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Bulgaria 2019

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Bulgaria 2019 1 Table of Contents Doing Business in Bulgaria: _____________________________________________ 4 Market Overview _____________________________________________________________ 4 Market Challenges ___________________________________________________________ 4 Market Opportunities _________________________________________________________ 4 Market Entry Strategy _________________________________________________________ 5 Political Environment __________________________________________________ 6 Selling U.S. Products & Services _________________________________________ 7 Using an Agent to Sell US Products and Services _________________________________ 7 Establishing an Office ________________________________________________________ 7 Franchising _________________________________________________________________ 8 Direct Marketing _____________________________________________________________ 8 Joint Ventures (JVs)/Licensing _________________________________________________ 9 Selling to the Government _____________________________________________________ 9 Distribution & Sales Channels _________________________________________________ 10 Express Delivery ____________________________________________________________ 11 Selling Factors & Techniques _________________________________________________ 12 eCommerce ________________________________________________________________ 12 Trade Promotion & Advertising ________________________________________________ 14 Pricing ____________________________________________________________________ 15 Sales Service/Customer Support ______________________________________________ 15 Protecting Intellectual Property ________________________________________________ 15 IP Resources _______________________________________________________________ 16 Due Diligence ______________________________________________________________ 18 Local Professional Services __________________________________________________ 18 Bulgaria’s Principal Business Associations _____________________________________ 18 Limitations on Selling U.S. Products and Services ________________________________ 19 Web Resources _____________________________________________________________ 19 Contacts __________________________________________________________________ 19 Market Research ____________________________________________________________ 21 Trade Events _______________________________________________________________ 21 Leading Sectors for U.S. Exports & Investments ___________________________ 22 Agricultural Sector __________________________________________________________ 22 Energy ____________________________________________________________________ 28 Environmental Technologies __________________________________________________ 34 Healthcare & Life Sciences ___________________________________________________ 36 Information and Communications Technologies __________________________________ 39 Safety and Security __________________________________________________________ 42 Travel and Tourism __________________________________________________________ 46 Customs, Regulations & Standards ______________________________________ 48 Trade Barriers ______________________________________________________________ 48 Import Tariff ________________________________________________________________ 48 Import Requirements & Documentation _________________________________________ 48 Labeling/Marking Requirements _______________________________________________ 50 U.S. Export Controls _________________________________________________________ 50 Temporary Entry ____________________________________________________________ 52 Prohibited & Restricted Imports _______________________________________________ 52 Customs Regulations ________________________________________________________ 52 Standards for Trade _________________________________________________________ 52 Trade Agreements __________________________________________________________ 55 2 Licensing Requirements for Professional Services _______________________________ 55 Web Resources _____________________________________________________________ 55 Investment Climate Statement _________________________________________________ 55 Bulgaria - Executive Summary ________________________________________________ 55 Trade & Project Financing _____________________________________________ 56 Methods of Payment _________________________________________________________ 56 Banking Systems ___________________________________________________________ 56 Foreign Exchange Controls ___________________________________________________ 56 U.S. Banks & Local Correspondent Banks _______________________________________ 57 Project Financing ___________________________________________________________ 57 Business Travel ______________________________________________________ 60 Business Customs __________________________________________________________ 60 Travel Advisory _____________________________________________________________ 60 Visa Requirements __________________________________________________________ 61 Currency __________________________________________________________________ 61 Telecommunications/Electric _________________________________________________ 62 Transportation______________________________________________________________ 62 Subway ____________________________________________________________________ 63 Car rentals _________________________________________________________________ 63 Low cost airlines in Bulgaria __________________________________________________ 63 Language __________________________________________________________________ 64 Health _____________________________________________________________________ 65 Local Time, Business Hours and Holidays_______________________________________ 65 Temporary Entry of Materials or Personal Belongings _____________________________ 66 Travel Related Web Resources ________________________________________________ 66 INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICE AND U.S. DEPARTMENT OF STATE, 2019. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES. Legal Disclaimer: The US&FCS makes every reasonable effort to ensure the accuracy and completeness of the information in this Guide, a resource for U.S. businesses to use in the exercise of their business judgment. U.S. businesses should conduct their own due diligence before relying on this information. When utilizing the information provided, the U.S. business is responsible for complying with all applicable laws and regulations of the United States, including the U.S. Foreign Corrupt Practices Act (FCPA). References and links to third-parties and their content are provided for the convenience of readers, and are not exhaustive lists of such resources. The US&FCS is not responsible for the availability of any third-party or its content whether found on an external site or otherwise; nor does US&FCS endorse the third-parties or endorse, warrant, or guarantee the products, services, or information described or offered in any third-party content. Please be aware that when following a link to an external site, you are then subject to the privacy and security policies and protections of the new site. 3 Doing Business in Bulgaria: Market Overview After the fall of the Berlin wall 30 years ago, Bulgaria underwent significant transformation. It changed from a centralized, planned economy to an open, market-based, middle-income economy anchored in the European Union and NATO. The advancement of structural reforms starting in the late 1990s and the introduction of the currency board spurred improved living standards. As one of the EU’s newest members, Bulgaria is an emerging market providing opportunities for U.S. companies. Bulgaria’s strong macroeconomic health makes it attractive to new companies. Although not part of the Eurozone, the Bulgarian lev is pegged to the euro. Bulgaria also has one of the lowest debt burdens and budget deficits in the EU, with an inflation rate near 2.4%, making it one of the most stable countries in the region for business. Bulgaria’s low corporate and personal income tax rate of 10% is one of several competitive advantages this market offers. Bulgaria’s strategic location in the center of Southeastern Europe and at the crossroads to the Middle East offers a potential launch-pad for expansion into neighboring markets. Bulgaria’s highly educated workforce has the lowest minimum wage in the EU. English is widely spoken. Real GDP growth strengthened from 3.1% in 2018 to 3.5% (year-on-year) in the first quarter of 2019. The recovery in exports that began in the second half of 2018 contributed strongly to economic expansion. EU analysts expect that real GDP growth will reach 3.3% in 2019 and 3.4% in 2020 This report will highlight the leading sectors for U.S. companies, including agriculture, agricultural equipment, energy, environmental technologies, healthcare, IT, tourism, and safety & security. Market Challenges Regulatory and legislative unpredictability Inefficient bureaucracy Slow moving court system Corruption and the influence of entrenched interests in some sectors of the economy Long and arduous process of acquiring construction permits Complex, and often opaque, tendering process Aging population with low purchasing power Market Opportunities Lowest wage rates in the EU Strategic geographic location Simplified registration process for new businesses Low corporate taxes Incentives for investment in certain sectors such as IT, research and development,
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