Bulgarian Govt Moves to Lure Hi-Tech Investors with State Aid
Bulgaria's Cabinet has approved legislative measures providing for state aid and other incentives for foreign investments in projects entailing hi-tech industries, research and development, and training activities.
The Borisov government has adopted amendments to the Regulations for the Application of the Investment Encouragement Act.
The changes provide for a state aid to foreign investors reimbursing them with up to 50% for their spending on educational and research and development activities, and a subsidy of up to 10% of the investments in processing industries.
The state aid from the Bulgarian government will be granted if at least 50% of the planned investments have been realized by the beginning of the third year of a respective project; this requirement is lowered to 25% for projects entailing education and research and development activities. This is complemented by a requirement that the foreign investor train at least 50 people in Bulgaria.
These amendments correspond with the changes to the Investment Encouragement Act adopted in March 2010 allowing for increasing the amount of aid from Bulgaria's state budget to foreign investors meeting certain conditions.