Bulgaria offers a very beneficial environment for conducting business. Numerous factors make doing business in Bulgaria beneficial, including its thriving outsourcing industry, educated and multilingual workforce, excellent infrastructure, and the lowest tax rates in the EU.
Bulgaria is the undiscovered tax haven of the EU, with one of the lowest business and individual tax rates in Europe at a flat 10%. You will pay less than 15% in taxes on your yearly business income because the dividend and capital gains tax rate is only 5%. According to the PWC website, Social Security taxes also have a modest cap. This cap is a crucial benefit of starting a business in Bulgaria that is rarely highlighted.
The benefits of doing business in Bulgaria as an outsourcing hub
Bulgaria was selected as the Offshoring Destination of the Year for 2015 by the National Outsourcing Association of the United Kingdom. Bulgaria has also been voted the European Offshoring Destination of the Year by the European Outsourcing Association. Since receiving these honors, Bulgaria’s reputation as a top outsourcing location has further increased. The outsourcing sector is predicted to experience stable expansion and contribute steadily more to the national economy between 2016 and 2020.
The Bulgarian government has launched a specific program called the Innovation Strategy for Smart Specialization of the Republic of Bulgaria in addition to being recognized as the finest outsourcing location. This all-encompassing strategy concentrates on four distinct areas of innovation:
- Clean technology and cutting-edge engineering.
- The field of biochemistry and health.
- Information and communications.
- Recreational and artistic industries.
The government is making every effort to guarantee that investments in these and other sectors will continue in the future.
Open for business
The Bulgarian economy is expanding quickly, exports are rising, and the country is drawing foreign investment in its various citizenship by investment possibilities due to its business-friendly climate and educated local workforce. There are more and more relocations of overseas businesses.
In addition to reasonable office rent, low production and transportation expenses, and extremely competitive operating costs, Bulgaria offers a skilled and cost-effective labor force. Bulgaria undoubtedly offers one of the most affordable and business-friendly environments among other EU members.
The GDP of Bulgaria was 50.4 billion euros in 2017, and the country had a 3.6% increase. Exports totaled 25.8 billion euros while investment increased by 3.8%.
The European Commission forecasts that the economy will expand by a little under 4% in 2018, and then by a comparable amount in 2019.
Benefits of doing business in Bulgaria
There are numerous benefits to conducting business in Bulgaria, including:
- Lowest rates of individual income tax in Europe.
- All of the financial and commercial advantages of membership in the EU.
- A pool of highly competent candidates, many of whom speak multiple languages.
- Reasonably priced commercial and residential rental rates.
A first-rate communications system (including being ranked 3rd in Europe by Cisco Systems for its broadband internet connections).
Currently, 25 languages are used by businesses that support the nation’s outsourcing economy, making international trade considerably simpler than in many other countries.
Cultural challenges of doing business in Bulgaria
Like every other country in the globe, Bulgaria has its unique quirks, with which you must be quite familiar.
Before starting the process of relocating your company to Bulgaria, you should speak with at least several of them.
- Curiously, Bulgarians nod when they mean “No” and shake their heads when they indicate “Yes.”
- Unlike the English or Germans, Bulgarians do not say Thank you, Sorry, Please as frequently.
- Bulgarians enjoy the loudness and intensity of Spanish and Italian people. Bulgarians greet strangers with hugs and kisses.
- Bulgarian people are a very proud nation in general. They love their culture a much.
- Their traditions and history are crucial in demonstrating how much you regard them.
