1. Bulgaria – investment climate and business opportunities
June 2013

2. 9
Macroeconomic indicators show consistent pre-crisis economic growth and quick post-crisis recovery
Real GDP Growth
Inflation (HICP)
Bulgaria
EU-27
Bulgaria
EU-27
0.4%
2005
2006
2007
2008
2009
2010
2011
2012
2005
2006
2007
2008
2009
2010
2011
2012
Unemployment
FDI Inflow
Bulgaria
EU-27
€ mln.
9,052
9.2%
6,222
6,728
6.3%
3,152
2,437
1,151
1,315
1,478
2005
2006
2007
2008
2009
2010
2011
2012
2005
2006
2007
2008
2009
2010
2011
2012
Source: Bulgarian National Bank, Eurostat

3. FDI in Bulgaria comes mostly from EU countries and is concentrated in four main sectors
FDI by host country, (€ mln.)
FDI flows by industry, (€ mln.)
(1) Netherlands
6,601
Real Estate
7,990
(2) Austria
5,638
Finance
7,604
(3) Greece
3,576
Manufacturing
6,750
(4) UK
2,606
(5) Germany
2,501
Trade
6,698
(6) Cyprus
2,317
Energy
3,522
(7) Russia
1,658
Construction
2,891
(8) Hungary
1,332
Telecom
2,209
(9) Switzerland
1,289
(10) Italy
1,287
Other
2,915
Source: Bulgarian National Bank

4. Why invest in Bulgaria? Political and business stability
EU and NATO member
Currency board
Low budget deficit and government debt
Low cost of doing business
10% corporate tax rate
Lowest cost of labor within EU
Access to markets
European Union / EFTA
Russia
Turkey / Middle East
Educated and skilled workforce
Government incentives

5. Bulgaria enjoys one of the most stable political and economic environments in Southeastern Europe
Bulgaria is a member of some of the most prestigious political organizations
European Union member since 2007
NATO member since 2004
WTO member since 1996
Strong commitment to political reform and transparency has earned praise from leading media and experts worldwide
Stable currency
Bulgarian Lev has been pegged to the Euro since the adoption of the currency in 2002
Currency board backed by IMF
„While governments across the euro- zone periphery are on the ropes or have been felled by the economic crisis, Prime Minister Boyko Borisov's government has drawn international accolades for cutting spending while maintaining high levels of public support.”
September 10, 2011
Standard & Poor's ratings agency raised its short-term foreign and local currency sovereign credit ratings on Bulgaria to 'A-2' from 'A-3' based on its recently adopted methodology. The agency also affirmed our 'BBB' long-term foreign and local currency sovereign credit ratings.The outlook is stable.
August 10, 2012

6. Government financial indicators are remarkable not only in the region, but on a pan-European scale
Average government debt ( )
Greece
Italy
Belgium
Portugal
France
Hungary
Germany
United Kingdom
Malta
Iceland
Austria
Ireland
Cyprus
Poland
Spain
Netherlands
Finland
Turkey
Sweden
Croatia
Norway
Slovakia
Denmark
Lithuania
Slovenia
Czech Republic
Latvia
Romania
Bulgaria
Luxembourg
Estonia
-11%
-10%
-6%
-5%
-4%
-3%
-2%
-1% 0% 1%
15%
16%
Average budget deficit/surplus ( )
Source: Eurostat

7. k
Bulgarian economy maintains its excellent performance despite global challenges
Budget deficit for 2012, % of GDP
Bulgaria was the only European country with increased credit rating by Moody’s in 2010 and 2011 BG
Egypt
Japan
United Kingdom
Spain
Greece
Estonia
United States
India
Czech Republic
Lithuania
France
Bulgaria
Netherlands
Spain
Poland
Ireland
Denmark
Euro Area
Turkey
Italy
Portugal
Hungary
Austria
Brazil
Cyprus
Turkey
China
Sweden
Switzerland
Greece
Germany
01/10
07/10
01/11
07/11
01/12
07/12
01/13

8. Bulgaria has one of the lowest business costs in Europe
Bulgaria has one of the lowest business costs in Europe
Lowest corporate income tax rate in Europe
Cost of electricity for industrial users is 70% of the EU average
Lowest cost of agricultural land in the European Union
€/kWh,
2012
Romania
1,616
€ / ha, 2011
Bulgaria
10%
Bulgaria
0.078
Bulgaria
1,671
Estonia
0.082
Romania
16%
Slovakia
3,343
Romania
0.083
Hungary
19%
Czech Rep.
3,621
Turkey
0.096
Poland
3,671
Slovakia
19%
Czech Rep
0.103
Greece
4,000
Hungary
0.108
Czech Rep
19%
France
6,909
EU average
0.124
Belguim
8,079
Croatia
20%
Slovakia
0.127
Germany
9,193
Turkey
20%
Germany
0.130
Netherlands
9,472
Source: Eurostat; Savills

9. Bulgaria is only 3 hours flight from all major destinations in Europe, Russia and the Mediterranean region
Strategic geographic location
Major transport corridors passing through Bulgaria
EU and EFTA
Russia and CIS
Turkey and Middle East

10. Educated and skilled workforce is among the main advantages of Bulgaria
Almost 60,000 students graduate every year from over 50 universities
Bulgaria has one of the highest proportions of students abroad from all European countries
Business
19,480
Iceland
17.8%
Social sciences
8,372
Ireland
14.2%
Slovakia
10.2%
Engineering
7,178
Bulgaria
Education
3,677
Greece
Health
3,166
Austria
Law
1,553
Germany
Architecture
EU-27 average
Agriculture
Romania
Other
12,684
Students in another EU / EEA country, % of all
Czech Republic
Source: National Institute of Statistics, Bulgaria

11. The government supports specific industries under the Investment Promotion Act (IPA)
Investments must be related to the following sectors:
Manufacturing
Research & development
Education
Healthcare
High-tech services
Warehousing and logistics
Minimum investment amounts must exceed €2.5m
€1m in regions with high unemployment and €0.5m for investment projects in high-tech services
Benefits for certified investors include:
Shortened administrative procedures
Preferential acquisition of state or municipal land
Financial support for professional training / education
Infrastructure subsidies
Labor cost subsidies
Individual administrative services

12. Biggest investors are supported through a priority investment scheme
Priority projects can be related to all sectors of the economy, which do not contradict regulation 800/2008 of the European Commission
Subsidies not allowed in mining, primary agriculture production, and shipbuilding
Priority projects should exceed €50m and create at least 200 new working places for a 3-year period
€25m working places for certain manufacturing projects
€10m + 50 working places for high-tech services and R&D
Priority projects receive all benefits for certified investors, as well as the following:
Lowest possible costs for the acquisition of government and municipal land + waived taxes for land status changes
Working group for project support is assigned by the Council of Ministers
Financial grant scheme for up to 10% of the investment project cost (50% for R&D)

13. Attractive FDI sectors
Services:
Transport and Logistics
Information technologies
Outsourcing of business processes
Health and tourism related to healthy lifestyle
Industry:
Transport equipment and machine building
Electronics and Electrical engineering
Chemical industry
Food and Agriculture
Resources:
Mining
Oil
Alternative energy

14. Leading global investors have chosen Bulgaria as an FDI destination
IT development
Back office operations
Chemical and metal Industry
Engineering
Food
Page 14

15. InvestBulgaria Agency
InvestBulgaria Agency is a Government investment promotion arm, part of the Ministry of Economy, Energy and Tourism
IBA services:
Macroeconomic data on Bulgaria
Legal advice
Data on operational costs
Regional information: industrial zones and infrastructure, data on unemployment, skilled labour force and level of education
Recommendation of investment project sites
Identification of potential suppliers, contract manufacturers and joint-venture partners
Personalized administrative servicing
Liaison with central and local governments
Liaison with branch chambers and NGOs 14

16. InvestBulgaria Agency
Sofia 1000, 31 Aksakov Str.
Phone: (+359 2)
Fax: (+359 2)
Web: