Having Bulgaria and Romania as members of EU opened new opportunities of business cooperation between the two countries. EU funding stimulated a lot of small and medium enterprises to for trans-border business ventures . The companies are mainly from Varna, Dobrich (Bulgaria) and Constanta (Romania).
Bulgaria attracts investors with its low tax regime (10% flat rate fro corporate tax) - one of the lowest in EU. Furthermore a lot of Romanian companies benefit from Bulgaria's low tax and they register limited companies in the border Bulgarian cities (such as Dobrich and Varna), but their business operates entirely in Romania. Furthermore, foreign investors can benefit both the Bulgarial low tax regime and simultaneously can benefit from both Bulgaria's and Romania's infrastructure, industry facilities, local services. The beauty of EU is that it allows free movement of people and goods. This enables investors to take advantage of both Romania and Bulgaria labour force, tax regime and infrastructure connections.
Big investors also can benefit of the special Bulgarian Investment Promotion Act. Companies/Individuals who invest in hign unemployment regions (there are few in Dobrich/Varna disctrict) the corporate tax for such investors will drop to 0%. Yes, such opportunity exists and several companies in Bulgaria took advantage of it. If you are interested in this opportunity you can contact our law office for further details. No one else can offer you 0% corporate tax in EU. Bulgaria can, especially Varna and Dobrich regions.
The Bulgarian ministry of Economy Energy and Tourism havs provided date of the best industry sectors in the region (information based on 2010 data):
- Manufacturing High-technology
- Manufacturing Medium-high-technology
- Manufacturing Medium-low-technology
- Manufacturing Low-technology
- Knowledge-intensive market services
- High-tech knowledge-intensive services
- Knowledge-intensive financial services
- Other knowledge-intensive services
- Less knowledge-intensive market services
- Other less knowledge-intensive services
- Electricity, water, sewerage, recycling
So why should a foreign investor consider an investment in Varna/Dobrich/Constanta region? There is no straightforward answer to that question. However you should look to the information below and see how good is th investment climate and what are the benefits of the Varna/Dobrich/Constanta region.
Logistics - Black sea ports
The first and most obvious advantage of the region is the major ports of the Black sea (Varna and Constanta). This boosts the import/export services as well as inland logistics from the region. Black sea ports are strategic for the trade between EU, Russia and Middle east. Varna and Constanta are the logistic water gateways of the European Union for Russia and Middle east. Recently there were couple of projects for building of enormous ligistics facilities (warehouses) which will serve the increased trade/transportation between Bulgaria (Varna) and the non-EU countries.
You can get more information on Varna port and Constanta port on their websites.
Logistics - International airports
The region develops not only water logistics but also air logistics. Varna Airport is the biggest cargo and passenger airport in the North-East Bulgaria. Constanta Airport is also main air gateway in the region. The businesses will have direct flight connection to major European cities from those airports. Further connections are available through the states' capitals.
Shipyards - building and ship repair services
Varna is considered as the Black sea capital of Bulgaria. One of the main industries in the city is ship building and repair services. The city has long history and tradition in that services. There are few companies who offer such ship repair and building services. You can find more information HERE. Romanians shipyard services are competitive well enough. Constanta also offers ship building and repair services on the Constanta shipyard. Along with logistics (ports) the region has a lot to offer in terms of full logistics/repair services to the international trade and logistics companies.
Our lawyers can offer comprehensive overview of your investment plan. We can advise you on the details and also can introduce you to the local business, so you are aware of some specific Varna/Dobrich/Constanta local business details. We can also assist you with the projects and EU funding for your business venture. As a member of EU Bulgaria is entitled to participate in up to 90% funding for business projects (mainly production industries), which means that your investment in the region will be with the quickest possible return in EU. In short, zero percent corporate tax , up to 90% EU funding, free trade zone (EU) could boost your business expansion in EU to enormous scale.