Commission Opens Infringement Procedures against Bulgaria for Investor Restrictions for Agricultural Land

Brussels, March 26 (BTA) - The European Commission announced its
decision Thursday to open infringement procedures against
Bulgaria over restrictions for foreign investors willing to
purchase farm land.

The Commission has requested Bulgaria - as well as Hungary,
Lithuania and Slovakia - to submit their observations on their
laws regulating the acquisition of agricultural land. These laws
contain several provisions which, under EU law, may be
considered to restrict the free movement of capital and freedom
of establishment.

The Commission observes in its announcement what while member
states are permitted to set their own rules to promote rural
development, to keep land in agricultural use and avoid
speculative pressure on land prices, this must be done within
the limits of EU law.

Under revisions to the national legislation adopted in 2013,
foreigners and foreign companies are allowed to purchase farm
land in Bulgaria if they have bean seated or resided in Bulgaria
for five years or more. The restrictions apply to citizens of
EU member states and their businesses, and of non-EU countries
with which Bulgaria has an agreement allowing acquisition of
agricultural land. Offshore companies may not purchase farm land
in Bulgaria.

In the Commission's view, the provisions in question contain
certain restrictions that may leave room for discriminatory
treatment of investors from other Member States.

The Commission's requests take the form of a letter of formal
notice, the first stage of infringement procedures under Article
258 of the Treaty on the Functioning of the European Union. The
Member States concerned have two months to respond.