The Bulgarian market is generally very receptive to U.S. goods and services. Former governments introduced a number of investment incentive programs, created and developed several new industrial zones, close to the main cities, and provided significant assistance corresponding to the level of investment. Bulgaria is known as having one of the lowest corporate taxes in the EU.
Finding a good local representative is a key strategy to a successful market entry but conducting a due diligence report before selecting an agent or representative is crucial as is obtaining a detailed market overview and report from a trusted source. Bulgaria’s official statistics on the automotive sector are very reliable. For years Bulgaria has aimed to optimization its investment climate by offering investors a 10 percent flat corporate tax rate and improving the registration process for new business.
Market Entry
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High initial capital requirements, changing government policy and regulations (including EU compliance issues and standards), IPR protection, access to suppliers of parts, distribution costs, and marketing costs can all be considered barriers. Around 70 percent of Bulgarian families own one or two cars; almost 80 percent of Bulgarian companies with business activities have motor pools consisting of cars, vans, minibuses, jeeps and light trucks.
Barriers
Current Market Trends & Demand
Source: Bulgarian Traffic Police Department, Ministry of Interior, 2016, 2017
Market Entry