Bulgaria

General Information

Advantages:

Favorable taxation system
Lowest taxes in Europe
Affordable real estate (lowest rent prices)
4th fastest-growing economy of the European Union
Steady financial system

Disadvantages:

Lack of faith in the judicial system because of the level of corruption

The modern Bulgarian legal system is influenced by two very important factors: the democratization and liberalization of the country’s economy, which started after the fall of the Communist regime in 1989, on the one hand, and the integration of Bulgaria into the EU, on the other. The Bulgarian legal system evolved through a profound and strictly-monitored alteration in order to achieve coherence with the acquis communautaire.

The Bulgarian economy offers a number of advantages and disadvantages to people who consider establishing a business there. One of the weaknesses is the still unresolved problem with bribery and corruption, as highlighted by the Perceived Corruption Index in the public sector. Business corruption is becoming less and less common since entrepreneurs and companies have stopped paying ‘taxes’ to government officials for various undisclosed services.

Today Bulgaria faces the two inter-related challenges of raising productivity and addressing the country’s rapid demographic change. Higher productivity growth is critical to accelerating convergence as Bulgaria’s income per capita is still the lowest in the EU.

Productivity will need to grow by at least 4 percent per year over the next 25 years if Bulgaria is to catch up to average EU income levels and boost shared prosperity.

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