Buying a Property in Bulgaria

 

                                                                                        

 

 

 

 

        Why Invest in Bulgaria?

 

●    Strategic geographic position as a bridge between Europe and Asia 

●    Highly educated and skilled work force 

-        2nd in international IQ tests (MENSA International)

-        significant percentage of English speakers

●    Europe’s most competitive wage levels 

-        monthly average gross salary of € 149

●    Free movement of capital

●    No restrictions on after-tax repatriation of profits

-        Free trade opportunities within a market of over 550 million consumers EU, EFTA and CEFTA countries, Macedonia, Turkey, Estonia, Lithuania, Latvia and Israel

●    Lower operational costs for water supply and construction works compared to other CEE countries

 

 

 

 

 


Investment Encouragement Act

 

RULES AND REGULATIONS FOR THE IMPLEMENTATION OF THE INVESTMENT ENCOURAGEMENT ACT

Prom. SG. 74/24 Aug 2004, amend. SG. 34/19 Apr 2005

 

 

Main Customs & VAT-Regime Provisions

 

Compliance with the EU standards

Bulgarian Customs Law is based on the EU Customs Code. The same procedure and regimes as those of the EU are applied:

release for import; transit; customs warehousing; inward processing; processing under customs control; temporary admission; outward processing; export;

temporary export, etc.

The Customs Tariff of Bulgaria consists of the Combined Nomenclature of Bulgaria and the appropriate rates of customs duties.

The Combined Nomenclature of the Republic of Bulgaria is based on the Convention on Harmonized Commodity Description and Coding System

and on the EU Combined Nomenclature.

Although Bulgaria is not a member of the European Community, the VAT legislation (Value Added Tax Act) follows the provisions of the Sixth EU VAT Directive.

 

Project implementation phase

Special preferential VAT regime for imports of goods necessary for implementation of an investment project

As of 1 January 2003, special VAT regime applies to those VAT-registered importers that hold a permit issued by the Minister of Finance and import goods (with the exception of excise goods) according to a list approved by the Minister of Finance.

 

The importer exercises his right by:

·      declaring in the filed customs declaration that he will use this regime;

·      declaring that at the time of the import he is registered for VAT and has no outstanding tax liabilities and liabilities to the obligatory employee social and health insurance.

Where the importer has exercised his right, the customs authorities agree to the release of the goods without effective payment or securing of the VAT.

 

The above special import regime is applicable to the legal person who simultaneously meets the following requirements:

·      implements an investment project approved by the Minister of Finance

·      is registered for VAT

·      has no outstanding tax liabilities and obligatory social and health insurance liabilities

·      has obtained a permit by the Minister of Finance; within 6 months after the permit has been issued, the person could apply for a new permit for additional goods that will be imported for the needs of the investment project approved

 

The investment project is approved by the Minister of Finance in compliance with the following requirements:

·      term of fulfilment of the project – up to two years

·      size of the investments – over BGN 10 million  (around EUR 5 m) for a period not longer than two years

·      opening of more than 50 new jobs

·      capability of the person to finance the project, as well as to construct and maintain sites providing for the fulfilment of the project

 

Special duty free regime for imports

In case a foreign company moves entirely a production facility to Bulgaria, the imports of the plant equipment is duty free.