Last year, an amendment to the Bulgarian VAT law brought important changes for investors and company owners and their obligations when conducting business activities. The changes are meant to deal with tax fraud. The change applies to business owners who engage in economic activities involving fuel and fuel trade. Our lawyers in Bulgaria give you further details on these changes and are also able to provide other information about the tax laws in the country.
The Bulgarian Minister of Tourism predicts that 2016 could be the most successful year for the tourism industry in the country. A record number of tourists visited the country during the first half of the year and, if the estimates are correct, the summer of 2016 could be the most successful in history for the Bulgarian tourist industry. Foreign investments in tourism are permitted and encouraged in Bulgaria and foreign entrepreneurs have contributed over the years to the overall development of the industry.
The outsourcing industry in Bulgaria is one of the most developed and one that holds important potential for foreign investments. According to a report published by the Financial Times, the Global Services Location Index, Bulgaria is located on the ninth place among the countries in the world that are preferred as an outsourcing destination. A number of key elements come together to make the country an ideal location for these types of operations.
After introducing several measures which simplified the company registration process, the Bulgarian Government is now focusing on attracting foreign investments in several sectors. The best news is that several countries in Europe have already announced their interests in participating in the Government’s programs. Our Bulgarian lawyers can offer information on the current legislation on foreign direct investments (FDI).
Bulgaria is starting to become more and more visible on foreign investors’ maps as the business climate index shows an improvement in June. Last month, Bulgaria’s business climate index registered a 0.9% increase compared with the previous month. Our lawyers in Bulgaria can help foreign enterprisers open companies here.
After promising to reduce the administrative burden related to opening a company in Bulgaria, the Government has delivered the first official data after the measure was implemented. The results have shown a considerable save on the costs associated with the new measure. Our Bulgarian lawyers can assist you in setting up a business in this country.
The Bulgarian Government has convened a meeting with representatives of the private sector in order to draft the concept of a new campaign meant to stabilize the economy. The “Yes! To Bulgarian Economy” program will focus on the development of five vital sectors for the country’s economy. The campaign, which was initiated last year has already met some of its objectives. Our Bulgarian law firm can provide you with information about the program initiated in 2015.
Bulgaria recorded an increase by 1.6 percent for the business climate index in March, reports the National Statistical Institute. February was also a month that had a smaller but important increase. The evaluation was performed for three key business sectors: industry, construction and retail trade. Foreign investors in Bulgaria maintain a relatively stable level of optimism.
The Government and the European Investment Bank have agreed upon a funding scheme to aid small businesses in Bulgaria. The funding agreement has a value of approximately 600 million euros and funds will be available for small companies in the country. If you want to invest in Bulgaria and find out more about state aid, you can contact our law firm in Bulgaria.
The business climate in Bulgaria is generally positive and the Bulgarian government has set the aim of ensuring a transparent environment for foreign companies that operate business activities on the country's territory. According to Forbes magazine, Bulgaria is in the top ten for trade freedom and is doing well in other sectors as well. Our Bulgarian law firm can give you complete information about trade freedom in Bulgaria and about its economy in general.
Several reports announce the Bulgarian banking, the industrial and the construction sectors as the most thriving industries at the moment. The banking industry is slowly starting to recover as corporate debt is decreasing. The industrial segment is also on its way to recovery and the construction sector is one of the most sought by foreign investors coming to Bulgaria.
Bulgaria has registered a 2.9% increase in the Gross Domestic Product in the third quarter of this year which is the main indicator for the country’s economic stability. Most of the growth is represented by the absorption of funds coming from foreign investments. For information related to the legislation on foreign investments you can refer to our law firm in Bulgaria.
At the middle of October, the Foreign Ministry announced its intention of amending the requirements for foreign citizens coming to start a business in Bulgaria. The amendments also include certain facilities for foreigners applying for a long-term visa. For assistance with the visa application procedure you can request the services of our law firm in Bulgaria.
The Bulgarian Government want to reduce the redtape foreign investors encounter when coming to set up companies in the country which is why it has delegated a working group to come up with solutions. The working group must present several legislative and administrative solutions to the barriers foreign businessmen have to face by the beginning of 2016.
New changes have been brought to the Bulgarian Commercial Register Act earlier this year. The new legislation was drafted according to Directive 2012/17/EU of the European Parliament and was promulgated in the Official Gazette issued on March 24th, 2015. The Trade Register keeping records on all companies in Bulgaria will now be interconnected with the European Business Register.
According to the Bulgarian National Statistical Institute, the total business confidence indicator rose by 2.5% in April compared to the value registered in March. The improvement was granted to the increased levels of sales in the construction and retail.
The Bulgarian Development Bank and the International Investment Bank have signed a memorandum of cooperation through which Bulgarian companies will benefit from project funding. The document contains provisions about syndicated loans for Bulgarian enterprises interested in expanding their business and making new investments. The US Citibank has also shown its support for Bulgarian companies by adhering to EU-funding programs.
Small and medium-sized companies in Northwestern Bulgaria will benefit from EU funding for the improvement of production capacity. The Economy Minister, Bozhidar Lukarski, made the announcement during the presentation of the new Innovations and Competitiveness Operational Program, also stressing Bulgarian companies will be granted the funds with priority.
The global real estate adviser Cushman & Wakefield reported Bulgaria as the world’s third most attractive outsourcing location in 2015. Bulgarian companies in the outsourcing sector have moved eleven positions up, from last year’s 14th place. The report takes into account the costs, risks and operating environment that successfully influence the business process of the outsourcing companies.
Bulgarian Economy Ministry is considering increasing the lower threshold for VAT registration from 50,000 BGN (25,000 EUR) to 200,000 BGN (100,000 EUR). Economy Minister, Bozhidar Lukarski, declared the measure was requested by inter-branch organizations and the authorities hope this would help Bulgarian small and medium-sized companies to exit the informal economy.
Bulgarian Minister of Tourism, Nikolina Angelkova, agreed with Foreign Minister on the simplification of tourist visa procedures for Russian, Ukrainian, Belarusian, Kazakhstani, Armenian and Georgian citizens. The measure is designed to encourage citizens to spend their vacations in Bulgaria considering their number has decreased during the last years due to the complicated procedures of obtaining tourist visas. Bulgaria adopted the same measures for Turkish tourists and, considering the success the program had, decided to introduce the system for Russian tourists, as well.
At the beginning of the year, the Bulgarian Ministry of Tourism launched an advertising campaign in order to promote 50 less renowned tourism sites. The campaign benefits from EU funding worth 1.9 million BGN, VAT excluded, and it is part of the European operational program “Regional Development”. The project should end in August 2015.
After concluding an agreement on tax exchange information in April 2014, Bulgaria and the United States of America (USA) have formally signed the Foreign Account Tax Compliance Act (FATCA) the United States drafted and by which foreign financial institutions (FFIs) will provide information about bank accounts opened by U.S. citizens in other countries to the Internal Revenue Service (IRS).
Foreign investors in Bulgaria need to understand the basic core values of the Bulgarian people with whom they engage in business activities. When opening a company in Bulgaria is best to understand how corporate responsibility has shaped over the years as the country evolved. Entrepreneurs who take into consideration all of these elements are more likely to engage in profitable and satisfactory business relations.