Infrastructure Development and Tax Incentives Drive Friendly Investment Climate in Bulgaria
- The GFCC
- 2d
- 3 min read
Bulgaria's competitiveness landscape has undergone a significant transformation recently. A member of NATO since 2004 and part of the European Union since 2007, for the past two decades the country has enjoyed a stable economy, participation in international markets, and a boom in Foreign Direct Investments.
Next year, the GFCC will hold its Global Innovation Summit in Sofia, Bulgaria, in partnership with GBS, one of the biggest construction companies in the country and in Southeastern Europe.
The Summit will survey investment opportunities in the region and strategies to power leading sectors fueling the future economy, such as energy and construction, at both global and regional levels.
At November’s Monthly Call (exclusive for GFCC members and fellows), Kalin Marinov, GBS' Head of International Affairs and Strategic Development and ESG Lead, provided insights into Bulgaria's competitiveness landscape and the new projects and industries driving national economic transformation.
Bulgaria's competitiveness transformation
Since the first democratic measures were put in place in the early 1990s, Bulgaria has gone through multiple socio-economic reforms to transition from a highly centralized and planned economic model to an open market-based economy.
These measures led the country through a period of hyperinflation until stabilization, when a new currency was adopted in 1997. Since then, the government has invested in coordinated measures to restructure and modernize the economy.
These changes, in turn, allowed the country to enter in multiple multilateral agreements. It became full member of the Schengen Area in 2025, an OECD accession candidate in 2022, and will join the Eurozone in January 2026.
Yet, in May this year, Glavbolgarstroy (GBS), one of the biggest construction companies in Bulgaria and in Southeastern Europe and an active member of GFCC, led the initiative to establish a Bulgarian Advisory Council on Competitiveness (ACC).
This first-of-its-kind institution in Bulgaria is designed to gather business organizations and associations from various sectors, as well as representatives from academia, entrepreneurs, public and local administration, industry leaders, and NGOs.
It aims to serve as an independent platform for research, analysis, dialogue, and advocacy, focused on promoting national competitiveness and innovation—a crucial initiative to improve the country's productivity and prosperity.
EU entry fuels growth
The Bulgaria-Turkey border is Europe’s busiest land border checkpoint. As the primary overland gateway between the European Union and Asia, thousands of commercial trucks use this route annually.
After Bulgaria’s accession to the Schengen Area this year, the already strong flow of goods between Asia and Europe through the country is expected to intensify, further boosting demand for infrastructure development.
Marinov highlighted that Bulgaria's role as a transit point has propelled a boom in the construction sector, with GBS involved in a wide range of infrastructure projects, from transport (highways, bridges, railways, and urban systems) to energy.
GBS is currently building the Vertical Gas Corridor on Bulgarian territory (a gas infrastructure connectivity project embracing Greece, Bulgaria, Romania, Hungary, Slovakia, Moldova, and Ukraine) and is working on the expansion of the existing Nuclear Power Plant with two new reactors, in partnership with Hyundai and Westinghouse, deploying the AP1000 technology.
Additionally, Bulgaria has great traditions and untapped potential for tourism. From Black Sea Coast beach holidays in the summer to visits to historic cities such as Plovdiv and Veliko Tarnovo, and fabulous mountains with world-class winter resorts, the country has experienced growing interest among European travelers. Arrivals have increased 3.5% year over year, with 54% of all visitors coming from the EU.
One of the world’s fastest-growing diasporas
Another key driver of economic transformation in Bulgaria is the increasing flow of remittances. Bulgaria has one of the fastest-declining populations in Europe. Around two million people have left the country since the beginning of the century.
This migratory movement, which could still become a potential long-term challenge, has so far proved to be an “economic engine.” Many Bulgarians living abroad are investing back home, supporting local businesses, and financing scientific and educational organizations.
Business incentives and new industries
Additionally, a combination of business incentives, including low corporate taxes, has fueled growth in the ICT sector and other industry verticals.
Cutting-edge companies like the aerospace manufacturer EnduroSat and the cargo drone airline Dronamics highlight Bulgaria's successful pivot to high-tech and knowledge-intensive manufacturing.
Other Bulgarian national brands have also gained international relevance. Beyond its traditional role as the world's leading producer of Rose Oil, the country has established global dominance in artificial climbing structures through Walltopia.
As the state continues to strengthen its position within Europe, the interplay between strategic geographic location, pro-business policies, expanding infrastructure, and an engaged global diaspora is reshaping the nation’s economic trajectory.
With major developments underway and growing international partnerships, the country stands poised to accelerate innovation and play a more influential role in regional and global competitiveness.