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Bulgaria recently took a step to safeguard its national security and public order. In March 2024, the country implemented a foreign direct investment (FDI) screening mechanism, aligning with EU regulations. This means certain investments will require approval before going forward.
Who screens these investments? An Inter-ministerial Foreign Direct Investment Screening Council, comprised of ministers and regulatory commission representatives, will handle the process.
So, which investments get screened? Here's a breakdown:
- Investors: Those from outside the EU, or controlled by non-EU entities, will face scrutiny.
- Sectors: Critical infrastructure (energy, transport, etc.), critical technologies (AI, robotics), and media are all on the watchlist.
- Investment Thresholds: Acquiring at least 10% ownership of a Bulgarian company (or exceeding €2 million) triggers a review. High-tech investments also fall under this umbrella.
Important Exceptions:
- Always Screened: Investments in specific oil production facilities, those from Russia/Belarus, and those with significant non-EU state funding will be automatically reviewed. (Some low-risk countries are exempt from this last point.)
- Ex-officio Screening: The Council can initiate screening in certain situations, even without an investor application.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
