For the first part of 2014 Bulgaria Investment Agency reports almost the same number of investment project — as much as the whole 2013 year.
Among the new members of the European Union, there is an increase in the foreign investments only in Bulgaria and Romania — data from BIA for the first half of 2014.
The direct foreign investments for 2013 are total 1.092 milliard euro — 22 millions more then 2012 year. The predictions for 2014 year were that those investments will reach 1.2 milliard euros.
Last data for the period of the beginning of 2014 to September show that they reach 1.161 milliard euros.
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For the period of January to June, 2014, 12 projects for total amount of 96 million leva were certified, and they have provided 3213 working places.
In process of certification in BIA there are 15 projects, for a total sum of 567 million leva, which will provide 7851 working places. Three of these projects are for amount bigger than 50 million leva, two of which are related to the production and electronic.
BIA reports for the certification of 28 other projects for a total amount of 1,409 milliard leva. They will provide 22674 working places.
Last data from Bulgarian National Bank show that the largest volume of investments in Bulgaria are made from:
— Holland — 630,62 million euro
— Austria — 575,090 million euro
— Greece — 356,01 million euro
— Germany — 274,54 million euro
From the 12 projects certified by BIA, seven are in the sector of «Information and computer technology», three in «Manufacturing», one in «Healthcare» and one in «Logistics».
The largest part of the direct foreign investments are directed in to the sectors of «Finance», «Industry», «Real Estate» and «Trade».
Interest in the sector of high technologies
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The biggest interest is to — mechanics, electronics, electrical engineering, manufacturing, transportation and logistics, information and computer technologies.
The outsourcing of business processes and activities in the mechanical engineering are with the fastest developing in the Bulgaria Economy as they have a high potential for development.
Bulgaria has competitive business costs:
— 10% corporate tax, in the areas with high unemployment it can reach 0%
— Income tax — 10%
The salary range is also a key factor for investment in Bulgaria.
The low costs for office rents and the municipal services also make Bulgaria attractive for foreign investors.
Main reasons for investments in Bulgaria:
— Member of NATO and the EU
— Stable exchange rate
— Low business costs
— Small corporative tax — 10%, reaching 0% in the high unemployment areas
— 10% income tax
— The lowest cost of labour in EU
— Low rents
— Access to foreign markets — countries in Europe, Asia and Middle East.
— Qualified labor
Law for investment promotion in Bulgaria
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In April 2014 amendments in the normative acts are accepted, which aim to reduce the administrative burden to the investors, which applied for class investment.
These changes also reduce the requirements for applicants, investment projects and the documents needed for application.
The threshold for investment projects in the sectors of manufacturing, the construction and development of industrial and technological parks is reduced.
Thus there is a promoting the development of these sectors, by broadening the scope of the projects, which can meet the requirements for certifications.
Advantages of certification of projects with class A and B:
— Shortened administrative procedure
— Acquisition of real estate without auctions
— Reimbursement of social charges paid from the employer
— Financial support — 25% of the total amount for specialized training of at least 50 employees
— Financial support for the development of technical infrastructure (refer to class A)
Advantages in priority investments projects:
— The above mentioned advantages in certification in class A and B
— Subsidy of 50% for education and research projects and 10% for industrial projects
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