On the occasion of Yakimov Law Firm’s participation in China- Central and Eastern European Countries Ministerial round table on Trade and Economic Cooperation, China - Central and Eastern European Countries Economic & Cultural Exchange Week, Central and Eastern European Countries Commodities Fair, 16th China Zhejiang Investment and Trade Symposium, which will be carried out between June 7th and June 11th in Ningbo, Zhejiang province, China, our team has prepared an information page of investment advantages and possibilities in Bulgaria as a doorway to investments in EU.

Internal market
Two of the original core objectives of the European Economic Community were the development of a common market, subsequently renamed the single market, and a customs union between its member states.
The single market involves the free circulation of goods, capital, people, and services within the EU, and the customs union involves the application of a common external tariff on all goods entering the market. Once goods have been admitted into the market they cannot be subjected to customs duties, discriminatory taxes or import quotas, as they travel internally.
The non-EU member states of Iceland, Norway, Liechtenstein and Switzerland participate in the single market but not in the customs union. Half the trade in the EU is covered by legislation harmonized by the EU.

Political and business stability
• Bulgaria is a member of the European Union, NATO and WTO
• The stability of the currency is supported by the currency board, pegging the Bulgarian lev to the euro at the level of 1.96
• Bulgaria has one of the lowest government debts in the European Union (18.5 % of GDP) and one of the lowest budget deficits (0.8%) as of 2013

Low cost of doing business
• Bulgaria has the most favorable tax regime in Europe. Corporate income tax rate is 10%, the lowest in the EU. Personal income tax is 10 %, flat rate. Industries in high-unemployment areas are granted 0% tax rate
• There is a 2-year VAT exemption for imports of equipment for investment projects over €5 million, creating at least 50 jobs
• Depreciation time for computers and new manufacturing equipment is 2 years
• 5% withholding tax on dividends and liquidation quotas (0% for EU tax residents)
• Bulgaria has one of the most competitive costs of labor in Central and Eastern Europe
• Favorable office rents and low cost of utilities. Bulgarian cost of electricity for industrial users is 70% of the European average

Strategic location
Bulgaria has a strategic location in the center of Southeastern Europe and the main roads of Europe to the Middle East and Asia pass through.
Located at the heart of the Balkans, Bulgaria is a strategic logistics hub. Ease of transportation of cargo is provided by:
• Five Pan-European corridors ( IV, VII, VII, XI, X), which pass through the country
• Transport program TRACECA, which connects Europe with Caucasian and Central Asian region
• Four major airports: Sofia, Plovdiv, Bourgas and Varna
• Two main seaports: Varna and Bourgas
• Connection between ports at the Danube River and Varna seaport
• Numerous ports at the Danube River

Access to markets
Due to its location Bulgaria provides direct access to the following key markets:
• European Union - zero tariff market with population of 500 million
• South-East Europe – a 122 million inhabitant, high growth market
• CIS – still not well penetrated market with a high potential
• Turkey - zero tariff market of near 80 million population
• Middle East – a market with high purchasing power
• North African market

Human resources
• Work force is well educated, highly skilled and multilingual
• 62.2 % of the total population is in working age (appr. 4.6 million)
• 60 000 students annually graduate from 51 universities
• 98% of the high school students study a foreign language (usually English) and 73% study a second language (mainly German, French, Spanish, Russian)
• 94% of the schools have Internet access

Source: INVESTBULGARIA AGENCY

Varna is the biggest city at the Bulgarian Black Sea coast, and second economical center after the capital - Sofia. In the course of more than 7 millenniums, the Gulf of Varna has been the cradle of several significant civilizations - humankind's oldest gold was excavated in Varna, created by people who inhabited that place around the 4th millennium BC, the Thracians, Greeks, Romans and Bulgarians. The outstanding treasures of the Archeological Museum include the Chalcolithic necropolis with the oldest examples of gold jewelry ever discovered, and impressive Greek, Thracian and Bulgarian artifacts.
Of particular interest are the National Revival Museum, the Ethnographic and City Historical Museum, the Art Gallery, the Navy Museum and the Aquarium, the Natural History Museum, the Zoo and the Dolphinarium, the Sea Garden. Of more historical value are 17th century Cathedral of the Holy Mother, the Church of St Atanas, the 2nd century Roman thermae. As well as being a beach resort in its own right, Varna offers access to the first-class resorts of Sveti Konstantin, Sunny Day, Golden Sands and Albena, the natural reserve at Kamchiya, the rock monastery of Aladja.

Varna has a strategic location in the center of Southeastern Europe at the Bulgarian Black Sea coast.
Varna is a crossing point of several European transport corridors. Its crossroads position on the Black Sea west coast and the excellent transport links makes Varna a proper logistic bridge between Europe, Russia, Ukraine, Caucasus, Near and Far East.

The team of Yakimov Law firm will be happy to answer all your questions and inquires.