Is investing in Bulgaria profitable?
To answer this question, here are 10 reasons that illustrate why investing in Bulgaria can be the best investment decision you ever make:
1. Membership of the European Union
Bulgaria has been a member of the European Union since 1 January 2007.
2. Accession to the Schengen area
As of 31 March 2024, new changes are coming that will make it easier to travel without having to show proof of identity at the border crossing point.
EU member states reached an agreement in 12/2023 to abolish checks at air and sea borders with Bulgaria and Romania. Travellers arriving by air or sea from other Schengen countries will no longer have to show their identity cards or passports on arrival. However, if you are travelling by car or arriving by train or bus to Romania and Bulgaria, you will still need to carry an identity card, as the rules governing land borders have not yet been established
2. Currently stable LEV, outlook for the new Euro
Bulgaria is currently in the so-called “waiting room for the Euro”, the outlook for the adoption of the European currency is set for June 2025. For this reason, real estate on the Black Sea coast is expected to have strong growth potential. This fact has also been observed in recent years.
Bulgaria recorded the highest annual housing price growth among EU countries in South Eastern Europe (SEE) at 9.5% in 2023 and up to 15.6% in 2022.
Source Eurostat
3. Membership of key NATO and EU organisations
Bulgaria is considered a politically and economically stable country. It is part of key EU, NATO and WTO (World Trade Organisation) organisations.
4. Affordable real estate.
Bulgaria offers high quality real estate at some of the lowest prices in Europe; for example, Sofia, the country’s capital, offers lower comparable commercial rents than similar European cities such as Budapest, Prague, Warsaw and Athens. Investing in property on the Black Sea coast is interesting, where you can actually buy attractive apartments in great residential apartment and hotel complexes. Since the introduction of the European currency, property prices are expected to maintain their value with a view for their further growth.
5. Lower energy costs
Should you decide to retire or work from Bulgaria, you will make significant savings on your energy bills, as electricity costs are roughly two-thirds cheaper than the European average.
- Strategic geographic location
Bulgaria has a strategic location in the east and connections with other countries that are part of the EU. Growing property markets in neighbouring Turkey and Greece and property growth in nearby Albania or Montenegro are also good signals and advantages for this continuously developing country. Geographically, Bulgaria has a huge added advantage and value, both economically and geopolitically. It maintains direct access to some of the fastest and largest markets in Europe (including, of course, the single market), and its geographic location allows it to serve Europe, the whole of the Balkans, Turkey, Russia, North Africa and the Middle East – which is important for key emerging markets, especially in the years to come.
- Advanced transport infrastructure
Bulgaria has 4 major airports connecting it to many destinations around the world. They are located in major cities – Sofia, Plovdiv, Varna, Burgas. As well as two main ports – in Varna and Burgas.
Bulgaria is constantly improving thanks to its extensive and modern transport infrastructure and investments from the European Union. The Balkans have become an important and strategic location for the entire EU and NATO in these times. Bulgaria also benefits from its location on the Black Sea.
8. Climate and natural opportunities
Due to the great interest of tourists, Bulgaria is a preferred destination as many people from Europe, the UK, Israel, Russia and Ukraine are investing in holiday homes and apartments. Recently, more and more Europeans are choosing this country as a great low-cost option for retirement or spending the entire summer season by the sea at affordable prices.
All places and seasons are great because the country has beautiful mountains where people hike in the summer and love to ski in the winter. There are also many seaside villages which are perfect for relaxing and unwinding during sunny days by the sea and on the beach. Winter is much milder by the sea, with an average temperature of +6°C.
- Recently, Bulgaria has attracted a lot of foreign investment
After reading this list, you may not be surprised to find that Bulgaria attracts a lot of foreign investment. Bulgaria has a low corporate tax of 10%, quality IT specialists working for many major corporations at a very affordable price. In the number of startups, Bulgaria ranks third in the European Union (EU). Bulgaria is at the forefront of IT, innovation and communication technologies. Thanks to its IT specialists, Bulgaria is the largest outsourcing destination in Europe and ranks third globally in this respect. Many other investors in Bulgaria see high potential in the workforce, the knowledge of professionals who work for much lower wages than the EU average, and the country is developing further as a result. According to the United Nations Conference on Trade and Development (UNCTAD), foreign direct investment (FDI) inflows in Bulgaria have remained at a consistent level of more than EUR 1 billion. This is no small feat given the size of the economy.
- Fast and easy integration into the local community
People in Bulgaria are some of the most hospitable people, so your integration into the local community will be extremely easy. The food is also not to be missed, Bulgaria has a great variety of local great food that hasn’t changed that much over the years and is an integral part of Bulgarian cuisine. The local dishes are inspired by Greek, Turkish and Serbian cuisine. The Bulgarians have taken their food to a high gourmet level with all this knowledge. Bulgarian wines are also a concept, plenty of sunshine and quality soil give the wines an unrepeatable character. They have been awarded many world medals. Vineyards in Bulgaria have a long tradition that dates back to antiquity.
It is not difficult to communicate here, as the younger generation speaks good English or Russian. These languages are taught in schools, where Bulgarian youth are very interested in them and are constantly improving their skills for the sake of their future.
Information drawn
Source: https://www.startingbusiness.com/blog/investing-bulgaria
