The pros and cons of exporting to\u00a0Bulgaria<\/strong><\/h2>\nA number of large UK companies, such as Shell, GlaxoSmithKline, and AstraZeneca all successfully operate in Bulgaria, and the strengths of the market there are predominantly:<\/p>\n
\n- Signs of sustained economic recovery<\/li>\n
- Skilled, multilingual labour force<\/li>\n
- Low operating costs<\/li>\n
- Strong potential for growth as Gross Domestic Product (GDP<\/abbr>) per capita lower thanEU<\/abbr> average<\/li>\n
- Political stability, with public consensus on social and economic priorities<\/li>\n
- Occupies a strategic location in the Black Sea region<\/li>\n<\/ul>\n
And if you\u2019re thinking of exporting there, the advantages for UK business, are:<\/p>\n
\n- More than EUR 9 billion European Union (EU<\/abbr>) funds up to 2020<\/li>\n
- English is widely spoken<\/li>\n
- Good air links to the UK<\/li>\n
- Gateway to the markets of Commonwealth of Independent States<\/a> (CIS)<\/li>\n
- Lowest corporate and income tax in the EU<\/abbr> (10%)<\/li>\n
- Tax incentives for some investment projects.<\/li>\n<\/ul>\n
Exporting to Bulgaria is not without its challenges though, such as:<\/p>\n
\n- High levels of bureaucracy which impact ease of doing business<\/li>\n
- Tendering processes complicated and often not transparent<\/li>\n
- Slow (but generally reliable) judicial processes<\/li>\n
- Unpredictable legislative environment<\/li>\n
- Intellectual Property Rights (IPR<\/abbr>) violations<\/li>\n
- One of the EU<\/abbr>\u2019s poorest countries, with limited disposable income.<\/li>\n<\/ul>\n
A public procurement act was\u00a0adopted in January 2016 in order to ensure transparency and fairness for foreign companies doing business in Bulgaria, while tackling the problems of malpractice and corruption, by implementing the following:<\/p>\n
\n- Changes on implementation of EU<\/abbr> directives<\/li>\n
- Bond insurance<\/li>\n
- An e-procurement platform<\/li>\n
- Anti-corruption measures.<\/li>\n<\/ul>\n
If you’re doing business in Bulgaria, you’ll need a reliable and cost-effective conference call provider to help keep in touch when travelling isn’t an option. Here’s\u00a0How to set up a conference call between the UK and Bulgaria<\/a>.<\/em><\/p>\nAnd remember, you can now screen share and video conference, using Crankwheel<\/a>.<\/p>\nTax and customs\u00a0in\u00a0Bulgaria<\/h2>\nTax<\/h3>\n
The Ministry of Finance is responsible for tax in Bulgaria,\u00a0where the\u00a0standard rate for VAT<\/abbr> rate is 20%, with a reduced rate of 9% for hotel services. Income tax and corporate income tax are set at a rate of 10%, and certain company expenses are taxed at at 10%.<\/p>\nThe UK has signed a double taxation agreement with Bulgaria, so tax isn’t paid twice – once in each country – on exported goods and services.<\/p>\n
Customs<\/h3>\n
The internal market of the EU<\/abbr> is a single market which allows the free movement of goods and services. As Bulgaria is part of the EU, no import duties apply and most goods can be imported into Bulgaria without restriction, but you will need a permit\u00a0from the Ministry of Economy<\/a>\u00a0to import the following:<\/p>\n\n- Agricultural products<\/li>\n
- Precious metals<\/li>\n
- Military goods<\/li>\n
- Drugs.<\/li>\n<\/ul>\n
Image from Pablo <\/a>by Buffer.<\/em><\/p>\n
And if you\u2019re thinking of exporting there, the advantages for UK business, are:<\/p>\n
- \n
- More than EUR 9 billion European Union (EU<\/abbr>) funds up to 2020<\/li>\n
- English is widely spoken<\/li>\n
- Good air links to the UK<\/li>\n
- Gateway to the markets of Commonwealth of Independent States<\/a> (CIS)<\/li>\n
- Lowest corporate and income tax in the EU<\/abbr> (10%)<\/li>\n
- Tax incentives for some investment projects.<\/li>\n<\/ul>\n
Exporting to Bulgaria is not without its challenges though, such as:<\/p>\n
- \n
- High levels of bureaucracy which impact ease of doing business<\/li>\n
- Tendering processes complicated and often not transparent<\/li>\n
- Slow (but generally reliable) judicial processes<\/li>\n
- Unpredictable legislative environment<\/li>\n
- Intellectual Property Rights (IPR<\/abbr>) violations<\/li>\n
- One of the EU<\/abbr>\u2019s poorest countries, with limited disposable income.<\/li>\n<\/ul>\n
A public procurement act was\u00a0adopted in January 2016 in order to ensure transparency and fairness for foreign companies doing business in Bulgaria, while tackling the problems of malpractice and corruption, by implementing the following:<\/p>\n
- \n
- Changes on implementation of EU<\/abbr> directives<\/li>\n
- Bond insurance<\/li>\n
- An e-procurement platform<\/li>\n
- Anti-corruption measures.<\/li>\n<\/ul>\n
If you’re doing business in Bulgaria, you’ll need a reliable and cost-effective conference call provider to help keep in touch when travelling isn’t an option. Here’s\u00a0How to set up a conference call between the UK and Bulgaria<\/a>.<\/em><\/p>\n
And remember, you can now screen share and video conference, using Crankwheel<\/a>.<\/p>\n
Tax and customs\u00a0in\u00a0Bulgaria<\/h2>\n
Tax<\/h3>\n
The Ministry of Finance is responsible for tax in Bulgaria,\u00a0where the\u00a0standard rate for VAT<\/abbr> rate is 20%, with a reduced rate of 9% for hotel services. Income tax and corporate income tax are set at a rate of 10%, and certain company expenses are taxed at at 10%.<\/p>\n
The UK has signed a double taxation agreement with Bulgaria, so tax isn’t paid twice – once in each country – on exported goods and services.<\/p>\n
Customs<\/h3>\n
The internal market of the EU<\/abbr> is a single market which allows the free movement of goods and services. As Bulgaria is part of the EU, no import duties apply and most goods can be imported into Bulgaria without restriction, but you will need a permit\u00a0from the Ministry of Economy<\/a>\u00a0to import the following:<\/p>\n
- \n
- Agricultural products<\/li>\n
- Precious metals<\/li>\n
- Military goods<\/li>\n
- Drugs.<\/li>\n<\/ul>\n
Image from Pablo <\/a>by Buffer.<\/em><\/p>\n
- One of the EU<\/abbr>\u2019s poorest countries, with limited disposable income.<\/li>\n<\/ul>\n
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