Why Sofia?

Sofia is a unique place to launch or grow a business.
We're sharing a few facts and statistics that shows you how!

  1. Competitive Costs
  2. Skilled Workforce
  3. Strategic Location
  4. Growing Startup Ecosystem
  5. Government Support and Incentives
  6. Advanced Digital Infrastructure
  7. Quality of Life
  8. Ease of Doing Business
1

Operate and live at Competitive Costs

Low Operating Expenses

Sofia has significantly lower costs for office space, utilities, and salaries compared to many Western European capitals.

  • Office Rental Costs - Office space in Sofia averages around €13–€15 per square meter per month, significantly lower than cities like Berlin or Paris, where prices can exceed €30–€40 per square meter per month. Source: Colliers International, Market Reports, 2022.
  • Labor Costs - The average monthly salary in Bulgaria is approximately €750, which is among the lowest in the EU.Source: Eurostat, Average Monthly Earnings, 2022.

Affordable Living

The cost of living is relatively low, allowing entrepreneurs to allocate more resources to their business ventures.

  • Cost of Living Index
    Sofia's cost of living is about 50% lower than that of Western European capitals. For example, consumer prices including rent are 55% lower than in London.Source: Numbeo, Cost of Living Comparison Between Sofia and London, 2023.
2

Attract and Hire Skilled and Creative Workforce

Highly Educated Talent Pool

Bulgaria has a strong educational system, especially in science, technology, engineering, and mathematics (STEM) fields.

  • STEM Graduates - Bulgaria produces over 15,000 ICT graduates annually from its universities.Source: Source: Bulgarian Association of Software Companies (BASSCOM), Annual Report, 2022.
  • IT Sector Growth - The IT industry has seen a growth rate of over 10% annually, employing more than 70,000 professionals.Source: Invest Bulgaria Agency, ICT Sector in Bulgaria, 2022.

Multilingual Population

Many professionals are proficient in English and other European languages, facilitating international business operations.

  • Language Proficiency - Approximately 80% of young professionals speak English, and many are proficient in other languages like German, French, and Spanish.Source: European Commission, Special Eurobarometer 386: Europeans and Their Languages, 2012.
3

Leverage a Strategic Location

Gateway Between Europe and Asia

Sofia's geographical position makes it an excellent hub for businesses targeting markets in both regions.

  • Transport Corridors - Sofia is located at the intersection of key European transport corridors IV, VIII, and X, facilitating easy access to markets in Europe, the Middle East, and Asia.Source: European Commission, Trans-European Transport Network (TEN-T).

EU Membership

As a member of the European Union since 2007, Bulgaria provides access to the EU single market, simplifying trade and regulatory compliance.

  • Single Market Access - Bulgaria has been an EU member since 2007, providing businesses access to a market of over 450 million consumers.Source: European Union, EU Member Countries.

With the European Union, every major capital is accessible within a 3 hours trip by plane.

4

Benefit from a Growing Startup Ecosystem

Vibrant Community

Sofia has a burgeoning startup scene with numerous incubators, accelerators, and co-working spaces.

  • Startup Numbers - Over 500 startups are active in Sofia, contributing to a dynamic entrepreneurial environment.Source: Endeavor Insight, Sofia’s Tech Ecosystem: Challenges and Opportunities, 2021.
  • Investment Funds - Local venture capital funds like Eleven Ventures and LAUNCHub have collectively invested over €100 million in startups.Source: Eleven Ventures and LAUNCHub Ventures, Portfolio Data, 2022.

Networking Opportunities

Regular events, conferences, and meetups offer platforms to connect with other entrepreneurs, investors, and industry experts.

  • Tech Events - Annual events like Webit Festival and DigitalK attract over 15,000 attendees, including entrepreneurs, investors, and tech enthusiasts.Source: Event Websites: Webit and DigitalK.
5

Stable and favorable environment with Government Support and Incentives

Attractive Taxation

Bulgaria boasts one of the lowest corporate tax rates in the EU at a flat 10%, along with favorable personal income tax rates.

  • Corporate Tax Rate: Bulgaria offers a flat corporate tax rate of 10%, one of the lowest in the European Union.Source: Bulgarian National Revenue Agency, Tax Rates, 2023.
  • Personal Income Tax: A flat personal income tax rate of 10% applies to individuals.Source: Bulgarian National Revenue Agency, Tax Rates, 2023.

Investment Incentives

The government offers various programs, grants, and incentives to encourage foreign investment and support startup growth.

  • EU Funding: Bulgaria has access to over €11 billion in EU structural and investment funds for the 2021–2027 period.Source: European Commission, Cohesion Policy Funding, 2021.
  • Government Grants: Incentives include financial aid for training and infrastructure, and fast-track administrative services for certified investors.Source: Invest Bulgaria Agency, Investment Promotion Act, 2022.
6

Sofia is a Pro-tech and pro-growth capital city with Advanced Digital Infrastructure

High-Speed Internet

Sofia is known for its fast and reliable internet connectivity, essential for tech-driven businesses.

  • Internet Speed Ranking: Bulgaria ranks 16th globally for fixed broadband speed, with an average download speed of 151 Mbps.Source: Ookla, Speedtest Global Index, October 2023.
  • Mobile Connectivity: 5G networks are expanding, with coverage reaching over 50% of the population.Source: Mobile Operators' Reports, 2023.

Technological Readiness

A strong IT sector and widespread digital adoption make it conducive for innovative enterprises.

  • Global Innovation Index: Bulgaria ranks 35th out of 132 economies, reflecting a strong capacity for innovation.Source: World Intellectual Property Organization (WIPO), Global Innovation Index, 2022.
7

Stay fit and keep the morale up with a great Quality of Life

Cultural Richness

The city offers a mix of historical sites, cultural events, and modern amenities.

  • UNESCO Sites: Bulgaria is home to 10 UNESCO World Heritage Sites, offering rich cultural experiences.Source: UNESCO World Heritage Centre, Bulgaria.
  • Cost of Entertainment: Leisure activities are affordable; for instance, cinema tickets average €6, and monthly gym memberships are around €30.Source: Numbeo, Cost of Living in Sofia, 2023.

Natural Beauty

Proximity to mountains, parks, and ski resorts allows for a balanced lifestyle with recreational opportunities.

  • Proximity to Nature: Vitosha Mountain is just 10 km from Sofia's center, providing opportunities for hiking, skiing, and outdoor activities.Source: Visit Sofia, Vitosha Mountain.
8

Freedom, predictability, and low barriers to entry for Ease of Doing Business

Simplified Procedures

Efforts have been made to streamline business registration and reduce bureaucratic hurdles.

  • Company Registration: Establishing a company takes approximately 23 days and involves 7 procedures.Source: World Bank, Doing Business Report, 2020.
  • Online Services: Government services are increasingly digitized, with e-government initiatives reducing paperwork.Source: Ministry of e-Government of Bulgaria, e-Government Strategy, 2022.

Legal Framework

Alignment with EU regulations provides a familiar legal environment for European entrepreneurs.

  • EU Compliance: Bulgarian laws are harmonized with EU legislation, ensuring regulatory consistency.Source: European Commission, EU Law and Publications.
  • Intellectual Property Protection: As a WTO member, Bulgaria adheres to TRIPS agreements, safeguarding IP rights.Source: World Trade Organization, TRIPS Agreement.