Expand Your Business in the Balkans Through Bulgaria

Published on September 30, 2025 and written by Cyril Jarnias

With a booming economy and strategic position at the crossroads of Europe and Asia, Bulgaria presents itself as an ideal platform for any company looking to expand its horizons into the Balkans. This country not only offers privileged access to a dynamic regional market but also benefits from a favorable business climate with attractive taxation and rapidly modernizing infrastructure. Its membership in the European Union provides political and economic stability, while its skilled workforce effectively meets the needs of businesses seeking to establish themselves in the region. Leveraging these advantages can thus lead to successful expansion in an area offering substantial growth opportunities.

The Benefits of Investing in Bulgaria to Access the Balkans

Bulgaria: A Strategic Gateway to the Balkans

Bulgaria offers a privileged geographical position at the crossroads of Europe and the Middle East, making it an ideal entry point to penetrate the Balkan market. Located at the heart of the Balkan Peninsula, this European Union member country benefits from direct access to key markets such as Romania, Serbia, North Macedonia, and Greece. This strategic location allows businesses to easily expand throughout the region.

Bulgaria’s modern infrastructure enhances its attractiveness for investors looking to establish themselves in the Balkans. The country has five pan-European transport corridors crossing its territory, facilitating trade with neighboring countries. The Port of Varna on the Black Sea and the Danube River also provide essential maritime transport routes for regional and international trade.

A Favorable Economic and Tax Environment for Investors

The Bulgarian government has implemented particularly attractive economic and tax policies to encourage foreign investment. The corporate tax rate, set at only 10%, is one of the lowest in Europe. This advantageous tax system allows companies to achieve substantial savings and reinvest their profits in their regional development.

Bulgaria has also concluded numerous trade agreements with its Balkan neighbors, facilitating trade and reducing customs barriers. These agreements provide privileged access to a market of over 120 million consumers in the region.

Inspiring Success Stories

Several international companies have chosen Bulgaria as a base for their expansion into the Balkans. Nestlé, for example, established its regional headquarters in Sofia, from where it coordinates its activities throughout Southeast Europe. The technology company SAP has also set up a development center in Bulgaria, leveraging the country’s skilled workforce to support its growth in the region.

Political Stability and Skilled Workforce: Major Assets

Bulgaria’s political stability, as a member of the European Union since 2007, provides a secure framework for foreign investors. This stability translates into a predictable and favorable business environment for company development.

The Bulgarian workforce represents another significant asset. With 80% of the working population holding a secondary or higher education diploma, the country has a pool of skilled talent in various fields, particularly information technology and engineering. This local expertise allows companies to easily find the necessary skills to support their growth in the region.

A Springboard to a Growing Balkan Market

Investing in Bulgaria offers privileged access to an expanding Balkan market. The region is experiencing sustained economic growth, with promising prospects in sectors such as technology, renewable energy, and tourism.

By establishing an initial presence in Bulgaria, companies can benefit from a solid base to explore and gradually penetrate neighboring markets. The knowledge gained of the local and regional context, combined with the tax and logistical advantages offered by Bulgaria, allows investors to develop a progressive and controlled expansion strategy throughout the Balkans.

Diverse Sectoral Opportunities

Bulgaria offers investment opportunities in various promising sectors for the Balkan market. The manufacturing industry, particularly in automotive and electronics, benefits from competitive production costs and a skilled workforce. The information technology sector is experiencing rapid growth, with Sofia emerging as a regional technology hub.

Tourism also represents a promising sector, with Bulgaria serving as a gateway to beach and mountain destinations in the Balkans. Investments in tourism infrastructure and related services can thus benefit from an expanding regional market.

Positioning Bulgaria as a Regional Logistics Hub

Strategic Position and Geographical Advantages

Bulgaria enjoys an exceptional geographical position, acting as a natural bridge between Europe, Asia, and the Middle East. Located at the heart of the Balkans, it offers privileged access to a market of over 120 million consumers within a 500 km radius. This strategic location makes it an ideal logistics crossroads for companies seeking to penetrate the emerging markets of Southeast Europe, Turkey, and CIS countries.

State-of-the-Art Logistics Infrastructure

The country has a well-developed logistics infrastructure network, including:

• Major seaports on the Black Sea, notably Varna and Burgas, which serve as gateways to Eastern Europe and Central Asia
• An extensive road network with over 19,500 km of roads, including five highways connecting the country’s main logistics centers
• A railway system of 4,098 km, 68% of which is electrified, enabling efficient connections with neighboring countries
• Four international airports in Sofia, Varna, Burgas, and Plovdiv, facilitating air freight transport

These modern infrastructures enable efficient multimodal connections and rapid distribution of goods throughout the region.

Favorable Government Policies and Tax Incentives

The Bulgarian government has implemented various measures to stimulate the development of the logistics sector:

• Advantageous tax rates, with a corporate tax of 10%, one of the lowest in the EU
• Subsidies for job creation and staff training in high-unemployment areas
• Simplified customs procedures and special tax regimes in free zones
• Financial support for logistics infrastructure projects through European and national funds

These policies create an environment conducive to foreign investment in the Bulgarian logistics sector.

Strategic Partnerships and Special Economic Zones

Bulgaria actively encourages partnerships between foreign companies and local players in the logistics sector. Special economic zones, such as the one in Trakia near Plovdiv, offer advantageous conditions for the establishment of logistics companies, with modern infrastructure and tax incentives. These zones promote the creation of logistics clusters and stimulate innovation in the sector.

Impact of Foreign Investments

Foreign investments have played a crucial role in modernizing the Bulgarian logistics sector. International companies like DHL, Kuehne + Nagel, and DB Schenker have established regional distribution centers in Bulgaria, contributing to technology transfer and improving local logistics practices. These investments have helped create skilled jobs and strengthen the country’s competitiveness as a regional logistics hub.

Success Stories

A concrete example of success is the German company Festo, which chose Sofia as the site for its shared services center for Southeast Europe. Thanks to Bulgaria’s strategic position and efficient logistics infrastructure, Festo was able to optimize its supply chain and reduce its operational costs by 30%. Similarly, e-commerce giant Amazon recently established a distribution center in Plovdiv, leveraging the country’s central location to quickly serve the Balkan and Turkish markets.

Strategies for Entering the Regional Balkan Market via Bulgaria

Bulgaria: A Strategic Gateway to the Balkans

Bulgaria offers a privileged geographical and economic position for companies wishing to penetrate the Balkan market. A member of the European Union since 2007, the country benefits from direct access to the single European market while maintaining close ties with its non-EU neighbors. This unique situation makes it an ideal springboard for companies seeking to establish themselves in the region.

Free Trade Agreements and Regional Integration

Bulgaria actively participates in several free trade agreements that facilitate commercial exchanges in the region:

• The Central European Free Trade Agreement (CEFTA), which encompasses most Western Balkan countries
• The Stabilization and Association Agreements (SAA) between the EU and Western Balkan countries
• Access to the single European market as an EU member

These agreements allow companies based in Bulgaria to benefit from reduced or zero customs duties on many products, as well as simplified customs procedures.

Economic and Legal Advantages

Bulgaria offers an attractive economic and legal environment for foreign investors:

• One of the lowest corporate tax rates in Europe (10%)
• Simplified procedures for business creation
• A skilled and competitive workforce
• Relatively low operational costs compared to other EU countries

Furthermore, as an EU member, Bulgaria offers a stable legal framework harmonized with European standards, which reassures international investors.

Promising Sectors and Market Opportunities

Several economic sectors show strong growth potential in Bulgaria and the Balkan region:

Information Technology: The country has established itself as a preferred destination for IT outsourcing and software development, with annual growth of approximately 10%.

Tourism: Representing about 12% of Bulgaria’s GDP, this sector offers numerous opportunities in hospitality, catering, and tourism services, particularly in the development of sustainable tourism.

Agriculture and Agribusiness: Organic production, agricultural product processing, and export of local products (wines, cheeses, essential oils) are promising niches.

Renewable Energy: The development of solar, wind, and biomass energy offers interesting prospects in the region.

Establishing Local Partnerships

To successfully establish in the Balkans via Bulgaria, it is crucial to:

• Collaborate with local partners who know the market and cultural specificities of the region well
• Participate in professional trade shows and networking events to establish contacts
• Seek help from chambers of commerce and government agencies to obtain information and support

Overcoming Cultural and Administrative Challenges

Understanding cultural differences and local business practices is essential for success in the Balkans. It is recommended to:

• Invest in learning local languages, particularly Bulgarian
• Familiarize yourself with cultural codes and negotiation protocols specific to each country
• Demonstrate patience and flexibility in dealing with administrative procedures that can sometimes be complex

Success Examples

Several international companies have successfully established themselves in the Balkans using Bulgaria as an entry point. For example, an American technology company set up its development center in Sofia, leveraging local talent and competitive costs to serve the entire Balkan region. Similarly, a European hotel group chose Bulgaria as a base for its expansion into beach and mountain tourism in neighboring countries.

These success stories illustrate Bulgaria’s potential as a strategic gateway to Balkan markets, offering companies a unique blend of economic advantages, market access, and favorable geographical position.