Burgas Chamber of Commerce and Industry analyses Bulgaria’s business environment

Predictable regulations, a skilled workforce and sound infrastructure are among the factors increasingly shaping where international companies choose to invest. This is one of the key findings of a special analysis by the Burgas Chamber of Commerce and Industry (BCCI) examining Bulgaria’s advantages as a business destination.

The analysis also notes that wages in Bulgaria are rising while the working-age population is shrinking, leaving companies across a range of sectors struggling to find suitably qualified employees.

According to the report, productivity, access to financing, the administrative environment and, above all, the predictability of regulations, including tax rules, are becoming increasingly important. Uncertainty in these areas has prompted some companies to scale back or relocate their operations outside Bulgaria.

One example cited is Japanese company Sumitomo Electric Bordnetze SE (SEBN SE), which has closed its plant in Mezdra in northwestern Bulgaria and announced steps to reduce its operations in Karnobat, in the southeast of the country. The reasons include high production costs and a substantial increase in labour costs. Some of its production has been transferred to Moldova and Romania.

The BCCI analysis also cites other similar cases, including Bosch’s planned closure of its engineering centre in Sofia by mid-2027, affecting around 670 employees; the shutdown of MD Elektronik’s plant in Vratsa, resulting in the loss of approximately 550 jobs; and Unilever’s relocation of production from the Bulgarian town of Debelets to Romania, Greece and Turkey.

The report also examines the Finance Ministry’s proposal to introduce a one-off additional tax on profits in 2027 across six sectors: banking, insurance, telecommunications, large supermarket chains, currency exchange bureaux and payday lending companies.

The Burgas Chamber stresses that, for businesses, the issue extends beyond the level of taxation to encompass the predictability of tax policy and confidence in the long-term stability of the rules. It also warns that changes to banks’ capital positions could affect lending conditions for businesses.

The analysis further cites a survey conducted by the German-Bulgarian Chamber of Industry and Commerce among 83 companies. According to the findings, 70% of respondents plan to maintain or increase their investments in Bulgaria, while 77% are not considering relocating their operations.

Edited by Tsvetana Toncheva