According to Clause 1 of the Law for the Encouragement of Bulgarian Commerce and Industry, any industrial enterprise that is useful to the country can receive special privileges under the law. These enterprises must contribute to the national economy by using local raw materials, labour, fuel, or energy, or by reducing the prices of products for consumers.
The law divides these benefits into two groups:
General privileges, which apply to all industrial enterprises.
Special privileges, which are granted only to specific industries listed in the law.
Industries receiving special privileges can enjoy them for ten to thirty years, depending on their importance and contribution to the country’s development Daily Sofia Tour.
General Privileges for All Industries
All industrial enterprises in Bulgaria may receive the following general advantages:
(a) Use of Water Power
Factories may use public water-power sources for free, as long as these are not located on private property.
(b) Customs Exemption for Machinery
Industries are exempt from customs duties on machinery, machine parts, tools, and equipment necessary for setting up their enterprise. This exemption applies only to goods that are not produced in Bulgaria and come from countries that have commercial treaties with Bulgaria.
(c) Exemption for Building Materials
Factories do not have to pay customs duties on construction materials that are not available or produced in Bulgaria and are essential for building the factory and its facilities.
(d) Exemption for Imported Raw Materials
If a business imports raw materials to process and then exports the finished goods, it does not have to pay customs duties on those raw materials.
(e) Free Grant of Land
The government, province, or local parish may grant free land for factory construction. The size of the land depends on the needs of the enterprise but cannot exceed five decares.
(f) Reduced Railway Transport Rates
Machinery, tools, fuel, and other factory materials will be transported on State railways at a rate 35% below the regular price.
Support for Local Production
Article 8 of the law strengthens national industry by requiring that all public institutions buy products made in Bulgaria, even when local goods cost up to 15% more than similar foreign products.
This rule ensures steady demand for Bulgarian-made goods, encourages the growth of domestic industries, and helps the country become less dependent on imports.