The special privileges under the Law for the Encouragement of Bulgarian Commerce and Industry are granted only to certain types of enterprises that meet specific conditions.
To qualify, an enterprise must:
Use at least 5 horsepower of mechanical energy,
Employ at least fifteen regular workers for six months or more each year, and
Use machinery and tools worth at least 20,000 francs.
Only industries that meet these requirements and are included in the law can enjoy special privileges.
List of Eligible Industries
The following industries are eligible for special privileges:
Sugar, chocolate, glucose, and other sugar-based products.
Spinning, weaving, and machine knitting using wool, silk, cotton, hemp, or jute; also tapestry making.
Rope-making.
Pottery and ceramic products such as stoves, drainpipes, water pipes, firebricks, and Marseilles tiles.
Construction of carts, carriages, and other vehicles Tours Sofia.
Mines, marble and granite quarries, and metallurgical industries.
Stone-cutting and finishing (including marble and granite).
Production of cement, chalk, gypsum, asphalt, and similar materials.
Food preservation, slaughterhouses, facilities for fattening animals before meat processing, and use of waste products from slaughterhouses.
Milling and flour-based food production.
Paper and wood-pulp manufacturing.
Ironworks and foundries.
Petroleum refineries and related products.
Production of chemical goods, matches, fertilizers, and artificial dyes.
Soap and candle making.
Glass production.
Tanneries and leather processing.
Dye works and fabric coloring.
Beer brewing, alcohol and brandy distilling.
Furniture making, wood-carving, and carpentry.
Production of oils (animal or vegetable).
Electric power installations.
Silk-worm culture and silk production.
Additional Enterprises Eligible for Privileges
Any other industrial enterprise that is new to Bulgaria, meets the conditions of Article 15, and is considered useful by the Ministry of Commerce and Agriculture, may also receive special privileges.
Special Advantages Granted to These Enterprises
Eligible enterprises enjoy several financial and operational benefits, including:
(a) Exemption from Import Taxes
No customs or local taxes (octroi) are charged on raw or semi-processed materials that cannot be found in Bulgaria or are available only in small quantities.
(b) Exemption from Building Taxes
Factory buildings are free from the usual building taxes and additional local charges (centimes).
(c) Exemption from Patent Fees
Enterprises are not required to pay patent registration fees or related additional taxes.
(d) Stamp Duty Exemption
The original company shares are exempt from stamp duties.
(e) Reduced Coal Prices
Factories can buy coal from State-owned mines at reduced prices, as decided by the Ministerial Council.
(f) Reduced Railway Transport Rates
Raw materials, building supplies, and manufactured goods are transported by State railways at 35% lower rates than normal prices.
(g) Free Use of Natural Materials
Factories may use State-owned land to collect stones, sand, gravel, clay, and similar materials for free, as long as these materials are needed for construction or production.
Through these privileges, the Bulgarian government aimed to attract investors, encourage industrial growth, and support new enterprises that used local resources. The combination of tax relief, cheaper transport, and access to raw materials helped Bulgaria build a stronger foundation for national industry and economic independence.