Ivaylo Penchev, entrepreneur and founder of Walltopia, declared that Bulgaria is no longer a viable location for his company due to high labor costs. Speaking to Nova TV, Penchev explained that workers in Bulgaria are now paid more than in Spain, prompting the company to shift operations toward China. Walltopia employs over 2,000 people across 80 countries, with major branches in Bulgaria and the United States.

Penchev criticized Bulgaria’s new budget, emphasizing that any proposal to raise taxes is harmful to entrepreneurs. He argued that the country has lost its competitive advantages, previously lower labor costs and a simple tax system, and now offers less incentive for business development. He recalled previous government officials’ recognition that labor shortages were a growing problem due to low wages, noting that today’s budget favors increased state revenue rather than fostering productivity.

The entrepreneur framed the conflict in economic terms, asserting that politicians and civil servants do not generate value but instead redistribute the work of others. He described the state as “brutally ineffective” and warned against excessive intervention in the economy. Penchev drew parallels with Argentina, praising the recent shift toward minimal state interference under a libertarian government and suggesting that Bulgaria would benefit from a similar approach.

He further criticized the security and social structures, highlighting inconsistencies in pensions and disability assessments. Penchev concluded that the government should prioritize reducing the tax burden and supporting business, rather than attempting to increase revenue through heavier taxation, which ultimately punishes those who create value.

Overall, Penchev painted a stark picture of Bulgaria as a place where entrepreneurial initiative is increasingly stifled, arguing that the real tension is not between employers and workers but between productive citizens and those who “steal taxes.”

Walltopia is a global leader in the climbing and adventure industry, founded in Bulgaria by Ivaylo Penchev. Since its inception, the company has grown into one of the world’s largest manufacturers of climbing walls, operating in over 80 countries and employing more than 2,000 people. Its headquarters remain in Bulgaria, where the company’s early success was built on the country’s skilled workforce and competitive labor costs, making it a notable example of a homegrown business achieving international recognition.