Although tourism is the main industry and the one that the Bulgarian
government is most keen to develop (largely as it is expected to be the main
foreign exchange earner), the country is also attracting inward economic
investment from numerous manufacturing and service companies. This is happening
for the following reasons:
Highly skilled, English-speaking work force at competitive cost
The most stable and predictable business and political environment in South-East Europe
NATO membership since 29 March 2004
The lowest operating cost in a European market economy
Industrial goods traded duty free between Bulgaria and the EU, EFTA, CEFTA and Turkey
Excellent climate, natural scenery, food and hospitality
Corporate tax rate – 19.5% (15% in 2005) and 0% in areas of high unemployment
VAT exemption of equipment imports for investment projects over € 5 million
Annual depreciation rate of 30% for machinery & equipment & 50% for software and hardware
Opportunity to buy land through a company registered in Bulgaria with up to 100% foreign ownership
Smooth, speeded up administrative service
Infrastructure subsidy for investment projects over € 50 million
55 treaties for avoidance of double taxation
52 agreements on mutual protection and promotion of foreign investment.
