Sofia, Bulgaria: An Introductiongreen, modern, developing

July 2018

Nadia SoultanovaHead of Investment & Business Development

Sofia Investment Agency

“Sofia is quickly catching up on the

more mature ecosystems. The

general spirit and forward-looking

attitude of people and startup

companies is a great motivator.

Sofia has some of the best tech

talents in Europe at the moment

and in general is a great place to

live.”

Timo Railo, co-founder of Appzio, a Sofia-based start-up

AGENDA

SOFIA INVESTMENT AGENCY

BULAGRIA OVERVIEW

SOFIA OVERVIEW

MOVING TO SOFIA

LIVING IN SOFIA

WORKING IN BULGARIA

Sofia Investment Agency

Sofia Investment Agency is part of the general administration of Sofia Municipality

SUPERVISORY BOARD

(City Council Members)

MAYOR OF SOFIA

Sofia Investment Agency’s mission is to support Sofia to

develop as an attractive and preferred place to start and

grow a business by local and foreign companies.

Our services include:

Information and analyses relevant to establishing business activities in Sofia

Facilitating contacts and networks with potential partners, publicauthorities, research and educational institutions

Practical assistance in setting up a business in Sofia

Aftercare programme to grow your business once you are here

Bulgaria at a glance: Geography

7.1 million people

111 K sq. km

European Union Member State

NATO member state

Bulgaria at a glance

Interesting facts about Bulgaria:

Mountainous country

3000+ hot mineral springs

Cultural heritage sites from ancient Thracians,

ancient Rome, Byzantium

Bulgaria in the European Union

Bulgaria is an European Union member country since January 1, 2007

• Part of the common labor market i.e. Bulgarian citizens can freely move and work in all EU countries

• Not part of the Schengen agreement i.e. travel freely within the EU but borders do exist.

Trade with other countries in the European Union:

• No VAT• No duties imposed• 4 day ground delivery & next day air delivery• Most goods pass the border with an invoice only

BLACK SEA

Bulgaria: Ground and Sea Transport

Bulgaria: GDP Growth

Real GDP Growth, %, 2017

GDP: 53.2 Billion (2017)

GDP per capita: USD $ 7 240 (2017)

GDP growth: 3.6% (2017)

Forecast for 2018 @ 3.5%, driven by consumption and export.

Currency

The fixed rate is in effect since 1997. The Bulgarian lev was initially pegged to the Deutsche Mark.

The fixed rate will remain in place until Bulgaria enters the Eurozone and adopts the Euro.

No added currency risk.

Fixed exchange rate to the EURO

Bulgaria English Proficiency Index 2017

Global Peace Index 2018

Source: Institute for Economics & Peace

Bulgaria ranks 26th in the world in terms of peace and safety

1/6 OF BULGARIA’S

INDUSTRIAL

PRODUCTION

40% OF

BULGARIA’S

GDP

52% OF FDI

TO BULGARIA

1.3 MPOPULATION

(2017)

out of 7.1 M

21.6% OF BULGARIA’S

WORKFORCE

x 2.3 NATIONAL GDP

per capita

USD 7 240 vs. 16 650

5-7% ANNUAL

GROWTH

IN

GDP

Sofia at a glance

Sofia is the capital of Bulgaria and its largest city.

Sofia Urban Development Planned

New brand hotels opening in Sofia by 2020:

Sofia economy by sectors*

*Value added at factor costs, Sofia 2016 (in%)

Promising Industries in Sofia

90% of the technology companies in Bulgaria

72% of the Bulgarian IT professionals

40 000 people employed

average monthly gross salary 3 times higher than the

average for the city

2.1% of the total export of Bulgaria (78% growth since

2011)

6% of Sofia’s economy

11 000 university students in IT related majors

10+ software schools and academies

Information Technologies

Share of IT sector in Sofia’s Economy

Growing Start-up Ecosystem

11 investment funds

10 + Incubators

Over 30 Digital events

Over 10 software schools

Growing Start-up Ecosystem

Sofia Success Stories

Sofia: Population

65% of the population is in working wage

Population of Sofia grew by 120 000 people (2003 – 2016)

Sofia workforce by year

40 000DAILY

COMMUTERS

Sofia: Workforce

Sofia Economy

Digital Connectivity

27th of 162 countries in the world in broadband internet speed.

9th in the world for speed of mobile internet.

• Average speed of 17.54 Mbps.

• 96% - 4 Mbps Broadband Adoption (IPv4) in Sofia

• Broadband subscription costs from 8 EUR-36 EUR

(10-100mbps) per month

No roaming fees for calls or mobile internet within

the European Union.

Sofia Airport

Connecting Flights from Sofia

SOFIA - MOSCOW1 -2 Flights /Day

3 hours flight duration

Sofia - Connectivity

Tourism

In Top 3 cities in Europe in visitor growth - 9.4% (2009-2016)

Education

Population aged 16 and over by education level in Sofia

23 universities

45% of the population speaks English

63research centers + several independent software schools

51% of the population holds university degree

110 000university students or 40% of all students in the country

Sofia: Universities

University

Sofia UniversityUniversity of National and World EconomyNew Bulgarian UniversityTechnical UniversitySofia University of Mining & GeologySofia University of Architecture, Civil engineering & GeodesyUniversity of Finance Business & EntrepreneurshipMedical UniversityNational Sport AcademyUniversity of ForestryHigher School of Transport Todor Kableshkov

American University in Bulgaria (Blagoevgrad)Southwest University Neofit RilskiPlovdiv UniversityMedical University Plovdiv

24 00021 43012 0009 2022 0005 000approx. 1 0008 00010 000N/AN/A

1 11612 60015 0004 000

Students

Employer tax rates

Employer social security tax rates

Maternity leave 12 + 12 months

(small employer contribution)

Paid vacation 20+ days

Other social benefits

Why Sofia?

Sofia Investment Agency

12 Gen. Gourko St, Sofia, Bulgariacontact@investsofia.cominvestsofia.com+359 2 980 04 67 / +359 2 986 45 32

/ SofiaInvestmentAgency

Sofia Investment Agency

@InvestSofia