Veneta Hristova on the Latest Amendments to the Bulgarian Investment Promotion Act and its Implications in Relevant Legislation

Veneta Hristova on the Latest Amendments to the Bulgarian Investment Promotion Act and its Implications in Relevant Legislation

 Excerpt:

The continuing economic crisis in Bulgaria has become a reason for the significant reduction of the amount of foreign investment in the country in the last years. This fact motivated the Cabinet and the Parliament, together with a large number of economic and business organizations, to enter into a broad public discussion about the causes and possible solutions of this difficult situation.

This dialogue resulted in a variety of amendments concerning key legislative rules, which aimed to create a competitive and adequate business environment, responsive to foreign investors' expectations.

The subsequently approved amendments are based on the existing business and court practice and aim to extend the application of the Investment Promotion Act in order to assure firm and trustworthy investment conditions.

II. New moments

The new amendments were implemented in the Investment Promotion Act, the Law on Corporate taxation, the Law on Foreigners in the Republic of Bulgaria and the Law on Bulgarian Citizenship:

1. Investment Promotion Act

New provisions were introduced in the following areas:

REGIONAL INVESTMENT

In 2010, by decision of the Decentralization Committee to the Council of Ministers, a possibility for future enlargement of the competences of the officers on the regional level has been provided. Following the execution of this decision, the Investment Promotion Act extended the rights and obligations of the municipality mayors. They are now empowered to issue a Class "C" Investment Certificates – investment projects of regional importance. This new competence gives them an opportunity to develop a regional strategy in order to maintain a competitive and friendly investment environment. Additionally, the mayors shall be supported by the Municipality Council, which is the competent authority for the adoption of ordinances on the terms and conditions for the Investment Class "C" Certification process.

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 Veneta Hristova graduated from the Law Faculty of Sv. Kliment Ohridski University of Sofia in 2010. After joining the Boteva & Kantutis Law Office in 2008 she has practiced in the areas of commercial law, labour law, European and international law. She has also completed a one-year internship organized by the Sofia District Court together with the Bulgarian – American Commission for Educational Exchange (Fulbright) in 2009-2010.

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