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Bulgaria in Figures 2018 Web.Pdf Bulgaria in figures – 2018 edition Dear business partners, The Booklet has been compiled I am proud that for nearly a decade the Bulgarian Chamber of Commerce and Industry (BCCI) has been presenting to your by courtesy of: attention the brochure “Bulgaria in figures”, which shows briefly the important indicators for the economic development in the country. National Statistical Institute, Those of you following it, are aware that the Bulgarian economy has managed to earn a place in new rankings, as well as to Bulgarian National Bank and improve its position in others. This is the result of the stable macroeconomic indicators – small government debt, budget InvestBulgaria Agency. surplus, accompanied by some of the lowest corporate and personal income tax rates in the European Union. We hope that the Presidency of the Council of the EU will also help improve Bulgaria’s position in the international rankings. BCCI supports international cooperation and even though we live in dynamic times, the Chamber has always sought to create opportunities, to encourage pragmatic and ambitious moves that promote business partnerships. As for everyone, education and the provision of qualified staff are key elements in the Bulgarian economy. With the entry into the Fourth Industrial Revolution (Industry 4.0), universities have been an accelerator of entrepreneurial ideas. They are a place to stimulate innovation. We are glad, for the first time in the brochure, to present some of the largest universities in Bulgaria. BCCI is ready to assist every entrepreneur who has chosen the good conditions of our country. The small volume of the brochure does not allow us to go into details that may be important to you, but we could carry out joint projects or research. Hoping that you will find the provided information useful, I remain Yours sincerely, Tsvetan Simeonov When using data from the Bulgarian Chamber of Commerce and BCCI President Industry’s publication, the source of information must be cited obligatory. The information provided in this brochure was correct 1 PREPRESS: Vezni Ltd. E-mail: [email protected] Ltd. Vezni PREPRESS: at the time it went to press, June 2018. Bulgaria in figures – 2018 edition Bulgaria in figures – 2018 edition REPUBLIC OF BULGARIA Facts about Bulgaria \ EU, NATO and WTO Membership \ Strategic geographical location and openness to North Central region foreign markets: crossroad between Europe, Asia and North-West region North-East region Silistra Africa Vidin Razgrad Dobrich Montana Pleven Ruse \ Stability in financial environment: Bulgaria’s debt is the Vratsa Shumen Veliko third lowest in the EU 28 (25.4% of GDP) as of 2017 Tarnovo Targovishte Varna Lovech Gabrovo \ Business-friendly environment: Simple and low So a (cap) Sliven Pernik So a taxation Stara Zagora Burgas Plovdiv \ Competitive operational costs and competitive labour Kyustendil Yambol Pazardzhik level Haskovo Blagoevgrad Smolyan South-East region Kardzhali Main indicators – actual data South-West region South Central region 2013 2014 2015 2016 2017* GDP (mill. EUR) 42 011 42 762 45 286 48 128 50 429 GDP real growth rate (%) 0,9 1,3 3,6 3,9 3,6 General data Inflation (%) 0,9 -1,4 -0,1 -0,8 2,1 Government deficit/surplus -0,4 -5,5 -1,6 0,2 0,9 State government: Parliamentary Republic (% of GDP) Exports (mill. EUR) 22 271 22 105 22 982 24 126 26 713 Head of state: President Imports (mill. EUR) 25 828 26 126 26 357 26 181 30 245 Head of government: Prime Minister Employment rate (%) 59,5 61,0 62,9 63,4 66,9 Unemployment rate (%) 12,9 11,4 9,1 7,6 6,2 Capital: Sofia Source: Eurostat, Bulgarian National Bank, National Statistical Institute Area: 111 001.9 sq.km. Macroeconomic forecast Administrative and territorial division: 28 districts and 265 municipalities, 6 regions 2018 2019 2020 2021 GDP (mill. EUR) 53 519 56 828 60 276 63 870 Population: 7 050 034 persons as of 31.12.2017 GDP (real growth rate %) 3,9 3,8 3,7 3,7 Official language: Bulgarian Exports (real growth rate %) 4,9 4,9 4,7 4,6 Imports (real growth rate %) 8,1 7,0 5,9 5,8 Religion: Mostly Eastern Orthodox Christians Average inflation rate (%) 1,8 2,0 2,1 2,1 National currency: LEV (BGN - fixed to the Euro, Unemployment rate (%) 5,9 5,7 5,5 5,4 1 EUR = 1.95583 BGN, since 1997) Source: Ministry of Finance of the Republic of Bulgaria 2 3 Bulgaria in figures – 2018 edition Bulgaria in figures – 2018 edition BULGARIA IN THE FOCUS ON TAXATION INTERNATIONAL RANKINGS Flat-tax system is introduced in Bulgaria - a single 10% rate applied on personal income and a 10% rate applied Bulgaria has competitive positions in the different on corporate income. Value-added tax in Bulgaria is 20%, international indices. According to the following rankings with the exception of hotel services, where a reduced rate the country has the best performance in terms of business of 9% is applied. process outsourcing (BPO), low taxes and 4G speed. In Bulgaria taxpayers are released from payment of For more information: corporate tax in regions with high unemployment rates. http://www.bcci.bg/resources/files/Rankings_ In 2017 about 2/3 of municipalities – 167 (of total 265 apr_2018-en.pdf in Bulgaria) had 25% higher than the average rate of Bulgaria in international rankings unemployment for the country and there is 0% corporate income tax. Business process outsourcing and shared service location index 2016 7 35 Tax Misery & Reform Index 2009 7 67 Unemployment by municipalities – 0% corporate tax The State of LTE (4G Speed) february 2018 9 88 in regions shown in orange The Global Gender Gap Rankings 2017 18 144 Novo Selo Bregovo Vidin - Region center 100 Vidin Open budget index 2017 22 Boinitza Silistra Sitovo Lom - Municipality Tutrakan Kula Slivo Koinardja Gramada Pole Glavinitza Alfatar Krushari Makresh Lom Ruse Kubrat Index of Globalization 2018 26 209 Dimovo Valchedrum Dulovo Kozlodui Belogradchik Zavet Tervel General Brusartzi Yakimovo Oryahovo Guliantzi Vyatovo Isperih Toshevo Ruzhentzi Medkovez Mizia Ivanovo Dobrich region Belene Borovo Hairedin Kaolinovo Shabla Nikopol Tzar Kaloyan Chuprene Boichinovtzi Dolna Samuil 163 Montana Tzenovo Dve Nikola Dobrich 28 Iskar Mitropolia Global peace index 2017 Razgrad Venetz Kozlevo Byala Borovan Kneja Svishtov Mogili Balchik Chiprovtzi Slatina Opaka Krivodol Byala Vulchi Dol Kavarna Pleven Levski Loznitza Hitrino Novi Dolnu Georgi Berkovitza Polski Pazar Cherven Pordim Popovo Damianovo Vratza Dabnik Trambesh Suvorovo Aksakovo 30 180 Bryag Shumen Vetrino Environmental performance index 2018 Varshetz Pavlikeni Letnitza Strajitza Gorna Targovishte Kaspichan Devnya Varna Roman Lukovit Oryahovitza Lovech Suhindol Antonovo Veliki Beloslav Provadia Godech Mezdra Veliko Preslav Yablanitza Lyaskovetz Avren Ugarchin Tarnovo Omurtag 33 34 Svoge Sevlievo Zlataritza EuroHealth Consumer Index 2017 Botevgrad Smyadovo Dragoman Pravetz Dryanovo Dalgopol Varbitza Dolni Chiflik Kostinbrod Sofia region Slivnitza Troyan Gabrovo Elena Kotel Etropole Teteven Ruen Byala Trun Tryavna Bojurishte Apriltzi Sungurlare Global Innovation Index 2017 36 127 Breznik Sofia-city Gorna Anton Malina Chelopech Nesebar Gurkovo Tvarditza Pomorie Zemen MirkovoZlatitzaPirdop Sopot Aitos Pernik Elin Pelin Pavel Kazanluk Sliven Chavdar Koprivshtitza Maglij Trekliano Kovachevtzi Karlovo Banya Karnobat Nikolaevo 46 153 Panagyurishte Straldja Best Countries for Business 2018 Radomir Ihtiman Hisarya Burgas Strelcha Nova Yambol Brezovo Stara Zagora Zagora Kameno Bobov Samokov Kostenetz Lesichevo Kaloyanovo Kyustendil Sapareva Bratya Dol Dolna Tundja Banya Saedinenie Daskalovi Sredetz Bania Index of Economic Freedom 2018 47 180 Dupnitza Septemvri Rakovski Sozopol Boboshevo Maritza Radnevo Primorsko Nevestino Belovo Pazardjik Chirpan Opan Kocherinovo Rila Plovdiv Elhovo Perushtitza Galabovo Yakoruda Peshtera Sadovo Krichim Topolovgrad Malko Tzarevo Rakitovo Dimitrovgrad Bolyarovo 48 157 Blagoevgrad Bratzigovo Parvomai Simeonovgrad Tarnovo Economic Freedom of the World 2017 Velingrad Kuklen Rodopi Razlog Belitza Asenovgrad Simitly Mineralni Harmanli bani Haskovo Batak Sarnitsa Chepelare Svilengrad Bansko Laki Lyubimetz 49 165 Kresna Devin Democracy Index 2017 Garmen Chernoochene Stambolovo Goze Banite Strumyane Satovcha Borino Madjarovo Delchev Dospat Ardino Kurdjali Sandanski Smolyan 49 137 Madan Global competitiveness index 2017-2018 Hadjidimovo Momchilgrad Ivailovgrad Djebel Petrich Rudozem Nedelino Zlatograd Krumovgrad World Competitiveness 2017 49 63 Kirkovo Doing Business 2018 50 190 Prosperity Index 2017 51 149 Municipalities with an unemployment rate E–Government Development Index 2016 52 193 lower than the country’s average or Country Attractiveness Index in the 56 125 an unemployment rate equal to or higher than Venture Capital & Private Equity 2018 Human Development Index 2016 56 188 the country’s average (Art. 3, (8) RAIPA) Corruption perceptions index 2017 71 180 Municipalities with an unemployment rate 25% 72 160 Logistics performance Index 2016 higher than the country’s average (Art. 183, International Property Index 2017 85 149 (1) CITA; Art. 3, (8) RAIPA) Gross Domestic Product per capita 2018 85 228 World press freedom index 2018 111 179 Source: Bulgarian Chamber of Commerce and Industry, Ministry of finance of the Republic of Bulgaria 050 100 150 200 250 Bulgaria's rank Total number of ranked countries Source: Respective websites 4 5 Bulgaria in figures – 2018 edition Bulgaria in figures – 2018 edition Bulgaria is the third least tax burdened country in the EU as of 2015: The overall tax-to-GDP ratio in Bulgaria is GROSS DOMESTIC PRODUCT 29.0% for 2015, compared to an EU average of 40.0%. In the recent years the Bulgarian economy has been growing steadily, with higher rates than the EU average. Over 2015 economic activity in Bulgaria accelerated Top statutory income tax rates and standard VAT rates significantly. In 2017 real growth of GDP in Bulgaria (2016), % reached 3.6% (3.9% in 2016). Bulgaria 10.010.0 20.0 In 2017 the GDP growth was higher than initially expected, Lithuania 15.0 15.0 21.0 supported by the growing domestic demand.
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