Investment class and priority investment project certificate

Procedure

Investors can take advantage of privileges and reliefs, envisaged in the Investment Promotion Act (IPA) as soon as a certificate for the investment class or priority investment project is issued. The certificate is issued by the Minister of Economy (for class “A” and “B” investments and “priority investment projects”) or by the mayor of the municipality (for investment projects of municipal importance – class “C” investments). In compliance with the requirements of Regulation (EC) No 651/2014, the IPA promotes investments in long-term tangible and intangible assets and investments resulting to the creation of new job positions in the territory of the Republic of Bulgaria.

What are the promotion measures and incentives facilitating investments certified according to the Investment Promotion Act (IPA)?

Investment promotion under the IPA shall be carried out mainly by:

1.providing administrative services in shorter than the usual terms ;

2. sale or for profit constitution of limited property rights (in rem) in estates that are private state or private municipal property without auction or contest according to market or lower prices;

3. sale or for profit constitution of limited property rights (in rem) in terrains with developed inbound technical infrastructure of public state ownership without auction or contest according to market or lower prices;

4. financial assistance for development of technical infrastructure components;

5. financial assistance for training and acquisition of professional qualification;

6. financial aid for partial refund of the mandatory insurance payments made to the state social insurance, additional mandatory pension insurance and mandatory health insurance for the account of the investor as an employer to the benefit of newly hired employees for the implementation of the investment project;

7. possibilities for other forms of state aid, institutional support or incorporation of a joint ventures   for priority investment projects;

8. various types of transactions between the investor and a trade company established for construction and development of industrial zones.

9.  tax relief granted under the Corporate Income Taxation Act;

What is the “priority investment project” and investment class “A” and “B” certificate issuance procedure?

Filing of an application to the Invest Bulgaria Agency (IBA)

As an investor, you may file an application before the Executive Director of IBA in the prescribed format for the classification of your investment as class “A”, class “B” or “priority investment project” in order to obtain the respective certificate. The template application contains instructions which should be adhered to when completing the application. The investment promotion measures that the investor plans to take advantage of should also be stated therein. The investment project and the required forms and documents, indicated in the template must accompany the application. All documents in a foreign language should be provided along with a Bulgarian translation The application and the respective attachments may be filed both as a hardcopy and electronically, signed with a qualified electronic signature (QES).

Review of the documents and evaluation of the investment project

The Executive Director of IBA should review the documents filed and evaluate the investment project, using the methodology approved by the Minister of Economy. If discrepancies or omissions are observed at the stage of document review, the Director informs the investor who may then rectify any irregularities within a term of two months.  Once the documents are reviewed and the investment project is evaluated, the Director sends to the Minister of Economy his proposal regarding the issuance of a certificate. The proposal is sent to the Minister of Economy within 30 days from the filing of the application or the rectification of the discrepancies and/or omissions observed.       

Issuance of a certificate

In accordance with the evaluation and the proposal of the Executive Director of IBA, the Minister of Economy issues a certificate classifying the investment as class “A”, class “B” or as a “priority investment project”.

In which circumstances is the issuance of the certificate denied?

The issuance of the certificate is denied, irrespective of the type and class of investment, if one of the grounds  set out in art. 19a of the IPA applies. Indicatively, the issuance of the certificate is denied if one of the following- among others- grounds apply:

Discrepancies exist between the investment project and the requirements of the respective investment class;

Discrepancies and / or omissions are found in the documents accompanying the application for the issuance of a certificate which are not rectified within 6 months from the date of filing of the application;