What are the Investment and Trade Opportunities in Bulgaria?

Bulgaria, officially known as the Republic of Bulgaria, is a country located in the Balkans and is a member of the European Union with its capital in Sofia. Bulgaria shares borders with several countries, including Serbia and North Macedonia to the west, the Black Sea to the east, Romania to the north, Greece to the south, and Turkey to the southeast. The currency of Bulgaria is the Lev.

With a population of 6.9 million, Bulgaria has effectively showcased itself in terms of investment and trade both in the market and between countries.

Bulgaria, which is in communication with many countries it shares borders with, offers a commercial and investment network to institutions or organizations that have the potential to invest in it. In return for these promises, Bulgaria does not remain unreciprocated, and by being a member of the European Union, it has managed to become an indispensable choice.

How is the Distribution of Investments in Bulgaria by Sectors?

Bulgaria contains the diversity of many elements. One of them is sectors. The sectors are;
• Energy Sector
• Metallurgy Sector
• Machinery Industry Sector
• Agriculture Sector
• Tourism Sector
They are structured as such.

-The energy sector is a small but intensive sector remaining in Bulgaria. Bulgaria, located on energy corridors, fulfills its responsibilities in terms of energy as a member of the European Union. Therefore, Bulgaria is responsible for the energy security of the Balkans and the European Union.
-The metallurgy sector is progressing in tandem with the energy sector, which is the biggest sector in Bulgaria recently. This sector has seen significant development and expansion lately, leading to a 3.5% annual increase in the country’s Gross Domestic Product. Therefore, investors are trying to catch up with this sector while it’s still young.
-The machinery industry sector is viewed as a sector that deserves encouragement and management by Bulgaria. Bulgaria, which thinks that the increase in digitalization in production will be quite efficient in terms of both speed and time, is ready for investments from this sector and is waiting with a development-focused approach.
-Bulgaria is quite fortunate in terms of agriculture as it possesses everything necessary for maximum yield; a good climate and fertile soil. Its membership in the European Union has further spurred this opportunity, and Bulgaria has always attracted investors with its agricultural sector.
-The tourism sector, when thought of, has also managed to carve out its success. Bulgaria continues to develop in this sector and remains the focus of investors during this development process.

When looking at the sector distribution data above, it can be seen that Bulgaria has achieved success in almost all of the sectors it has ventured into. The foundation of this success lies both in the investments made by the state itself and in the investments made by foreigners. Bulgaria, which wants to take these processes further, is pleased to be a destination for investors and does not want this to end.

What are the Advantages of Investing in Bulgaria?

In addition to the successes it provides in terms of investments in sectors, Bulgaria also openly presents many investment advantages. These include;
• Grants may be seen during the investment process in Bulgaria.
• Accelerated and practical administrative procedures enable a quick transition to the investment process.
• The government provides direct support to investors.
• Relatively lower taxes.
• Gaining mutual trust as a result of transparent commercial policies.
• Providing training on investment and supporting these trainings for a quality process.
They are structured as such.

These are just a few of the advantages Bulgaria provides in its investment process. Bulgaria takes investment so seriously that it even examines types of investment incentives under three separate headings. These are;
• Investment Incentive Legislation (IPA)
• Tax Incentives
• Incentive measures aimed at increasing employment
They are structured as such.

Investment Incentive Legislation: This type of incentive suggests that investments should be directed towards the establishment of new facilities, the improvement of existing ones, and the diversification of new products.

Tax Incentives: This type of incentive applies elements such as the elimination of R&D expenses, the unrestricted return of capital, and maintaining other types of taxes at a lower rate.

Incentive measures aimed at increasing employment: This method provides individuals with placements in suitable positions and covers their salaries and insurance for one year. The importance Bulgaria places on investment and investors can be seen in all of the above items. Therefore, it would not be a wrong choice to say that Bulgaria is a reliable investment country.

5 Reasons to Invest in Bulgaria

• Being a member of the European Union
• Having borders with many countries
• Having many understanding policies regarding investment
• Being developed in multiple sectors
• Being a reliable investment country

There are many answers to the question of why Bulgaria should be preferred. However, most of these answers are gathered under these five headings.

Being a member of the European Union is effective because Bulgaria can be a gateway to the European Union. Additionally, having borders with many countries also leads to the development and expansion of both trade and investment networks. Bulgaria, which attracts investors with decreasing taxes and grants mentioned in the previous item, not only creates a reliable image but also clearly states that it will share this image with its investors.

How to Set Up a Company to Invest in Bulgaria?

There are certain essential elements that those wishing to establish a company in Bulgaria should know, and these elements need to be paid attention to.

After deciding to establish a company, the type of company to be established should be determined. This phase results in two ways.
•Limited Company
•Joint Stock Company

Each of these two companies has their own specific capital amounts. For example, while establishing a Joint Stock Company requires 50,000 Levs, the capital for a Limited Company is 2 Levs.

After deciding on the capital and company type, certain documents are required to set up the company. These include;
• Company information declaration
• Company establishment contract
• Management appointment decision by the company’s authorized body
• Receipt showing the deposited capital
• Decision of the relevant organ of the legal entity to participate in the company
• Other documents required by special laws
They are structured as such.

When all these stages and documents are submitted to the relevant official institutions, a company will have been successfully established in Bulgaria for investment purposes. In subsequent processes, achieving success and going through a profitable process with Bulgaria's highly favorable investor environment and supports will be inevitable.

What Types of Companies Can Be Established in Bulgaria?

Note: The answer to this heading is somewhat present in the heading on how to establish a company to invest in Bulgaria; additions can be made.
There are company types that can be established according to Bulgarian Commercial Law for those wishing to invest in Bulgaria. These company types are; Limited Company, Joint Stock Company, Collective Company, and Commandite Company.

How Do Company Owners Obtain Residence Permits in Bulgaria?

One type of residence permit in Bulgaria is the residence permit obtained for establishing a company in Bulgaria. For this residence permit, it is necessary to apply for a D visa. D visa applications must be submitted in person at the Bulgarian consulate. Individuals must complete their documents with the Bulgarian Consulate in the region where their residence address is located. If the application is made through the company, the documents that are in Bulgaria and those that need to be prepared in Turkey must be complete during the application period.