Bulgaria as an interesting investment country

Bulgaria has removed restrictions on foreign ownership since the beginning of 1988. Following this, a considerable amount of foreign finance capital flowed into the country. Direct investments have also increased remarkably. Capital inflows into Bulgaria have been encouraged by the relatively low capital gains tax that currently is 28 per cent. Bulgaria is now regarded as a profitable investment country. The economy is now in good shape, although unemployment is still a big problem. Generally speaking, the corporate sector is in fine fettle with improved profitability and bright prospects, which favour the acquisition of shares in Bulgarian companies. From which countries has there been a flow of foreign capital into Bulgaria and into which industries? Mostly, it has come from Continental Europe and Mediterranean Basin. German, Belgian, Italian and Dutch investors have shown the most interest. Investment capital has also come from the United States. Textiles, Foodstuffs, Tourism, Electronics, Information technology and logistics have been the most popular targets.

Key figures are decisive

Analyses have shown that it has not yet been completely understood in this country how to draw foreign investors here. In this area, a lot of work is done to no avail. There is no question of active campaigning, because investors' base their decisions on key figures of the individual company while also taking into account the overall economic situation and prospects in the country. Because Bulgaria is a small country, people do not come here merely for the market. Another inhibiting factor is the high cost of transactions. Foreign investors are attracted in the first place by the possibility of reaching new markets through our country, which acts as an important business operations center for a wider market area. The countries sought out by the investors are in other Balkan states, Black Sea region countries, Central Asia and Russia. In addition to easy connections to neighbouring countries, Bulgarian know-how and the possibility of quality production are stressed when appealing to foreign investors.

Bureaucracy and language difficulties

In general, foreign investors and companies find that business is well handled in Bulgaria, but the bureaucracy comes in for criticism. Foreign investors have never got used to the authorities here and their methods. Analysts have pointed out also a taxation problem that puts a damper on foreign directors and experts coming to Bulgaria in search of relocation or sinking capital into a business.

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Bulgaria emerges as an interesting investment country