Bulgaria Among the Leading Countries for Innovation

Innovators Business Environment Index (IBEI) 2026 is the first global index of its kind to measure how effectively business environments across countries foster innovation. The ranking covers 125 countries and is based on more than 30 objective and measurable indicators grouped into three key pillars: a favorable business environment, business incentives, and market perception.

Bulgaria Among the Leading Economies for Innovation

According to the IBEI 2026 results, Bulgaria ranks 18th globally and 10th in Europe. The country is positioned first in the Balkans and second in Central and Eastern Europe, with a total score of 73.631 points. This places Bulgaria ahead of several well-established economies, including France, Germany, Israel, Finland, and Denmark.

These results highlight Bulgaria as a competitive destination for business and innovation, particularly when viewed in the context of its economic size and regional position.

Business Incentives as a Core Competitive Advantage

Bulgaria’s strongest performance is in the “Business Incentives” pillar, where it ranks first in the European Union and fifth globally. This result reflects a combination of factors that create a favorable environment for entrepreneurship and investment.

Key advantages include the lowest corporate tax rate in the EU (10%), a flat personal income tax of 10%, and relatively strong access to credit. These conditions provide predictability and financial incentives that are especially important for innovative companies, particularly in their early stages of development.

Pro-Business Orientation and Regulatory Environment

According to the authors of the index, Bulgaria is increasingly establishing itself as a pro-business-oriented economy, particularly relative to its size. The country offers a relatively predictable regulatory framework and lower administrative burden compared to other countries in the region. This facilitates business creation and management and supports higher levels of innovation activity.

Startup Visa and Attraction of Global Talent

A key element of Bulgaria’s innovation ecosystem is the startup visa, which allows entrepreneurs from outside the European Union to establish and develop innovative companies in the country. This initiative sends a clear signal of Bulgaria’s ambition to attract global talent and strengthen its position on the European innovation map.

Institutional Support and Long-Term Vision

The move toward a more innovation-driven economy is further supported by the active role of various institutions.

The report also highlights long-term plans to deepen support for innovation through new programs aimed at developing scientific capacity and better aligning national policies with European objectives in digital transformation.

Potential for Further Development

Despite its strong performance, Bulgaria still has room for improvement, particularly in terms of regulation quality and governance. Future reforms in these areas could further strengthen the country’s position as an attractive destination for innovation, investment, and sustainable business growth.