Set up your business
In 1997 a broad consensus over the cornerstones of economic policy was achieved and it continues to dominate reforms at present. A currency board establishes a fixed exchange rate (EUR 1 = BGN 1.9558) regime under which the Central Bank cannot finance the government or the commercial banks.
In July 2020 Bulgaria has fulfil the criteria for entering into the ERM II mechanism and the Banking Union, which is the first step towards the accession in the Eurozone. Bulgaria’s 10% corporate and personal income tax rates are the lowest flat rates in EU. In comparison, Romania holds 16% corporate and personal income tax rates, Serbia - 15%, Poland – 19% and in the Czech Republic respectively 19% and 15%.
One of the most strongly developed economic centers in the country with leading companies in Bulgaria and Southeastern Europe in the sectors of mining, energy, machinery, electronics, food, wood, textile and automotive. The economy of the city is among the leaders in production value and attracts a significant amount of investments that increased by 5 % compared to the previous year. The industry is the largest sector in the region according to the Gross Value Added.
Stara Zagora has a very good potential for the development of research & innovation activity, car manufacturing, ICT and farming.
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.
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:
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:
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.
|GOVERNMENT DEBT % OF GDP||2nd lowest in EU (24.7%)||Eurostat||2022|
|PERSONAL AND CORPORATE INCOME FLAT TAX RATES||1st lowest in EU (10%)||Eurostat||2019|
|DOING BUSINESS INDEX||61th (out of 190)||World bank||2020|
|ECONOMIC FREEDOM OF THE WORLD INDEX||45th ( оut of 165)||Fraser Institute||2021|
|ECONOMIC FREEDOM INDEX||29th out of 177 countries||Heritage Foundation||2022|
|INNOVATION CAPACITY||48th out of 141 countries||Global Competitiveness Report||2019|
|MACROECONOMIC STABILITY||43rd out of 141 countries||Global Competitiveness Report||2019|
|ICT ADOPTION||30rd out of 141 countries||Global Competitiveness Report||2019|
|INFRASTRUCTURE||56th out of 141 countries||Global Competitiveness Report||2019|
Stara Zagora ranks fifth in Bulgaria by population. The city is dynamically developing and has a modern look, Stara Zagora won second place in the annual ranking of the electronic edition Foreigner.bg for the best Bulgaria cities to live in after the capital Sofia. Stara Zagora stood out among the other contenders in several key indicators.
Local taxes and fees are among the lowest in Bulgaria. The central location of Stara Zagora district and the flat terrain are among the prerequisites for the good development and maintenance of the road and railway infrastructure. In the annual report of the Association for innovation, business excellence, services and technology (AIBEST) the Municipality Stara Zagora is evaluated as a location in Bulgaria, which has very good prospects for the development of the information technology sector.
One of the most strongly developed economic centers in the country with leading companies in Bulgaria and Southeastern Europe in the sectors of mining, energy, machinery, electronics, food, wood, textile and automotive. The economy of the city is among the leaders in production value and attracts a significant amount of investments that increased by 5 % compared to the previous year. The industry is the largest sector in the region according to the Gross Value Added. Stara Zagora has a very good potential for the development of research & innovation activity, car manufacturing, ICT and farming.
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'' unit for an additional support of the investors.