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The text below is kindly provided by:
Deloitte Bulgaria OOD Why invest in Bulgaria? - Stable political environment and low country risk;
- Stable macroeconomic environment;
- Tax incentives: (10% tax on corporate profits; 0% corporate tax in high unemployment areas; 10% flat tax on personal income);
- Investment incentives;
- Low labour and operating costs.
Investment incentives under the Investment Promotion Act There are two classes of eligible investment for investment support depending on the investment amount: - Class A: minimum BGN 32 million (€16.3 million);
- Class B: minimum BGN 16 million (€8.2 million)
The incentives depend on the investment class obtained include: - Financial aid for construction of physical infrastructure elements for Class A;
- Personalized administrative services for Class A;
- Financial aid for training aimed at attainment of professional qualification by the hired staff for both Class A and Class B;
- Faster administrative services for both Class A and Class B;
- Sale or establishing against consideration of limited real rights on private state or municipal property, without a tender or an auction both Class A and Class B;
Investment incentives for priority investment projects: - Opportunities for other forms of state aid, institutional support, public-private partnerships or joint-ventures.
Investment incentives for industrial zones: - Different type of transactions between the investor and the legal entity established for the purposes of construction and development of industrial zones.
Tax incentives - Incentive for manufacturing activities in high unemployment municipalities
The amount of the annual corporate income tax due by entities on their profits from manufacturing may be partly or fully reduced if the activities are carried out in municipalities with high unemployment. There are a number of specific eligibility conditions for applying the incentive (including conditions imposed under the EU state aid rules). - VAT Incentive for large investment projects
Entities investing in a large investment project can benefit from a faster recovery of VAT and self-charge of VAT on importation of certain goods. There are a number of specific requirements for applying the VAT incentive, including the need of obtaining authorization from the Bulgarian Ministry of Finance. Incentives for renewable energy sources (RES) projects Incentives under the Renewable and Alternative Energy Sources Act: - Mandatory purchase at preferential prices of the electricity generated by renewable energy sources;
- Feed-in tariffs set by the State Energy and Water Regulatory Commission;
- Connection with priority to the electricity grid;
- Certificates of origin;
- Eligible for incentives under the Investment Promotion Act (above).
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