INVESTMENT LEGISLATION

 

 

LEGAL FRAMEWORK

 

Laws and Regulations

Encouragement of Investments Act (promulgated in State Gazette, issue 37 of 2004);Rules on the Enforcement of the Encouragement of Investments Act (promulgated in State Gazette, issue 74 of 2004);
nternational Treaties (bilateral and multilateral) Convention for the establishment of Multilateral Investment Guarantee Agency;Convention for the establishment of International Center for Settlement of Investment Disputes; Convention for the establishment of the World trade organization;Bilateral investment promotion and protection treaties;
Double tax treaties.

 

LEGAL DEFINITIONS Foreign InvestorsUnder the Encouragement of Investments Act, foreign investors are: legal persons which are not registered in Bulgaria;partnerships which are not legal persons and are registered abroad; foreigners with permanent residence abroad.Definitions and Forms of Investment
Foreign investment is any investment or increase of investment of foreign persons or their branches in:· stock or shares of trade companies; · title to buildings and limited property rights over real estates;· title and limited property rights over goods and chattels, having the nature of non-current tangible assets;· title to unbundled parts of commercial companies with more than 50 per cent state or municipal interest in their capital within the meaning of the Privatization and Post-Privatization Control Act;· securities, including bonds and treasure bills, as well as instruments derivative therefrom, issued by
the state, the municipalities or other Bulgarian corporate entities, with time remaining to due datenot less than 6 months; · credits, including in the form of financial leasing for a period not shorter than 12 months;· intellectual property – subject to copyright and its related rights, patentable inventions, utility models, trademarks, service marks and industrial design;· rights under concession contracts and contracts for commissioning of management. Bilateral treaties on promotion and mutual protection of foreign investment to which Bulgaria is a party may providefor a wider definition of foreign investment.

 

 

 

 

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Legal and international guarantees for foreign investment - General Preview