With one of the lowest corporate tax rates in the region (10%), low labour costs, and political stability, Bulgaria is well-placed for attracting FDI. Current investing countries are the Netherlands, Austria, Germany, and Italy, with investments in real estate, manufacturing, and financial / insurance activities.
There are no legal limits on foreign ownership or control of firms, foreign entities are formally granted the same treatment as national companies, and FDI investments are not subject to screening from the government. However, firms with >10% foreign holdings cannot do business in 28 specific sectors (including government procurement, exploitation of natural resources, banking, and insurance services). Though there are exceptions, this law does limit investment opportunities.
Some of the other challenges for investors in Bulgaria are a shortage of skilled labour and the regulatory and legislative framework undergoing almost constant updates. Bulgaria’s infrastructure also needs work, and the judicial system is slow. All of these issues contribute to Bulgaria’s ranking for Ease of Doing Business, 61/190.
AUXADI can become your ideal investment partner in Bulgaria. From our office, located in Bulgaria, we offer a One Stop Shop value added Outsourcing services in the areas of Accounting and Reporting, Tax Compliance, Payroll Management and Representation services, among others.