
advantage that it serves as a center for a large number of
service companies with outstanding Central & East European
know-how.
And
the Bulgarian banking sector is also exceptionally familiar
with the region. The banks‘ financial experts have a
great deal of in-depth knowledge of the markets in question,
and they have built up strong networks of branches throughout
the transitional countries.
Bulgaria’s
economic, social and political stability is a further significant
advantage.The low crime rate and the high security of justice
is very attractive to foreign investors.
Because
of all these advantages over one thousand transnational companies
have opted for Austria as a business location, and use it
as a base to coordinate their Central & Eastern European
operations. Renowned concerns have set up East-West headquarters
in Bulgaria.
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Bulgaria
in the EC |
Since
January, 1, 2007 is Bulgaria Member of EU- the world’s
richest domestic market.
The
European Union – with more than 372 Million consumers
– is the world’s largest market. And as an EU
member, Bulgaria offers full access to this rich market.
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High
level of employment |
Bulgaria´s
economic stability is one reason for the high employment rate.
Not only within the EU - but worldwide, Bulgaria has gained
a top position when unemployment rates are concerned |
In
Bulgaria you can feel secure |
When
it comes to security of persons and property, Bulgaria is your
place for investment and leisure. |
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Social
security |
Bulgaria’s
good industrial relations stem from the social partnership
system, established after the changes, under which problems
are settled by negotiation. Agreements negotiated "around
the table" by representatives of labor and industry (the
government, the trade unions, KNSB and Podkrepa, the Bulgarian
Chamber of Commerce and Industry). |
BULGARIA
- Facts |
Location: Southeastern Europe,
bordering the Black Sea, between Romania and
Turkey
Area total: 110,879 sq km
land: 108,489 sq km
water: 2,390 sq km
Land boundaries:
total: 1,808 km
border countries: Greece 494 km, Macedonia 148 km, Romania
608 km, Serbia 318 km, Turkey 240 km
Coastline: 354 km
Maritime claims:
territorial sea: 12 nm
contiguous zone: 24 nm
exclusive economic zone: 200 nm
Climate: temperate; cold, damp winters; hot, dry summers
Terrain: mostly mountains with lowlands in north and southeast
Elevation extremes:
lowest point: Black Sea 0 m
highest point: Musala 2,925 m
Natural resources: bauxite, copper, lead, zinc, coal, timber,
arable land
Population:
7,204,687 (July 2009 est.)
country comparison to the world: 99
Age structure:
0-14 years: 13.8% (male 509,544/female 484,816)
15-64 years: 68.5% (male 2,426,060/female 2,508,772)
65 years and over: 17.7% (male 518,711/female 756,784) (2009
est.)
Median age:
total: 41.4 years
male: 39.2 years
female: 43.6 years (2009 est.)
Population growth rate:
-0.79% (2009 est.)
country comparison to the world: 232
Birth rate:
9.51 births/1,000 population (2009 est.)
country comparison to the world: 205
Death rate:
14.31 deaths/1,000 population (July 2009 est.)
country comparison to the world: 22
Net migration rate:
-3.11 migrant(s)/1,000 population (2009 est.)
country comparison to the world: 150
Urbanization:
urban population: 71% of total population (2008)
rate of urbanization: -0.3% annual rate of change (2005-10
est.)
Infant mortality rate:
total: 17.87 deaths/1,000 live births
male: 21.28 deaths/1,000 live births
female: 14.25 deaths/1,000 live births
Life expectancy at birth:
total population: 73.09 years
male: 69.48 years
female: 76.91 years
Ethnic groups:
Bulgarian 83.9%, Turk 9.4%, Roma 4.7%, other 2% (including
Macedonian, Armenian, Tatar, Circassian)
Religions:
Bulgarian Orthodox 82.6%, Muslim 12.2%, other Christian 1.2%,
other 4%
Languages:
Bulgarian 84.5%, Turkish 9.6%, Roma 4.1%, other and unspecified
1.8% (2001 census)
Country name: Republic of Bulgaria
conventional short form: Bulgaria
Government type:
parliamentary democracy
Capital: Sofia
Administrative divisions:
28 provinces (oblasti, singular - oblast); Blagoevgrad, Burgas,
Dobrich, Gabrovo, Khaskovo, Kurdzhali, Kyustendil, Lovech,
Montana, Pazardzhik, Pernik, Pleven, Plovdiv, Razgrad, Ruse,
Shumen, Silistra, Sliven, Smolyan, Sofiya, Sofiya-Grad, Stara
Zagora, Turgovishte, Varna, Veliko Turnovo, Vidin, Vratsa,
Yambol
Independence: 3 March 1878 (as an autonomous principality
within the Ottoman Empire); 22 September 1908 (complete independence
from the Ottoman Empire)
National holiday: Liberation Day, 3 March (1878)
Legal system: civil and criminal law based on Roman law; accepts
compulsory ICJ jurisdiction with reservations
Suffrage: 18 years of age; universal
Executive branch:
chief of state: President Georgi PARVANOV (since 22 January
2002); Vice President Angel MARIN (since 22 January 2002)
head of government: Prime Minister Boiko BORISOV (since July
2009);
elections: president and vice president elected on the same
ticket by popular vote for a five-year term (eligible for
a second term); election last held 22 and 29 October 2006
(next to be held in 2011); chairman of the Council of Ministers
(prime minister) elected by the National Assembly; deputy
prime ministers nominated by the prime minister and elected
by the National Assembly
Legislative branch:
unicameral National Assembly or Narodno Sabranie (240 seats;
members elected by popular vote to serve four-year terms)
elections: last held 5 July 2009 (next to be held mid-2013)
election results: percent of vote by party - GERB 39.7%, BSP
17.7%, MRF 14.4%, ATAKA 9.4%, Blue Coalition 6.8%, RZS 4.1%,
other 7.9%; seats by party - GERB 116, BSP 40, MRF 38, ATAKA
21, Blue Coalition 15, RZS 10
Judicial branch:
independent judiciary comprised of judges, prosecutors and
investigating magistrates who are appointed, promoted, demoted,
and dismissed by a 25-member Supreme Judicial Council (consists
of the chairmen of the two Supreme Courts, the Chief Prosecutor,
and 22 members, half of whom are elected by the National Assembly
and the other half by the bodies of the judiciary for a 5-year
term in office); three levels of case review; 182 courts of
which two Supreme Courts act as the last instance on civil
and criminal cases (the Supreme Court of Cassation) and appeals
of government decisions (the Supreme Administrative Court)
Political parties and leaders:
ATAKA (Attack Coalition) (coalition of parties headed by the
Attack National Union); Attack National Union [Volen SIDEROV];
Agrarian National Union or ANU [Stefan LICHEV]; Blue Coalition
(a coalition of center-right parties dominated by UDF and
DSB); Bulgarian New Democracy [Borislav RALCHEV]; Bulgarian
Socialist Party or BSP [Sergei STANISHEV]; Citizens for the
European Development of Bulgaria or GERB [Tsvetan TSVETANOV];
Coalition for Bulgaria or CfB (coalition of parties dominated
by BSP) [Sergei STANISHEV]; Democrats for a Strong Bulgaria
or DSB [Ivan KOSTOV]; Gergyovden [Petar STOYANOVICH]; Internal
Macedonian Revolutionary Organization or IMRO [Krasimir KARAKACHANOV];
Liberal Initiative for Democratic European Development or
LIDER [Khristo KOVACHKI]; Movement for Rights and Freedoms
or MRF [Ahmed DOGAN]; Movement Forward (LIDER, IMRO, ANU,
Gergyovden); National Movement for Stability and Progress
or NDSV [Simeon SAXE-COBURG-GOTHA] (formerly National Movement
Simeon II or NMS2); New Time [Emil KOSHLUKOV]; Order, Law,
Justice or RZS [Yane YANEV]; Union of Democratic Forces or
UDF [Martin DIMITROV]; Union of Free Democrats or UFD [Stefan
SOFIYANSKI]; United Agrarians [Anastasia MOZER]
Political pressure groups and leaders:
Confederation of Independent Trade Unions of Bulgaria or CITUB;
Podkrepa Labor Confederation
other: numerous regional, ethnic, and national interest groups
with various agendas
Economy - overview:
Bulgaria, a former Communist country that entered the EU on
1 January 2007, has experienced strong growth since a major
economic downturn in 1996. Successive governments have demonstrated
a commitment to economic reforms and responsible fiscal planning,
but have failed so far to rein in rising inflation and large
current account deficits. Bulgaria has averaged more than
6% growth since 2004, attracting significant amounts of foreign
direct investment, but corruption in the public administration,
a weak judiciary, and the presence of organized crime remain
significant challenges.
GDP (purchasing power parity): $93.78 billion (2008)
country comparison to the world: 68
$88.48 billion (2007)
$83.31 billion (2006)
GDP (official exchange rate): $49.43 billion (2008)
GDP - real growth rate:
6% (2008) country comparison to the world: 57
6.2% (2007)
6.3% (2006)
GDP - per capita (PPP):
$12,900 (2008 )
country comparison to the world: 86
$12,100 (2007 est.)
$11,300 (2006 est.)
GDP - composition by sector:
agriculture: 4.6%
industry: 28.7%
services: 66.7% (2008 est.)
Labor force:
2.44 million (2008)
country comparison to the world: 107
Labor force - by occupation:
agriculture: 7.5%
industry: 35.5%
services: 57% (2007)
Unemployment rate:
6.3% (2008)
7.7% (2007 est.)
Agriculture - products:
vegetables, fruits, tobacco, wine, wheat, barley, sunflowers,
sugar beets; livestock
Industries:
electricity, gas, water; food, beverages, tobacco; machinery
and equipment, base metals, chemical products, coke, refined
petroleum, nuclear fuel
Industrial production growth rate: 3.9% (2008)
country comparison to the world: 89
Exports - commodities: clothing, footwear, iron and steel,
machinery and equipment, fuels
Exports - partners: Turkey 11.5%, Germany 10.3%, Italy 10.2%,
Greece 9.1%, Belgium 6.2%, Romania 4.9% (2007)
Imports: $35.3 billion f.o.b. (2008)
country comparison to the world: 60
Imports - commodities:
machinery and equipment; metals and ores; chemicals and plastics;
fuels, minerals, and raw materials
Imports - partners: Russia 12.3%, Germany 12.3%, Italy 8.7%,
Ukraine 7.2%, Turkey 6.9%, Greece 6.2%, Romania 4.5%, Austria
4.3% (2007)
Exchange rates:
leva
(BGN) per EURO - 1,95583 fix since 1997
leva (BGN) per US dollar - 1,4121
(2009 est.), 1.3171
(2008), 1.4366 (2007), 1.5576 (2006), 1.5741 (2005), 1.5751
(2004)
Communications
Telephones - main lines
in use: 2.3 million (2007)
country comparison to the world: 56
Telephones - mobile cellular: 9.897 million (2007)
country comparison to the world: 55
Telephone system:
General assessment: an extensive but antiquated telecommunications
network inherited from the Soviet era; quality has improved;
the Bulgaria Telecommunications Company's fixed-line monopoly
terminated in 2005 when alternative fixed-line operators were
given access to its network; a drop in fixed-line connections
in recent years has been more than offset by a sharp increase
in mobile-cellular telephone use fostered by multiple service
providers; the number of cellular telephone subscriptions
now exceeds the population
domestic: a fairly modern digital cable trunk line now connects
switching centers in most of the regions; the others are connected
by digital microwave radio relay
international: country code - 359; submarine cable provides
connectivity to Ukraine and Russia; a combination submarine
cable and land fiber-optic system provides connectivity to
Italy, Albania, and Macedonia; satellite earth stations -
3 (1 Intersputnik in the Atlantic Ocean region, 2 Intelsat
in the Atlantic and Indian Ocean regions) (2007)
Radio broadcast stations: AM 31, FM 63, shortwave 2 (2001)
Television broadcast stations: 39 (plus 1,242 repeaters) (2001)
Internet country code: .bg
Internet hosts: 513,470 (2008)
country comparison to the world: 47
Internet users: 1.899 million (2007)
country comparison to the world: 65
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Did
you know? Facts about the business location Bulgaria
Here we answer the most frequently asked questions about Bulgaria
as a business location |
Questions: |
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Answers:
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Q:
Why
should a company choose Bulgaria as a business location? |
A:
Here
are the top 5 reasons for locating in Bulgaria |
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High
qualification und motivation of workforce |
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Only
10 % corporate tax, no trade tax, no property tax |
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Efficient
Research & Development incentives |
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EU
member state and best connections to West, Central and
Eastern Europe |
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Lowest
strike rate, high stability |
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Q:
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Bulgaria
is well known for its scenery and cultural highlights.
Is it also a good place to do business?
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A: |
As
a business location Bulgaria
offers may advantages like attractive conditions for
companies complete
overhaul of public system |
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80%
of facility approval procedures within 3 months above
the average purchasing power of Bulgarian
consumers central location |
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Bulgaria
is a member of the European Union since 1.1.2007 close ties
to the growth markets in Central and Eastern Europe. The
productivity after some changes is highest productivity
growth in Europe for decades education practical training
in technical and business education. Highest level of graduates
from secondary education worldwide. Tax benefits moderate
corporate tax rate efficient system of R&D incentives.
Security political
and social stability availability of highly qualified workforce
despite low level of unemployed stable currency lowest strike
rate in European Union
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Q:
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Why
is Bulgaria
the ideal location when targeting West and East European
Market? |
A: |
Traditional
European Market know how of Bulgaria
service providers: |
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banks, management consultants and tax advisors benefit
from wide-ranging contacts and competencies in East-West
business, knowing exactly "who, how and with whom."
highly developed infrastructure.
A
high-quality transportation and telecommunications infrastructure
also support the rapid transfer of goods and information
motivation. |
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Bulgaria
workers are not only among the best educated
and highly
motivated. |
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Stability
- almost
no strikes and high personal security |
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Bulgaria
offers a stable home base for business in unknown markets
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affordable
office space
- in a comparison of European capitals Sofia is among
the cheapest regarding office rents. |
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neutral
status |
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quality of life |
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peak
performance can only be produced when your employees feel
comfortable in their surroundings. |
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Q:
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Bulgaria
is said to be rather bureaucratic. Can companies be successful
here? |
A: |
Several
reforms have entered into force during the last years,
making Bulgaria
even more attractive as a business location. |
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Moreover,
Bulgaria
became e-government champion - a clear-cut demonstration
of the business-friendly and customer-oriented approach
taken by Bulgaria’s public authorities. E-Government
results in decisive competitive advantages for the
business community.
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