FDI in Bulgaria – Promotion and Regulation

HADJINIKOLOV, Dimitar (dimitar_h@abv.bg) 

Professor at the University of National and World Economy in Sofia, Bulgaria. He teaches courses in European Economy, EU Common Trade Policy, EU Development Policy, European Administration, International Trade. He was awarded with a master's degree and a doctorate from the MGIMO University (Russia) and a Doctor of Science Degree from the Higher Attestation Commission (Bulgaria). Dimitar is Chairman of the Bulgarian European Studies Association and a member of the Board of Bulgarian Union of Economists. He has previously worked as Senior Adviser at the European Affairs Parliamentary Committee, Manager of a consulting daughter company of the Bulgarian Industrial Association, Vice Editor-in-Chief of a weekly business newspaper, etc. He participated with a presentation in the 2011 International Conference on Economics, Business, Marketing and Management (EBMM 2011) in Shanghai. He has specialized in the USA, Germany, Switzerland, and other countries. Dimitar has been a visiting lecturer at Universities in Kazakhstan, Norway, Spain and Croatia. (Website: www.hadjinikolov.pro) 

Research Overview 

Investments, certified under the Investment Promotion Act gain different kinds of state support, including faster administrative services, preferential treatment upon acquisition of property rights, financial support for vocational training, reimbursement of labour costs, financial support for infrastructure, etc. Priority investments projects can also benefit from the Special Incentive Package by gaining financial grants for R&D, or obtaining state or municipality property at a price lower than market price. A profitable form of investment encouraged by the government is the public-private partnerships with municipalities and universities. 

Bulgaria is a party to more than 50 bilateral Investments Protection Treaties. The regulation of FDI in the country meets in general the international and European standards. Bulgaria applies the framework for screening of foreign investments according to EU Regulation 2019/452. Some exemptions of the EU common rules exist in acquisition of farmland, organisation of gambling activities, use for investment purposes of offshore companies. Administrative difficulties can arise in getting electricity for newly constructed facilities, dealing with construction permits, resolving insolvency, etc.