Bulgaria free zones in 2025
Bulgaria has several special economic zones, each of which offer the benefit of multiple investment incentives. The Bulgarian authorities distinguish two types of special economic zones: i) free economic zones and ii) industrial zones.
The Bulgarian free economic zones
- The Bulgarian free economic zones (FEZ) are sizeable industrialized estates with high-quality infrastructure to support commercial and logistics facilities to foreign investors. FEZs are an ideal location for manufacturing and trading companies exporting their products to the EU, thanks to i) their convenient location close to transport hubs ii) low cost warehousing space and iii) competitive investment incentives compared to neighboring EU countries;
- The Bulgarian authorities currently utilize 6 free economic zones: i) Rousse FEZ which is the largest and most developed; ii) Vidin FEZ; iii) Plovdiv FEZ; iv) Bourgas FEZ; v) Svilengrad FEZ and vi) Dragoman FEZ;
- These free zones offers advantages including i) no import/export customs duties; ii) no VAT on exports produced within the zones; iii) and simplified customs procedures. The Rousse FEZ additionally offers i) cheaper land leases; ii) 24-hour live security surveillance and iii) staff project subsidies;
- In order to conduct operations in a Free Trade Zone, a company must obtain approval from the Free Zone Authority. Healy Consultants will be happy to assist our Clients interested in operating in an FEZ to i) evaluate the eligibility of their project ii) draft a detailed business plan fulfilling registration requirements and iii) register their company directly with the relevant government entity.
The Bulgarian industrial zones
- The Bulgarian government currently operates 5 industrial zones to promote manufacturing, including: i) Maritsa Industrial and Commercial Zone, ii) Rakovski Industrial Zone; iii) Kuklen Industrial and Commercial Zone; iv) Parvomai Industrial Zone and v) Letnitsa Industrial Park;
- These industrial zones provide the advantages to business including i) 100% corporate tax exemption; ii) rapid business setup implementation terms; iii) reduced land leases in co-operation with a bank; iv) excellent logistics and infrastructure support and v) cheap railway services;
- Foreign investors wishing to conduct business within one of the industrial zones must obtain approval from the Bulgarian Trade Register. Healy Consultants will be happy to assist our Clients to i) evaluate the eligibility of their project ii) draft a detailed business plan fulfilling registration requirements and iii) submit an application to the respective Government Authority.
Table of comparison between Bulgarian free zones
Bulgaria Free Trade Zones | Rousse FEZ | Other Bulgaria FEZs | Bulgaria Industrial zones |
---|---|---|---|
Summary | |||
How long to set the company up? | 3 weeks | 3 weeks | 2 weeks |
How long to setup the bank account? | 3 weeks | 3 weeks | 3 weeks |
Can the company be wholly foreign owned? | Yes | Yes | Yes |
Client must travel to the zone? | No | No | No |
Most popular business sector? | Manufacturing | Manufacturing and logistics | Manufacturing |
Minimum share capital requirement? | €25,000 | €25,000 | €25,000 |
Bonded warehouses available? | Yes | Yes | Yes |
Agent required to conduct business outside of FEZs? | Yes | Yes | Yes |
Can hire foreign workers? | Yes | Yes | Yes |
Any restrictions on money remittance? | No | No | No |
Time zone? (ahead of GMT) | GMT+2hrs | GMT+2hrs | GMT+2hrs |
Is there an airport nearby? | Yes | Yes | Yes |
Logistics considerations | |||
Physical office space required? | Yes | Yes | Yes |
Quality of utilities? | Excellent | High | High |
Average industrial space rental per 1,000s sq. m. | €2,000 | €2,500 | €3,000 |
Average warehouse space rental per 1,000sq. m. | €3,500 | €3,500 - €5,000 | €4,200 |
Attractive for setting up a manufacturing business? | Yes | Yes | Yes |
Average monthly electricity prices? (per Kwh) | €0.06 | €0.06 | €0.06 |
Proximity of sea port in kilometres? | 200km | 3km | 50km |
Proximity of airport in kilometres? | 27km | 13km | 3km |
Proximity of rail in kilometres? | 9km | 1km | 2km |
Accounting and tax considerations | |||
Corporate tax rate (%)? | 10% | 10% | 10% |
No duties on imports and exports? | Yes | Yes | No |
VAT on imported products? | 0% | 0% | 20% |
VAT exemption on products sold in Bulgaria? | No | No | No |
Monthly VAT tax filing required? | Yes | Yes | Yes |
Tax incentives for manufacturing start-ups? | Yes | Yes | Yes |
Annual tax returns to be submitted? | Yes | Yes | Yes |
Annual government inspection required? | No | No | No |
Annual audit required? | No | No | No |
Annual financial statements required? | Yes | Yes | Yes |
Access to double taxation avoidance agreements? | Yes | Yes | Yes |
Corporate banking and financial considerations | |||
Recommended bank for corporate banking? | Unicredit Bulbank | Societe Generale | DSK Bank |
Client must travel for account opening? | No | No | No |
Corporate visa debit cards available? | Yes | Yes | Yes |
Quality of e-banking platform? | Good | Good | Good |
English e-banking platform available? | Yes | Yes | Yes |
Can secures loans from Bulgaria banks? | Yes | Yes | Yes |
Access to Private Equity/VC funds in Bulgaria? | Yes | Yes | Yes |
Can the company list on the local stock exchange? | Yes | Yes | Yes |
Labour considerations | |||
Can hire foreign employees? | Yes | Yes | Yes |
Quota (%) for local employees? | No | No | No |
How long to secure the work permit? | 2 months | 2 months | 2 months |
Client must travel before securing a long-term visa? | No | No | No |
Average monthly salary for employees? | €550 | €550 | €550 |
Payroll tax exemption for foreign employees? | No | No | No |
Social security contributions exemptions for foreign employees? | No | No | No |