Establishes a mechanism for screening FDI related to national security and public order

On 22 February 2024, the National Assembly amended the Investment Promotion Act to screen foreign direct investments (FDI) for national security or public order concerns, aligning with EU Regulation 2019/452. The amendment mandates a preliminary examination of non-EU investments in critical sectors if they involve a minimum of 10 per cent equity in a Bulgarian company or exceed €2 million. This screening applies to non-EU investments from State-owned entities or specific countries or sectors regardless of these thresholds.

The Interdepartmental Screening Council is responsible for authorising FDIs in Bulgaria, with the power to initiate screenings. It must decide within 45 days, potentially granting permission, imposing conditions, or rejecting investments. Non-compliance or false information submission leads to penalties of 5 per cent of the investment's value, with a minimum fine of BGN 50,000. The Act was enforced on 12 March 2024.

• Type:

  • Entry and establishment (Approval and admission)

• Industry:

  • Not industry specific

• Sources:

  • Държавен вестник, ЗАКОН ЗА ИЗМЕНЕНИЕ И ДОПЪЛНЕНИЕ НА ЗАКОНА ЗА НАСЪРЧАВАНЕ НА ИНВЕСТИЦИИТЕ, https://dv.parliament.bg/DVWeb/showMaterialDV.jsp?idMat=208025, 08 Mar 2024
  • lexology.com, Bulgaria closes the gap: new FDI screening regime enters into force, https://www.lexology.com/library/detail.aspx?g=8620383d-4176-43e6-a4bb-839e943c32f3&utm_source=Lexology+Daily+Newsfeed&utm_medium=HTML+email+-+Body+-+General+section&utm_campaign=Lexology+subscriber+daily+feed&utm_content=Lexology+Daily+Newsfeed+2024-03-13&utm_term=, 12 Mar 2024