Market research
Business Overview
After the collapse of Communism in 1989 Bulgaria struggled under a number of ineffective governments. However, with the introduction of a currency board in 1997 where the Bulgarian Lev was pegged to the Euro, Bulgaria established itself as an economically stable market attracting an increasing number of investors. Bulgaria now offers political stability, strong economic growth and low costs.
Tourism Overview
The country's scenic beauty and rich cultural heritage have meant that tourism has traditionally been one of Bulgaria's fortes. With the country's growing popularity, Bulgaria's tourist industry has experienced a massive annual growth of 10-15% in the past few years. Since 1998 the number of foreign tourists in Bulgaria has seen a 50% increase. According to the World Tourism Organisation the number of foreign tourists in Bulgaria will exceed 20 million by 2020.
Why invest in Bulgaria?
Sustained and stable economic growth:
- GDP: $77.13 billion (2006 estimate)
- GDP per capita: $10,400 (2006 estimate)
- Annual GDP growth: 5.5%
- Euro-pegged currency
Stable political environment:
- NATO member
- EU member
Government support for foreign investments:
- Favourable legal conditions and guarantees for foreign investors
- 51 treaties for avoidance of double taxation
- 55 agreements on mutual protection and promotion of foreign investment
- Corporate tax rate – 10%, the lowest in the EU
Record high foreign direct investment (FDI) in 2006 ($5.058 billion)
- FDI, 2006 totals 16.6% of GDP
- FDI, 2006 inflow exceeds by 73% the FDI, 2005 inflow.
