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Why invest in Bulgaria ?
As a member of the European Union, Bulgaria occupies its place in Central Eastern Europe as an attraction center for foreign capital. The reason for this is political and macroeconomic stability coupled with different incentives for investors:
Membership of the country in the EU since January 2007 and NATO as well as a national currency fixed to the euro;
Existing investment promotion law that provides significant investment incentives;
Tax benefits aligned with European legislation and continuing to evolve in this direction; The country’s policy is working to promote local business and attract capital.
International Conventions – Bulgaria has signed effective international treaties to avoid double taxation;
Administrative Relief – The registration of a company in Bulgaria takes several days. Minimum capital of 1EUR is required. Company VAT registration is made in less than 10 days;
Good price – quality ratio of the main production factors;
Highly qualified, multilingual and low paid workforce;
Real Estate – very advantageous rental and sales conditions are available;
Geographic location – located on the Balkan Peninsula, between Europe and Asia, the country is a great choice for locating a business. Important European transport corridors pass through it: IV, VII, VIII, IX, X;
In 2015, the country is ranked as the third most promising in the world to create a production, according to Cushman & Wakefield, in their annual index for positioning production in emerging markets.
The region of Plovdiv is one of the most preferred places for investments in Bulgaria and it is no coincidence that in 2014 the city has the largest number of foreign investments in production.
Plovdiv has all the necessary assets for business development – wonderful location, very good logistic connection, availability of human potential and educational infrastructure, well-functioning and friendly to the business administration.
Over 51% of the region’s economy is concentrated in manufacturing, with a total of 70,000 employees. In this part of Bulgaria, Trakia Economic Zone emerges as one of Bulgaria’s largest investment projects.
Useful economic information
About Bulgaria ?
In order to increase the absorption of EU funds and support the National Reform Program, the Government of the Republic of Bulgaria and the World Bank signed a Memorandum of Understanding (MoU) in January 2012, marking an important change in the 20-year partnership. This is an important step taken by the Bulgarian government that can take advantage of the World Bank’s experience of developing and implementing strategies and programs in a number of sectors under operational programs funded by the EU Structural Funds. . On September 1, 2015, Cyril Muller, Vice-President of the World Bank for Europe and Central Asia, and Tomislav Donchev, Deputy Prime Minister for European Funds and Economic Policy, signed a new Memorandum of Cooperation and Partnership to support the implementation of the European Structural and Investment Funds for 2014 -2020 period. The signed Memorandum of Understanding with the World Bank is a natural continuation of the possibility of using EU funds.
Measures to encourage foreign investors:
There are different employment promotion programs in Bulgaria, which can benefit both Bulgarian and foreign investors. They may receive, for a certain period of time, financial assistance from the Employment Agency for the creation of jobs for the unemployed, persons with reduced working capacity, persons over 50 years of age, single parents; for maintaining and improving the qualification of the employees and others.
Companies can also benefit from tax incentives for the employment of long-term unemployed, unemployed persons over 50 years of age or with reduced working capacity. Corporate tax may be fully or partially relinquished for the employment of a large number of disabled persons and where the production activity of the enterprise is carried out only in municipalities with a high level of unemployment. Some social costs are not taxed. Financial support for training for acquiring professional qualification of persons, who have taken up new jobs related to realized investments in the country is also provided in the Investment Promotion Act for Investors Certified by the Bulgarian Investment Agency.
Information about machine building sector, sector benefits
At present, over 50,000 people work in the machine building sector, with a turnover of € 1.03 billion. The industry is also strongly associated with other industries such as electronics and electrical engineering. An important trend in the sector is the repositioning of some of the production activities (equipment and fitting) from developed countries to cheaper countries.
Agricultural machinery – Lifting and transport equipment – Production of transport equipment and parts thereof – Heavy investment equipment – Metal cutting and metalworking machines – Hydraulic elements and systems – Shipbuilding and ship repair – Military equipment
In the branch “Manufacture of machinery and equipment for general and special purpose” 30.4 thousand people are employed (5.8% of those employed in industry).
The wage level in the sector is above the national average – the average monthly wage is 849 leva. 4.7 thousand people (0.9% of the employed in the industry) are employed in the “Manufacture of motor vehicles without motor vehicles”. The wage level in the sector is about the average for the country – the average monthly remuneration is 738 BGN. The industry “Production of cars, trailers and semi-trailers” provides employment for 12.7 thousand people (2.4% of the employed in industry). The wage level in the sector is about the average for the country – the average monthly wage is 702 BGN.
The country offers skilled labor coming out of technical high schools and universities:
11% of students are enrolled in majors appropriate to the needs of the chemical and related industries;
34% of students in vocational high schools study related majors;
43% of students in vocational high schools in the sector are concentrated in the cities of Sofia, Plovdiv, Burgas, Varna and Stara Zagora;
The Bulgarian educational system is well suited to the needs of the Transport and Mechanical Engineering sector.
17% of graduates are potentially suitable for the industry;
Vocational schools offer a wide variety of manufacturing specialties suitable for the sector;
About 140,000 students in vocational schools;
In the 2013/2014 school year, there are about 66,000 students in 22 universities and colleges studying transport, machine building, electrical engineering and other related industries;
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