About Bulgaria
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Bulgaria is situated in Eastern Europe and borders the Black Sea. The population is just under 8 million people and the religion is predominantly Christian and Orthodox. The Black Sea consists of 1200km of sandy beaches. It has two major airports on the east coast, one in Varna, and the other in Bourgas. Bourgas is situated quite close to the resort of Sunny Beach, about a 25 min drive. It has three major ski-resorts, Borovets which is close to Sofia, about 1 hour drive. Pamporovo is the most southern resort and is hotter than the other two. Bansko is the newest of them with major developments happening there. It is also a candidate for the 2014 Winter Olympics.
Sofia -
the capital has seen a huge turnabout in recent years. It has seen
major new residential blocks being built, also being built are new commercial
properties, shopping centres and malls, and lots of office space. Office space
is becoming very desirable due to the investment from companies in Europe and
the U.S. The currency in Bulgaria is the Lev. The conversion rate equates to almost 2 levs to 1 euro. Changing your money is very easy and there are plenty of banks and exchange bureau's about. You can also withdraw money from A.T.M. machines. All major credit cards are also accepted. Bulgaria Country Profile |
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Information from other sources:
Your experience of Bulgaria can be as varied and rewarding
as the geography and the history of the country itself. Bulgaria is small enough
to go about and discover at your hearts content and big enough to offer a
multitude of lifestyles for all ages.
Being al the crossroads of Europe and Asia, throughout the centuries, Bulgaria
and its people have developed a culture of hospitality and vitality. The
Bulgarian mentality combines the emotionality of Mediterranean people and the
pragmatism of West Europeans. Bulgarian festivals and customs date back to the
ancient times. Full of beauty, gaiety, mystical voices, fiery dances and
brightly coloured costumes - Bulgarian folklore has to be seen, felt and
experienced!
Bulgaria is situated in South-East Europe and occupies the eastern part of the
Balkan Peninsula. The relief is extremely varied large plains and lowlands, low
and high mountains, valleys and lovely gorges. The climate is temperate
continental with clearly marked four seasons. A Mediterranean influence is felt
in the country's southern regions. The average annual temperature is 12.8 C. The
average January temperature is around O C. Average summer temperatures rarely
exceed 30 C. There are 300 sunny days per year in Bulgaria.
The official language is Bulgarian. English, German, French and Russian are
spoken in the country's resorts, hotels and restaurants. Most of the information
is both in Bulgarian and English, making it easy for everyone to get around.
Bilingual menus, announcements and instructions, as well as official documents
are the norm.
The cost of living (for maintenance of your property and everyday expenses)
is surprisingly low compared to Spain, France. Greece, Italy. A breakfast in an
ordinary restaurant costs about 5 Leva (£1.73), a three course lunch costs about
10 Leva (£3,50) and dinner for two with wine or 50 grams liquor is 30 Leva
(£10).
Alcoholic drinks are on sale in most food shops, and in numerous specialised
pubs. Bulgarian wines are famed for their exceptional quality; Bulgaria is one
of the world's major wine producers and exporters. The price of one bottle of
0.75 litres of good dry wine varies between 3 and 8 Leva (£1,00 - 2,75) .
Bulgaria's traditional liquor is called rakiya. The price of a 0.7-litre bottle
varies between 3 and 10 Leva (I - 3,50). Imported brand drinks are available
everywhere. Their price is close or lower to that in the producer countries.
Beer, locally brewed with perfect quality and imported is very popular, either
tapped or bottled. The price of a 0.5-litre bottle varies between 0,5 Leva and
2,50 Leva (£0,17 - 0,86)
Tourism is recognised by the government as a key industry and as a result more
than 4 million tourists visited Bulgaria in 2004. Low property prices, beautiful
countryside, historic towns and unchanged rural traditions surprisingly low cost
of living made Bulgaria destination Number 5 for the European tourists in 2004.
The official monetary unit in the Republic of Bulgaria is called LEV (BGN).
Since 1997 the country has been in the conditions of a currency board. Since 1st
January 2002 the Lev is attached to the Euro at a fixed rate of 1,95503 Leva for
1 Euro. Only Leva of emissions after 1999 are valid. The Bulgarian paper notes
comprise the following bank-notes: 1 Lev; 2 Leva: 5 Leva: 10 Leva: 20 Leva: 50
Leva; 100 Leva;
Location and Demography
Bulgaria is situated in the Southeastern part of the Balkan Peninsula. The
country's population is 8.4 million and has a territory of 110,099.6 sq. km.
Bulgaria is situated in the centre of a region, which is undergoing dynamic
transition. Within 500 km of its capital Sofia a population of over 60 million
is concentrated throughout 10 countries most of which have only recently
embarked on their way to a market economy. This is a very large market with the
one of the most rapidly increasing market demands in Europe. All these regions
are several hours' drive from any point in Bulgaria. A network of international
motorways crosses the country, making vital connections to Western Europe,
Russia, and Minor Asia, to the Adriatic, the Aegean and the Black sea. Both sea
and river transport (the Black Sea and the Danube River) offer good
communications and transportation to and from the region.
Bulgaria is among the most industrialized former socialist countries, with
chemical industry, food, machine building, metallurgy and energy contributing
more than 75% of the GDP. In addition, Bulgaria offers strategic geographic
position and well-developed transport and telecommunications infrastructure
combined with highly qualified and comparatively cheap labour force.
Unfortunately, in the last 9 years Bulgaria has lagged behind Central European
nations in respect to economic growth and the speed of reform. The years 1989
-1997 were characterized with political instability and economic collapse.
Currency Board Guarantees Stability
A Currency Board was introduced effectively as of July 1st 1997. The Currency
Board was proposed by the IMF and World Bank as an active attempt to curb down
inflation, devaluation of the BGL and the run on the banking system.
The Goal - Accession to the European Union
While still far from the achievements of the Visegrad 4, Bulgaria is clearly on
the way to recovery. GDP growth of 3.5% for 1998, virtually no inflation,
Government budget surplus, improving foreign debt indicators and high liquidity
of the banking system are some of the unquestionable successes in the last 2
years. The current economic policy measures and reforms are designed to help
Bulgaria make substantial progress towards meeting the conditions for accession
to the European Union. The goal of accession to the European Union should create
momentum for structural reforms, which are essential for the development of the
Bulgarian economy.
On December 10,1999 in Helsinki, Bulgaria was invited to start negotiations on
full membership in the European Union (EU) in February 2000. For Bulgaria itself
the start of negotiations with EU for full membership is expected to have
greatest effect first in the domestic sphere. The admission to talks with EU
should help Bulgaria in harmonising economic legislation and regulatory
practice, enhancing the outward orientation of economy, improving public
administration and human rights observance, and in specific concessions over
issues of EU concern like the nuclear power station at Kozlodui. In the foreign
policy sphere Bulgaria will work together with the EU, especially in supporting
EU-sponsored policies for promoting stability and co-operation in South-Eastern
Europe. Regarding these issues Bulgaria was able to present itself as, for the
moment, the least problematic country in the region in terms of economics,
politics and ethnic relations.
The Bulgarian Equity Market
The legal framework of Bulgaria's capital market is regulated by the Securities
Law, adopted in late 1995 and amended in 1997 and 1998. In contrast to lax
regulations in the first years of stock exchange trade, the new law is
unanimously defined as restrictive. It sets very strict requirements on issuing
companies and investment intermediaries (brokers). The regulatory body of the
capital market is the Securities Commission, which controls all fields
stipulated in the Securities law. Since the very establishment of this
Commission it has received ample criticism because of its bureaucratic treatment
of players on the market.
A new revision of the law is expected to enter the Bulgarian Parliament by the
end of 1999. The revision is expected to define investment trusts, to increase
disclosure requirements for listed companies and create minority shareholder
protection.
Tax Implications
Tax legislature is one of the weakest points of the overall legal framework. It
is inconsistent and does not allow special provisions for revenues associated
with capital markets.
Foreign investors' participation in Bulgarian companies is also subject to
dubious treatment. Investments are generally regulated by the Law on Foreign
Investment, and are registered with the Foreign Investment Agency. In case a
foreign investor has realized revenues from capital gains or dividends on the
Bulgarian market, he may freely repatriate the proceeds to the home country,
where they will be accordingly taxed (provided, of course, that there is an
agreement for avoiding double taxation between Bulgaria and the home country).
Before repatriation, revenues are subject to 15% withhold tax, which is
subsequently refunded. The last regulations point that the dividend and capital
gains tax will be 15%. The withdrawal tax can be avoided given that there is an
agreement for avoiding double taxation between Bulgaria and the country of
registration of the company realizing the gains. The following three documents
should be presented to the council of ministers to avoid the taxation:
• Certificate of registration of the legal entity in the country with which the
double taxation agreement is signed.
• Certificate stating that the company resident in the country with which the
double taxation agreement is signed is the real owner of the gains/dividends.
• Certificate that this company does not have any legal representation in
Bulgaria.