Doing Business in Bulgaria

There are plenty of opportunities for expats doing business in Bulgaria to establish themselves in the country’s growing economy. Known for its strategic geographical location, low operating costs, and favourable tax environment, Bulgaria has become an attractive destination for entrepreneurs and investors, especially since its accession to the EU in 2007.

Expats in the Bulgarian business world should be mindful of local customs, business practices and language barriers, which may differ significantly from their home countries.

Fast facts

Business hours

Business hours are Monday to Friday, 8am or 9am to 5.30pm.

Business language

Bulgarian is the official language. English is increasingly used in business circles, especially within multinational companies.

Business dress

Business attire is generally formal and conservative, but business casual and other less formal attire may be acceptable in some industries.

Greetings

A firm handshake, direct eye contact and addressing people by their titles is appropriate.

Gifts

Gifts are only given on special occasions, and given the historical context of corruption, expats need to approach gift-giving with sensitivity. It’s best to present a thoughtful gift instead of an expensive one. When invited to a colleague’s home, it’s customary to bring a gift for the host. Chocolates, wine or flowers are acceptable.

Gender equality

Gender equality in the workplace continues to be addressed through EU-aligned policies and legislation. The gender pay gap in Bulgaria is about 20 percent, which is higher than the EU average of about 12 percent, but Bulgaria has a relatively good representation of women in management positions compared to many EU countries. There is progress to be made towards complete gender parity, even though women and men are largely viewed as equals in the workplace.

Business culture in Bulgaria

Business culture in Bulgaria is informed both by the societal importance placed on relationships and by the historical collectivism of Bulgarian society, which has traditionally prioritised the group over the individual. Relationships built on trust are central to succeeding in local business, but these can take time to develop. Networking is therefore an essential part of doing business in the country.

Business structure

Businesses follow a hierarchical structure whereby seniors make decisions, but the consensus of everyone involved is sought beforehand. Business hierarchy is influenced by Bulgarian society’s tradition of extending additional respect and deference to older individuals.

Communication

Communication is formal, with emphasis placed on using appropriate titles. First names are generally reserved for family and close friends.

In line with the importance of forming relationships, face-to-face meetings are important in Bulgarian business culture, although remote meetings across Europe have become increasingly common since 2020. Bulgarians tend to communicate their points directly, but they also use body language extensively to convey their meaning.

Some expats may initially find head shaking and nodding unfamiliar, as these have opposite meanings to most Anglophone cultures – in Bulgaria, head shaking indicates a positive, ‘yes’, while head nodding indicates a negative, ‘no’.

Corruption

Bulgaria continues to address its historical legacy of corruption. There are significant efforts to address corruption, but Bulgaria still has major hurdles to overcome. Nepotism and bribery are still perceived as being prevalent in Bulgaria’s public sector. The country has adopted some EU-recommended legislation to help curb corruption.

Dos and don’ts of business in Bulgaria

• Do be punctual
• Do organise meetings in advance and confirm the appointment the day before
• Do address business colleagues by their titles, as first names are reserved for close friends and family
• Don’t try to rush things. Business decisions can take time as associates get to know someone to determine their trustworthiness.
• Do use side-to-side head shaking to indicate ‘yes’, and up-and-down head nodding to indicate ‘no’
• Do prioritise relationship-building through personal meetings