We understand that it is very different to imagine relocating, or moving from Italy to Bulgaria, a smart activity such as that of a freelancer, which at most may require study, compared to relocating an entire factory..

However, it is equally true that the greater the extent of the economic activity we are talking about, the greater the savings and therefore the profits will be in migrating your production center from Italy to Bulgaria.

But let's start from the basic questions that every good entrepreneur would certainly ask himself in a similar position: why should I face a complicated process such as relocating one's factory, leaving Italy, to land in a country, perhaps little known, like Bulgaria ?

There are many answers to this question and we will see them shortly. However, there is an answer that we want to anticipate which is the following: "relocating your factory to Bulgaria means in many cases saving the factory itself".

We didn't construct this answer but you gave it to us, that is, you customers of our service. From you, or rather from those customers who have already chosen to avail themselves of the consultancy of VR and Partners, we have learned that in many situations delocalisation was nothing more than the last resort with which courageous entrepreneurs made one last important attempt to save the company. Succeeding.

Why?

  • and let's consider the same factory with the same production capacity and the same orders in Italy and Bulgaria, in the second the profitability of the factory itself will be more than doubled given that the tax burden on businesses and people stops at the fateful threshold of 10%, while in Italy the average IRPEF applied to an entrepreneur exceeds 45%. This means that on a hypothetical annual taxable amount of 100 thousand euros, laboriously obtained with work and risked capital, the poor Italian entrepreneur must give half of the earnings to the State, while in Bulgaria he would pay only 10 thousand with a final profit for himself of 90 euros !
  • We remain within the previous example, that is, the same factory in Italy and Bulgaria, with equal operations. Well in such a situation the Bulgarian entrepreneur is able to make further additional earnings thanks to a labor cost that is one fifth of the Italian one. Lower labor costs mean lower personnel expenses; lower personnel costs means having lower production costs and therefore higher margins on final revenues. But not only; if the average cost per employee is lowered from 40 to 10 thousand euros per year as happens in the comparison between Italy and Bulgaria, the amount saved can be used by the entrepreneur to be able to offer the same product on the market at a lower price, thus increasing the its revenues.
  • Logistics also represents an element in Bulgaria's favor. We know how product transport represents an important item in the costs of every production company. Well, Bulgaria, thanks to its position, does not fear any kind of penalization compared to production sites located for example in Northern Italy. First of all because Bulgaria, like Italy, is an EU country and therefore everything produced here can circulate freely to all member countries of the European Union. Secondly, Bulgaria's position is not too decentralized compared to the major export destinations: Sofia, the capital, for example, is only one thousand km away (i.e. a day's transport by truck) from Trieste and therefore from Italy, as well as from Munich in Germany. Also from Sofia it is possible to reach Istanbul in less than 5 hours, a fundamental port for all destinations in Asia Minor and the Mediterranean.

In summary, if you are still wondering how other Italian entrepreneurs have chosen Bulgaria to relocate their production activities, well now you have the three key ingredients of this choice: an incredible reduction in the tax burden, labor costs reduced by four fifths and logistics favorable.

How to get started? It goes without saying that in these cases it is already impossible to even imagine a sort of do-it-yourself solution.

It is necessary to rely on expert agencies such as VR and Partners, who know Italian entrepreneurship and know how to find, being on site, the best solutions for those who want to move to Bulgaria, taking care of all legal, fiscal, real estate and administrative aspects.

Start the path that will lead you to save your company from a simple conversation with our experts. Contact us without obligation!