Bulgaria: Country and Foreign Investment
With corporation tax at a very low rate of 10%, this is itself a good incentive to invest in Bulgaria. There are various schemes available to foreign investors, aimed at technology start-up enterprises, research and development (R&D) establishments and innovative, new entrepreneurs. A variety of incentives can be made available, from loan guarantees and voucher schemes, to tax incentives.
Tax incentives come in the form of tax allowances, tax credits, or tax relief on R&D staff costs. Corporation tax is reduced to zero (for a period up to five years) for companies investing in areas of high unemployment, provided that the unemployment rate exceeded the national average by 50% in the previous year and that 80% of employees reside in the region where the business is to be located. Tax savings must also be reinvested in the company’s development.
Bulgaria has established several duty-free zones to encourage economic co-operation between Bulgaria and other nations. These zones offer movement and storage of goods free from excise duty and taxes.