United States Department of State

Bulgaria United States Department of State

Bulgaria is seen by many investors as having a favorable foreign investment regime, which includes government incentives for new investment and low or flat corporate and income taxes. Promising sectors for foreign investors include: business process outsourcing and information technology, telecommunications, environmental technology (including water and waste water infrastructure), healthcare, biomass, and agriculture (including the beverage/processed foods industry). Planned infrastructure projects, which are coming online and may further improve the investment environment, include rail, motorways, tunnels, ports, and tourism resorts. As a member of the EU, Bulgaria has access to significant EU funds, which support numerous projects and contribute to the growth of the economy. EU integration has opened new markets for Bulgarian-produced goods and services. Bulgaria's workforce is generally well-educated and the cost of labor is the lowest in the EU. At the same time, however, the judicial system suffers from high caseloads and frequent delays. The IPR regime is challenged by widespread online piracy and inadequate enforcement of laws on copyrights, patents, and trademarks. In 2014, the government entered into voluntary agreements with some of the most egregious pirate sites, which marked a step ahead in the fight against online piracy of music and films after many years of little or no results. Together with industry, the government is reducing business software piracy, which while decreasing, is still high. At present, there are no general limits on foreign ownership or control of firms, nor is there screening or restricting of foreign investment in Bulgaria. Foreign firms are not denied national treatment and there are not significant reports of discrimination against foreign investors. The country's geographic position places it at the crossroads of Europe, the Middle East, and the former Soviet Union.