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 Introduction
Bulgaria offers investors a stable, profitable, competitive location for new investments, sustainable economic growth and unique investment opportunities. This is why more that 3,900 overseas companies have made Bulgaria their successful business partner.
The traditions and the reach experience of Bulgaria in the cooperation with all these companies prove that the business opportunities made by the government are very interesting for potential investments. The favorable tax environment, the competitive operating costs and the skillful workforce are those factors, which can ensure the highest returns on investment for companies choosing to do business in Bulgaria.
The stable political situation and the declared commitment of the Bulgarian Government to create a favorable environment for the local and foreign capital make Bulgaria the most attractive portal to the Region.
Nick Marinov
President
Bulgarian Foreign Investment Agency
The Bulgarian Foreign Investment Agency was established in April 1995 as a one-stop-shop institution for foreign investors. It is a governmental body reporting directly to the Council of Ministers and is responsible for coordinating the activities of state institutions in the field of foreign investments and for promoting foreign investments.
A key function of the Agency is to assist companies in the investment process. It provides prospective investors with up-to-date information on the investment process in the country, legal advice and services related to the identification of suitable Bulgarian partners and the co-ordination of the investment policy with other institutions, etc.
BFIA core services include:
· Macroeconomic data on Bulgaria.
· Up-to-date information on existing foreign investors in Bulgaria.
· Pre- and after-investment care.
· Detailed information on current infrastructure investment projects.
· Full details of companies offered for privatization.
· Assistance with locating land or premises and determining the most appropriate form of investment.
· Legal advice;
· Investment projects databank.
· Institutional support for priority investment projects under the Council of Ministers.
· Co-operation with central and local government, state institutions, non-government and business organizations.
BFIAwelcomes all new foreign investments and is prepared to do as much as possible to support investors - before the investment decision is made, during the investment process and after investment has been made. |
Legal entities whose insolvency procedure is terminated and for which the Court of Justice approves rehabilitation plan, enjoy a full corporate tax exemption for the part of the profit that ensues from the rehabilitation plan activities.
ATTRACTIVE SECTORS
 TEXTILE SECTOR
Bulgaria provides excellent opportunities for foreign direct investment in Greenfield investments, in various different textile sub-sectors (spinning, weaving, knitting and finishing) and also in the apparel sub-sector.
The main advantages offered to investors in the textile and apparel fields are:
§ Skilled and cheap labor force.
§ Proximity to Europe allowing fast response.
§ High quality of the garments manufactured.
§ No quotas to EU, and availability of USA quota.
§ General expertise in all fields due to traditional development in this sector.
§ Availability of raw materials.
§ Bulgaria is a door to other Southeast Europe countries.
§ Stable economic and political situation of the country.
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WHY BULGARIA
· Competitive Location for New Investments.
· Stable and Predictable Macroeconomic Environment.
· Sustainable Economic Growth.
· Access to Large Markets - Duty Free Movement of Goods and Services within a Market of 600 Million Consumers.
· Excellent Innovation Climate.
· Pro-Business Environment.
· Competitive Human Resources.
· Upgrading Infrastructure and Communications.
· High-tech Parks Opportunities.
TAX INCENTIVES
Foreign and domestic entities, investing in high
unemployment (exceeding 50% the average for the
country) regions that are listed annually in an
appendix to the Corporate Income Tax Act, enjoy
a reduction of the corporate income tax. Corporation
tax for the most recent year is reduced by an amount
equivalent to 10% of the share contributions (for
company incorporation or capital increase), provided
that the funds generated from these contributions
are invested in the acquisition, modernization or
reconstruction of tangible fixed assets such as
buildings, equipment, transmitters, electricity
transmitters, and telecommunication lines. The reduction
sum is accounted for as reserves and if it is bigger
than the corporate tax due for the respective year,
it can be used to reduce the corporate tax in the
following five years. |
FDI investments in Greenfield form are particularly attractive to service the local and contiguous markets, although opportunities also exist to co-operate with, or take over, existing companies and organizations. Another positive factor is the traditional existence of a quality culture. With cultural and system advances, the country is one of the best placed to exploit both local markets and the sophisticated markets of Europe and North America.
TOURISM SECTOR
Bulgarian tourism sector represents a significant opportunity for FDI including:
· Well developed and growing package holiday market from Western Europe and the Levant.
· Potential for new resort development.
· Potential for theme park/activity centers associated resorts.
· An eminently suitable land packages available for development of golf courses.
· High end sporting holidays.
· Market development opportunities particularly from the USA.
· Highly competent local partners for joint ventures.
FOOD AND FOOD PROCESSING SECTOR
Bulgaria provides excellent FDI opportunities for the following sub-sectors:
· Fruit and vegetables (fresh and processed).
· Wine.
· Animal husbandry, including processing and animal feed production.
These three sub-sectors score high in terms of local
experience and know-how, potential to improve production
efficiencies and reduce costs, availability of skilled
labor, export experience, and financial support
from the EU through the SAPARD program. |
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© World INvestment NEws, 2002.
This is the electronic edition of the special country report on Bulgaria published in Forbes Global . April 29th, 2002 Issue.
Developed by World Investment News Ltd |
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