In 2016, the British citizens have voted for the exit of the UK from the European Union. As usual, in this type of referendum, the YES and the NO were very close to each others the the NO made it. So, the BREXIT will happen and Bulgaria could benefit from it. We tell you why.
As agreed, the official exit of the UK from the E.U should happen on 29 March 2019 at 1:00 am London time. We are not here to tell if the exit of the UK will be a good or bad thing both for the UK and the EU.
Even if at Madame Bulgaria we have to admit that we are really pro-Europeans. However, we can say, without any doubt that the BREXIT could be a great Opportunity for Bulgaria.
Here are the three main reasons why Bulgaria could benefit from BREXIT.
1 – Bulgaria is part of the E.U
It might sound like obvious but the fact that Bulgaria is a member of the E.U grants all citizens and companies from the EU to establish in the country and trade freely with all the other members.
At a time when it is still uncertain on what will be the consequences of the « divorce » between the UK and the EU, companies having their European headquarter in the UK and dealing with the rest of the Union will have to relocate their European office an another country if they don’t want to suffer too much from the BREXIT.
Many of them are currently relocating to Dublin, Paris, or Frankfurt.
However, Bulgaria could be a very good option for them as the local labor force is well trained and the cost of operations are much lower than in any other EU member.
2 – Bulgaria has a stable exchange rate
Bulgaria is not in the Eurozone (yet) but is Under a Currency Board since the late 1990’s. In other words, as it is explained in this article, the exchange rate between the Euro and the Bulgarian Leva (the local Currency) is fixed at 1.95583 which means that the exhange rate risk is inexistent.
As a matter of fact, establishing its European headquarter in Bulgaria gives the same monetary security as estiblishing it in a Eurozone country.
3 – The tax system in Bulgaria is very attractive
As it is explained in this article, Bulgaria benefits from a very attractive tax system which encourges entrepreneurship, corporation and top management Financial compensation.
As a consequence, transfering one’s headquarter from London to Sofia would allow, corporations to be even more generous on the compensation of their employees and attract the best talents on the job market.
Last but not least, the quality of life in Sofia is really great. How many European capital cities can claim to have beautiful mountains just 20 minutes drive from the center ?
Imagine, that your CFO is a big ski fan. You can sell him the fact that every Saturday afternoon during the winter season he can go skiing on the Mont Vitosha which is less than half an hour drive from his home !
In short, the BREXIT coud be a great opportunity to attract in Sofia many European headquarters of foreign corporations and it would be a win-win situation (except for the UK, but, they voted for it, no ?).
Cover picture : © AFP 2018 JUSTIN TALLIS