Few months ago Bulgaria has promulgated new law requirements as a result of the implementation of Regulation (EU) 2019/452 of the European Parliament and of the Council of 19 March 2019 establishing a framework for the screening of foreign direct investments into the Union. These new requirements concern direct investments made by foreign investors. The law has categorized which types of investments and/or investors are subject of such screening procedure. Following the abovementioned EU Regulation, the investors who fall under the certain categories or plan to make an investment which falls under these specific categories shall go through a so called “screening procedure” before beginning their investment procedure in Bulgaria. The purpose of this procedure is to allow Bulgarian authorities to assess, investigate, authorize, condition, prohibit or unwind foreign direct investments.
The direct investors and/or investments which fall under certain categories, will be obligated to apply for a permission for investment before the Bulgarian authorities following the procedure under the Law on Encouragement of Investments prior to starting the desired investment. There will be established a new authority in Bulgaria which shall carry out the screening process. Fines and penalties could be imposed in case investors do not comply with the new regulations.
