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Travelling, driving, bank holidays, visas and residency, money and taxes, banking and business, communications, cost of living - and much, much more. All the facts and figures at your fingertips but, for a full overview, we suggest that you read this section together with the Bulgaria Profile ...
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| Country Title |
The Republic of Bulgaria
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| Land Area |
Land - 110549 sq km : Lakes and Rivers - 361 sq km : Coastline - 354 km
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| Geography |
Located in the south-east of Europe and situated on the Black Sea, Bulgaria shares borders with Serbia, Macedonia, Romania, Greece, and Turkey. The Pirin, Rhodope and Rila mountain ranges mark the highest peaks in Bulgaria. The Maritsa, Iskar and Tundja are Bulgaria's principal rivers and the Danube also flows along the northern border of the country.
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| Population |
Around 7.4 million, with some
1.45 million living in the capital, Sofia
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| Language |
Bulgarian is the national, official and legal language and the Cyrillic alphabet is used. Turkish and Macedonian are amongst the minority languages, while English, German, French and Russian are spoken in major tourist resorts and hotels. Bulgarian is an official EU language - however, English is also used in many business, commercial and EU matters
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| Currency |
Bulgaria's national currency is the Lev (BGN). 1 Lev = 100
stotinki. The current exchange rate is fixed against the euro with 1 euro = 1.955 Lev and
floating against other currencies at approximately £1 sterling = 2.15 Lev and $1 = 1.40 Lev. Notes are in
denominations of BGN 100, 50, 20, 10, 5, and 2. Coins are in denominations of 50, 20, 10, 5, 2 and 1stotinki.
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| Main Cities |
Sofia has been the country's Capital city and seat of Goverment since 1878
Sofia - pop: 1.456627 Plovdiv - pop: 376911
Varna - pop: 352834 Bourgas - pop: 208911
Rousse - pop: 166991 Stara Zagora - pop: 151818
Pleven - pop: 120769 Sliven - pop: 113548
Dobrich - pop: 111543 Shumen - pop: 102097 |
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| Government |
Bulgaria has been a Democratic Republic since 1990. Formerly, it was part of the Ottoman Empire for around 500 years and then a satellite of the former Soviet Union for nearly half a century.
Following the end of the Soviet regime, 1989 marked the beginning of
major democratic change in Bulgaria and the re-introduction of the
parliamentary party system. In 1990 Zhelyu Zhelev became the first
democratically elected President and in 1991 a new constitution was
adopted. Privatisation and the process of land restitution followed and
the country began to integrate into western alliances when it became a
NATO member in March 2004. After joining NATO, the key priority in
Bulgaria's foreign policy was to become part of the European Union,
which was achieved with the signing of the Accession Treaty in April
2005 and full EU membership from January 2007. Among the Government's current priorities are: meeting criteria for maximising EU development funding and convergence for entry to the Eurozone by 2013
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| Politics |
The President of Bulgaria, elected for a maximum of two 5-year terms, is head of state and commander in chief of the armed forces. The President's main duties are to schedule elections, represent Bulgaria abroad, conclude international treaties, and head the Consultative Council for National Security. The legislative body is the unicameral National Assembly of 240 members elected for 4-year terms. Political parties must gain a minimum of 4% of the national vote in order to enter the Assembly. The Assembly is responsible for enactment of laws, approval of the budget, scheduling of presidential elections, selection and dismissal of the Prime Minister and other ministers, declaration of war and deployment of troops outside of Bulgaria and ratification of international treaties and agreements. The Council of Ministers is the principal body of the executive branch. It is usually formed by the majority party in Parliament, or by the largest party in Parliament along with coalition partners. Chaired by the Prime Minister, it is responsible for carrying out state policy, managing the state budget, and maintaining law and order. The Council must resign if the National Assembly passes a vote of no confidence in the Council or the Prime Minister. Bulgaria's judicial system is independent and is managed by the Supreme Judicial Council. Its principal bodies are the Supreme Court of Administration and the Supreme Court of Cassation, which oversee application of all laws by the lower courts and judge the legality of government acts. There is a separate Constitutional Court, which interprets the Constitution and rules on the constitutionality of laws and treaties.
Currently, the President is Georgi Parvanov, elected in Oct 2006 and the Prime Minister is Boyko Borisov, leader of the Citizens for European Development of Bulgaria (GERB) party, elected to Government in July 2009. The next general election is scheduled for 2013 |
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| Administration |
In addition to the central government structure, Bulgaria has two levels of local government. Following substantial reforms in 1999, there are now 28 administrative provinces (oblasti). The provinces are administered by governors
appointed by the Council of Ministers and are further
sub-divided into 260 municipalities (obshtina). Municipality councils and mayors
are locally elected authorities. The municipality is the basic administrative
unit in which local self-government is conducted. Citizens Participate in the government of their municipality through the councils and mayors elected by them, and also through referenda and by general assembly of the population. The main authority in the municipality is the Municipal Council,
elected by the population of the respective municipality with a mandate
of four years. The mayor is the executive body of the municipality. He
is elected by the population or by the Municipal Council for a
four-year term of office. The municipality has an independent budget
and its own property, which it uses in the best interest of the community.
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| Religion |
The majority of the population are Christian, the main denomination being Bulgarian Orthodox Church. Eastern Orthodox Christianity is considered to be the traditional religion in Bulgaria. There is also a significant Muslim minority (9 per cent) and small Roman Catholic and Jewish communities
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| Time Zone |
GMT +2 hours
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| Bank Holidays |
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| Airports |
Sofia is the country's main international airport operating all year round. Varna and Bourgas are used for domestic flights and,
during the summer months, they handle international charter flights.
Plovdiv is predominantly a seasonal airport and only operates
international charter flights during the winter
Sofia Airport tel: +359 2 720672Plovdiv Airport tel: +359 32 551963Varna Airport tel: +359 52 500834Bourgas Airport tel: +359 56 34062 |
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| Travelling |
Many international airlines operate regular flights to
Bulgaria all year round. From the UK, British Airways, Air Bulgaria,
Austrian Airways, Easyjet, WizzAir, Sky Europe, Alitalia and Lufthansa fly
direct to Sofia. During the summer months, a number of major tour
operators including Thomson, Airtours and First Choice offer charter
holiday flights to Bulgaria and a number of European carriers fly direct to Varna and Burgas on the Black Sea. The flight time to Bulgaria is about 3 hours from the UK.
For travelling in-country, car-hire is widely available at similar rates to other EU contries. Trains, while not modern, reliably connect all the main towns and cities and private companies provide nationwide and european services using fleets of traditional buses and luxury coaches. The costs of train and coach travel are extremely cheap - eg: a single, first-class ticket from Sofia to Bourgas (approximately 350km) costs around 16 Lev (€8 / £7) |
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| Passports and Visas |
A passport valid for at least three months beyond the planned length of stay is required by foriegn citizens travelling to Bulgaria. EU citizens and Australian, Canadian and USA nationals do not require a visa in order to visit Bulgaria for a period of up to 90 days. For non-EU citizens, possession of a return ticket and sufficient funds for the length of stay may also be required. If your stay exceeds 90 days, you need to register with the local police and obtain an appropriate permit. Alternatively, if you are planning to stay for an extended period, you can apply for a Long Stay Certificate for up to 5 years. This can usually be arranged within 24 hours through the police immigration office in the city or town where you are staying, provided that you are either employed or self-employed, following a recognised educational programme, or that you have sufficient income or funds to support yourself and your family
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| Driving |
Visitors to Bulgaria may drive using their national licence as long as it complies with international standards. The standard EU driving licence is recognised but, with other non-EU licences, it is advisable to carry an international licence. EU citizens who are long-term or permanently resident in Bulgaria are not required to hold a Bulgarian licence, although non-EU nationals will usually need to do so. This should be checked with the local police in the town or city of residence.
Fuel in Bulgaria is lead free and available at 98, 95 and 92 octane levels. Diesel fuel is also widely available through the country, together with LPG and there are petrol service stations along most major routes. Road signs follow international standards and are often written in English as well as Bulgarian. All drivers should be aware that roads are not maintained to the same standards as in other European countries and, as a result, potholes and uneven surface conditions are common. Under Bulgarian law seat belts must be worn by all passengers, mobile phones can only be used with hands-free sets and headlights are required at all times between 1st November and 31st March. Speed limits for cars are 50 km/h (30mph) inside the city limits, 90 km/h (55mph) outside cities and 120 km/h (75mph) on motorways. Roadside cameras are in place and police patrols operate on both main roads and some minor roads. Depending upon on the circumstances of any particular situation, traffic police are empowered to levy on the spot fines of up to 50 Lev (€25 / £22), or issue a ticket for any offence, or confiscate an offending driver's licence. The sensible approach is to be aware of traffic rules and to drive carefully. Obligatory insurance (similar to 3rd party) is required, while comprehensive insurance is optional. Road tax is based on engine size and vehicle age and is levied by the Obshtina (local authority) of the town or city where the vehicle is registered. In addition, all vehicles driving on public roads are required to display a Vignette window sticker costing 67 Lev (€34 / £30). All vehicles over three years old must undergo an annual roadworthiness test (similar to MOT) |
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| Utilities |
Electricity: voltage is 220/240 volts AC at 50Hz. Plugs are of the round two-pin continental type, while lamp fittings are normally screw type. The national grid supply system is being widely developed with new coal-fired power stations and wind farms. The reconstruction of Bulgaria's only remaining nuclear power station at Belene is currently out to tender
Gas: still in relatively short supply outside the main towns and cities, although the country's largest supplier, OverGas, is investing heavily in major supply developments across the country Water: most homes are connected to mains water supply, although some villages still rely on local storage and delivery. Drinking water is generally excellent as supply is often sourced directly from natural spring water. Some outlying village and rural homes, though, may have access only to well water which, while perfectly acceptable for most purposes, may not be safe to drink. Sewerage: services do not normally extend beyond the boundaries of town or city environs and neighbouring villages within a radius of a few kilometres. Septic tanks are standard in just about all rural and village homes. Utilities are all metered and billed monthly according to usage. Bills should be paid either by direct debit or within 10 days from receipt or services may be disconnected without further notice. |
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| Communications |
The telephone country code for Bulgaria is: +359 and direct dialling is available worldwide, with digital cable trunk lines connecting switching centres in just about all areas of the country. There are many mobile operators and all mobile networks support roaming with other operators around the world. Internet access is becoming more and more widespread, with internet cafes in all cities, towns and larger villages. While broadband networks are developing rapidly, ADSL and high-speed wireless access are the most common home and business connection options.
Postal services are nationwide with post offices in all but the smallest villages. Deliveries are reliable but relatively slow - and there is no home delivery in most villages where mail is delivered to the local post office to await collection by the recipient. Courier services are low-cost compared with other countries and are widely used. |
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| Business Issues |
Sofia and some other key cities are now widely recognised as European business cities and home to a growing population of major companies. Many companies have European offices here, while others have migrated their entire operations to Bulgaria, to take advantage of the Government's financial incentives, the low employment costs and the attractive rates of corporation and personal tax, both of which are currently set at 10%. Standard business support services are widely available, together with key agencies, such as: Invest Bulgaria, Gateway to Europe, PHARE and Europa, all working with the National Business Development Network.
As a general rule, business behavior in Bulgaria is similar to that in the rest of Europe: a handshake at the beginning and end of the meeting is an accepted custom. Following a handshake at the start of the meeting, it is customary to exchange business cards. It is not considered polite to use first names when addressing new business acquaintances. The accepted dress for business meetings is a business suit for men and women are recommended to dress fashionably but not loudly. Most business people in Bulgaria have a good command of English, however a few words in Bulgarian will easily break the ice and create a friendly atmosphere. The presence of a translator can help advance a business meeting and is considered standard practice. A fairly long time may be required to fix a meeting and it is wise to confirm in advance by fax or letter that the meeting will take place as scheduled. It is recommended that, where possible, business meetings are not arranged for July or August or around the dates of national holidays. |
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Business Start-up |
Businesses are normally started in Bulgaria for two reasons ... to trade and make a profit - or to meet the legal requirements for ownership of land by foreign nationals. If you are a foreign person, you are not allowed to own land or properties that come with land, such as: houses with gardens, building plots and in some cases, apartments which go together with part of the land on which the apartment complex was built. The only way to buy land or a property with land is to form a Bulgarian limited company. The company you register will own the property and you will own the company and its assets. There is no need to have a Bulgarian partner or manager of the company - any foreign person can register and own 100% of the shares of a Bulgarian company. It will be a regular limited company which can trade and, therefore, you can conduct business through the company if you choose to do so.
Any foreign national or Bulgarian citizen can form a company. The person(s) will be liable for the company's obligations to the value of their share in the company's registered capital. Even though there may be no intention to trade, Articles of Incorporation outlining a statement of trading objectives are prepared and signed. A bank account is opened to collect the share capital which, since October 2009, as part of the new Government's strategy to stimulate and encourage entrepreneurship, has been reduced to a notional 2 Lev minimum. When the share capital is lodged, an appication for incorporation is made to the district court of the city where the company will be based. The new company exists from the moment that this application is approved and details are entered into the district court's Commercial Register. Then, finally, the new company will need to be registered with the National Tax Authority. It is possible to set-up a business independently but most people use the services of a lawyer, often arranged through the real estate agent from whom they are purchasing property, with a Power of Attorney (POA) authorising them to act for their client. The process of forming a company can take anywhere between a few days to about four weeks. Whether a business trades or not, annual accounting is a requirement. For non-trading companies this means that a null account, which any accountant will prepare, needs to be submitted annually. There is also a requirement that all companies must be registered in the new electronic Trade Register by 31st December 2010. Again, any accountant or lawyer will be able to do this. |
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| Banks |
The Central Bank of Bulgaria is the Bulgarian National Bank. The BNB's major objectives are: to maintain the stability of the national currency; to support the creation
and functioning of efficient payment systems; to issue cuurency and maintain the
cash cycle; to regulate and supervise other banks'
activities; to ensure stability of
the banking system and to protect depositors' interests. Since January 1st 2007, with Bulgaria's accession to the EU, the Bank is a member of the European System of Central Banks
The banking sector comprises around 26 commercial banks, some of which have continued from the days of state socialism, while others are Bulgarian operating divisions of major European banks, such as Allianz, Societe Generale and Raiffeisen. There is a general concensus from both private and business customers that the former state-run banks still offer rather traditional and mundane financial services and are generally much less attuned to the needs of today's clients. The newer european banks, on the other hand, are more customer driven and offer an extended range of services including: internet banking, international debit and credit cards, mortgages, high interest deposit accounts and flexible saving plans. Growth in the banking sector is continuing apace and this is driving competition, which translates into more and more service offers and improved customer care. |
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| Savings |
While the banking sector in a number of other EU countries are offering extremely low interest rates as they struggle to break out of the global financial crisis, Bulgarian banks continue to offer a wide array of attractive term deposit and savings account options. A
typical fixed term account, for instance, would generate a return of up to 4 or 6% a year on cash invested for two years, with even higher
rates for longer term commitments. This is partly because Bulgaria posted just a 3% budget deficit for 2010, the lowest in Europe, and expects to be the only EU country to balnce its budget in 2011 - and partly because of the healthy competition between the banks to win customers with more attractive services and offers. Either way, it's good news for savers.
To promote stability and confidence in the banking system by protecting depositors' funds, the Government guarantees all savings deposits up to a maximum of 100000 BGN / €48000 per depositor per bank through the Bulgarian Deposit Insurance fund (BDIF), which is a founding member of the International Association of Deposit Insurers and the European Forum of Deposit Insurers |
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| Taxes |
For the majority of expats, there are three categories of tax that need to be considered: standard taxes on property purchase, and variable taxes on income and profit, both of which are currently set at the rate of 10%. Property purchase taxes amount to approximately 4% of the property value and are paid at completion of the purchase when ownership of the property is transferred. Your property agent or lawyer will advise and assist with these taxes.
Income may be generated in a number of ways such as employment, where tax will be deducted at source, or rental revenue if you let your property to tourists. If your income tax is not deducted at source by an employer, you will need to ensure that you (or your accountant) declare the amount of revenue generated to the Bulgarian tax authorities. If you use the services of a property management company, you should find that the declaration of income and the payment of due taxes is done for you at source. However, payment of this tax is ultimately your responsibility so you should seek confirmation that your property management company is dealing with this on your behalf. Taxes on profit will be payable in Bulgaria on all profits generated through commercial activities if you own and operate a business, and on profits from the sale of assets, including property, but are not applicable on the sale of your first or only property in any one tax year. Otherwise, the rate of tax is currently 10%, calculated on the difference between the cost of the property as entered on the Notary Act (Title Deeds) and the price paid to you by the new buyer. If you have traded in a particular tax year, whether you have made a profit or not, you (or your accountant) must submit appropriate financial records to the tax authorities by 31st March of the following year, with taxes due being paid by 30th April A further key point to consider in this context is that, as an EU taxpayer, you are required to inform your local tax authority about any profit that you make from the sale of your property in Bulgaria. There is a double-taxation agreement in place between Bulgaria and most other EU countries, which means that the 10% profit tax you pay in Bulgaria will be recognised. However, depending on the tax rules within your country of domicile, profit (or capital gains) may be taxed at different rates and, therefore, additional tax liabilities may be applicable. |
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| Shopping |
All the cities and larger towns in Bulgaria have an extensive range of retail malls, leisure complexes, shopping centres, supermarkets, DIY stores and cash-and-carry hypermarkets similar to those in every other European country. There are also convenience stores (similar to SPAR), produce markets and budget super-market chains everywhere. The smaller towns and villages normally have well stocked mini-markets and local shops for all the essentials, together with easy access to neighbouring towns. So, whatever your tastes and shopping requirements, unless you are seeking a 24-hour, shop-till-you-drop lifestyle or a dose of retail therapy, you will have no problem in finding everything you need on a daily, weekly or monthly basis
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| Living Costs |
Bulgaria is probably best known for its low property prices but what
may be less widely appreciated is that the cost of living here is less
than half of that in the UK. There is not much point in considering product by product prices with other EU countries because income levels, domestic production and local consumption patterns are all variable and non-comparable. Having said that, as a broad indicator, it can be noted that, while some items such as petrol at around
2.40 BGN (Bulgarian Leva) or £1.03 a litre, are more expensive, direct
price comparisons of non-imported food, clothing, electrical goods and
furniture reflect only around 40 to 45% of UK costs, with utility bills and
municipal tax (council tax) at an even lower level. No matter how
attractive the cost of living might be, though, it's not a good idea to
come to Bulgaria without a source of income but, having said that, the
fact is that many expats are pleasantly surprised at just how easy it
is to live comfortably on a British pension or to find ways of
generating an income to fund their new lifestyle.
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| Interesting ... |
In a recent office occupancy survey, annual rental costs for Sofia in the financial year 2008/9 stood at around €255 / £230 per square metre, down from an average of €310 / £280 over the previous year. Within the same report there were two Global Top 50 indices, Sofia was the 49th most expensive city but the 3rd fastest growing construction and real estate market. Things have changed somewhat over the past year or so but Sofia's underlying competitive business advantage still holds good
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