Bulgaria Strengthens Its Position as a Balkan Leader in Startup Innovation

Bulgaria has solidified its position as a leader in the Balkans for startup creation, climbing one spot to 37th globally in the 2024 Global Startup Ecosystem Index and maintaining its rank as 23rd in Europe. The country continues to outpace its closest regional competitor, Romania, with three cities featured in the global top 1000. Notably, Plovdiv joined the Index this year, and all Bulgarian cities improved their rankings compared to the previous year.

Sofia remains the hub of Bulgaria's startup ecosystem, with an overall score 20 times higher than that of Varna, the second-ranked city. The capital has climbed two places to reach 117th globally, making it the second-best city in the Balkans, ahead of Athens. Sofia's best-performing sector, Social & Leisure, ranks in the top 10 in Eastern Europe and among the top 100 globally, underscoring the city's growing international prominence.

Although Bulgaria's domestic market is relatively small, its favorable conditions for startups continue to attract entrepreneurs and investors. The country boasts robust digital infrastructure, diverse support programs, a favorable tax environment, and access to high-quality tech talent at competitive costs. These factors have fostered a stable startup ecosystem, bolstered by accelerators and incubators. A significant milestone was reached in 2022 with the emergence of Bulgaria's first unicorn, Payhawk, which has drawn the attention of American and Western European venture capitalists and revitalized the local ecosystem.

Bulgaria's low cost of living and attractive tax incentives, including some of the lowest personal and corporate tax rates in the EU, make it a hotspot for European entrepreneurs and digital nomads. The government has also taken proactive steps...