Bulgaria

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Investing in Bulgaria

FDI in figures | Why you should choose to invest in Bulgaria | Procedures relative to foreign investment | Finding assistance for further information

FDI in figures

Between 1992 and 2006, total cumulative FDI into Bulgaria amounted to USD 20,199.7 billion (about 64 percent of estimated 2006 GDP). FDI in Bulgaria totaled $5.1 billion in 2006.

Foreign Direct Investment	2005	2006	2007
FDI inward flow (millions USD)	3,923	7,507	8,429
FDI stock (millions USD)	13,851	22,867	36,508
Performance Index*, ranking on 141 economies	8	7	2
Potential Index**, ranking on 141 economies	60	59	-
Number of Greenfield investments***	140	286	151
FDI inwards (in % of GFCF****)	59.7	91.4	71.6
FDI stock (in % of GDP)	50.9	72.2	92.3

Source:

Note: * The UNCTAD Inward FDI Performance index is based on a ratio of the country's share in global FDI inflows and its share in global GDP. ** The UNCTAD Inward FDI Potential index is based on 12 economic and structural variables such as GDP, foreign trade, FDI, infrastructures, energy use, R&D, education, country risk. *** Green field investments are a form of foreign direct investment where a parent company starts a new venture in a foreign country by constructing new operational facilities from the ground up. **** Gross fixed capital formation (GFCF) measures the value of additions to fixed assets purchased by business, government and households less disposals of fixed assets sold off or scrapped.

Why you should choose to invest in Bulgaria

Strong points: - Advantageous taxation for investors
- Significant qualified and cheap workforce
- Very low cost of living
- Member of European Union
- Strategic position
Weak points: - Country with limited revenue
- Corruption issue
- Some bad quality infrastructures (improving thanks to the EU)
- Fragile economy
Government measures to motivate or restrict FDI: The Bulgarian government has put a very advantageous taxtation system in place in order to attract investors. The costs of creating a business have also been lowered. The government additionally took a more liberal turn before its membership of the European Union and privatised numerous businesses.
To consult the measures put in place by the Bulgarian government visit the site Invest Bulgaria.

Procedures relative to foreign investment

Freedom of establishment: Bulgaria is the country in the region most open to direct foreign investment with no limitation.
For further information visit the Investment Climate section on the Factbook site.
Acquisition of holdings: The proportion of foreign participation in new or existing businesses is not limited. Foreigners have the right to register any company types according to the Bulgarian Commercial Code, including legal type of businesses extending the benefit of Private Limited Company status to sole owners with a 100% foreign participation.
Obligation to declare: The agency for the promotion of foreign investment in the country provides information on the necessary authorization for setting up.
Competent organization for the declaration: Invest Bulgaria: Bulgaria Investment Information site
Requests for specific authorizations: No specific requirements.
For further information visit the site Invest Bulgaria.

Finding assistance for further information

Investment aid agency: Invest Bulgaria Agency
Invest Bulgaria
Other useful resources: Bulgarian Chamber of Commerce and Industry

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