Sofia City Review

SOFIA HIGHLIGHTS

Boasting some of the lowest corporate taxes in the EU, the Bulgarian capital also offers a very largely educated labour pool - 40% of the city's population possessed a higher level education degree in 2016. With such a positive business environment, the city attracts numerous large global companies (HP, UniCredit and BnP Paribas) and boasts labour productivity levels 133% higher than in the rest of the country in 2016.

Best paid sectors have a significant focus in Sofia

With the best paid sectors greatly focusing in Sofia, rather than in other parts of Bulgaria (22% of all workers in Sofia were employed in the business services sector versus 6% in the rest of the country, in 2016), Sofia households' average annual income reached USD13,200, 47% higher than in the rest of the country in 2016. However, the income did decrease by 8.7% in constant terms, over 2011-2016.

Greater discretionary spending on recreation/ culture, hotels/restaurants and alcoholic beverages

As of 2016, consumer expenditure (transport and housing excluded) per household was 38% higher in Sofia than elsewhere in the country. Recreation/ culture, hotels/restaurants and alcoholic beverages were among the largest discretionary spending categories in Sofia, allocating 9.6%, 7.4% and 6.8%, respectively, of the total expenditure in 2016.

High motorisation rates increase transport expenses

In 2016, the combined consumer expenditure on transport and housing per household was 44% higher in Sofia than in the rest of Bulgaria. Transport was the main driver of the discrepancy (separately, transport expenses in Sofia are 81% higher than in the rest of Bulgaria in 2016) due to very high motorisation rates in the capital.