Act Amending and Supplementing the Investment Promotion Act (Startup Visa)

Act Amending and Supplementing the Investment Promotion Act
(Title amended – State Gazette, issue 37 of 2004)

(published, SG No. 97 of 1997; amended and supplemented, No. 99 of 1997; Nos. 29 and 153 of 1998, No. 110 of 1999, No. 28 of 2002, No. 37 of 2004; No. 40 of 2004; Nos. 34, 59, 65, 80, 82 and 86 of 2006, Nos. 42 and 53 of 2007, No. 69 of 2008, Nos. 41 and 82 of 2009, Nos. 18, 88 and 100 of 2010, Nos. 38, 45 and 82 of 2012, Nos. 15, 16 and 66 of 2013, No. 98 of 2014, Nos. 14, 32, 61 of 2015, Nos. 85 and 96 of 2017, No. 20 of 2018)

1. In Article 2, item 10 is created:
   “10. Providing an opportunity for third-country nationals to start and develop a project involving high-tech and/or innovative activity in the country, for which a certificate is issued.”
2. In Article 11b, items 9 and 10 are created:
   “9. issues certificates for the projects under Article 2, item 10;
3. exercises full control and monitors compliance with the conditions of the projects that have received a certificate under item 9.”
4. A new Chapter Six “a” is created with Articles 27a – 27g:

Chapter Six “a”

Certificate for a High-Tech and/or Innovative Project

Art. 27a

(1) By decision of the Executive Director of the Bulgarian Investment Agency, after receiving an opinion from the Expert Council under Art. 27b, a certificate for a high-tech and/or innovative project shall be issued, refused, or revoked for third-country nationals.

(2) Up to three third-country nationals may apply with one project.

(3) The validity period of the certificate shall be up to 18 months.

(4) The term may be extended if the conditions for its initial issuance have not ceased to exist.

(5) A fee shall be paid for the issuance and extension of the certificate.

(6) In case of loss, damage, or destruction, a reissued certificate under para. 1 shall be subject to a fee at half rate.

Art. 27b

(1) An Expert Council is established at the Bulgarian Investment Agency as an advisory body for the evaluation of projects under Art. 27a.

(2) The Expert Council:

discusses and gives opinions on:
a) submitted projects applying for a certificate;

b) requests for extension of issued certificates;

c) requests for amendments to approved projects;

gives an opinion on amendments to the procedure for applying for a certificate.

(3) The Expert Council shall consist of 5 members and include representatives of the Bulgarian Investment Agency and non-governmental organizations of incubators, accelerators, venture capital funds, and credit and financial institutions that meet the criteria specified in the rules governing the Council.

(4) The Executive Director of the Bulgarian Investment Agency shall issue rules on the organization and operation of the Expert Council.

Art. 27v

(1) Any change in the data and circumstances declared in the application for issuance of a certificate and the attached documents, occurring after submission, must be reported by the third-country national to the Bulgarian Investment Agency within 7 days.

(2) The Executive Director of the Agency, after coordination with the Expert Council, approves changes to the initially declared activities under the certified project, provided they do not adversely affect the commitments undertaken by the applicant.

(3) In case of temporary difficulty or inability to carry out project activities, certificate holders must notify the Agency within 7 days. This information is used when deciding whether to extend the certificate.

Art. 27g

(1) Issuance or extension of the certificate shall be refused in the following cases:

• failure to submit required documents within a 14-day deadline for correcting deficiencies;
• the submitted plan is not economically justified or involves non-high-tech activity or employment;
• application submitted within 12 months of revocation of a previous certificate;
• failure to meet obligations under tax and social security legislation.

Art. 27d

(1) A certificate shall be revoked by decision of the Executive Director of the Bulgarian Investment Agency when:

• false data has been declared or changes have not been reported within the required срок;
• the company created under the project becomes insolvent or ceases operations;
• difficulties or inability to carry out the activity continue for more than:
  a) 3 months (for companies active less than 2 years);
  b) 6 months (for companies active 2+ years);
• violations of labour law are established;
• violations of tax or social security law are established.

(2) The Agency notifies the applicant, the Ministry of Interior, Ministry of Foreign Affairs, and State Agency for National Security.

(3) The issuance decision is cancelled if the fee is not paid within one month.

Art. 27g

(1) The Agency shall maintain an electronic database of applicants and certified projects.

(2) Access is granted to the Ministry of Interior, Ministry of Foreign Affairs, and State Agency for National Security.

4. In §1 of the Supplementary Provisions, the following are created:

“18. ‘Innovative’ means an activity where:

• the product/service is new or significantly improved for the Bulgarian market; and/or
• a new production, distribution, or marketing technology is introduced; and/or
• a new or improved organizational process is created.

‘Temporary difficulty or inability’ includes illness, loss of equipment, force majeure, or other unforeseen circumstances delaying the project.

‘Third-country national’ is as defined in the Labour Migration and Labour Mobility Act.

‘Incubators’, ‘Accelerators’, ‘Venture capital funds’, and ‘Credit and financial institutions’ are defined accordingly.”

FINAL PROVISION

5. Amendments to the Foreigners in the Republic of Bulgaria Act:

A new Art. 24p is created:

Art. 24p

(1) Long-term residence permits may be granted to foreigners who hold a certificate for a high-tech/innovative project and a valid visa, and who own more than 50% of a Bulgarian company aligned with the certified project.

(2) Applicants must submit:

• passport copy;
• proof of paid fee;
• proof of accommodation;
• health insurance;
• proof of sufficient financial means;
• criminal record certificate;
• the issued certificate;
• company registration data.

(4) The Bulgarian Investment Agency notifies authorities of any changes affecting eligibility.

(4) The residence permit is issued for up to one year.

2. Amendments to Art. 26:
   a) adding “24p”;
   b) updating references accordingly.
3. Amendments to Art. 40:
   adding reference to “24p”.