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THE EUROPEAN TIMES EUROPEAN THE BULGARIA 1 BULGARIA INTRODUCTION AGRICULTURE • Most Favourable Tax Treatment • Agriculture Sector Offers in the European Union 4 Significant Investment Potential 18 GOVERNMENT TRANSPORT • Strong Government Focused • Ambitious Upgrades of the on Growth and Stability 6 Transport System 20 ECONOMY ENERGY • Buoyant Economic Growth Driven • Interview with Temenuzhka Petkova, by Consumption and Investment 8 Minister of Energy: Bulgaria’s Reliable Energy Sector is a Strong Base BUSSINESS & INVESTMENT for Economic Growth 22 OPPORTUNITIES • Strategic Logistics Hub and HEALTHCARE Superb Investment Destination 10 • Modernisation of the Healthcare • PREDISTIC LTD: Vibrant Company System Underway 24 Strives to Become the Preferred IT Partner for Leading International Businesses 13 • PDS Bulgaria: Cutting Edge Software TOURISM and Consultancy for the Digitally Transforming Businesses 13 • Interview with Blagoi Ragin, • Invest Bulgaria Agency: President of BHRA: Significant Bulgaria – Come for a Visit, Contribution to the Bulgarian Return on Investment 14 Toursim Sector 26 • Industrial Zones with Attractive • Among Europe’s Fastest Growing Tourist Conditions and Excellent Infrastructure 15 Destinations 27 • Substantive Incentives for Certified Investors 16 • GENEVA HOTEL: Significant Contribution to the Bulgarian Tourism Sector 29 • ATM HOTELS 30 • MARRINELLA APARTMENTS: Blend of Modern Accommodation and Bulgarian Hospitality in the Heart of Sofia 32 Regional Director: Suzana Skoko – Business Analysts: Andrej Petrovski & Goran Velkovski – Head of Production: Ivana Popchev – Production Manager: Kally Themistocleous – Editorial: Tomislav Hristov & Snezana Stefanovska – Design: Panche Prendjov The European Times Zinas Kanther 16 – Karantoki Building – 7th Floor, Office 25-26 – 1065 Nicosia – Cyprus Tel.: +357 22 030248 – [email protected] – www.european-times.com The European Times is a division of Crystal Mediacorp Limited. This guide is protected by copyright. All rights reserved. This publication, or any part thereof, may not be reproduced, stored electronically or transmitted in any form, without the prior written permission of European Times. Every effort has been made to ensure information contained in this publication is correct and up-to-date. The authors and publisher accept no responsibility for any errors it may contain, or for any loss, financial or otherwise, sustained by any person using this publication. (05-16) Upcoming Projects: ZAMBIABELGIUM VI The European SRIBELGIUM LANKA VI Times POLANDBELGIUM VI MACEDONIABELGIUM VI CYPRUSBELGIUM VI For more information, feel free to contact us at [email protected] or visit www.european-times.com Cathedral Saint Alexandar Nevski in Sofia THE EUROPEAN TIMES EUROPEAN THE Most Favourable Tax Treatment in the European Union Bulgaria is located in the Southern-Eastern part of the Major advantages Balkan Peninsula. The country shares it borders with Romania to the north, Serbia and Macedonia to the west, Bulgaria’s strategic geographic location and well-devel- Greece and Turkey to the south, and the Black Sea to the oped energy sector and infrastructure make it a key east. With a territory of 110.994 square km and 7.1 million European energy centre and transport hub, offering access inhabitants, Bulgaria is Europe’s 16th largest country. to the markets of the EU, Turkey, CIS, North Africa and the With its strategic location, Bulgaria has always been an Middle East. In addition, the export driven economy and important transport hub and a coveted base for interna- its growth potential, complemented with a stable macroe- tional trade. conomic environment, the most favourable tax treatment in the European Union, highly skilled labour force and one Bulgaria joined NATO in 2004 and the European Union in of Europe’s lowest operational costs, continue to attract 2007. Furthermore, the country is a member of WTO, a investors and have secured Bulgaria’s place among the founding state of OSCE, and has taken a seat at the UN preferred investment destinations in the world. Security Council three times. Investor-friendly climate Presidency of the EU Council Bulgarian economy has always attracted an impressive On the 1 January 2018, Bulgaria took over the Presidency amount of foreign direct investment, mainly from EU of the Council of the European Union, which rotates among members. The Government has taken concrete steps to the EU Member States every six months. present Bulgaria as an investor friendly destination for investors. Invest Bulgaria within the Ministry of Economy, The priorities of the Bulgarian presidency are driven by its Energy and Tourism serves as the gateway to Bulgaria for motto ‘United we stand strong’, which is also the motto of foreign investors. It provides information on potential the coat of arms of the country. The presidency will work projects, helps set up links with local partners, and offers with its partners on unity among the member states and support for new businesses. Invest Bulgaria reports that the EU institutions to provide concrete solutions to build a around 90% of foreign investors in Bulgaria to date are stronger, more secure and solidary Europe. During the next from the EU, although other international investors are six months, the presidency will focus on four key areas: beginning to target the country. future of Europe and young people, Western Balkans, security and stability and digital economy. Besides the 10% flat tax rate, the Government also offers 4 INTRODUCTION THE EUROPEAN TIMES EUROPEAN THE reduced corporate tax for investors investing in less indus- FDI into Bulgaria rises 36.7% in 2017 trialized regions or regions with high unemployment. In addition, there are other subsidies depending on the type Foreign direct investment in Bulgaria in 2017 amounted of investment. Acquiring property is fairly easy, and office to €901.9 million, the equivalent of 1.8% of the country’s and utility expenses are favourable. Bulgaria’s educated GDP, which is an increase of 36.7% compared to the €660 and low wage workforce provides added economic million recorded in 2016, according to the preliminary sta- benefits to high productivity sectors that are looking for tistics published by the Bulgarian National Bank. a regional base in EU, which is visible through the sub- stantial development in the logistics, high-tech and BTO Investment in equity, including in the real estate sector, sectors. stood at €189.4 million, compared to €632.6 million in 2016. Re-invested earnings accounted for €229.8 million, Managers expect business compared to the €341.2 million in 2016. Net receipts from to grow in 2018 real estate investments by foreign entities totalled €10.8 million, compared to €63.1 million in 2016. The largest Most managers in Bulgaria expect business to grow in inflow of real estate investment came from Russia, 53.6% 2018. More than 82% of top executives in Bulgaria expect of the total volume. Germany followed with 11.5% and their businesses to grow in 2018 and 78% plan to recruit Ukraine with 11.1%. new employees. More than 77% of the companies reported growth in 2017, mainly in the sectors of outsourcing The central bank data showed €482.7 million in invest- (60%), technology (45%), industrial (42%) and consumer ment inflows as debt instruments, recorded as the change products and services (41%). in the net liabilities of Bulgarian companies towards their foreign investor owners, compared to outflows of €313.8 Key specialists, or experts with specific functions were million in 2016. Such financial flows include financial identified as the most wanted during 2018. In this respect, loans, suppliers’ credits and debt securities. By country, many companies consider taking advantage of the Blue the largest direct investment in Bulgaria in 2017 came Card work permit to attract foreign professionals for their from the Netherlands (€875.7 million), Switzerland (€126.6 businesses. Considering the speed of development of million) and Germany (€94 million), while the largest technologies, the top new areas of expertise in organiza- outflows were recorded towards the Czech Republic tions which are key for businesses include digital sales (€300.4 million) and Austria (€143.3 million). Bulgarian and marketing, technology innovations and business investment abroad increased by €275.6 million in 2017, intelligence. compared to €320.2 million in 2016. 5 National Assembly of Bulgaria THE EUROPEAN TIMES EUROPEAN THE Strong Government Focused on Growth and Stability Bulgaria is a parliamentary representative democratic republic, with a Prime Minister as the Head of Government and a President as Chief of State. The country’s Constitution was adopted on 13 July 1991, and most recent amendments were made in 2015. The country proclaimed its independence on 3 March 1878 as an autonomous principality within the Ottoman Empire. Complete independence from the Ottoman Empire was proclaimed on 22 September 1908. Bulgaria’s national holiday is Liberation Day, celebrated on 3 March. Government organization proportional representation vote to serve four-year terms. The votes are for party or coalition lists of candidates for Executive branch each of the 28 administrative divisions. A party or coalition must garner a minimum of 4% of the vote in order to enter Bulgaria’s Chief of State is the President, currently Rumen the National Assembly. Radev (since 22 January 2017); Vice President is Iliana Yotova (since 22 January 2017). The Head of the Govern- Judicial
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  • Contents 107 89 73 59 43 31 23 21 9 5 3

    Contents 107 89 73 59 43 31 23 21 9 5 3

    contents Who we are 3 Message by the Chairman 5 Managing Board 9 Supervisory Council 21 Advisory Council 23 Members 31 Commi﬐ ees 43 Branches 59 Regions 73 Sectors 89 Events 107 THE VOICE OF BULGARIAN BUSINESS 1 KRIB HAS THE AIM TO BE MOST WIDELY REPRESENTATIVE FOR THE BULGARIAN ECONOMY krib KRIB IS “THE VOICE OF THE BULGARIAN BUSINESS” THAT: produces three quarters of the country’s GDP provides jobs to over 800 000 people unites over 11 000 companies, which are members through individual or collec﬒ ve membership, among them the biggest companies in Bulgaria accounts for more than three quarters of the exports of Bulgaria. KRIB HAS A MISSION: to raise the compe﬒ ﬒ veness of the Bulgarian economy and the companies opera﬒ ng in Bulgaria to be most eff ec﬒ ve in the process of improving the business climate in the country to assist its members in sharing best business prac﬒ ces, benefi ﬒ ng from the EU membership, going regional and global to encourage the corporate social responsibili﬑ best prac﬒ ces of its members. KRIB IS AN ACTIVE PARTNER IN THE SOCIAL DIALOGUE: has representa﬒ ves in the social dialog on na﬒ onal, sectoral, regional and European level presents opinions on dra﬎ laws in the Bulgarian Parliament is a member of the Na﬒ onal Council for Tripar﬒ te Coopera﬒ on and its commissions its Chairman is Depu﬑ -Chairman of the Na﬒ onal Council for Tripar﬒ te Coopera﬒ on. KRIB HAS STRONG REGIONAL AND BRANCH STRUCTURES: operates 113 regional representa﬒ ons all over the country unites 65 branch organiza﬒ ons in all economic sectors THE VOICE OF BULGARIAN BUSINESS has 10 intersectoral commi﬐ ees that coordinate the interests of its members.