Why do many companies choose for Bulgaria? Very simple, because Bulgaria offers many benefits and advantages. On this page we’ll inform you about what Bulgaria has to offer.
Everything for successful business
Bulgaria offers a combination of factors which form a unique combination of business benefits. For this reason Bulgaria is chosen often as a the main place of business for internationally orientated companies and businesses wanting to do business in Europe.
Lowest taxes in Europe
We’ll let the fact speak for itself:
- Corporation tax: 10% (the average corporation rax rate in Europe is 25%)
- Personal income tax: 10% (the average personal income tax rate in Europe is 40%)
- Dividendbelasting: 5% (0% when the European parent/subsidiary directive applies)
Affordable real estate
A business will need space, this can be a plot, building, storage, workplace of office. Often housing costs are a big part of a company’s expenses. Prices for renting or buying of real estate in Bulgaria are the lowest in Europe. Even when we’d comparare to other Eastern-European countries like Poland, Romania or Hungary, the prices for Bulgarian real estate are very low.
Anyone will be able to understand that low housing costs are a big advantage, because less money will have to be invested in these expenses, which means lower total investment costs and more money available for the business’activities itself.
Another advantage of Bulgaria is the fact that the country has a well skilled and educated workforce available against the lowest labour costs in Europe. Also the Bulgarian labour code is very favourable for companies.
The Bulgarian government also offers various tax incentives for companies that will hire Bulgarian workers. For example, a 5 years exemption to pay corporation tax will be granted when a business will hire a minimum amount of employees in regions with high unemployment. Also the Bulgarian labour institution offers different programs to find Bulgarian employees against interesting conditions.
The Bulgarian labour force exists of about 3.4 million people. Most people have a higher education, still the labour costs and wages a significantly lower than the average is Western Europe.
The average monthly wage for a Bulgarian employee was in 2012 about € 350,- (source: Bulstat)
No wonder that Bulgarian is the number 1 country for outsourcing within Europe.
Bulgaria has different universities of which the most important ones are Sofia, Plovdiv, Veliko Turnova and Varna. These universities offer a wide range in directions, like computer science, math, physics, electrical engineering, biotechnology and many more.
Bulgaria has various high rankings, including being the 4th fastest growing economy of the European Union (source: European Commission), fifth place for math specialists (source: world bank), 3th place for the amount of qualified IT specialists per capita (source: American embassy in Sofia) and the 2nd place on the European ranking list for favourable locations for transport companies.
Attraction of Bulgaria
The above mentioned facts: low taxes + low housing costs + low labour costs have caused an enormous boost of foreign investments in Bulgaria. No wonder that Bulgaria is the 4th fastest growing economy of the European Union.
Also the Bulgarian government is very active to offer foreign companies, investors and project that will stimulate the Bulgarian economy and labour market, as many possible tax and practical benefits.
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