1. Bulgaria – investment climate and business opportunities
2012

2. %
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%
2004
2005
2006
2007
2008
2009
2010
2011
2004
2005
2006
2007
2008
2009
2010
2011
Unemployment
FDI Inflow
Bulgaria
EU-27
€ mln.
9,052
9.2%
6,222
6,728
6.9%
6.3%
2,736
3,152
2,437
1,209
1,341
2004
2005
2006
2007
2008
2009
2010
2011
2004
2005
2006
2007
2008
2009
2010
2011
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
6,018
Real Estate
8,204
(2) Austria
5,809
Finance
7,652
(3) Greece
3,664
Trade
6,522
(4) UK
2,733
(5) Germany
2,523
Manufacturing
6,479
(6) Cyprus
2,257
Construction
2,705
(7) Russia
1,486
Energy
2,699
(8) USA
1,283
Telecom
2,260
(9) Italy
1,279
(10) Hungary
1,272
Other
2,664
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. Bulgarian economy maintains its excellent performance despite global challenges% BG
Budget deficit for 2011, % of GDP
Expected real GDP growth, 2012
Egypt
Slovenia
-1.4%
Greece
United States
Hungary
-0.3%
Japan
United Kingdom
EU-27
0.0%
Spain
Poland
Czech Republic
0.0%
France
India
United Kingdom
0.5%
Netherlands
Euro Area
Bulgaria
0.5%
Italy
Czech Republic
Romania
1.4%
Denmark
Austria
Slovakia
1.8%
Brazil
China
United States
2.0%
Turkey
Germany
Lithuania
2.4%
Sweden
Switzerland
Poland
2.7%
Hungary
Source: Eurostat, The Economist, National Statistics

8. k
Bulgaria is the only country in Europe with a credit rating upgrade by Moody’s in 2010 and 2011
Aaa
Estonia A1
Baa1
Bulgaria
Spain
Hungary
Ba1
Turkey B1
Cyprus
Latvia
Caa1
Ireland
Lithuania
Iceland
Portugal
Greece Ca
01/10
04/10
07/10
10/10
01/11
04/11
07/11
10/11
01/12
04/12
07/12
10/12
Source: Moody’s

9. Bulgaria has one of the lowest business costs in Europe (1) taxes and labor costs
Lowest corporate income tax rate in Central / Eastern Europe
Most competitive cost of labor in Central / Eastern Europe
Monthly wage, nominal,
€ / month December 2011
Bulgaria (*)
10%
Bulgaria
Romania
16%
Romania
Hungary
19%
Serbia
Slovakia
19%
Hungary
Czech Rep
19%
Slovakia
Poland
19%
Poland
Croatia
20%
Czech Republic
Turkey
20%
Croatia
1,048
Slovenia
20%
Slovenia
1,520
* 0% tax rate for manufacturing companies in regions with low employment
Source: Eurostat; Bank Austria

10. Bulgaria has one of the lowest business costs in Europe (2) energy costs and rent
Bulgarian cost of electricity for industrial users is 70% of the European average
Office rents in Bulgaria are among the lowest in Europe
€/kWh, 2011
€ / sq. m / year,
Q2 2011
Estonia
Sofia
Bulgaria
Zagreb
Romania
Bucharest
Turkey
Budapest
Germany
Prague
EU average
Warsaw
Hungary
Athens
Czech Rep
Istanbul
Slovakia
Moscow
Source: Eurostat, CB Richard Ellis

11. 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

12. The role of the European Union as a trade partner for Bulgaria has been growing consistently%
Share of EU-27 exports has increased visibly since 1995
... in absolute terms EU-27 exports have grown more than 7 times
+39%
13,000
€ mln
12,000
11,000
EU-27
10,000
9,000
8,000
7,000
Balkans
6,000
5,000
Asia
4,000
3,000
Other
28%
2,000
16%
15%
15%
16%
1,000
1995
2000
2005
2010
2011
1994
1996
1998
2000
2002
2004
2006
2008
2010
2012
Source: National Institute of Statistics, Bulgaria

13. 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

14. 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 €10m
€3.5 in regions with high unemployment and €2m 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
Individual administrative services

15. 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
€ 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)

16. 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

17. Leading global investors have chosen Bulgaria as an FDI destination
IT & BPO
Mechanical and Electrical Engineering
Construction Materials
Telecom and Media
Energy
Finance

18. 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

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