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Body Invest Draft 1 INVESTMENT DESTINATION PLOVDIV PUBLISHED BY PLOVDIV MUNICIPALITY Contact: [email protected] IN PARTNERSHIP WITH INDUSTRY WATCH GROUP LTD. Contact: [email protected] COPYRIGHT 2017 PLOVDIV MUNICIPALITY WELCOME TO PLOVDIV! AS A MAYOR OF PLOVDIV, I AM PROUD AND THIS MAY BE YOUR FIRST ENCOUNTER WITH PRIVILEGED TO OPEN THE 2017 EDITION OF PLOVDIV OR YOU MAY UPDATE PREVIOUSLY THE “INVESTMENT DESTINATION PLOVDIV” KNOWN FACTS AND DATA ABOUT THE REGION. CATALOG. THIS BOOKLET IS INTENDED TO IN ALL CASES, IT IS JUST THE FIRST STEP IN A SERVE INVESTORS’ INTEREST IN BULGARIA JOURNEY THAT MY TEAM AND I WILL JOIN AND ITS SECOND BIGGEST CITY, ANSWERING YOU IN. PLEASE MAKE SURE YOU TAKE QUESTIONS ABOUT BUSINESS CLIMATE, ADVANTAGE OF MUNICIPALITY OF PLOVDIV’S LOCAL ECONOMY, LABOUR FORCE, COSTS OF DEPARTMENT FOR BUSINESS DEVELOPMENT EMPLOYMENT, PROPERTY MARKET, ETC. WITH MAIN PURPOSE PROVIDING USEFUL AND PRECISE INFORMATION TO EXISTING AND NEW WITH SOME 70 000 JOBS IN THE INVESTORS IN PLOVDIV. MANUFACTURING SECTOR PLOVDIV IS THE “INDUSTRIAL CAPITAL” OF BULGARIA. BUT ITS ECONOMY IS QUITE DYNAMIC, OPEN TO DEVELOPMENT TOWARDS HIGHER-END PRODUCTIONS. TRAKIA ECONOMIC ZONE – UNDOUBTEDLY THE BIGGEST ORGANIZED AND SERVED INDUSTRIAL ZONE IN THE COUNTRY - MAKES THE WIDER PLOVDIV REGION THE PREFERRED HOME FOR ABOUT 90 MULTINATIONAL COMPANIES. THE CITY’S VIBRANT START-UP ECOSYSTEM, COMBINED WITH ITS “HIPSTER” CULTURE, MAKES IT A PREFERRED PLACE TO LIVE, WORK AND EXPERIMENT FOR MANY YOUNG ENG. IVAN TOTEV PEOPLE. THE CITY HAS A POSITIVE MAYOR OF PLOVDIV MIGRATION BALANCE, WITH MORE YOUNG PEOPLE STAYING HERE OR COMING FROM ELSEWHERE. WITH OVER 40 000 STUDENTS, PLOVDIV OFFERS GREAT GROUND FOR FURTHER EXPANSION OF THE IT AND OUTSOURCING INDUSTRIES. "1 2 TABLE OF CONTENT DOING BUSINESS IN BULGARIA 3 4# LOCATION & CONNECTIVITY 5 6# Plovdiv on the map 5 6# Climate & geography 7 8# POPULATION 8 9# LABOR FORCE 9 10# Wages by segment 10 11# EDUCATION 12 14# LAND & PROPERTY MARKET 13 15# Business property prices 13 15# Office and industrial facilities rents 14 17# Construction activity 15 18# Available land for business 15 18# ACCESS TO UTILITIES 16 19# Electricity 16 19# Natural gas 17 20# Water and sewage 17 20# CONSTRUCTION PERMIT 18 21# LOCAL TAXES & FEES 20 23# General tax policy 20 23# Property tax 20 23# Waste fee 21 24# LOCAL ECONOMY 22 25# Manufacturing 23 26# Business services 24 27# MAJOR INVESTORS 25 28# SPECIAL FOCUS 27 30# IT&BPO 27 30# Machine building and R&D 27 30# Automotive 28 31# Transport & logistics 28 31# INDUSTRIAL ZONES 29 32# Trakia Economic Zone 29 32# Industrial Park Markovo 29 32# CULTURE & TOURISM 30 33# The world’s sixth oldest city 30 33# Sports & recreation 31 34# Arts & city events 32 35# "23 DOING BUSINESS IN BULGARIA As a parliamentary republic with a functioning market economy, Bulgaria joined NATO in 2004 and EU in 2007. The laws and regulations in almost all spheres LAWS AND REGULATIONS WERE of life were harmonized with EU legislation.# HARMONIZED WITH EU LEGISLATION A currency board establishes a fixed AS THE COUNTRY JOINED EU IN exchange rate (to EUR) regime under which 2007 the Central Bank cannot finance the government or the commercial banks. Bulgaria will keep the fixed rate until the BULGARIA’S 10% CORPORATE AND adoption of the Euro which is part of its EU PERSONAL INCOME TAX RATES ARE accession agreement. # THE LOWEST FLAT RATES IN EU Since 1997, all governments maintained a conservative fiscal policy, with low deficits IN THE 2016 EDITION OF THE or even surpluses. The public debt went down from over 100% of GDP to about ECONOMIC FREEDOM OF THE 29% at present.# WORLD INDEX, BULGARIA RANKS The third lowest ratio in EU of government 45TH (OUT OF 159 COUNTRIES) debt-to-GDP was recorded in Bulgaria (28.7%) next only to Estonia's and N THE EDITION OF THE OING Luxembourg’s according to Eurostat’s 2016 I 2017 D report. The euro area’s total public debt BUSINESS INDEX, BULGARIA RANKS stands at about 90.1% of Eurozone's GDP.# 39TH (OUT OF 190 COUNTRIES) Government spending in Bulgaria was the 6th lowest in EU - 40.7% of GDP, compared to 48.5% in the entire Euro area according to Eurostat’s 2015 report. In comprehensive tool that measures the addition, Bulgaria’s 10% corporate and microeconomic and macroeconomic personal income tax rates are the lowest foundations of national competitiveness. In flat rates in EU and one of the lowest in the the 2016-2017 GCI, Bulgaria ranks 50th world according to Eurostat’s 2015 report. overall (out of 138) as compared to Serbia In comparison, Romania holds 16% (90th), Romania (62th), Greece (86th), corporate and personal income tax rates, Turkey (55th), and Poland (36th). This is a Serbia - 15%, and the Czech Republic positive trend since the country took 62nd respectively 19% and 15%.# place in the 2012-2013 edition and 74th place in the 2011-2012 edition. Bulgaria Since 2005, The World Economic Forum in scores best in “Technological Davos (www.weforum.org) has based its readiness” (38th) and “Macroeconomic competitiveness analysis on the Global environment” (42th). Competitiveness Index (GCI), a "34 Since 2003, the World Bank has prepared Since 1996, the index published in the Doing Business Report Economic Freedom of the World Report (www.doingbusiness.org). It objectively (www.freetheworld.com) by the Fraser assesses regulations affecting domestic Institute (Vancouver, Canada) has been firms in 190 economies and ranks the measuring the degree to which the economies in 10 areas of regulation. The policies and institutions of countries are report provides quantitative measures of supportive of economic freedom. The regulations affecting areas in the life cycle cornerstones of economic freedom are of a business: starting a business, dealing personal choice, voluntary exchange, with construction permits, getting freedom to compete, and security of electricity, registering property, getting privately owned property. 42 variables are credit, protecting minority investors, used to construct a summary index and to paying taxes, trading across borders, measure the degree of economic freedom enforcing contracts, and resolving in five broad areas - size of government, insolvency. In the 2017 edition Bulgaria legal system and property rights, sound ranks 39th out of 190 countries as money, freedom to trade internationally, compared to Hungary (41st) and Greece regulations. In the 2016 edition of the (61st). The best scores that Bulgaria Index Bulgaria ranks 45th (out of 159). The receives are in "Protecting Minority best scores are in "Sound money", Investors" (13th), "Trading across Borders” "Freedom to trade internationally" and (21th), and "Getting Credit" (32rd).# “Regulations”. INDICATOR RANK SOURCE YEAR GOVERNMENT DEBT 3rd lowest in the EU Eurostat 2016 (% OF GDP) (28.7%) PERSONAL AND 1st lowest in the EU CORPORATE INCOME Eurostat 2016 (10%) FLAT TAX RATES DOING BUSINESS 39th World Bank 2017 INDEX (out of 190) 2016 ECONOMIC FREEDOM 45th Fraser (calculating the index in OF THE WORLD INDEX (out of 159) Institute the 2016 edition with data from 2014) GLOBAL World 50th COMPETITIVENESS Economic 2016-2017 (out of 138) INDEX (GCI) Forum "45 LOCATION & CONNECTIVITY Plovdiv on the map Plovdiv is a major link in the chain of the transport routes connecting Europe and Anatolia (Asia Minor) and an intersection point of three Pan-European corridors: Corridor IV (Dresden–Bucharest–Sofia- Plovdiv- Istanbul), Corridor VIII (Durrës- HIGHWAY CONNECTION TO CENTRAL Sofia-Plovdiv-Varna/Burgas) and Corridor AND WEST EUROPE X (Salzburg–Belgrade-Plovdiv-Istanbul). Two highways connect Plovdiv with Istanbul and Black Sea ports to the east, WELL DEVELOPED RAIL NETWORK and to Sofia and Europe to the west - OFFERS CONNECTION TO NEAREST Trakia Motorway and Maritza Motorway. # PORT First class roads connect Plovdiv with the main cities in the region. The nearest port – Burgas Port, located 280 km away from the A ROAD INTERSECTION POINT OF region, is easily reachable through THREE PAN-EUROPEAN CORRIDORS highway, first class roads or railway. The (IV, VIII, AND X) second nearest port is the Thessaloniki Port in Greece, 330 km away from the region. # Plovdiv Airport Transfer serves Plovdiv airport and the other nearby towns, ski and sea resorts in Bulgaria and offers transfers to Thessaloniki and Istanbul Ataturk airports. "56 The Bulgarian capital’s airport – Sofia Airport is at a 140 km distance from the region. # Plovdiv station has a strategic location in the national railway system with the capacity of handling 32 trains daily and unloading 2000 wagons per day. 18 transport companies have been issued licenses by the Bulgarian "Railway Administration" Executive Agency for providing transport services of cargo. # The intermodal terminal at T. Kableshkov railway station constructed in 2015 is a part of Plovdiv railway junction. The DISTANCE TO: KM MILES terminal is 15 minutes away from Maritza Commercial and Industrial Zone, 25 Thessaloniki 334 208 minutes away from Kuklen Industrial Zone, Bucharest 392 244 and 30 minutes away from Rakovski Industrial Zone.# Istanbul 413 257 The intermodal terminal creates conditions Belgrade 541 336 for a higher quality of freight transport services offering combination of different Athens 834 518 transport types. Built over an area of Budapest 914 568 71,450 m$ the terminal has sites for TR operations, two rows containers storage Vienna 1 154 717 site, area for damaged containers and Kiev 1 281 796 equipment, special locations for refrigerating loading units, administrative Prague 1 438 894 building for serving customers, section for Munich 1 475 917 customs control and customs storehouse, parking lots for loading vehicles and cars, Milan 1 558 968 and control checkpoint. The capacity of Berlin 1 786 1 109 the terminal is 80 000 intermodal transport units (UTI). In November 2016 tender for Warsaw 1 787 1 110 granting a 27-year concession of the intermodal terminal was launched.
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