How do you assess the current economic situation in Bulgaria?
The current economic situation in Bulgaria can be seen as promising. In 2019, the country was able to record a higher economic growth approx. 3.4 per cent.
How would you describe the investment climate in Bulgaria? Which sectors offer the largest potential?
Bulgaria continues to be particularly attractive for foreign investors, with Germany and Austria in the top ranks. The good investment climate is supported by favourable tax conditions: Bulgaria has a uniform tax rate of 10 per cent for income and corporate tax. The low wage costs (the average wage is approx. 650 Euros, while the minimum wage has been approx. 312 Euros since 1 January 2020) combined with the high availability of well-trained specialists also prove to be promising for investors. Another advantage for German investors is the availability of German-speaking employees and trained specialists with studies abroad. Due to its geopolitical position between Western and Central Europe and the Asian markets, Bulgaria is an advantageous location with a hub function for business in the Balkans and Middle East. Among the world’s leading manufacturers, the country ranks among the top locations for outsourcing production activities. Economic growth is expected in the automotive sector, the IT industry and the outsourcing sector.
What challenges do German companies face during their business ventures into Bulgaria?
A foreign investor faces different challenges with his investment in Bulgaria. The sluggish administration and office efficiency are the largest hindrances, which require much time and patience. As in each foreign market, an investor is also confronted with a different corporate culture and a different legal system.
What influence do Germany and the EU have on Bulgaria?
The European Union as a community of stability with its internal market without borders and trade barriers offers Bulgaria extensive economic aid, free movement of capital and free movement of workers. With a focus on personal data protection and climate protection, as well as through various EU funding programmes, the EU influences the guidelines of the political and social development of the country’s domestic policy.
Bulgaria regards the Federal Republic of Germany as the central strategic partner in the EU. For years it has positioned itself as Bulgaria’s most important trading partner – both for imports and exports. With its stable investment climate and many German-speaking employees, the country is particularly attractive for German investors. Since the Republic of Bulgaria joined the European Union, Germany has established itself as a top destination for Bulgarians with its good conditions for studying abroad and numerous job offers.
In your opinion, how will Bulgaria develop?
The country is developing both politically and economically in the direction set by the EU. Accordingly, investment conditions will remain very good in the future.