Presentation on theme: "June 2014 Bulgaria Investment climate and business opportunities."— Presentation transcript:
June 2014 Bulgaria Investment climate and business opportunities
Investments and economic relations Why invest in Bulgaria? Government incentives
FDI Inflow: Source: Bulgarian National Bank In million euro Investments and economic relations
FDI Inflow: Source: Bulgarian National Bank Investments and economic relations
The role of Italy as a trade partner for Bulgaria: Investments and economic relations
……….. – Bulgarian trade relations Why invest in Bulgaria?
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
Real GDP Growth: Source: Eurostat Why invest in Bulgaria?
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
Business costs in Bulgaria: €/GJ, 2013€/kWh, 2013 Source: Eurostat Why invest in Bulgaria?
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?
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
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)
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:
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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