Investment environment
Bulgaria at a Glance
An EU member since 2007, part of Schengen since 2025 and of the euro area since 1 January 2026, Bulgaria pairs a 10% flat tax with the lowest labour costs in the EU and an economy that has grown by about 3% a year.
The country
| Population | 6,423,207 (31 December 2025) |
|---|---|
| Area | 110,997 km² |
| Capital | Sofia |
| Language | Bulgarian (Cyrillic script); English is widely used in business |
| Time zone | EET, UTC+2 (UTC+3 in summer) |
| EU and NATO | EU member since 2007, NATO since 2004 |
| Schengen | Full member since 1 January 2025 |
| Currency | Euro since 1 January 2026, converted at BGN 1.95583 = €1 |
Source: Bulgarian Chamber of Commerce and Industry: Bulgaria in Figures 2026; European Central Bank: Bulgaria joins the euro area; European Commission: Bulgaria and Romania join the Schengen area1,2,8
The economy
| GDP, 2025 | €116.0 bn, real growth 3.1% |
|---|---|
| Growth outlook | 2.5% in 2026, 2.2% in 2027 (forecast) |
| Inflation | 4.6% average in 2025; 5.6% a year in September 2026 (flash) |
| Exports, 2025 | €43.0 bn (imports €53.8 bn) |
| Average wage, 2025 | €1,331 a month, up 12.0% |
| Labour cost | €12.0 an hour in 2025 (EU average: €34.9) |
| Government debt | About 30% of GDP, among the lowest in the EU |
| Budget deficit, 2025 | 3.5% of GDP |
Source: Bulgarian Chamber of Commerce and Industry: Bulgaria in Figures 20261
September inflation is from the National Statistical Institute’s flash estimate.3
Why investors come
- Low, simple taxes: 10% on company profits and on personal income, 5% on dividends, and up to 100% corporate tax relief for manufacturers in high-unemployment areas.
- The euro and the single market: no currency risk with euro-area customers and suppliers, and borders inside Schengen without passport checks.
- Costs: the lowest hourly labour cost in the EU, competitive office and warehouse rents, and industrial power below the EU average.
- Skills: a large IT and outsourcing sector; information and communication pays the highest wages in the country.
- Stability: an investment-grade rating (BBB+) with a positive outlook from S&P and Fitch, and a single-party majority government since the April 2026 election.
What to weigh
- Labour shortages: unemployment is at a record low and the working-age population is shrinking, so wages are rising fast (9.8% a year in Q2 2026).
- Public finances: the deficit has widened and the EU opened an excessive deficit procedure in 2026.
- Institutions: perceived corruption and the speed of courts and administration still lag the EU average.
Source: Bulgarian Chamber of Commerce and Industry: Bulgaria in Figures 2026; Fitch Ratings: Bulgaria outlook revised to positive, 25 September 20261,6
Fitch expects inflation to average 4.9% in 2026 and points to overheating risks from strong wage and credit growth.6
Legal basics
Foreign investors have the same rights as Bulgarians. The most common vehicle is a limited liability company (OOD, or EOOD with one owner), which needs only €1 of capital and is registered online in the Commercial Register. A joint-stock company (AD) needs €25,000. Citizens and companies of the EU and EEA can buy land; others can buy buildings and flats, and hold land through a Bulgarian company.7,9
For details, see the fact sheets on taxes, incentives, setting up a company and employing staff.
Frequently Asked Questions
What is Bulgaria’s GDP and economic growth rate?
Bulgaria’s preliminary GDP was €116.0 billion in 2025, with real GDP growth of 3.1%. The growth outlook is 2.5% in 2026 and 2.2% in 2027.
What tax rates apply to companies and individuals in Bulgaria?
Bulgaria applies a 10% tax rate to both corporate profits and personal income. Dividends are taxed at 5%, and manufacturers in high-unemployment areas can receive up to 100% corporate tax relief.
How do labour costs in Bulgaria compare with the EU average?
Bulgaria’s labour cost was €12.0 an hour in 2025, compared with the EU average of €34.9. It was the lowest hourly labour cost in the EU.
When did Bulgaria adopt the euro and join Schengen?
Bulgaria adopted the euro on 1 January 2026, at the conversion rate of BGN 1.95583 to €1. It became a full Schengen member on 1 January 2025.
What company forms and minimum capital apply to foreign investors in Bulgaria?
Foreign investors have the same rights as Bulgarians. The common limited liability form is an OOD, or an EOOD with one owner, requiring €1 of capital and registered online in the Commercial Register; an AD requires €25,000.
Can foreign investors buy land in Bulgaria?
Citizens and companies of the EU and EEA can buy land in Bulgaria. Other foreign buyers can buy buildings and flats, and hold land through a Bulgarian company.
Sources
- Bulgarian Chamber of Commerce and Industry: Bulgaria in Figures 2026 (PDF)
- European Central Bank: Bulgaria joins the euro area
- BTA: Inflation of 5.6% a year in September 2026 (NSI flash estimate)
- Eurostat: Euro area unemployment, August 2026
- Deloitte: International Tax, Bulgaria Highlights 2026 (PDF)
- Fitch Ratings: Bulgaria outlook revised to positive, 25 September 2026
- Ministry of Economy, Investments and Industry: Choice of legal form and registration
- European Commission: Bulgaria and Romania join the Schengen area
- European Land Registry Association: Bulgaria, limitations to foreigners
Figures checked 13 October 2026. Prepared by InvestBulgaria for general information. It is not investment, tax or legal advice; please confirm details with a qualified adviser before acting.
