Sofia is the capital of Bulgaria – the country's main administrative, industrial, transport, cultural, and educational center, concentrating all branches of state authority – legislative, executive, and judicial. With a population of about 1,286,965 (2023), it is the largest city in the country, accounting for more than 18% of the total population, and the 14th largest city in the European Union.
Sofia is Bulgaria's biggest economic center, generating 43% of the country's total Gross Domestic Product in 2023. Its GDP per capita (61,833 BGN) is more than twice the national average (28,733 BGN).
ECONOMY
There are 130,486 non-financial enterprises operating in the capital (2023), including 121,036 microenterprises (up to 9 employees), 7,598 small (10–49 employees), 1,516 medium-sized (50–249 employees), and 336 large enterprises (over 250 employees). Six of the 10 largest companies in Bulgaria by revenue are headquartered in Sofia. The majority of businesses operate in services and trade (82%), followed by industry (8%), construction (6%), and agriculture and related activities (4%).
Although industry plays a secondary role in Sofia's economy, the city is still Bulgaria's largest industrial center, with an emphasis on heavy industry. Sofia concentrates 75% of the country's ferrous metallurgy, 50% of printing, 15% of the electrical and electronics industry, and 14% of the leather and footwear industry. It also produces chemicals, textiles, and food products. Construction, trade, and transport – connecting the material and social infrastructure of the metropolis – are well developed. The Sofia Commodity Exchange and the Bulgarian Stock Exchange are based in the city.
INVESTMENTS
Sofia is the undisputed leader in investment activity. Foreign direct investment per capita is significantly higher than the national average, reaching EUR 13,400 in 2023 (compared to EUR 5,100 nationwide). Sofia also dominates in research and development (R&D) spending – in 2023, it reached 878 BGN per capita, while no other Bulgarian region exceeded 100 BGN per capita. All five of Bulgaria's supercomputers are located in the capital: three operated by the Bulgarian Academy of Sciences (BAS), one by Sofia Tech Park, and one by the Faculty of Physics at Sofia University "St. Kliment Ohridski."
DEMOGRAPHY
Sofia has the most favorable demographic profile in the country. Although its natural growth rate is negative (–1.5‰), it is significantly higher than the national average (–6.8‰). The city attracts population inflows, with a natural growth rate of 6.6‰. Sofia also has the lowest share of people aged 65+ (19.2% vs. 23.8% nationally) and a relatively high share of children under age 4 (4.9% vs. 4.5% nationally). Population density in Sofia (4,998 persons/sq. km) is more than four times higher than the national average for urban areas (1,214 persons/sq. km).
LABOR MARKET
The city's strong economy translates into favorable labor market dynamics. Despite some decline, Bulgaria's working-age population share remains the highest (62.9% vs. 58.5% nationally). Sofia leads in labor force participation (78.7% vs. 74% nationally), with high employment and low unemployment. The employment rate is 76.5% (vs. 76.2% nationally), while unemployment stands at 2.7% (vs. 5.3% nationally).
Sofia also has the best-educated workforce. Among people aged 25–64, 54.1% have higher education (vs. 33.8% nationally), 41.2% secondary education (vs. 52% nationally), and only 4.7% primary or lower education (vs. 14.2% nationally). Sofia ranks second (after Sliven) in demographic replacement, with a ratio of 15–19 year-olds to 60–64 year-olds at 80.3% (vs. 65.7% nationally). This means that for every 100 people exiting the labor market in the coming years, 80 young people will enter.
EDUCATION
Sofia is home to a large share of Bulgaria's educational institutions. The city has 239 kindergartens, 5 primary schools, 77 basic schools, and 187 secondary schools. It is also home to 22 of Bulgaria's 52 accredited universities. The alignment between professional education and the profile of the local economy is strong, mainly due to the large number of students and workers with professional qualifications in the transport and ICT sectors, and the relatively small number in agriculture and industry.
Student achievement in Sofia is consistently the highest in Bulgaria. In 2024, the average score in the national external assessment in mathematics after 7th grade was 54.7 points (vs. 42.9 nationally). The average high school graduation exam (Bulgarian language and literature) was "Very Good" (4.65), compared to the national average of "Good" (4.30), with the lowest share of failing grades – 3.7% (vs. 8.7% nationally).
HEALTHCARE
On the territory of Sofia, there are 67 hospitals with a total of 11,040 beds. Among the leading medical institutions are: Alexandrovska University Hospital – the largest university hospital in Bulgaria, with about 1,100 beds and a strong academic profile; University Emergency Hospital “Pirogov” – a leading center for emergency medicine and traumatology, with a capacity of around 795 beds; St. Ekaterina Hospital – the national center for cardiovascular diseases; and Acibadem City Clinic Tokuda Hospital – the largest private hospital in Bulgaria, with 575 beds, 37 clinics, and 22 operating rooms.
Sofia ranks second in the national ranking for the number of physicians, with 57.9 doctors per 10,000 people (compared to a national average of 46.8), following Pleven (79.8), nearly equal to Plovdiv (57.5), and ahead of Varna (52.2). In terms of stomatologist availability, the capital ranks third in the country (15.5 per 10,000 people compared to the national average of 12.1), after Plovdiv (19.5) and Varna (15.9). For healthcare professionals (nurses and other specialists), Sofia is also among the top regions, ranking fourth (76.1 per 10,000) after Pleven (108.2), Ruse (78.6), and Plovdiv (76.4).
TRANSPORT
Sofia's transport system is highly developed due to its strategic location. All types of transport are present, except water transport. Three of the ten Pan-European Corridors (V, VIII, and X) cross the city. Four motorways start from Sofia – Trakia, Hemus, Struma, and Europe. Transit traffic is diverted to the Sofia Ring Road, part of the national road network.
LOCAL TAXES
The capital is the region with the highest average local taxes in the country in 2024. The most significant differences compared to the national averages are observed in retail property taxes (20.00 BGN per sq. m versus 13.09 BGN per sq. m nationally) and property transfer taxes (3.00% versus 2.82% nationally). Conversely, for some local taxes, Sofia’s rates are below the national average, such as taxes on non-residential real estate of legal entities (1.88‰ versus 2.15‰ nationally) and vehicle taxes (1.33 BGN per kW versus 1.56 BGN per kW nationally).
SECURITY AND JUSTICE
The low rating and last-place ranking of the capital in terms of maintaining order and security are due to the high workload of judges, slow judicial processes, and the low crime detection rate. A criminal judge in Sofia handles an average of 23.1 cases per month, the highest in the country (compared to an average of 14.4 cases per judge nationally). Criminal cases concluded within three months in the capital account for 88% (versus 91% nationally), administrative cases 67% (72% nationally), and civil cases 46% (65% nationally).
The ratio of police officers to population is above the national average. The number of recorded crimes against persons and property in Sofia reaches 12 per 1,000 inhabitants, which is close to but above the national average. At the same time, the crime detection rate remains the lowest in the country, with only 37% of crimes solved (versus 53% nationally).
The article uses materials from the National Statistical Institute (NSI) and the Institute for Market Economics (IME).
