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InvestBulgaria Agency investbgernment.bg

Bulgaria - The Right Place for Investment. Dr. Stoyan Stalev Executive Director. InvestBulgaria Agency www.investbg.government.bg. Positioning Bulgaria Why Bulgaria Macroeconomic Indicators FDI Inflow Italian Investments in Bulgaria Business Sectors of Highest Potential for Investors

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InvestBulgaria Agency investbgernment.bg

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  1. Bulgaria - The Right Place for Investment Dr. Stoyan Stalev Executive Director InvestBulgaria Agency www.investbg.government.bg

  2. Positioning Bulgaria Why Bulgaria Macroeconomic Indicators FDI Inflow Italian Investments in Bulgaria Business Sectors of Highest Potential for Investors Investment Promotion Act Investment Incentives in Bulgaria InvestBulgaria Agency Structure of the Presentation

  3. 9 4 7 10 8 Pan-European Transport Corridors

  4. Market access

  5. Why Bulgaria • EU membership and NATO membership • Macroeconomic and financial stability • EU’s most favourable taxes: • 10% corporate income tax • 0% in high-unemployment areas • 10% flat tax on personal income • Europe’s lowest operational costs • Well-educated and highly-skilled labour force • 22% of population hold university degree • 45,000 Bulgarian students in Europe. Second largest group after China • Government support for priority investment projects • Linking Europe and Asia • Excellent climate, natural scenery, food and hospitality

  6. Steady GDP growth, 2002 - Q2,2008 * January – June 2008 Source: Bulgarian National Bank

  7. Inflation(%), 2003 - 2007 Source: Bulgarian National Bank

  8. Decreasing unemployment rate, 2002 - 2007 Source: Bulgarian National Bank

  9. Record FDI inflow in 2006 & 2007, EUR m * January – June 2008 Source: BNB, IBA

  10. Bulgaria leads CEE countries in terms of FDI to GDP indicator FDI to GDP (%), 2006 – 2007 Source: Bank Austria Creditanstalt

  11. FDI flow by country (%),1996-2007, EUR m Source: BNB, IBA

  12. Treaty for avoidance of double taxation between Bulgaria and Italy Italian investments (1996 - 2007)923 EUR m The biggest Investments in Finance, Energy, Cement Industry, Textile and Trade Italian investments in Bulgaria

  13. Italian investment flow by year, EUR m Italian investment flow in Bulgaria as of end/2007 amounts to EURO 923 m. According to FDI flow by country Italy ranks 10th Source: BNB

  14. Major Italian investors in Bulgaria

  15. Trade between Bulgaria and Italy The trade between Bulgaria and Italy for 2007 amounts EUR 3,254 m Source: BNB

  16. Manufacturing

  17. Power engineering sector

  18. ICT & BPO

  19. Real estate & Tourism

  20. Top Foreign Manufacturing Investors (between $24 & $580 m)

  21. New investment promotion act • Equal treatment for Bulgarian and foreign investors • Investment classes A and B depending on the value, region and sector allocation of the investment • Priority sectors and activities: • Manufacturing industry and production of electricity from renewable energy sources • High-tech activities in the field of ICT, R&D, as well as education and human health care

  22. Investment classifications under the new investment promotion act, (€ Million)

  23. Incentivesunder the new investment promotion act • All classes (A&B) • Information services and shortened administrative services • Preferential treatment upon acquisition of a right of ownership and limited real rights over real estate – private state or private municipal property • Financial supportfor vocational training of employees up to 29 years old for the needs of the investment project • A class • Individual administrative services • Infrastructure support to the borders of the investment project site

  24. 10%corporate income tax; 0% for manufacturing companies in areas with high unemployment 10% personal income tax, flat rate Opportunity for R&D expenditure write-off Depreciation of 2 years for computers and new manufacturing equipment 2-year VAT exemption for imports of equipment for investment projects over € 5 million, creating at least 50 jobs 5% withholding tax on dividends and liquidation quotas (0% for EU tax residents holding at least 15% of the Bulgarian company) Up to 1 year minimum salary and reimbursement of social/health care security for employing young people and disadvantaged people through the Employment Agency Investment incentives in Bulgaria

  25. InvestBulgaria Agency InvestBulgaria Agency is the Government investment promotion arm, part of the Ministry of Economy and Energy. IBA services: • Macroeconomic data on Bulgaria • Legal advice • Data on operational costs • Regional information: industrial zones and infrastructure, data on unemployment, skilled labour force and level of education • Recommendation of investment project sites • Identification of potential suppliers, contract manufacturers and joint-venture partners • Personalized administrative servicing • Liaison with central and local governments • Liaison with branch chambers and NGOs

  26. InvestBulgaria Agency Sofia 1000, 31Aksakov Str. Phone: (+359 2) 985 5500 Fax: (+359 2) 980 1320 E-mail: iba@investbg.government.bg Web: www.investbg.government.bg

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