Improving the investment climate by encouraging investments with high economic and social added value is established as a priority in the legislation of the European Union. In line with the European framework, the Bulgarian Investment Promotion Act (IPA) introduces a number of incentive measures aimed at ensuring investments in long-term tangible and intangible assets on the territory of the country. In addition, the main goals of investment promotion are not only market-oriented but also social in nature. Priority is given to promoting investments that directly create employment or are implemented in economically disadvantaged regions.

IPA sets out specific requirements for certification by investment class. These requirements relate, for example, to:

• the economic sector in which the investment is to be carried out,
• its minimum amount,
•  the creation of employment, and
• the deadlines for completion of the investment project.

Projects that meet the conditions set out in the IPA may receive a Class A, Class B, or Priority Investment Project certificate.

The certification procedure is initiated by submitting an application by the investor to the Executive Director of the Bulgarian Investment Agency.

 If the project is approved, the investor may benefit from:

• reduced deadlines for administrative services,
•   financial support for partial reimbursement of the social security and health insurance contributions paid by the investor, in their capacity as employer, for employees hired under the project for the newly created jobs,
•  financial support for the construction of elements of the technical infrastructure necessary for the implementation of one or more investment projects,
•   a simplified procedure for acquiring state or municipal property, and others.

For more detailed information regarding the certification procedure, you may contact the team of “Velchev and Co.”