PLOVDIVTECHNOLOGY DESTINATION

2020/2021

WELL DEVELOPED B2B ECOSYSTEM

QUALIFIED HUMAN RESOURCES

GREAT PLACE FOR R&D AND STARTUPS

HIGH QUALITY OF LIFE

BOOMING IT&BPO SECTOR

FASTEST GROWING CITY

PUBLISHED BY PLOVDIV MUNICIPALITY

Copyright 2020 Plovdiv Municipality

TECHNOLOGY DESTINATION PLOVDIVR&D, STARTUPS, OUTSOURCING

Bulgaria, 4000 Plovdiv,

1 Stefan Stambolov Sq.

+359 32 656 727

invest.plovdiv.bg

invest@plovdiv.bg

Technology Destination Plovdiv 1

WELCOME TO PLOVDIV

‣ If this is the first source of information about the economy of the region that you come across, we strongly suggest looking at the Investment Destination Plovdiv 2020-2021 booklet

‣ Plovdiv is home to 535 000 people who live less than 30 minutes away from the city center, 86% being between the ages of 20 and 64. Close to 18 000 expats have chosen to move to Plovdiv

‣ Over 7000 people work in the 100+ IT and BPO companies in the city and as freelancers in the sector

‣ Labour productivity in the sector increases with an average of 10.6% annually

‣ The sector is one of the fastest growing and most important ones for the local economy

‣ There are 29 vocational schools, around 9800 students enrolled in STEM programs, and over 5500 university students in technical studies

AS THE MAYOR OF PLOVDIV, I AM PROUD TO INTRODUCE THE LATEST REPORT ON THE TECHNOLOGICAL INDUSTRY IN THE SECOND LARGEST CENTER FOR IT&BPO IN BULGARIA.

ZDRAVKO DIMITROV Mayor of Plovdiv

Technology Destination Plovdiv 2

Technology

Table of contents

INTERNATIONAL RECOGNITION

4

UNIVERSITY EDUCATION

10

R&D ECOSYSTEM

24

STARTING A BUSINESS

22EMPLOYMENT

CONTRACTS

20

COMPETITIVE LABOR COST

12IT&BPO ZOOM

14

MAJOR COMPANIES

16

FUTURE TALENTS

8

OFFICE SPACES

28QUALITY OF LIFE

27

HUMAN CAPITAL

6

Technology Destination Plovdiv 3

Plovdiv

BULGARIA

Time zone difference

BERLIN GERMANY

-1h-2h

LONDON UK

-10h

SAN FRANCISCO

USA

-7h

TORONTO CANADA

TOKYO JAPAN

+6h

SHANGHAI CHINA

+5h

LONDON: 3 h 25 min

ISTANBUL: 1 h 30 min VIENNA: 1 h 35 min

ROME: 1 h 45 min

BERLIN: 2 h 15 min

PARIS: 2 h 55 min

MADRID: 3 h 50 min

PLOVDIV AIRPORT

SOFIA INTERNATIONAL AIRPORT

25 minutes from the Plovdiv city center

main Bulgarian airport with direct flights to about 80 destinations

PLOVDIV BULGARIA

75 minutes from the Plovdiv city center

(4 times per week)

Flight duration:

Technology Destination Plovdiv 4

Plovdiv is a rapidly developing destination for international centers of expertise, global business services, financial & accounting operations, and IT companies

Bulgaria has become one of the most attractive outsourcing destinations in the world with its favorable business climate, talented labor pool and increasing quality of life & work

One of the fastest growing destinations for outsourcing in Europe

5th BEST OFFSHORING DESTINATION IN EUROPE

Global Services Location Index A.T. Kearney 2019

3rd MOST INNOVATIVE UPPER MIDDLE-INCOME COUNTRY IN THE WORLD

Global Innovation Index Cornell 2019

70 FINTECH COMPANIES (BIGGEST NUMBER IN SEE)

Unicredit group, 2018

1st BPO PIONEERING LOCATION IN EUROPE

BPO & Shared services location index Cushman & Wakefield, 2016

9th BEST FDI STRATEGY AMONG MID-SIZED CITIES

Financial Times, fDi Intelligence, 2020

AWARD FOR EXCELLENCE IN INNOVATION, TECHNOLOGY & SOURCING ECOSYSTEM DEVELOPMENT

SEE Innovation, ITS Summit 2019

8th BEST MID-SIZED CITY FOR ITS COST-EFFECTIVENESS

Financial Times, fDi Intelligence, 2020

IN TOP 6 EMERGING CITIES FOR IT & OUTSOURCING DEVELOPMENT

Annual CEE Shares Services Awards, 2018

Technology Destination Plovdiv 5 5Technology Destination Plovdiv

Why Plovdiv?

HIGH QUALITY OF LIFE AND GREAT WORK-LIFE BALANCE

18 000 EXPATS LIVE IN THE CITY AND ITS CLOSEST SETTLEMENTS

LEADING UNIVERSITY CENTER WITH OVER 34 000 STUDENTS

OVER 7000 JOBS IN THE BOOMING IT&BPO SECTOR

QUALITY EDUCATION IN FOREIGN LANGUAGES,

FINANCES, ACCOUNTING & COMPUTER SCIENCE

THE IT&BPO SECTOR IS EXPECTED TO GROW WITH ANOTHER 5000 JOBS IN THE NEXT 3-5 YEARS

OVER 100 IT COMPANIES, SHARED SERVICE CENTERS,

FINANCIAL OUTSOURCING, CUSTOMER SUPPORT CENTERS

AND FINTECH COMPANIES

MORE THAN 40 RENOWNED FOREIGN INVESTORS IN THE IT&BPO SECTOR

DIRECT ACCESS TO A SINGLE POINT OF CONTACT

AND AN ALL-IN SERVICE PACKAGE FOR INVESTORS

WELL-CONNECTED CITY IN CLOSE PROXIMITY TO BUSINESS OPERATIONS IN EUROPE

Technology Destination Plovdiv 6

HUMAN CAPITAL A DYNAMIC CITY WITH A STEADILY GROWING POPULATION

‣ With its strategic location and good transport connectivity, downtown Plovdiv is accessible in less than 30 minutes by 535 000 people

‣ There are 179 000 people, between the ages of 20 and 44, that live in the city or in 30 minutes away from downtown

‣ Plovdiv has a dynamic expat community, consisting of close to 18 000 digital nomads, freelancers, entrepreneurs and students

‣ The number of expats and Bulgarians returning from abroad is growing steadily and in recent years Plovdiv district sees a positive net migration vis-à-vis other countries

‣ The high standard of living and a thriving local economy constantly attract new citizens. There are 7500 new inhabitants in the district just in 2019

‣ For the past eight years, both the city and the district have been seeing a positive net migration – newcomers outnumber leavers – while nation-wide figures are negative

‣ Plovdiv is particularly appealing high-school and university students, as well as for young professionals, this is why it has a high positive net migration rate in the age group 10-29 years

Technology Destination Plovdiv 7

Population in wider Plovdiv region

Population (total) 348 000 535 000

20-44 age group 122 000 179 000

45-64 age group 92 000 145 000

Migration at district level

Plovdiv 30 min. from downtown

2400

1000

2200

7500 NEW INHABITANTS

from closest districts

from Sofia

from abroad

+2000 NET ANNUAL

CHANGE ½ aged less than 29 years

17 900 EXPATS

(residing in the district for more than 3 months)

Source: NSI, Ministry of interior, 2019

50%

DIVERSE POPULATION IN WORKING AGE IN THE METROPOLITAN AREA

(30 min. from downtown)

others 1900

Technology Destination Plovdiv 8

FUTURE TALENTS A NETWORK OF MODERN SCHOOLS PROVIDING HIGH QUALITY EDUCATION

‣ Highest level of penetration of cloud technology in public schools in SEE -100% of Plovdiv Municipal schools use the top learning platforms - G-suite for Education and Microsoft Office 365

‣ Over 500 children use the 1:1 method where every child has their own personal device eliminating the use of paper school books completely

‣ First Google reference school in SEE

‣ The only Bulgarian city in the UNESCO global network of learning cities

‣ Among the largest Montessori learning communities with over 100 teachers and 1400 children

‣ Programs for early career orientation

‣ Cluster of teaching programs for project-based learning, reverse classroom teaching and innovative education

‣ An international school providing Cambridge primary curriculum and an IB diploma program

‣ Many international prizes and awards by prestigious organizations such as Innovation in Politics, the Visegrad Fund and the Financial Times

‣ 24 dual education classes, financed by 31 companies in the school year 2019/2020

‣ 9800 students enrolled in STEM programs and basic programming courses in the primary schools

‣ 78 vocational training centers and 10 applied science institutes and labs

Technology Destination Plovdiv 9

Leading schools in Plovdiv

16 700 students in advanced or intermediate study of foreign languages23 300

STUDENTS4500

GRADUATES

66 HIGH SCHOOLS,

INCL. VOCATIONAL

7 FOREIGN

LANGUAGE & MATH SCHOOLS

Source: Regional Department of Education, NSI (data on district level for 2019/2020)

with computer science & math profiles

3050 students

with finance, accounting & business administration profiles

2420 students

High School Profiles

Math High School „Acad. Kiril Popov“ Mathematics, Computer Science

Language School „Ivan Vazov” Spanish, Italian, English, German, French

National High School of Commerce Accounting, Banking, Management

Language School „Plovdiv” English, German

Vocational High School of Electrotechnics and Electronics

Computer Science, Automation, Microprocessor Technologies

46

37

26

NUMBER OF VOCATIONAL TRAINING

CENTERS OFFERING COURSES IN:

Business Management & Administration

Finance & Accounting

Engineering & Electrics

IT & Graphic Design 17Source: NAVET, 2019

High school education

Technology Destination Plovdiv 10

UNIVERSITY EDUCATION PLOVDIV IS THE LEADING UNIVERSITY CENTER IN SOUTHERN BULGARIA

There are 33 900 students studying in 9 universities in Plovdiv. The city is a reputable centеr for the training of specialists in the fields of information technology, finance, accounting, legal and language studies. The high-quality training is a result of the collaboration between universities and businesses already operating in the outsourcing sector, as well as the fast pace of its development in the region. Some companies encourage their own professionals to teach classes in certain areas of high-interest.

Many of the companies operating here select their staff in the early stages of their higher education. Specialties that are important for the IT&BPO sector are offered in most of the universities

in the city, with Plovdiv University and Technical University Sofia - Plovdiv Branch having solid traditions in the preparation of good mathematicians and programmers.

The availability of highly-qualified labor resources is one of the key advantages of Plovdiv. Besides many university students, there are 100 000 people in Plovdiv district, aged 25-64 years, with tertiary education.

The share of the population with completed tertiary education in Plovdiv and the whole South-Central region of Bulgaria is higher than that in many other European outsourcing regions, like those around Zilina in Slovakia and Cluj-Napoca in Romania.

Technology Destination Plovdiv 11

10 900 students in IT&BPO related fields for 2019/2020

33 900 STUDENTS

3300 FOREIGN STUDENTS

9 UNIVERSITIES

7400 GRADUATES

Source: Plovdiv universities (data for 2019/2020)

Population aged 25-64 with tertiary education 100 000 178 000

Plovdiv district South-central Bulgaria

25.8%SOUTHEASTERN CZECHIA (incl. Brno)

Population aged 25-64 with university degree in selected outsourcing regions

Source: NSI, 2018

22.7%SOUTH-CENTRAL BULGARIA (incl. Plovdiv)

18.5%NORTHERN GREAT PLANE HUNGARY (incl. Debrecen)

21.6%CENTRAL SLOVAKIA (incl. Zilina) 17.7%

NORTHWESTERN ROMANIA (incl. Cluj Napoca)

Source: Eurostat, 2018

20.3%VOJVODINA, SERBIA (incl. Novi Sad)

Finance & Accounting

Business Management & Administration

Information Technologies

Language Studies

Communication & Computer

TechnologiesLegal

Studies

3200 2400 1920 1520 1090 770

Technology Destination Plovdiv 12

COMPETITIVE LABOR COST STEADILY GROWING SUPPLY OF QUALIFIED LABOR

IT&Telecommunication labor costs in Bulgaria are 23% lower than those in other outsourcing destinations such as Hungary and Poland, and 35% lower than those in Slovakia. Moreover, the average salary in the sector in Plovdiv is 22% lower than that in the capital Sofia.

The steady growth of labor productivity leads to an increase in wages in the sector. In recent years, wages in IT managed to surpass those in the traditionally prestigious finance and energy sectors, thus attracting local talent and highly-skilled workers from other regions. However, the growth of labor productivity outpaces the increase in wages. The demand for staff with the necessary competencies

encourages employers to hire trainees, for example junior developers, whose wages are below the indicated average.

Many young people in Plovdiv are interested not only in good renumeration packages, but also in career development opportunities and trainings, employer branding, and additional perks and benefits. The high quality of life in the city and the great work-life balance are another incentive for attracting employees from other regions or even from abroad. Many specialists are attracted by the modern trends in the world of technologies such as data analytics, cloud computing, machine learning, and internet of things.

Technology Destination Plovdiv 13

SHARED-SERVICES CENTERS Min Max

Customer Support Representa/ves

• Junior Level

• Experienced

590

860

730

1190

Sales Specialists

• Junior Level

• Experienced

730

860

790

1190

Office Managers & Assistants

• Junior Level

• Experienced

660

860

730

990

Finance & Accoun/ng

• Junior Level

• Experienced

730

1120

920

1450

Source: Trakia Economic Zone

IT COMPANIES Min Max

QA Manual

• Junior Level

• Experienced

660

1580

1190

2030

QA Automated

• Junior Level

• Experienced

790

1920

1320

2370

Developers

• Junior Level

• Experienced

990

1920

1690

2830

Web Content Publishers & CMS Administrators

• Junior Level

• Experienced

530

990

790

1450

Graphic Designers - Pre-Press

• Junior Level

• Experienced

530

1050

790

1450

Graphic Designers - Crea/ve

• Junior Level

• Experienced

660

1190

990

1580

System Administrators

• Junior Level

• Experienced

660

1450

990

1800

Gross wages in IT&BPO in Plovdiv, €/month (2021 forecast)

For wages up to €1534 total labor cost includes gross wage plus 18.9% mandatory social security contributions paid by employer.

For wages over €1534 total labor cost includes gross wage plus lump sum €290

Technology Destination Plovdiv 14

IT&BPO ZOOM A RAPIDLY CHANGING LANDSCAPE AND A STRONG GROWTH STORY

Currently Plovdiv offers a qualified and well-trained labor force for over 100 IT companies, financial & accounting outsourcing companies, customer support centers, fintech startups, global business and shared server centers. Plovdiv is the region with the largest number of people working in IT&BPO in the country, next only to the capital Sofia.

Moreover, the sector has undergone a huge expansion in recent years, reaching over 7000 employees at present. With its good business climate, highly qualified specialists, great work-life balance and support from the local Municipality, Plovdiv attracts many international investors. Information technology and business

services have been among the most dynamic sectors, providing new job opportunities. The local IT sector has been one of the very few sectors which have experienced steady growth in the past decade. Business process outsourcing is another rapidly developing service sector taking advantage of the availability of the young and well-educated labor force. The IT&BPO sector has a growth potential of about 5000 jobs in the next 3-5 years, estimated by the think tank Trakia Tech.

Due to its success in attracting investors, the city was ranked among the top 10 mid-sized cities with best FDI strategy in 2020 according to Financial Times.

Technology Destination Plovdiv 15

PRODUCTIVITY EMPLOYMENT VALUE ADDED TURNOVER

+12.6%+15.8%

+3.6%

+10.6%

IT, BPO & related business services

*Average annual change for 2010-2018

Source: NSI (data on district level)

Follow the successful

15Technology Destination Plovdiv

SBTechprovides sports betting solutions and a full range of management services for over 50 partners worldwide. The company is part of DraftKings, a company listed on the Nasdaq Stock.

Reward Gatewayhelps companies attract, engage and retain their best people with an employee engagement platform. Clients include American Express, Unilever, Samsung, IBM and McDonald's.

ScaleFocusis a supplier for IT solutions’ implementation and technology consultancy. Recognized by Financial Times as one of Europe’s 1000 fastest growing companies for 2019.

Sutherland Global Services is a process transformation company, helping customers across industries from financial services to health care. In Bulgaria the company provides technical support and customer service.

Modishas locations and consultants across 20 countries and four continents. Modis Bulgaria delivers IT service desk, data center and network services, application development and support, and BPO services.

Bulprosis a global IT and BPO services, solutions and product provider, recognized by the rankings from Deloitte "Technology Fast 50 in CE" and "Technology Fast 500 in Europe, Middle East, and Africa".

Technology Destination Plovdiv 16

CUSTOMER SUPPORT

Call centers played major role in establishing Plovdiv as one of the major outsourcing destinations in SEE. The good knowledge of foreign languages attracted many international companies to the city.

Major companies

SSC & GBS

The first wave of such shared service and global business centers in Plovdiv were manufacturing companies, that started to nearshore not just their production activities, but also procurement, supply chain management, accounts payable/receivable, payroll, etc.

KPO

Plovdiv Municipality, in close cooperation with the private sector and educational and science institutions, is creating a suitable environment for knowledge-based process outsourcing. The city already hosts companies that have outsourced their R&D, analytics and insight activities.

@IT

Many international and fast-growing Bulgarian IT companies are present in Plovdiv. They serve the global markets, including many Fortune 500 companies. A popular trend is the development of products, based on disruptive technologies, such as cloud computing, big data and AI.

FINANCIAL OUTSOURCING

With a high quality of education in finances and accounting, the city started attracting companies specializing in billing, cash management and cost accounting. The local ecosystem also provides opportunities for outsourcing credit management, financial reporting, forecasting and budgeting.

$

STARTUPS

With its good quality of life and work-life balance, Plovdiv has attracted close to 18 000 expats, digital nomads and small startup teams, developing niche offerings in areas such as fintech, blockchain, AI and data analytics.

Technology Destination Plovdiv 17

COMPANYSCOPE OF BUSINESS HQ

60K Customer Support !

A Data Pro Data Analytics !

ABB SSCShared Service Center Activities "

AccentureE-Trade Platforms Development #

AdastraBig Data, AI, Cloud Services $

AmexisApp Development, BI, Data Warehouse

!

APT SystemsSalesforce Integration !

Arcade Retail Customer Support !

BGO SoftwareCustom Software Development !

BPO BulgariaFinancial Outsourcing %

Broadcom Bulgaria

Semiconductor Development &

BS Technologies

Specialised Software Development

!

BulanetSport Platforms Development '

BulprosCloud Services, Industrial Digitalisation

!

Cloudtech Hosting Solutions !

Code NestCustom Software Development !

COMPANYSCOPE OF BUSINESS HQ

Consult Commerce

Custom Software Development !

CRA Services Data Analytics (

DATA+ BPM Solutions !

Delta SourceCustom Software Development )

Digistore 24E-Commerce Platform (

DNH SoftIT Teams Outstaffing, Cloud Services

!

EurowebHosting Solutions, Web-Design (

EldersCloud Computing, Distributed Systems

!

Enigma Software Group

Antivirus Software Development &

Evolink

Cloud Services, Equipment Colocation, Networking

!

Football Radar

Data Analytics %

Hemisphere Commerce

E-Trade Platforms Development %

Hosting Solutions

Hosting Solutions !

ICYGEN Web Design &

IKOM Telematics; IOT *

Technology Destination Plovdiv 18

COMPANYSCOPE OF BUSINESS HQ

Infinite Lambda

FullStack Data, Cloud Solutions, DevOps

%

Intech Group Customer Support !

InterConsult Bulgaria

Microsoft Stack; PoC; Process Automation

!

IT AcademyWeb Design, Hosting Solutions !

KodarSpecialised Software Development

!

m+w Media Networks

Web Design !

Media IT Services Bulgaria

Custom Software Development (

MentorMateSpecialised Software Development

&

Modis Bulgaria

Network Management; IT&Desk Support

+

NisetSpecialised Software Development

!

Novarto Ltd.CRM; E-Trade Platforms Development

!

OptiCentre Web Design !

Orak Engineering

Specialised Software Development

!

ORM.BgDigital Marketing; Branding; PR !

COMPANYSCOPE OF BUSINESS HQ

OutconsSpecialised Software Development

!

Pentagon Interactive

E-Commerce %

Plutus BG Digital Marketing !

Podix Custom Software Development ,

Prime Holding

Custom B2B Software Development

!

Programista Custom Software Development !

Proxiad

OS Development, Apps Development, Operational Maintenance

,

Real Time Games Development

Online Betting Solutions !

Retail Direct E-Trade Platforms Development %

Reward Gateway

HR Management Products Development

%

RevauxyInsurance Software Development !

Risco Group Tech Security Systems Provider '

SBTech Global Limited

Sport Platforms Development '

SBND Technologies

Database Development, SEO, System Design

!

Technology Destination Plovdiv 19

COMPANYSCOPE OF BUSINESS HQ

Telus International

Customer Support $

TendrikE-Commerce, Web Design, Online Marketing

!

Trio Interactive International

Web Design (

TSD ServicesCustom Software Development !

TTEC Eastern Europe

Customer Support &

Uniqa Software Services Bulgaria Ltd

Insurance Software Support

-

Vertinity Ltd.Custom Software Development !

Viking Lifesaving Equipment BGS

Shared Service Center Activities .

ViscompHosting Solutions, Web Design

(

Visrez3D Modeling, Graphics, VR #

VSG BulgariaSpecialised Software Development

&

Westernacher Consulting

SAP Consulting (

Etc.

COMPANYSCOPE OF BUSINESS HQ

ScaleFocus

Cloud Services, Custom Solutions, BPM, EAI

!

SeeburgerB2B Software Development (

SelMatic ERP, POS, CRM !

SIBIZASIC; FPGA; Firmware !

SIS TechnologyB2B Software Development !

SiteGroundHosting Solutions !

SpeedNetworking Solutions !

Speedflow Communications

Web Design, Hosting Solutions

%

SQA ServiceQA, Software Testing !

StemoSAP; ERP; Cloud-Based Solutions

!

Strypes DevOps /

Sutherland Global Services

Customer Support &

TechHudle

E-Trade and Е-Gaming Platforms Development

%

TechnoLogicaGIS; Custom Software Development

!

Technology Destination Plovdiv 20

EMPLOYMENT CONTRACTS LABOR LAW BASED ON PRINCIPLES APPLICABLE THROUGHOUT THE EU

The Bulgarian labor legislation is applicable to all labor relationships between Bulgarian citizens, citizens of the European Union, citizens of the states which are parties to the Agreement of the European Economic Area, and employers in the Republic of Bulgaria. The Bulgarian labor law is based on some general principles such as freedom and protection of labor, fixed working hours, guaranteed rests and leaves, equal pay between men and women, limitation on overtime work, etc. EU social legislation applies in Bulgaria.

Financial support for training for acquiring professional qualifications of persons occupying newly opened positions in connection with the

investments made is provided for by the Investment Promotion Act for investors, certified by the Bulgarian Investment Agency.

EU citizens do not need a visa to stay and work in Bulgaria and can obtain long-term residence permit in less than 24 hours. Non-EU citizens, who perform highly skilled labor, can apply for the EU Blue Card. In order to obtain one, the applicants must be university graduates and have secured a work contract with a Bulgarian employer. The card gives its holder extended rights to stay in the country for the duration of the contract or up to 4 years and allows traveling within the EU.

Technology Destination Plovdiv 21

Types of Contract

• Indefinite period of time

• Limited period of time

Regular Working Hours

• 8 hours per day

• 40 hours per week

Night Work

• Work performed between 10.00 p.m. and 6.00 a.m.

• 7 hours per night

• 35 hours per week

Rests

• 30 minutes minimum lunch break

• 12 hours daily rest

Paid Leave

• Minimum of 20 work days per calendar year

• 8 months minimum employment service as a condition for claiming a paid annual leave

Unpaid Leave

• Up to 30 days unpaid leave per one calendar year is recognized as a period of service

Trial Period

• 6 months maximum trial period can be stipulated in the employment contract

Notice Period

• 30 days for an indefinite period employment contract

• 3 months for a fixed term employment contract

Source: Bulgarian Labor Code

PERKS PROVIDED

BY COMPANIES IN PLOVDIV

• Training Programs

• Team Activities

• Relax Zones

• Employee Referal Programs

• Work From Home Opportunities

• Flexible Working Time

• Additional Healthcare / Pension Fund

• Sport Cards

• Discount Vouchers

Technology Destination Plovdiv 22

STARTING A BUSINESS FOREIGN EQUITY PARTICIPATION CAN BE UP TO 100%

Bulgaria has undertaken substantial reforms to align its regulations and institutions with the most efficient practices in business registration. The country introduced one-stop shop consolidating requirements from several agencies, created a centralized electronic database for commercial registration, introduced statutory time limits and enabled electronic registration.

Registering a company through a lawyer will cost €150 for lawyer fees, as well as additional administrative and bank costs, as described in the workflow chart. Foreign investors in Bulgaria will have to follow the same regulations and procedures when starting a business as local ones.

The limited liability company is a preferred form of business entity because of the limited liability of the shareholders, the minimum capital requirement of €1 and the simplified corporate governance structure. Foreign legal entities can also register a branch. Its assets and liabilities are considered ones of the mother company. The minimum registered capital required for the formation of joint-stock company is €25 565.

When starting a business in Plovdiv, investors will benefit from a single point of contact in Plovdiv Municipality & an all-in package of services, including preliminary researches and consultations, staff recruitment support, local media promotion, etc.

Technology Destination Plovdiv 23

Workflow of registering a company

Have company documents notarized €50 fees

1 day1

Deposit paid-up capital in a bank €30 bank fees

1 day2

Sign up at Register of Legal Entities €28 fee (online-based registration)

2 days3

Register for VAT at the National Revenue Agency Free

4 12 days

+€150 lawyer fees for registering a company

Bulgaria has aligned its regulations & institutions with the most efficient practices in business registration

Source: World Bank, Doing Business database, 2020

BulgariaEurope & Central

AsiaOECD High

Income

1.0 4.0 3.0

Cost of starting a new company (% of income per capita)

SIMPLE TAX SYSTEM OF FLAT RATES:

10% personal income

20% VAT

14.5% distributed profit

Technology Destination Plovdiv 24

R&D ECOSYSTEM FAVORABLE CONDITIONS FOR APPLIED RESEARCH LABS

Plovdiv provides all the necessary prerequisites for the development of R&D centers, knowledge-based process outsourcing and centers of expertise. The city has a well-developed network of modern research centers, laboratories and science institutes in mechatronics, food-tech, and biotech among others. The Bulgarian Academy of Science, the business sector, the universities and Plovdiv Municipality work in close cooperation for the development of the local ecosystem. A huge boost for the R&D ecosystem in the city will be the Center for plant systems biology and biotechnology PlantaSyst that is currently being built and is worth over €15 million.

Moreover, Plovdiv is the only Bulgarian city member of the UNESCO Global Network of Learning Cities which supports and improves the practice of lifelong learning.

Plovdiv hosts a wide variety of tech events and has a wide network of IT academies and centers that offer non-formal education in web and graphic design, agile methodologies, automated software testing, C#, Java, MYSQL, Linux Administration, etc. These academies offer courses for both children and adults, some of them being free of charge. A widely accepted practice is the creation of in-house schools and training academies.

Technology Destination Plovdiv 25

25Technology Destination Plovdiv

Applied science institutes and labs

Name Scope of work Website

Center of PlantaSYST Biology & Biotechnology

Molecular Biology, Functional Genomics, Metabolomics, Bioinformatics, Plant Genetics plantasyst.eu

Central Laboratory of Applied Physics & Research Center in Mechatronics and Nanotechnologies

Nanostructured and Nanosized Coatings and Thin Layers, Semiconductor Materials and Structures, Energy-Saving and Ecological LED Systems

clap-bas.com

Fruit Growing Institute In Vitro Propagation of Planting Material, Chemical and Technological Research fruitgrowinginstitute.com

Center of Competence “Smart Mechatronics, Eco- and Energy Saving Systems and Technologies”

Intelligent Mechatronic Systems and Technologies, Energy Saving and Clean Technologies

tu-plovdiv.bg

Institute of Fisheries and Aquaculture

Scientific and Research Activities in the Field of Aquacultures ira-plovdiv.bg

Institute of Robotics - Plovdiv Branch

Industrial and Service Robotics; 3D Design and Printing, Sensors, Hall Elements ir.bas.bg

Laboratory of Bioactive Substances

Isolation, Purification, Structure Modification of Polysaccharides, Food Chemistry orgchm.bas.bg

Laboratory Complex for Chemical and Instrumental Analysis

Analysis of Water, Soil, Seeds, Fruits and Vegetable au-plovdiv.bg

National Institute of Meteorology and Hydrology - Branch Plovdiv

Full Monitoring of the Meteorological and Agrometeorological Elements plovdiv.meteo.bg

Food Research and Technology Transfer Center

Food & Beverages Analysis and Testing, Machinery Evaluation uft-plovdiv.bg

Jan • Plovdiv Game Jam

May • TuxCon • TechSys

July• International Conference of

Young Scientists

Sep• International Technical Fair (in 2021) • Gamer & Hardware Weekend • Digital 4 Plovdiv

Oct• Annual Business Forum “Industry 4.0” • Career Days “IT, Communications & Outsourcing”

Major tech events

Technology Destination Plovdiv 26

Technology Destination Plovdiv 27

Readily available modern office spaces at affordable prices

IT&BPO companies are a major driver of the office market

9-12 €/m2 MONTHLY RENTS

FOR OFFICE CLASS A

4-6 €/m2 MONTHLY RENTS

FOR OFFICE CLASS B

Source: Trakia Economic Zone

Office spaces Class A and similar 430 000 m2

approved for non-housing construction in 2019 (incl. office spaces, industrial spaces, hotels and retail spaces)

Source: Plovdiv Municipality

Occupied 53 000 m2

Under Construction 45 000 m2

Source: NSI (data on district level)

MAJOR OFFICE CENTERS

Business Centre Angelov businesscentreangelov.com

PIMK Office Center pimkbuild.bg

Capital City Center capitalcitycenter.bg

Plovdiv Plaza plovdivplaza.bg

Capital Trade Center capitaltradecenter.bg

Regus regus.bg

Kamenitza Office Park kamenitzapark.bg

Rilon Center rilon-center.business.site

Office Park Plovdiv officeparkplovdiv.com

Royal City Business Park galaxy-bg.com

MAJOR CO-WORKING PLACES

Cat & Mouse Coworking catandmouse.bg

Colorking colorking.com

Ji4ka ji4ka.com

Networking Premium networking.space

Regus regus.bg

Technology Destination Plovdiv 28

A city known and preferred for its quality of life and work-leisure balance

81STADIUMS & SPORT FACILITIES

300 SUNNY DAYS

52 km BIKE LANES

2200 m REGATTA VENUE

6HILLS IN THE CITY CENTER

76 PARKS & GARDENS

500+ CULTURAL EVENTS

50+MUSEUMS & GALLERIES

700+ CULTURAL SIGHTS

3 OPEN AIR THEATRES

6CINEMAS (with 25 screens)

15 4* & 5* HOTELS

1KAPANA CREATIVE DISTRICT

€5.10 Lunch menu

€1.30 Cappuccino

€1.20 Domestic beer

€0.51 Public transport (one-way ticket)

€2.70 Taxi journey of 5 km (3 miles)

€1 Parking in city center (per hour)

€24.90 Gym membership (monthly fee)

€6.10 Cinema ticket

€231 Private kindergarten (per month)

€2551-bedroom appartment in city center (rent perm month)

€88 Average basic utilities

€12 Internet (1 Gbps connection)

Source: Plovdiv Municipality Source: Numbeo, 2020

Explore Plovdiv the ancient city with a modern attitude

www.plovdiv2019.eu

Come and join us. You are more than welcome.

You can also be #together with us on:

We invite you to be#together at the hundreds of small- and large-scale events.

Plovdiv2019plovdiv2019

2019plovdivplovdiv2019

European Capitalof Culture

www.visitplovdiv.com

PLOVDIV MUNICIPALITY Bulgaria, 4000 Plovdiv,

1 Stefan Stambolov Sq.

+359 32 656 727

invest.plovdiv.bg

invest@plovdiv.bg

CREATING A BUSINESS-FRIENDLY CITY