Q. What are the incentives for foreign investors in Bulgaria?

The foreign investors benefit a national treatment which means that they are entitled to perform economic activity in the country under the same provisions applicable to Bulgarian investors. This principle covers the whole range of economic and legal forms of activities for accomplishing entrepreneurial business and excludes the existing of specific incentives for the foreign investors.

Q. What is the legal treatment of foreign investors in Bulgaria?

» Equal rights and position of the Bulgarian and foreign investors

» Priority of those international agreements that guarantee more favourable conditions for carrying out business activities by foreign persons

» Unlimited foreign participation in all forms of business activity registered in Bulgaria.

Q. How can an enterprise, funded by foreign investment be established in Bulgaria?

Foreign investment typically assumes one of the following forms: establishing a joint venture with existing companies; acquiring a company through privatisation; setting up a new (green field) venture or making a portfolio investment.

Q. Which are the preferred types of business organizations with foreign investment?

The most common form of organization for foreign investors is a limited liability company. Other types are general partnership, limited partnership, joint stock company, sole proprietorship, joint venture, branch, holding, cooperatives, representative office. Limited liability companies, unlimited partnerships, public limited companies, limited partnerships, holdings and cooperatives are legal entities. Branches and representations are not independent legal entities: branches may engage in economic activities, they have their own property and compile a separate balance sheet; representations may not engage in economic activities.

Q. Is the extent or amount of foreign participation in companies limited?

No, structure clearly in bullet points.

Q. What are the guarantees for foreign investment in Bulgaria?

National Treatment o Most Favored Nation Status o Priority of International Treaties o Legal Guarantees against Adverse Changes in the Law - the provisions of the Law that have been effective at the moment of making the investment, should be applied for any foreign investment executed before the changes of the legislation setting up legal normative restrictions for the foreign investment. o Protection Against Expropriation - real estate property owned by a foreign person can be expropriated only on lawful grounds, for especially important purposes of the State that can not be satisfied otherwise.

Q. Who and how may obtain property rights over real estate in Bulgaria?

Foreign nationals and foreign legal entities may acquire ownership title over buildings and limited ownership rights over property in the Republic of Bulgaria.

Q. Can foreigners acquire ownership rights over land in Bulgaria?

Foreign individuals can not own land (this is a Constitutional prohibition). However, the Foreign Investment Law removed the restrictions on acquisition of land by locally-registered companies with foreign participation. By setting up or joining a company incorporated under the Bulgarian legislation foreign persons can acquire full land ownership rights including ownership rights on agricultural land.

Q. What are the regulations for the import and export of currency by foreigners?

In general, resident and non-resident physical persons shall fill in and file with the customs authorities a foreign exchange customs declaration in accordance with the sample form approved by the Minister of Finance, when the sum of exported or imported by them in Leva (BGN) and foreign exchange cash, including traveller's checks, exceed BGN 5,000 in total.

Non-resident physical persons may import unlimited amounts of Leva (BGL) and foreign exchange cash declaring the sum of the imported money and the type of currency before the customs authorities, provided that the total amount exceeds 5 000 BGL.

Non-resident physical persons may export BGL and foreign exchange, as follows:

1. Up to 5000 BGL to 20000 BGL or their foreign exchange equivalent, without declaring it.

2. From 5001 BGL to 20000 BGL, including traveller's checks, after declaring the total amount and the grounds of its acquisition with the customs authorities.

3. Over 20000 BGL or the equivalent in foreign exchange including free export after declaration with the customs authorities.

For more information, we recommend you to visit the Web site of the Bulgarian National Bank, where you can find a full text of the Foreign Exchange Law and of the Regulation No. 30 of 9 December 1999 on the Export and Import of Leva and Foreign Exchange Cash, Precious Metals and Precious Stones.

Q. With which countries has Bulgaria concluded free trade agreements ?

The EU countries according to The Europe Agreement of Association include The EFTA Countries, The CEFTA Countries, Turkey and Macedonia.

Cost of living:
1 Bulgarian Lev (Lv1) = 0.51 EURO

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