The most current opinion of Bulgaria from an investors’ perspective is that the country is a paradise for low-cost investors. Among other European Union (EU) countries, Bulgaria offers the cheapest labor, and low income and corporate taxes. Another luring aspect of investing in Bulgaria is that the government does not apply any limitations on the foreign ownership and control of a firm. In fact, in some cases offer the same leverage to foreign entities enjoyed by the national firms.
Here we discuss some of the lucrative and investor-friendly areas you can safely invest and benefit from.
Property
Bulgaria has a stable democratic form of government. This allows for long-term uniform policies lending a sense of security to the investors. Real estate is one sector that is directly affected by the government’s policies and overall economic stability. Hence investing in the Bulgarian real estate sector is both secure and profitable in the long term. Whether you buy property to sell in the future or looking for a stable source of income through rentals, this sector holds promises.
The most popular locations investors rush to buy property in are Sofia, the capital of the country; Black Sea resorts, Albena, St. Vlas, Sunny Beach, Golden Sands, Varna, and Burgas. Many investors also invest in resorts and hotels as the one-time high cost ensures long-term benefits.
Energy sector
The energy sector in Bulgaria is undergoing a massive transformation currently. Conventional energy sources such as coal, nuclear, and oil are gradually being replaced with more environmentally friendly renewable sources; solar, hydro-power, wind, etc.
Nuclear power generation accounts for 45% of the total energy produced in Bulgaria, and the government plans to continue to rely heavily on this method until the transformation reaches 100%. If you have the investment or can gather a pool of people who are willing to invest in alternate energy production, this would be the right time to enter. Bulgaria has a very sophisticated supply system that runs all across the country and even a few neighboring countries too.
Construction sector
In recent years the Bulgarian construction industry has seen a boom, especially in resort destinations. Investment in commercial, residential, or industrial construction yields high profits and is considered to be the most attractive mid-term investment opportunity.
Vacation villages are the next big thing in the tourism industry; many travel operators are now offering their clients vacations in a remote village
The factors that make this sector so attractive are:
- Low cost of land, construction, and labor
- Relaxed government policies for foreign investors
- Increase in tourist destinations and demand for high-end accommodations
- Continued tax policies that favor the investors
- Safeguard against external economic mishaps
- Bank financing for foreign construction companies
Telecom and technology
With the rising business opportunities and business expansions, the need to update telecommunication in the country has also risen. New and better technology suppliers and internet service providers are in demand. The basic infrastructure on the supply end in Bulgaria is well established, it is the back-end supply where the investors see yielding opportunities.
Similarly, computer software/hardware and networking technology is another area that is needed by every small and large business, and companies are putting lots of money into this sector to fill the gaps.
Business culture in Bulgaria
Bulgarians prefer doing business in person, rather than through the internet. If you plan to invest in Bulgaria, you must acknowledge this fact; Bulgarians do business with people. Be prepared for multiple visits to Bulgaria before and after you invest. You can also hire professional help to represent yourself there on many occasions, however, in most cases, you will have to be personally present to break a deal in your favor.
It is always prudent to gather all the information before making any commitment. Moreover, the Agency for Investment in Bulgaria (IBA) is at investors’ disposal and is mandated to assist investors in legal and compliance-related matters. The 2004 law for Promotion of Investment too, guarantees that foreign and local investors are treated with the same amount of attention and support.
