Sorin Andrei, Eastern Europe Specialist, examines some of the opportunities in Romania and Bulgaria, post Brexit…
If you are tempted by the rising business opportunities in Central and Eastern Europe, countries such as the Bulgaria, Hungary, Poland, Romania, Slovakia or Serbia should definitely rank high in your destinations list.
Their long-term political stability, strategic location, competitive taxation system, well-educated and highly skilled workforce – along with the already well established international business community – make them the most attractive countries in the region of Central and Eastern Europe for expanding your business activities.
Romania has offered, in recent years, a steady growth in terms of macroeconomic indicators. For example, the economic growth in 2017 reached 7%, one the highest in the European Union. Even if Romania is not part of the Euro Zone yet, the national currency (Romanian LEU) is stable, without any major fluctuations since Romania’s accession to the European Union in 2007. Romania has seen higher and more diversified foreign direct investments on a yearly basis in IT, automotive, textile industry, agriculture, medicine, tourism as well as retail and real estate. The second spoken language at Microsoft is Romanian. China invests billions in infrastructure, green energy and is aiming to acquire as many businesses as possible in food industry. Over 4,700 UK companies operate in Romania, according Department of International Trade.
Bloomberg has ranked Bulgaria as the sixth best country for doing business in eastern Europe and central Asia. A T Kearney ranks Bulgaria as number one in Europe and ninth globally as an outsourcing destination. Over the past 10 years the UK has been the fifth largest investor in Bulgaria. Large British companies operating in Bulgaria, include Shell, GlaxoSmithKline, AstraZeneca, Petroceltic, Nuvia, JCB, White Young Green, Mott McDonald, IPF Provident, Dyson and William Hughes. Small and medium sized companies also successfully enter and operate in various export sectors and in offshoring/outsourcing.
But after Brexit, any UK company or person can not own properties at 100% share, you will need partners and associates!