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Business images of Bulgaria

Economy of Bulgaria

The economy of Bulgaria functions on the principles of the free market, having a large private sector and a smaller public one. Bulgaria is an industrialized high-income country according to the World Bank, and is a member of the European Union, the World Trade Organization, the Organization for Security and Co-operation in Europe and the Organization of the Black Sea Economic Cooperation. The Bulgarian economy has experienced significant growth (538%), starting from $13.15 billion (nominal, 2000) and reaching estimated gross domestic product of $86 billion (nominal, 2022 est.) or $203 billion (PPP, 2022 est.), GDP per capita of $31,148 (PPP, 2022 est.), average gross monthly salary of 2,009 leva (1,027 euro) (April 2023), and average net monthly salary of $2,102 (adjusted for living costs in PPP) (2022). The national currency is the lev, pegged to the euro at a rate of 1.95583 leva for 1 euro. The lev is the strongest and most stable currency in Eastern Europe.

Top Sectors in Bulgaria

Industry in Bulgaria

Much of Bulgaria's communist era industry was heavy industry, although biochemical’s and computers were significant products beginning in the 1980s. Because Bulgarian industry was configured to Soviet markets, the end of the Soviet Union and the Warsaw Pact caused a severe crisis in the 1990s. After showing its first growth since the communist era in 2000, Bulgaria's industrial sector has grown slowly but steadily in the early 2000s. The performance of individual manufacturing industries has been uneven, however. Food processing and tobacco processing suffered from the loss of Soviet markets and have not maintained standards high enough to compete in Western Europe. Textile processing generally has declined since the mid-1990s, although clothing exports have grown steadily since 2000.

Energy in Bulgaria

Bulgaria relies on imported oil and natural gas (most of which comes from Russia), together with domestic generation of electricity from coal-powered and hydro plants, and the Kozloduy nuclear plant. Bulgaria imports 97% of its natural gas from Russia. The economy remains energy-intensive because conservation practices have developed slowly. The country is a major regional electricity producer. Bulgaria produced 38.07 billion kWh of electricity in 2006 (in comparison, Romania, which has a population nearly three times larger than Bulgaria, produced 51.7 billion kW•h in the same year). The domestic power-generating industry, which was privatized in 2004 by sales to interests from Europe, Japan, Russia, and the United States, suffers from obsolete equipment and a weak oversight agency.

Mining and minerals in Bulgaria

Bulgaria's mining industry has declined in the post communist era. Many deposits have remained underdeveloped because of a lack of modern equipment and low funding. Mining has contributed less than 2 percent of GDP and engaged less than 3 percent of the workforce in the early 2000s. Bulgaria has the following estimated deposits of metallic minerals: 207 million tons of iron ore, 127 million tons of manganese ore, 936 million tons of copper ore, 238 million tons of chromium ore, and 150 million tons of gold ore. Several of Bulgaria's minerals are extracted commercially 80 percent of mining is done by open pit excavation. Iron extraction at Kremikovtsi and elsewhere is not sufficient to support the domestic steel industry, but copper, lead, and zinc deposits fully supply the nonferrous metallurgy industries. A British firm has exploratory gold mines at Dikanyite and Gornoseltsi, and a domestic copper and gold mine operates at Chelopech. About 50 nonmetallic minerals are present in significant amounts. Substantial amounts of uranium are present in the Rhodope Mountains, but no extraction has occurred in the last 10 years.

Infrastructure in Bulgaria

Bulgaria's national road network has a total length of 40,231 kilometers (24,998 mi), of which 39,587 kilometers (24,598 mi) are paved. The motorways in Bulgaria, such as Trakia, Hemus, Struma and Maritsa, are being improved and elongated to a total length of 760 km (470 mi) as of November 2015. Railroads are a major mode of freight transportation, although highways carry a progressively larger share of freight. Bulgaria also has 6,238 kilometers (3,876 mi) of railway track and plans to construct a high-speed railway by 2017, at a cost of €3 bln. Sofia and Plovdiv are major air travel hubs, while Varna and Burgas are the principal maritime trade ports.


Bulgaria - Key Economic Indicators

Exports and Imports

Bulgaria's export sector plays a vital role in its economy, with exports totaling approximately $35 billion in 2023. Key exports include machinery, electronics, textiles, and agricultural products. Meanwhile, imports amounted to around $40 billion in the same year, reflecting Bulgaria's reliance on imported energy resources, machinery, and consumer goods. The country's trade deficit stands at approximately $5 billion, highlighting the need for continued efforts to boost export competitiveness and reduce import dependency.

Infrastructure

Bulgaria has been investing significantly in infrastructure development to improve connectivity and support economic growth. The total length of roads in Bulgaria is around 40,231 kilometers, with approximately 94% of them paved. Major infrastructure projects include the expansion and modernization of highways such as the Trakia, Hemus, Struma, and Maritsa motorways, which are vital for transportation efficiency and regional development. Investments in infrastructure contribute to Bulgaria's competitiveness and attractiveness for investors.

Balance of Trade

Bulgaria's balance of trade reflects a trade deficit, with imports exceeding exports by approximately 14% in 2023. While exports have shown steady growth in recent years, imports have outpaced them due to Bulgaria's reliance on imported energy and machinery. Efforts to diversify exports and enhance domestic production are essential for improving the balance of trade and reducing reliance on imports.

Fiscal Policy

Bulgaria's fiscal policy aims to maintain fiscal discipline while supporting essential government functions and public services. Government spending in 2023 amounted to approximately $30 billion, with allocations for healthcare, education, infrastructure, and social welfare programs. Tax revenue constituted around 32% of GDP, with the main sources being income tax, value-added tax (VAT), and corporate tax. Efforts to streamline tax administration and combat tax evasion are ongoing to ensure fiscal sustainability.

Monetary Policy

Bulgaria's monetary policy is overseen by the Bulgarian National Bank (BNB), which aims to maintain price stability and support economic growth. The BNB implements measures such as interest rate adjustments, reserve requirements, and currency interventions to manage inflation and exchange rate stability. As a member of the European Union, Bulgaria coordinates its monetary policies with the European Central Bank (ECB) to ensure monetary stability within the Eurozone.

Trade Agreements

Bulgaria is party to various trade agreements at the regional, bilateral, and multilateral levels. As a member of the European Union, Bulgaria benefits from preferential access to the EU single market, which accounts for a significant portion of its trade. Additionally, Bulgaria has trade agreements with countries in Southeast Europe, the Commonwealth of Independent States (CIS), and other regions, aimed at expanding market access and promoting economic cooperation.

Environmental Regulations

Bulgaria has implemented stringent environmental regulations to protect natural resources and mitigate pollution. Compliance with European Union environmental standards is a priority, as Bulgaria works to align its policies with EU directives and regulations. Efforts to improve environmental governance and enhance environmental awareness are ongoing to ensure sustainable development and minimize environmental impact.

Tax System in Bulgaria

Capital Gains Tax: Bulgaria imposes a flat capital gains tax rate of 10% on profits derived from the sale of assets, including investments such as stocks, bonds, and real estate.
Corporate Tax Rate: The corporate tax rate in Bulgaria is also flat, set at 10% on business profits. This low rate is one of the most competitive in the European Union, attracting foreign investment and promoting entrepreneurship.
Sales Tax: Bulgaria applies a Value Added Tax (VAT) system to goods and services, with a standard rate of 20%. Certain goods and services may qualify for reduced VAT rates, such as essential goods and cultural services.
Property Tax: Property tax in Bulgaria is imposed on the value of real estate owned by individuals and businesses. The tax rates vary depending on the location and type of property, with municipalities setting the rates within certain limits.
Payroll Tax: Payroll tax, also known as social security contributions, is levied on wages and salaries to fund social security programs. In Bulgaria, the payroll tax rate is approximately 17.9%, with both employers and employees contributing to the social security system.
Tax Deductions and Credits: Bulgaria offers various tax deductions and credits to individuals and businesses to reduce their tax liabilities. These may include deductions for healthcare expenses, education expenses, and contributions to pension funds, as well as incentives for investments in certain industries or regions.
Tax Compliance: Bulgaria has made efforts to improve tax compliance and efficiency in tax collection through modernization of tax administration systems and implementation of electronic tax filing and payment systems. However, challenges remain, including tax evasion and informal economic activities.
Tax Burden: The overall tax burden in Bulgaria is relatively low compared to other European Union countries. The combination of low corporate tax rates, flat income tax rates, and moderate social security contributions contributes to a favorable tax environment for individuals and businesses alike.

946 Live Notices for Bulgaria ....

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Bulgarian Language Training
country Bulgaria
posting date29 May 2025
deadline17 Jun 2025
Subscription Cleaning Of Iom Office Premises
country Bulgaria
posting date29 May 2025
deadline10 Jun 2025
Subscription Cleaning Of Iom Office Premises
country Bulgaria
posting date29 May 2025
deadline10 Jun 2025
Bulgarian Language Training
country Bulgaria
posting date29 May 2025
deadline17 Jun 2025
Preparation Of The Radomir -Guyeshevo -Genitsa Railway Modernization Project With The Republic Of Macedonia In 2 Lot Positions
country Bulgaria
posting date28 May 2025
deadline12 Jun 2025
Subscription Cleaning Of Iom Office Premises
country Bulgaria
posting date28 May 2025
deadline10 Jun 2025
Bulgarian Language Training
country Bulgaria
posting date28 May 2025
deadline17 Jun 2025
“Production, Supply And Installation Of Road Signs With Permanent And Variable Sizes Of Vertical Signaling Of Republican Roads In Separate Positions On The Territory Of The Country, Managed By The Ria, In Accordance With Article 19, Paragraph 1, Vol
country Bulgaria
posting date28 May 2025
deadline12 Jun 2025
Delivery Of Platform Electric Trucks With Li-Ion Batteries And Load Capacity Not Less Than 2000 Kg
country Bulgaria
posting date28 May 2025
deadline07 Jul 2025
Renault And Dacia Service Service
country Bulgaria
posting date28 May 2025
deadline12 Jun 2025
Delivery Of Pipes For The Needs Of Vik Ltd. Stara Zagora In Separate Positions
country Bulgaria
posting date28 May 2025
deadline12 Jun 2025
Delivery Of Medical Devices And Consumables For The Needs Of Complex Oncology Center - Plovdiv Eood - Part 3
country Bulgaria
posting date28 May 2025
deadline27 Jun 2025
"Delivery Of Electricity At Freely Agreed Prices For The Needs Of Acad. Ivan Guzelev" Gabrovo And The Selection Of A Standard Balancing Group Coordinator "
country Bulgaria
posting date28 May 2025
deadline12 Jun 2025
Selection Of A Contractor For The Exercise Of A Consulting Service (Construction Supervision) Of The Site "Modernization On The Road I-1 (E79)" Vidin-Botevgrad "In 3 Lots
country Bulgaria
posting date28 May 2025
deadline12 Jun 2025
Delivery, Installation And Commissioning Of Equipment For The Construction Of Stem Center B9 Feg "Alfons De Lamartin", Sofia In Lot Positions
country Bulgaria
posting date28 May 2025
deadline27 Jun 2025
“Exercise Construction Supervision In The Implementation Of Construction Works On The Project:“ Reconstruction Of Streets On The Territory Of Iskar Municipality - Stage I In 3 Lot Positions
country Bulgaria
posting date28 May 2025
deadline30 Jun 2025
"Implementation Of Preventive Measures To Prevent The Pollution Of The Luda Yana River From The Waters Of The Radka Open Mine. Monitoring And Control Of The Water Level In The Boom. Stage 1 - Urgent Measures ”
country Bulgaria
posting date28 May 2025
deadline26 Jun 2025
Delivery Of Anti -Tumor Medicinal Products For The Treatment Of Hematological Diseases For The Needs Of Hospital "Alexandrovska" Ead
country Bulgaria
posting date28 May 2025
deadline12 Jun 2025
"Delivery Of Medical Supplies For The Needs Of The Hemodialysis Department To" Mbal - Karnobat "Eood"
country Bulgaria
posting date28 May 2025
deadline26 Jun 2025
"Buying And Delivery Of At Least 300 Pieces Of Measuring Analyzes The Presence Of Alcohol In A Breath With 1000 Mouthpieces Per Analyzer," Funded With Funds Under The Traffic Safety Fund
country Bulgaria
posting date28 May 2025
deadline27 Jun 2025