Exporting to Bulgaria

The economic relations between Bulgaria and Turkey exceed 5.5 billion dollars. The Bulgarian economy has a large private sector alongside a smaller public sector and operates as a free market economy. In recent years, Bulgaria has experienced rapid economic growth, influenced by its EU membership, and is considered to have an industrialized upper-middle-income economy level.

How to Export to Bulgaria?

According to recent studies, exactly 2.58 million people use e-commerce sites in Bulgaria. To achieve a good sales percentage in e-commerce, it is essential to determine the market share. It has been determined that the most commonly purchased goods in this country through e-commerce sites are textile products. Additionally, it would not be incorrect to say that companies operating in this country also acquire wood and its derivatives, cardboard, and products as raw materials. Firstly, it is necessary to have an e-commerce site with infrastructure based on Bulgarian payment habits. Of course, having these sites also requires being subject to taxation.

What are the Companies Exporting to Bulgaria?

● Selay Logistics (logistics)
● Yebo Import Export (electric home appliances)
● N&R Ood (Ltd) Bulgaria (firewood, construction timber)
● Unıversıum Ltd. Stı.(tourism, investment)
● Startex (fishing nets, cage nets)
● Madara Agro Ltd. (agricultural machines, spare parts)
● Ahmet International Consulting Ltd. (agriculture, food)
● Ergene Ood (un)
● Gar Transport Ltd.Stı.-Central Bulgaria Turkey Branch

What Documents are Required to Export to Bulgaria?

To export to Bulgaria, which is geographically close to our country, some documents are required. These documents, necessary for both the customs process and the shipping process, are requested by the authorized cargo company from the exporter. During the shipment of export products;
● Issuance of the commercial invoice for the product
● Preparation of the Electronic Commerce Customs Declaration
● Existence of international shipping delivery documents
● Possession of a Circulation Certificate
● Possession of a EUR-MED Circulation Document
● Issuance of a TR Circulation Certificate are required.

What are the Export Taxes for Bulgaria?

In the case of export including micro-export, imported products that come through express cargo and postal service, costing 22 Euros per shipment, are exempt from taxation. In exports, Bulgaria has not requested any tax exemptions. Bulgaria does not receive a tax exemption for the customs exemption limit in exports. However, a tax imposition of up to 20% has been established for products. The VAT rate in Bulgaria is set at 20% for all products. The corporate tax and income tax rates are determined to be 10%, while the dividend tax is 9%. Radioactive materials, chemicals, powdered milk, canned products, pets, fur and leather products have made the entry of money into the country difficult. The entry of these products into the country is controlled according to the special and specific conditions of the Customs Administration.

What are the Export Procedures for Bulgaria?

• Agreements and Taxes
Thanks to the EU Customs Union Agreement, Turkey is exempt from customs duties on its exports to Bulgaria. There are also bilateral agreements between Turkey and Bulgaria for “Avoidance of Double Taxation” and “Promotion and Protection of Investments.” The VAT rate (excluding the 9% VAT rate applied in hospitality) is 20% for all products. The standard corporate tax rate is 10%. The standard income tax rate is 10%.

• Standards
As part of Bulgaria's EU membership, in addition to the National Standardization Institute, EU requirements are in force for standards. National standards in Bulgaria have been brought into compliance with the EU's regulations on product safety, standardization, accreditation, metrology, conformity assessment, testing, inspection, and certification.

• Packaging and Labeling
It is required that products exported to Bulgaria meet all health and safety requirements. According to the EU legislation in this area, it has become mandatory for products within the scope to have the “CE” mark.
For food products, the product name, net weight, expiration date, country of origin, storage conditions, nutritional values, ingredients, allergens, and producer company information must be included.

• Market Entry Path
Agents and distributors: Since English is not widely spoken outside of large cities like Sofia in Bulgaria, translation issues can arise. Strong market presence can be achieved through local agents and distributors.
Direct Investment: EU membership, low business operation costs, and low tax rates make Bulgaria an attractive option for direct investment. Turkish companies have investments in various sectors in Bulgaria, including automotive, healthcare, glass, and textiles.

• Business Culture
Bulgarians approach business meetings formally, and adherence to formal protocols and conservative dress standards is expected. Addressing by last names occurs, and as relationships progress, addressing by first names becomes more common. It is common for business meetings to last longer than specified, so additional time should be allocated for meetings.

What Products are Exported to Bulgaria?

• Textiles and Raw Materials
• Chemical Substances and Products
• Steel
• Automotive Industry
• Iron and Non-Ferrous Metals
• Electrical Electronics
• Ready-to-Wear and Garments
• Machinery and Components
• Furniture, Paper and Forest Products
• Air Conditioning Industry
• Fresh Fruits and Vegetables
• Mining Products
• Cement Glass Ceramics and Clay Products
• Leather and Leather Products
• Cereals, Pulses, Oilseeds and Products
• Carpets
• Jewelry
• Fruit and Vegetable Products
• Ships and Yachts
• Olives and Olive Oil
• Hazelnuts and Products
• Seafood and Animal Products
• Other Industrial Products
• Defense and Aerospace Industry
• Dried Fruits and Products
• Ornamental Plants and Products.
• Tobacco

What is the Trade Volume Between Turkey and Bulgaria?

There is a foreign trade volume of 4.5 billion dollars with Bulgaria. This figure shows us that there is a balanced foreign trade volume. Turkey's exports to this country is approximately 2.4 billion dollars. Bulgaria's exports to us have been determined to be 2.1 billion dollars. It is predicted that this will rise to 5 billion dollars in 2021. In 2023, it is expected that this figure will reach 6-7 billion dollars.