Foreign Investments Legislation

The Constitution introduces two general principles that directly impact the legal environment for international investments in Bulgaria and guarantee that investors are treated in a nondiscriminatory way: the principle of equal treatment of foreign and local investors and the principle of priority of international treaties over domestic legislation. Those principles are further developed in the Law on Encouragement of Investments¹ and other legislation.

Under the principle of equal treatment of foreign and local investors, foreign investors may perform economic activity in the country under the same conditions that apply to Bulgarian investors unless the law explicitly provides otherwise. The second principle is the precedence of international treaties over domestic legislation. Pursuant to the said principles if an international treaty to which Bulgaria is a party sets out a more favorable treatment to foreign investments than