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Incentives under the Investment Promotion Act (IPA)

Incentives under the Investment Promotion Act (IPA)

 

  • Equal treatment of Bulgarian and foreign investors
  • The Investment has to be related to the setting up of a new establishment, expansion, output diversification into new additional products or a fundamental change in the overall production process of existing establishments.
  • The investment to be made in the following economic activities:
    • From the industrial sector: manufacturing industry;
    • From the services sector: high-tech activities in the field of ICT, R&D, activities of head offices, education, human health care, warehousing and support activities for transportation

 

Investment Classes

 

Investment classes A and B and Priority investment projects depending on the value, region and sector allocation of the investment

 

Investment value thresholds, Euro m

Region or Sector

Class B

Class A

General

2.5 - 5

>5

In municipalities with unemployment rate equal or more than the country average

1 – 1.75

>1.75

In high-tech activities in the manufacturing

industry for the whole country

1 – 1.75

>1.75

In high-tech activities in the services, computer technologies and R&D sectors for the whole country

 

0.5 – 1

>1

 

Class A and B investment incentives

 

  • Information services
  • Shortened administrative procedures - The central and local government authorities will provide administrative services shortened with one-third of the time period established by the law
  • Financial support for vocational training of persons for obtaining professional qualifications
  • On the request of certified investor the corresponding authorities may transfer ownership rights or establish a limited ownership right over real estate (private state or private municipal property) without a tender
  • Consulting and individual administrative services. Investors will be able to authorize Agency officials to obtain from the corresponding competent bodies on investors’ behalf and for investors’ account any documents for implementation of the corresponding investment project as may be required under the existing legislation (Only for Class A)
  • Financial support for construction of technical infrastructure elements to the borders of the project site, needed for implementation of one or more investment projects (Only for Class A)

 

Priority investment projects

  • All sectors of the economy, with the exception of the restrictions imposed by EU Regulation 800/2008
  • Council of Ministers approval
  • Conditions – priority status depending on the value, jobs created and region allocation of the investment

 

Criteria for priority investment project’s classification

 

Region or Sector

Investment Value (Euro m)

Jobs

General case (the entire country, all sectors)

50

200

In industrial zone construction and its development into industrial park

35

100

In municipalities with unemployment rate equal or more than the country average

25

100

In high-tech activities in the manufacturing

industry for the entire country

25

100

In construction of a technological park

15

50

In education, human healthcare, IT and R&D activities, activities of head offices

 

10

50

 

Incentives for priority investment projects

 

  • All the incentives for Class A and B

 

Special incentives for priority investment projects:

  • Institutional support
  • Financial grants of up to 50% for education and R&D projects and up to 10% for manufacturing projects
  • State tax exemption for changing the land zoning
  • Acquisition of real estate private state or private municipal property without a tender and at a price lower than the market, but not lower than the tax assessment of the property
  • Establishment of public-private partnerships with municipalities, universities, other organizations from the academic society and etc