(1) For the purposes of the screening mechanism, a “foreign investor” is:

• a natural or legal person established outside the European Union that makes an investment within the territory of the Republic of Bulgaria;
• a legal person established in a Member State of the European Union that is directly or indirectly controlled by a person from a third country;
• a legal entity established in the European Union, where control over the specific investment is exercised by a person from a third country or the investment is made on its behalf.

(2) “Foreign direct investment” means an investment of any kind intended to establish or maintain lasting and direct links between the foreign investor and an enterprise conducting business in the Republic of Bulgaria, including through participation in the management or control of such enterprise.

(3) A foreign direct investment includes:

• the establishment of a new enterprise;
• the expansion of an existing enterprise;
• an increase in production capacity or capital;
• the introduction of new products, services, or activities.

(4) The passive acquisition or holding of financial instruments without participation in management or control (portfolio investment) does not constitute a foreign direct investment.

(1) Foreign direct investments that may have an impact on security or public order, in accordance with applicable national legislation and Regulation (EU) 2019/452, are subject to screening.

(2) The screening covers investments in the following sectors:

• critical infrastructure – energy, transportation, healthcare, communications, the financial sector, defense, and others;
• critical technologies – including artificial intelligence, robotics, cybersecurity, semiconductors, nuclear, and biotechnologies;
• critical resources – energy resources, raw materials, and food security;
• access to sensitive information, including personal data, as well as the ability to control such information.

(1) Mandatory screening shall be conducted when any of the following circumstances exist:

• the direct or indirect acquisition of at least 10 percent of the capital of an enterprise established in the Republic of Bulgaria;
• the value of the investment amounts to or exceeds 2,000,000 euros;
• the investment is directed toward an enterprise engaged in high-tech activities;
• a new investment exceeding the specified threshold is made.

(2) By way of exception, screening may also be conducted for investments below the specified thresholds where there is evidence of a potential risk to security or public order, upon the proposal of a competent authority and following consultation with the security services.

(1) The application shall be submitted through the Bulgarian Investment Agency to the Interdepartmental Screening Council.

(2) The Bulgarian Investment Agency shall:

• verify the completeness of the application;
• notify the applicant of any irregularities found and set a deadline for their correction, which may not exceed 7 days;
• send the valid application to the Interdepartmental Council within 3 days.

(3) The Interdepartmental Council:

• conducts an assessment of the risk to security and public order;
• may request additional information from the applicant or other competent authorities;
• cooperates with the European Commission and other Member States as necessary.

(4) The deadline for issuing a decision is 45 days from the receipt of a valid application, which may be extended by up to 30 days in cases of factual or legal complexity.

(5) If no decision is issued within the deadline, tacit consent shall be deemed to exist, unless otherwise provided by law.

(6) The Interdepartmental Council may issue:

• approval;
• conditional approval;
• denial.

(7) The decision is subject to appeal in accordance with the Administrative Procedure Code.

(1) Applicable legislation:

• Investment Promotion Act
• Regulations for Application of the Investment Promotion Act
• Regulation (EU) 2019/452

(2) The procedure is applied as a prior authorization regime with a view to protecting national security and public order.

(3) The screening applies to all foreign investors when the investment falls within the scope of the Act.

(4) Special regimes apply, including:

• mandatory screening for investments from certain countries;
• a simplified regime for countries designated as “low-risk.”

(5) The list of low-risk countries is determined by a decision of the National Assembly upon a proposal by the Council of Ministers.

(1) The application for screening shall be submitted using the approved template:

Attachment 3 — Application

(2) Declaration regarding the accuracy and completeness of the information provided:

Attachment 4 — Declaration

The application must be accompanied by at least the following documents and information:

• information regarding the identification and structure of the foreign investor, including the ultimate beneficial owner;
• detailed information regarding the investment – value, sources of financing, date, and sector of economic activity;
• description of the investor’s organizational structure and management;
• documents regarding the target company;
• information regarding security and data protection systems;
• declaration of accuracy of the provided information.

• lack of a cover letter;
• lack of an explicit notarized power of attorney when the application is submitted through a representative;
• incomplete documents and information submitted;
• lack of a description of the organizational structure and management systems;
• lack of information regarding data protection mechanisms and information security.

This is a system for the prior authorization of certain foreign direct investments with a view to protecting national security and public order.

Applications are accepted by the Bulgarian Investment Agency, and the decision is made by the Interdepartmental Screening Council.

Any foreign investor (including EU companies controlled by third countries) when the investment falls within the scope of the law.

For investments that may affect:

• critical infrastructure (energy, transportation, healthcare, data, etc.)
• critical technologies (AI, cybersecurity, semiconductors, etc.)
• strategic resources
• sensitive information or the media environment

Screening is required in the following cases:

• acquisition of ≥ 10% of the capital;
• investment of ≥ €2 million;
• participation in high-tech activities;
• new investments exceeding the threshold.

Yes:

• Investments from Russia and Belarus are always subject to screening;
• In cases of state participation from outside the EU, screening applies regardless of the threshold;
• For certain “low-risk” countries (e.g., the U.S., the U.K., Japan), simplified rules apply, but they are not exempt from the regime;
• Screening may also be conducted below the thresholds if there is a security risk.

To the Interdepartmental Council via the BAI:

• electronically or on paper
• in Bulgarian (with a translation if necessary)
• signed by the investor or an authorized representative

Main categories:

• identification and structure of the investor (including ultimate owner)
• information about the investment (value, date, sector)
• sources of financing
• organizational structure and management
• documents for the target company
• declaration of accuracy of the data

• The BAI reviews the documents
• If there are irregularities, it allows up to 7 days for correction
• It forwards the application to the Council within 3 days
• The Council may request additional information
• It conducts a risk assessment

• 45 days from the date of a valid application
• up to 30-day extension
• the deadline is suspended if the European Commission is involved

• approval
• conditional approval (with conditions)
• rejection

For example:

• a cap on the share acquired (10–20%)
• data protection/security requirements
• special rights for the state (“golden share”)
• other sector-specific restrictions

It is considered tacit consent.

Yes — as an individual administrative act before an administrative court.

• Email: iba@investbg.government.bg
• In person: Sofia, 12 Knyaz Alexander I St.

An investment that provides control or a significant stake in an enterprise in Bulgaria (it does not include passive/portfolio investments).