1. Automotive Industry
 Proximity to existing and new productions facilities of OEM and Tier 1 companies
 Traditions and expertise in the industry, two major subsectors – electronics and metal casting
 Attractive operational and start-up costs
 Availability of inputs at competitive prices
 Low risk

2. Automotiveparts Production Locations
Cogged wheels, car seats
Engines
Car radiators, filters and batteries
Driving axles, forgings, cogged wheels
Pistons, piston rings
Castings, wheel covers
Steering mechanisms
Wheel covers, non-ferrous metal castings
Forgings
Generators, starters, auto bulbs
Batteries
Fasteners, electronics
Fasteners
Section steel
Castings
Forgings, chassis
Bearings
Cast-iron castings
Car tyres
Batteries, car accessories
Cogged wheels, castings
Steel, tyres, rubber products, electronicscogged wheels

3. Credit Rating of Bulgaria Bulgaria has proven higher investment credibility
June 2004 Standard&Poor’s gave an investment-grade foreign-currency rating
BBВ- (stable outlook) by Standard&Poor’s;
BBВ- (stable outlook) by Fitch IBCA;
Bа1 (stable outlook) by Moody’s;
BBВ- (positive outlook) by the Japan Credit Rating Agency

4. Tax Reform – Budget 2005  establishing new enterprise
 Corporate tax: 15%
 Income tax rate: min - 10%; max - 24%
 Increasing the amortization norm for new plant and equipment: 50%
 Expenditure on research and development of the companies are not subjects to taxation
 Tax Preferences:
 establishing new enterprise
 expanding of an enterprise
 increasing the average number of employees

5. Investment Categories
Third category – universal measures (Euro mln.)
 Submission of information, prepared and processed in advance;
 Certificate, specifying the investment category and the type of administrative services, provided by the central and local executive authorities;
 Minimum deadlines.
Second investment category (Euro mln.)
 Individual administrative services;
 Individual information services;
 Institutional support.
First investment category (above Euro 50 mln.)
 Universal measures;
 Institutional support;
 State aid for developing the necessary elements of technical infrastructure.

6. Requirements to investors
 Establishing a new enterprise, expanding or modernizing an existing one
 Term of project implementation – up to 3 years
 Creating new jobs
 Economic efficiency

7. Investment incentives in Bulgaria
 15% corporate income tax in 2005
 0% corporate tax in areas with above average unemployment
 Depreciation rates – 2 years for computers and related equipment and 3 1/3 years for manufacturing equipment
 2-year VAT exemption for imports of equipment, consumables and components related to investment projects valued over € 5 million
 0% capital gains tax
 The highest bracket for personal income tax is only 29% for monthly income over € 300
 The Employment Agency’s Programmes and measures for employment of young people

8. Innovation Strategy measures for stimulating innovative and research potential
Stimuls for research, related to industry and the co-operation among R&D units, universities and business;
 Improvement of the innovations funding, evolving mechanisms for attracting private equity/capital;
 encouraging implementation of new technologies;
 support for the establishment of clusters in sectors, traditional for our country;
 support for newly established companies and firms that develop successfully in view of enhancing their innovative potential;
 creating mechanisms for attracting foreign investment in the spheres of science and technology.