National Currency

Bulgarian Lev (BGN)

Exchange Rate

1 EUR = 1.9558 BGN (2017-06-23)

During the last 11 years EURBGN exchange rate was within the range 1.9558 - 1.9558, reaching its maximum in Jul 2016 and falling to its minimum in Jul 2016.

GDP

According to Eurostat, nominal GDP of Bulgaria in 2016 was 47.4 bln EUR.

Bulgaria outperforms the European Union in terms of real GDP growth with the average annual differential coming to 0.9% over the past 10 years (2006 - 2016). In 2016 real GDP growth was 3.4% which was above the Euro Area average (1.8%) and above the European Union average (1.9%). Real GDP growth in 2017 - 2022 are IMF's estimates.

In 2016, nominal GDP per capita in Bulgaria was 6 600 EUR.

Bulgaria has a below-average level of wealth in terms of per-capita GDP at purchasing power parity (PPP); this economic welfare indicator has, on average, fell behind that of the European Union by -39.8% over the past 10 years (2005 - 2015). GDP per capita at PPP in 2016 - 2022 are IMF's estimates.

Inflation Rate

According to Eurostat, inflation rate in Bulgaria in 2016 expressed as annual percentages of average consumer prices was -1.3% which was below the Euro Area average (0.2%) and below the European Union average (0.3%). Inflation rates in 2017 - 2022 are IMF's estimates.

Unemployment Rate

Government Bond Yield

According to Eurostat, government bond yield in Bulgaria in Mar 2017 was 1.73%, compared to 1.75% in Feb 2017.

Credit Ratings (as of Sep 2016)

Double Taxation Agreements

Double Taxation Agreement (DTA) is an agreement between two or more countries for the avoidance of double taxation.

DTAs of Bulgaria: 52 Signed Agreements

Bulgaria signed DTAs which already came info force with the following jurisdictions (for agreements which came into force after 01 January 2013 the date of coming into force is given in brackets):

Information Exchange

There are 3 ways for jusrisdictions to exchange information on tax matters:

• spontaneously;
• on request;
• automatically.

Spontaneous exchange of information is provision of information that is forseeably relevant to another party without a request being previously sent.

Tax Information Exchange Agreements (TIEAs) enable exchange of information on request relating to a specific tax investigation, either criminal or civil.

Automatic information exchange allows jurisdictions to exchange information automatically, without having a specific tax investigation.

Automatic Exchange: Starts in September 2017

Bulgaria signed the automatic information exchange agreement on 29 October 2015 and committed to start the automatic information exchange in September 2017.

Further Information

• Automatic Exchange of Information on Financial Accounts
• Countries Which Will Not Automatically Exchange Account Information

FATCA

Foreign Account Tax Compliance Act (FATCA) which became law in the United States in March 2010, focuses on reporting made by foreign financial institutions about financial accounts held by US taxpayers or foreign entities in which US taxpayers hold a substantial ownership interest. The FATCA-reporting is facilitated by Intergovernmental Agreements (IGAs).

Bulgaria has FATCA agreement with the U.S. in effect since 05 December 2014 (Intergovernmental Agreement Model 1). Financial institutions operating in Bulgaria are required to identify U.S. taxpayers by January 1, 2017 and to report the information for 2017 and the subsequent years. The agreement is non-reciprocal: Bulgarian financial accounts hold in U.S. financial institutions will not be reported to Bulgarian authorities.

Further Information

• FATCA and European countries

Financial Market Development

According to World Economic Forum's Global Competitiveness Report 2016-2017, financial market development in Bulgaria is scored 4.1 out of maximum 7.0 and ranked 59th out of 138 analysed economies. Soundness of banks is scored 4.2 bringing Bulgaria into the 107th place, trustworthiness and confidence of financial market is scored 4.5 (49th place).

Deposit Guarantee Scheme

Deposit Guarantee Schemes compensate certain deposits held by depositors of a bank that becomes unable to meet its obligations.

From a depositor's point of view it is important to know:

• if the depositor is eligible within the terms of the deposit guarantee scheme;
• if the depositor's bank is a participant in the deposit guarantee scheme;
• if the depositor's type of deposit is covered by the deposit guarantee scheme.

All these details about deposit guarantee scheme in Bulgaria are summarised in Table 1.

Further Information

• Deposit Guarantee Schemes in Europe

Country Ceiling for Deposits

Moody's country ceilings for deposits specify the highest rating that can be assigned to local- or foreign- currency denominated deposit obligations of a bank or other deposit taking institution domiciled within that country.

Local currency (Bulgarian lev) deposit ceiling for Bulgaria is set to A3 (upper medium grade), foreign currency deposit ceiling is Baa2 (lower medium grade).

Deposit Rates

In Feb 2017, an agreed annualised deposit rate in local currency (Bulgarian lev) of new contracts with agreed maturity up to 1 year between credit institutions and households was 0.24% .

Further Information

• Compare Time Deposit Accounts in Bulgaria

Banking Sector Structure

Currently there are 29 credit institutions operating in Bulgaria.

In 2015 consolidated banking assets in Bulgaria were 45 489.62 mln EUR. The consolidated banking assets' evolution is shown at Chart 8 below.

Recent structural changes (2013 - 2016) of the banking sector of Bulgaria are summarised in Table 2.

All the credit institutions operating in Bulgaria can be classified into several categories. Table 3 summarises the number of banks in each category.

There are 6 branches of foreign banks from 6 different countries in Bulgaria. Table 4 shows the number of branches grouped by the country of origin.