Ever since Bulgaria has joined the EU, there is huge interest from business all across Europe for outsourcing or moving to Sofia, the capital of Bulgaria.
During the second half of 2015 we have registered a record amount of companies that want to either move their business In Bulgaria or start a new one.
In 2015, Bulgaria was named the best outsourcing destination by the UK’s National Outsourcing Association (NOA), and the BPO sector’s contribution to the country’s economy amounts to 3%.
There are several main reasons why business all across Europe choose Bulgaria as outsourcing destination:
- Bulgaria has a stable economy and the lowest taxation rates within the European Union —> Corporate income tax is 10%; Personal income tax is a 10% flat rate; Dividend tax for individuals is 5%; Dividend tax for companies is 0%. Therefore Bulgaria is also known as the “tax haven” of Europe.
- Bulgaria has the fastest Internet in Europe and it is 5th in the world.
- Rental costs. We collect data on a monthly basis from all the Class “A” and Class “B” office buildings in Sofia.
Class “B” office buildings: Rent varies from 4 € to 8 € per sq.m. monthly + maintenance fee from 0.5 to 2 € per sq.m. monthly.
Class “A” office buildings: Rent varies from 9.5 € to 14 € per sq.m. monthly + maintenance fee from 1.5 to 4 € per sq.m. monthly.
- According to the latest research of the NSI (National Statistical Institute) regarding EXPENDITURE AND CONSUMPTION DURING THE FOURTH QUARTER OF 2015 a person who lives in Bulgaria spends on average 376,2 EUR on a monthly basis for food, clothes, housing and health.This is the reason why in 2015 and 2016 many foreigners are coming directly with their employers to work and live in Bulgaria.
- Bulgaria is the country with the cheapest labor in the EU. The average monthly salary of 2016 is 952 BGN = 487 EUR. The average monthly salary for 2016 for the Information and communication sector is 2 125 BGN = 1 087 EUR.
DEMAND FOR OFFICES
The demand in Sofia is mainly concentrated in office spaces in different business areas located around parks or lakes. Around 60% of our customers are companies who have several offices in different countries and who want to run their business from a cheaper and more secure location.
During the last couple of years, the face of Sofia has significantly changed. More and more functional office buildings are being built every year and that’s why the city has the capacity to satisfy every demand. Five years ago Sofia could only have met the demands of companies looking for medium to large office areas – 450-900 sq.m. Sofia, now has to offer a variety of options – offices starting from 10-20 sq.m. up to a couple of thousand sq.m.