       
|
Invest Bulgaria
5 Hristo Kovachev St
Sofia 1527, Bulgaria
Tel: (+359 889) 58 98 61
Office: (+359 2) 843 0416
Fax: (+359 2) 843 0416
|
|
|
|
 |
|
 |
General
indicators,
legal
system,
business
forms,
establishment
procedures,
land
ownership,
labor
cost,
social
security
contributions
and
more.
|
|
|
Includes
general
information,
GDP
data,
inflation,
unemployment,
investment
statistics
and
more.
|
|
 |
The
statistical
sheets
and
graphs
below
cover
the
period
1996-2003.
|
|
 |
Average
monthly
salaries
by
sector
in 2004.
|
|
 |
 |
Words of
advise
about
the ways
Bulgarian
people
do
business |
|
|
 |
Bulgaria
is
recognized
by
European
Union
and
the
United
States
as a
functioning
market
economy.
The
Bulgarian
economy,
in
recent
years,
has
achieved
a
high
degree
of
macroeconomic
stability,
thanks
to a
good
policy
mix
achieved
through
the
currency
board
arrangement
(put
in
place
in
1998
to
stabilize
the
currency,
the
mechanism
ties
the
performance
of
the
lev
to
that
of
the
euro),
a
tight
fiscal
stance,
and
wage
moderation.
As
the
Government
is
strongly
staying
on
this
course,
sustained
growth
is
very
likely.
At
the
same
time,
economic
development
in
Bulgaria
is
showing
very
positive
trends
in
various
areas,
including
tourism,
the
capital
market,
and
the
banking
system.
The
banking
system,
which
took
a
very
cautious
approach
after
the
economic
meltdown
of
1996-97,
the
degree
of
lending
in
the
market,
including
of
small
loans,
appears
to
be
rapidly
on
the
rise.
Bulgaria
also
has
on
its
side
a
relatively
well-educated
and
computer-literate
workforce,
and,
for
the
time
being
at
least,
labor
that
is
much
more
affordable
than
in
Western
countries.
Infrastructure
is
also
steadily
being
improved,
mainly
thanks
to
foreign
investment in
particular,
European
Union,
funding.
There
are
many
major
infrastructure
projects
in
progress,
for
example
the
new
Sofia
airport
(due
to
be
completed
in
mid-2005),
the
major
expansion
of
Burgas
port
(due
to
be
completed
in
2005),
major
highway
construction
projects,
Danube
river
port
reconstruction,
and
many
others.
|
|
 |
But
while
it
is
on
the
road
to
meeting
the
criteria
for
accession
to
the
European
Union,
Bulgaria’s
business
environment
contains
challenges
for
the
unprepared
one.
Probably
as a
continuing
legacy
of
communism,
many
in
the
bureaucracy
are
unresponsive
to
the
needs
of
the
private
sector,
a
factor
which
aggravates
another
source
of
criticism,
the
fact
that
doing
business
in
Bulgaria
is
subject
to a
potentially
very
frustrating
range
of
regulations.
Do
have
in
mind
that
navigating
the
business
environment
in
Bulgaria
is
best
done
through
a
combination
of
local
business
connections
who
have
access
to
the
country’s
informal
networks,
and
the
help
of
law,
accounting,
and
human
resources
professionals
to
keep
one
on
the
correct
side
of
the
law.
This
was
the
very
purpose
of
creating
Invest
Bulgaria
- a
professional
company
with
the
ability
to
solve
any
problems
that
investors
face
as
they
are
locating
their
businesses
in
Bulgaria
The
European
Commission,
in
its
latest
report
in
November
2003
on
the
progress
being
made
by
European
Union
candidate
countries,
noted
that
Bulgaria
had
made
further
progress
in
creating
a
non-discriminatory
regime
of
national
treatment
for
foreigners
performing
economic
activities
in
Bulgaria.
In
2004,
Parliament
approved
changes
to
the
Foreign
Investment
Act.
These
changes
include
treating
domestic
and
foreign
investors
on
an
equal
footing.
The
changes
are
also
geared
to
reducing
the
amount
of
time
spent
on
administrative
issues.
Investors
with
dual
citizenship
can
decide
which
status
to
use,
that
of a
local
or
foreign
investor.
Foreigners
are
allowed
to
take
part
in
all
types
of
companies,
with
no
restrictions.
However,
constitutional
restrictions
on
foreigners
owning
land
remain
in
place,
even
though
it
appears
they
will
eventually
be
removed.
In
any
case,
in
real
life
foreigners
who
want
to
tend
to
“own”
land
through
local
nominees.
The
amended
act
is
meant
to
encourage
investments
in
products
meant
for
export,
in
agricultural
production
and
in
IT,
as
well
as
investments
that
can
be
implemented
within
three
years
or
open
new
jobs.
Labor
law
still does
not
allow
much
flexibility
in
the
labor
market.
No
notes
on
the
business
environment
in
Bulgaria
can
be
made
without
reference
to
the
shadow
economy.
Investigations
by
the
state
in
2003
found
significantly
large
sums
of
income
that
had
been
concealed
by
taxation,
failure
to
pay
social
security
contributions,
and
obstructions
by
employers
to
labor
inspections.
After
the
fall
of
communism
and
amid
the
economic
traumas
of
the
late
1990s,
and
to
this
day,
groups
believed
to
be
linked
to
organized
crime
have
carved
for
themselves
a
place
in
certain
sectors
of
the
economy.
Various
observers,
including
the
EC,
have
noted
that
the
tax
administration
remains
inadequate
to
its
task.
Steps
are,
however,
being
taken
to
improve
this.
Investors
often
cite
the
judicial
system
as a
matter
of
concern.
Court
actions
can
take
an
inordinate
length
of
time
and
there
are
continuing
suspicions
of
irregularities
in
the
system.
For
all
the
shortcomings,
many
believe
that
Bulgaria
is a
country
which
has
a
lot
of
potential
and
with
determined
effort
could
overcome
obstacles
to
an
improved
business
environment.
Among
expatriates,
many
find
Bulgaria
a
pleasant
place
to
live
and
work. |
|
 |
Per
capita
Bulgaria
is
the
largest
recipient
of
foreign
direct
investment
(FDI)
in
the
region. The
future
looks
promising
due
to an
attractive
business
environment,
market
and
cost
opportunities,
and
large
sources
of
new
technologies
and
innovations.
Foreign
direct
investment
(FDI)
in
Bulgaria
saw
a
dramatic
increase
in
the
last
decade.
Foreign
investors
gain
access
to
the
Swedish
market
in
numerous
ways:
by
Greenfield
and
expansion
investments,
joint
ventures,
strategic
alliances,
and
mergers
and
acquisitions. |
|
 |
Visit
our
Macro
Economic
Data
section
for
more
information. |
|
 |
Bulgaria
offers
foreign
investors
some
of
the
world's
most
competitive
business
costs.
Real
estate
investment
has
produced
a
plentiful
supply
of
modern
offices
at
very
competitive
costs.
Corporate
taxes
and
labor
costs
are
quite
low
for
European
standards.
Privatization
and
deregulation
are
creating
sophisticated
public
utility
and
telecommunications
industries.
|
|
 |
Major
companies
with
already
established
operations
in
Bulgaria.
Nestle,
Solvay,
Sisecam,
Knauf,
Ytong,
Umicore,
Miroglio,
Metro,
Billa,
OMV,
Lukoil,
Praktiker,
SAP
Labs,
Hilton,
American
Standard,
Lindner
Group,
Liebherr,
IMRO,
Villly
Betz,
and
many
others. |
|
SELECTED 1999 FOREIGN DIRECT INVESTMENTS |
|
Investor |
Country of Origin |
Market Sector |
Company |
USDm |
| LUKOIL |
RUSSIA |
OIL |
NEFTOCHIM OIL REFINERY |
101.0 |
| METRO CASH & CARRY |
GERMANY |
RETAIL |
METRO CASH & CARRY BULGARIA |
77.7 |
| OMV |
AUSTRIA |
OIL - RETAIL |
PETROL |
26.0 |
| YUKOS PETROLEUM, CYPRUS, gas retail, PETROL, 26,000,000 |
CYPRUS |
OIL- RETAIL |
PETROL |
26.0 |
| CEMENTS FRANCAIS, FRANCE, cement, VULKAN EAD, 18,811,000 |
FRANCE |
CEMENT |
VULKANEAD |
18.8 |
| BOYAR INTERNATIONAL LTD, |
UK |
WINE |
DOMAIN BOYAR |
13.9 |
| BALAKANPHARMA / DEUTSCHE BANK LONDON |
UK |
PHARMACEUTICAL |
DUPNITSA |
11.0 |
| PLEVCEM LTD |
CYPRUS |
CEMENT |
PLEVENSKI CEMENT |
8.6 |
| BALAKANPHARMA / DEUTSCHE BANK LONDON |
UK |
PHARMACEUTICAL |
TROYA PHARMA |
7.3 |
| BALAKANPHARMA / DEUTSCHE BANK LONDON |
UK |
PHARMACEUTICAL |
ANTIBIOTIC |
5.7 |
| SOUTHWISE TRADING, |
CYPRUS |
RETAIL |
TSUM |
6.7 |
| HEIDELBERGER CEMENT |
GERMANY |
CEMENT |
ZLATNA PANEGA |
5.7 |
|
|
|
|
