For investors

Cost effectiveness for doing business

The local taxes are among the lowest in Bulgaria, the city disposes of a large number of available office spaces, the construction of new buildings increases every year and it has one of the best prices per m² among the rest of the 5 major cities in the country. The local administration offers short and quick procedures for its services. The Municipality also possesses a specially dedicated ''Investments'' Department for an additional support of the investors.

Energy sector. In the ''Maritsa - Iztok'' complex located 40 km away from Stara Zagora are functioning 4 Thermal Power Plants, as well as state-owned mines for the extraction of lignite coal. It is a leading large employer in Stara Zagora region and provides between 40 and 50 % of the electricity on a national scale. 11 600 people are employed in the power plants and the mining company ''Mini Maritsa Iztok'' Ltd - almost 75 % of them are inhabitants of Stara Zagora Municipality.

Available human resources and qualification. Stara Zagora offers well prepared workers for the needs of the business. Almost 70 % of the population speaks at least one foreign language which is a serious advantage for foreign companies. According to the National Statistics Institute, 60,3 % of the population is at a working age. On the territory of the Municipality is located Trakia University that occupies a prestigious rank in the ratings of the universities in Bulgaria and abroad. There is a very good potential for the development of the IT and outsourcing sector. In 2020 a new professional school of computer sciences and math analysis was inaugurated in the city and Trakia University presented new disciplines in the same area.

A modern and completely finished industrial zone with all the necessary infrastructure. 'INDUSTRIAL ZONE ZAGORE' Inc. is a result of the joint initiative of Stara Zagora Municipality and the Ministry of Economy of Bulgaria. The zone has a completely built infrastructure for industrial purposes - streets, sidewalks, street lights, parking lot for cargo vehicles and bus stops for the public transport that can be used by the investors and their future employees for a better mobility and working conditions.

Policy of the Municipality. In order to deal with the consequences of the transition towards carbon neutral economy, Stara Zagora Municipality will focus its policy on stimulating investments in research & innovation activities and encouraging the transfer of modern technologies, as well as guarantee to a larger extent the preservation of the environment and execute the transition towards circular economy. The focus of the municipality will be placed upon ensuring conditions to mitigate the negative social and economic consequences of the planned closure of the thermal power plants and the mines in the context of the Green Deal and the maximal usage of the financial resource of the Just Transition Fund. The main financing lines are:

• Production investments in SMEs, including start-ups, leading to economic diversification and restructuring;
• investments in research & innovation activities and encouraging transfer of modern technologies;
• investments in digitalization;
• incorporation of technologies for available clean energy;
• restoration and decontamination of sites, rehabilitation of the soil and projects for modification of the purpose;
• support of the circular economy;
• increase of the qualification and re-qualification of the workers;
• assistance for the job seekers;
• ensuring the active participation of the job seekers.

The last few years have placed the global social and economic systems under a severe pressure that will engage long delayed fundamental reforms in the management of the assembly lines and the active participation of the companies in fighting climate change. Shortening the supply chains, the Just Transition Fund and the European Green Deal will place Stara Zagora region in the center of the changes in Eastern Europe. We believe that the built modern infrastructure, the stimulation of investments and the solid policy for fighting climate change will allow us to offer the necessary conditions for the establishment of innovative companies that will help to transform the region into a modern center of industry and technologies and a city that preserves the environment. The expected availability of qualified labor force and the huge financial resource to support private initiatives give to the region a serious competitive advantage regarding the attraction of investments with high added value.

According to Eurostat data in 2021:

• After the marked decline in economic activity in 2020, as a result of COVID-19, the Bulgarian economy rebounded in 2021 with a GDP of 4%.
• The budget balance after fourth consecutive years with surplus, turns into a deficit of -4.1% of GDP.
• The public debt to GDP went down from over 100% in 1997 to 24.7%–the second lowest in EU 27; The EU 27 av. for the same period: 90.1%.

In 2019, the banking system remained stable and operated at high levels liquidity and capital adequacy, high credit activity in the competitive environment and increasing regulations. Bulgaria is an open economy. Exports are diversified and include the fast growing vehicle parts, machinery and pharmaceutical sectors. Positive recovery is observed in the oil exports after the decline in 2018. Business services exports have also expanded substantially during the last decade.