I NVEST B ULGARIA A GENCY. Official name:Republic of Bulgaria Area:110 994 sq.кm. Population:7.4 million Capital:Sofia Time zone:EET (UTC+2) Official

INVESTBULGARIA AGENCY

Official name: Republic of BulgariaArea: 110 994 sq.кm.Population: 7.4 millionCapital: SofiaTime zone: EET (UTC+2)Official language: BulgarianCurrency: Lev (BGN)Fixed exchange rate: € 1 = BGN 1.95583 Type of government: ParliamentaryMember of: EU, NATO, WTO

www.investbg.government.bg

GENERAL INFORMATION

INVESTBULGARIA AGENCY(IBA) is a Government institution providing information, contacts and project management support to potential investors.

IBA services: Macroeconomic data on Bulgaria Data on operational costs Regional information Personalized administrative servicing Legal advice Liaison with central and local

governments Liaison with branch chambers and

NGOs


WHO WE ARE

1. Political and business stability EU, NATO & WTO member Currency board Low budget deficit and

government debt

reasons to invest in BULGARIA

2. Low cost of doing business 10% Corporate tax rate 10% Personal tax rate Lowest cost of labor Favorable office rents and low

cost of utilities

3. Access to markets European Union/EFTA Russia Turkey/Middle East

4. Educated & skilled workforce 80 000 students in foreign countries 25% of population hold university

degree 46% of population speak at least

one foreign language

5. Government incentives Social security benefits Tax benefits Vocational education benefits


5INVEST IN BULGARIA


The best outsourcing destination in Europe, according to Cushman & Wakefield’s rating for 2015. In the world our country takes the third place.

First in the world in the production of lavender. For the past three years, our country has managed to surpass France from the first place and France is historically a leader in this field.

Accommodated about 50 companies producing components and systems for the global automotive industry. In eight of every ten cars in Europe, the parts are produced in Bulgaria

The largest exporter of sunflower seeds worldwide in 2013. Our market share in the exports of this commodity in the planet is 17.8%.

DID YOU KNOW THAT BULGARIA


2010 2011 2012 2013 2014 2015Q2

0.1

1.6

0.2

1.3 1.5

2.3GDP Growth(%)

2010 2011 2012 2013 2014 2015Q3

2.4

4.23

0.9

-1.4

0.6

Inflation Rate(%)

2010 2011 2012 2013 2014 2015Q3

9.2 10.4 11.4 11.8 10.7 9.4

Unemployment Rate(%)

GDP: 42 billion € GDP per capita: 5 912 € Budgete Deficite: -2.8% of GDP Government debt: 27% of GDP Exports, FOB: 51.7% of GDP Imports, CIF: 61.1% of GDP Trade balance: -9.4% of GDP

MACROECONOMICS DATA(2014)

Source: bnb.bg, worldbank.org

MACROECONOMIC INDICATORS

2010

2011

2012

2013

2014

2015Q2

1,169.70

1,476.30

1,320.90

1,383.70

1,306.20

944.30

FDI Inflow(€ mln.)

ItalyUSA

SwitzerlandRussia

CyprusGermany

UKGreeceAustria

Netherlands

1,488.701,605.401,623.10

1,961.702,103.90

2,417.202,604.50

3,580.805,944.70

7,023.30

FDI by host country, 1996-2014(€ mln.)

18%

18%

18%15%

11%

10%

7%4%FDI Inflow by Industry(€ mln.)

Real Estate

Manufacturing

Finance

Trade

Other

Energy

Construction

Telecomwww.investbg.government.bg

FOREIGN DIRECT INVESTMENT

Russia

Greece

Italy

Turkey

Hungary

Slovenia

Romania

Czech Republic

Belgium

Bulgaria

Hong Kong SAR

New Zealand

Singapore

62

61

5655

54

51

48

44

42

38

38

2

1

www.investbg.government.bgSource: doingbusiness.org

BUSINESS ENVIRONMENT

CountryIncome Tax(%)

Corporate Individual

Social Security(%)

Employer EmployeeVAT(%)

BulgariaSerbiaRomaniaHungaryCzech Rep.PolandTurkeySlovakiaUKItalySpainGermanyFrance

101516

10/191919202323

27.530

30-3333.33

1010-20

161622

18/3215-3519-250-45

23-4324, 75-52

14-455.5-41

17.9-18.516.9

28.4528.534

22.1427

34.813.830

29.919.750

12.916.916.518.511

13.715

13.41210

6.3520.620

202024272123182020212119

19.6

www.investbg.government.bgSource: bnb.bg, worldbank.org

TAXATION RATE

From 2.5€(m2/mo)Industrial Rents(Sofia)

From 10€(m2/mo)Office Rents(Sofia)

Salary(Min.) - 196 €Salary(Avg.) - 450 €

Cost of LaborOne of the most competitive costs in Europe!


0.0682(€/kWh)Electricity

0.0321(€/kWh)Gas

1.09(€/1м3)Water

Source: ec.europa.eu/eurostat, bnb.bg, worldbank.org, colliers.com

COST OF DOING BUSINESS

COUNTRY ELECTRICITY(€/kWh) 2015

BULGARIA 0.0682 Romania 0.0707

Netherlands 0.0721 Austria 0.0731 France 0.0755

Czech Rep. 0.0761 Hungary 0.0778 Germany 0.0809 Poland 0.0833 Croatia 0.0869

Italy 0.0949p Greece 0.1037

UK 0.1435 EU-28(2014) 0.0917

Source: ec.europa.eu/eurostat

COUNTRY LABOUR COSTS(€/per hour) 2014

BULGARIA 3.8Romania 4.6

Hungary 7.3Poland 8.4

Czech Rep. 9.4Croatia 9.4

Greece 14.6UK 22.3Italy 28.3

Germany 31.4

Austria 31.5Netherlands 34.0

France 34.6EU-28 24.6


COST OF DOING BUSINESS IN EU


INDUSTRIAL ZONES IN BULGARIA

0% corporate tax in areas with unemployment 25% higher than the country average!


UNEMPLOYMENT RATE BY MUNICIPALITIES

The Bulgarian legislation introduces a system of promotion measures for initial investments in tangible and intangible fixed assets and creating new employment linked thereto, according to the legislation of EU.

Investments must be related to the following sectors: Manufacturing Research & Development Education Healthcare High-tech services Warehousing and logistics


The government incentives for: Class B Investment Projects Class A Investment Projects Priority Investment Projects

THE GOVERNMENT SUPPORT


INVESTMENT CRITERIA GOVERNMENT INCENTIVES

Information services. Shortened administrative procedures - The

central and local government authorities will provide administrative services shortened with one-third of the time period established by the law

Financial support of up to 25% for the vocational training for obtaining professional qualifications.

Reimbursement of labor costs paid by the employer.

On the request of certified investor the corresponding authorities may transfer ownership rights or establish a limited ownership right over real estate (private state or private municipal property) without a tender.

CLASS BServices sector

- €0.75m or €0.25m and 100 working places

Manufacturing Industry

- €2.5m or €1m and 100 working places

Regions with high unemployment rate- €1m or 10 working

placesHigh-Tech

Manufacturing- €1m or 10 working

placesHigh-Tech Services

- €0.5m or 25 working places

CLASS B INVESTMENT PROJECTS



Include all the Incentives for CLASS B. Consulting and individual administrative

services. Investors will be able to authorize Agency officials to obtain any documents for implementation of the corresponding investment project.

Financial support for construction of technical infrastructure elements to the borders of the project site, needed for implementation of one or more investment projects.

CLASS AServices sector

- €1.5m or €0.5m and 150 working places

Manufacturing Industry

- €5m or €2m and 150 working placesRegions with high

unemployment rate- €2m or 25 working

placesHigh-Tech

Manufacturing- €2m or 25 working


- €1m or 50 working places

CLASS A INVESTMENT PROJECTS

PRIORITYServices sector

- €50m and 200 working places

Manufacturing Industry- €50/25m and 200

working placesRegions with high

unemployment rate- €25m and 100 working

placesHigh-Tech

Manufacturing- €15m and 100 working


- €10m and 50 working places www.investbg.government.bg


Include all the incentives for CLASS A and B. Institutional Support. Financial grants of up to 50% for education and

R&D projects and up to 10% for manufacturing projects.

State tax exemption for changing the land status. Acquisition of real estate private state or private

municipal property without a tender and at a price lower than the market, but not lower than the tax assessment of the property.

Establishment of public-private partnerships with municipalities, universities, other organizations from the academic society and etc.

PRIORITY INVESTMENT PROJECTS

YOUR COMPAN

Y

REDUCE RISK - Political Stability

- Economic Stability

GOVERNMENT

INCENTIVES

INCREASE COMPETITIV

ENESS- Staff qualification

- Improving productive capacityGOVERNMEN

T AS A PROACTIVE

PARTNER


WHAT BULGARIA OFFERS

IT development Back office operations

Chemical and metal Industry

Engineering Food


GLOBAL COMPANIES INVESTED IN BULGARIA

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NEXT STEP TO SUCCESS

INVESTBULGARIA AGENCY31 Aksakov StreetSofia 1000, BulgariaTel.: ( +359 2 ) 985-5500Fax: ( +359 2 ) 980-1320E-mail: [email protected]: www.investbg.government.bg

THANK YOU FOR YOUR ATTENTION

mailto:[email protected]

Documents

I NVEST B ULGARIA A GENCY. Official name:Republic of Bulgaria Area:110 994 sq.кm. Population:7.4 million Capital:Sofia Time zone:EET (UTC+2) Official