INTERNATIONAL REGULATORY FRAMEWORK

 

New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards of 1958 – ratified by the Republic of Bulgaria in 1961; promulgated in State Gazette No. 2 of 8 January 1965.

 

European Convention on International Commercial Arbitration – ratified by the Republic of Bulgaria in 1964, promulgated in State Gazette No. 57 of 1964.

 

NATIONAL REGULATORY FRAMEWORK

 

CIVIL PROCEDURE CODE

 

In force as of 1 March 2008.

 

Promulgated in State Gazette No. 59 of 20 July 2007, as subsequently amended and supplemented (including amendments published in State Gazette up to No. 17 of 13 February 2026).

 

Arbitration Agreement

 

Article 19.

 

(1) (Supplemented – SG No. 8 of 2017) The parties to a pecuniary dispute may agree that it shall be resolved by an arbitral tribunal, unless the dispute concerns real rights or possession of immovable property, maintenance, or rights under an employment relationship, or is a dispute in which one of the parties is a consumer within the meaning of § 13, item 1 of the Additional Provisions of the Consumer Protection Act.

 

(2) The arbitration may have its seat abroad if one of the parties has its habitual residence, registered office according to its constitutive instrument, or place of effective management abroad.

 

Part Five. ENFORCEMENT PROCEEDINGS

 

Title One. GENERAL PROVISIONS

 

Chapter Thirty-Six. ISSUANCE OF A WRIT OF EXECUTION

 

Enforcement Titles – Article 404.

 

The following are subject to compulsory enforcement:

 

1. (Supplemented – SG No. 8 of 2017) Final judgments and rulings of the courts, condemnatory judgments of the appellate courts, orders for enforcement, court settlement protocols, judgments and orders for enforcement that are subject to or for which preliminary or immediate enforcement has been admitted, as well as judgments and rulings of arbitral tribunals and settlements concluded before them in arbitration proceedings;

 

2. Judgments, acts and court settlement protocols of foreign courts that are enforceable on the territory of the Republic of Bulgaria without a special procedure;

 

3. Judgments, acts and court settlement protocols of foreign courts, as well as awards of foreign arbitral tribunals and settlements concluded before them in arbitration proceedings, for which enforcement on the territory of the Republic of Bulgaria has been admitted.

 

Procedure for Issuance of a Writ of Execution – Article 405.

 

(1) A writ of execution shall be issued upon a written application based on any of the acts referred to in Article 404. A copy of the application shall not be served on the debtor.

 

(2) An application based on the acts under Article 404, item 1 shall be submitted to the first-instance court that heard the case, or to the court that issued the order for enforcement; where the act is subject to immediate enforcement – to the court that rendered the judgment or the order for enforcement.

 

(3) (Amended – SG No. 8 of 2017) An application based on awards of domestic arbitral tribunals and settlements concluded before them in arbitration proceedings shall be submitted to the district court in whose district the permanent address or registered office of the debtor is located.

 

(4) The court admitting enforcement shall issue a writ of execution based on the acts under Article 404, items 2 and 3. The writ of execution issued on the basis of the acts under Article 404, item 3 shall not be delivered to the creditor until the decision admitting enforcement has become final.

 

(5) (New – SG No. 8 of 2017, amended – SG No. 63 of 2025, in force as of 1 August 2025) The court shall refuse to issue a writ of execution based on awards that are null and void within the meaning of Article 47(2) of the Arbitration Act.

 

(6) (Former paragraph 5 – SG No. 8 of 2017) For amounts awarded in favour of the State, the court shall issue a writ of execution of its own motion.

 

(7) (Former paragraph 6 – SG No. 8 of 2017) An application based on the acts under Article 404, item 1 shall be examined within a seven-day period in a closed session by a judge of the competent court.

 

ARBITRATION ACT

 

(Title amended – SG No. 63 of 2025, in force as of 1 August 2025)

 

Promulgated in State Gazette No. 60 of 5 August 1988, as subsequently amended and supplemented (including amendments published in State Gazette No. 63 of 1 August 2025 and No. 87 of 17 October 2025).

 

Chapter One. GENERAL PROVISIONS

 

Article 1.

 

(1) (Amended – SG No. 93 of 1993, amended – SG No. 63 of 2025, in force as of 1 August 2025) This Act shall apply to arbitration based on an arbitration agreement where the place of arbitration is on the territory of the Republic of Bulgaria.

 

(2) (Amended – SG No. 93 of 1993, amended – SG No. 63 of 2025, in force as of 1 August 2025) Pecuniary disputes and disputes concerning the filling of gaps in a contract or its adaptation to newly arisen circumstances may be resolved by arbitration. Disputes referred to in Article 19(1) of the Civil Procedure Code may not be resolved by arbitration.

 

Article 2.

 

(Amended – SG No. 93 of 1993, repealed – SG No. 38 of 2001)

 

Article 3.

 

(Amended – SG No. 63 of 2025, in force as of 1 August 2025) A party to arbitration proceedings may also be a State or a State institution.

 

Article 4.

 

(Amended – SG No. 63 of 2025, in force as of 3 December 2025) (1) Arbitration on the territory of the Republic of Bulgaria may be conducted by:

 

1. a permanent arbitral institution with its seat in the Republic of Bulgaria, entered in the Register of Arbitrations in accordance with Chapter One “a”;

 

2. a foreign arbitral institution with its seat outside the territory of the Republic of Bulgaria.

 

(2) International arbitration with its place on the territory of the Republic of Bulgaria may also be constituted for the resolution of a specific commercial dispute.

 

(3) An arbitral institution under paragraph 1, item 1 shall be established under a legal entity entered in the Commercial Register and the Register of Non-Profit Legal Entities or in another register provided for by law, and must meet the following requirements:

 

1. it has adopted rules on the organisation and structure of its arbitration activities, as well as a schedule of fees and costs collected in the course of its activities, and maintains a list of arbitrators;

 

2. it maintains an office, a registry, an archive and a website with a link to the electronic case management system;

 

3. the members of its management body, if any, and the arbitrators entered on its list meet the requirements of Article 11(4).

 

(4) In the case of arbitration under paragraph 1, item 2 and paragraph 2, every arbitration proceeding constituted before them shall be entered in the Register under Article 6a.

 

Article 5.

 

A party that knows that a non-mandatory provision of this Act or a requirement provided for by the arbitration agreement has not been complied with, and nevertheless continues to participate in the arbitration proceedings without objecting immediately or within the prescribed time limit, may not invoke the non-compliance.

 

Article 6.

 

Judicial acts in connection with arbitration proceedings shall be admitted only in the cases provided for by this Act.

 

Chapter One “a”. REGISTER OF ARBITRATIONS

 

(New – SG No. 63 of 2025, in force as of 3 December 2025)

 

Article 6a.

 

(New – SG No. 63 of 2025, in force as of 3 December 2025) (1) The Register of Arbitrations is a structured electronic database containing information on permanent institutions conducting arbitration activities with their seat in the Republic of Bulgaria, as well as on arbitration proceedings with a place of arbitration on the territory of the Republic of Bulgaria, constituted before an arbitration established for the resolution of a specific dispute or before a permanent arbitral institution with its seat outside the territory of the Republic of Bulgaria. The Register of Arbitrations shall be kept and maintained by the Ministry of Justice.

 

(2) Circumstances shall be entered and acts shall be published in compliance with the requirements of the Personal Data Protection Act and of Regulation (EU) 2016/679 of the European Parliament and of the Council of 27 April 2016 on the protection of natural persons with regard to the processing of personal data and on the free movement of such data, and repealing Directive 95/46/EC (General Data Protection Regulation) (OJ L 119/1 of 4 May 2016), with the exception of information required by law to be published.

 

(3) An electronic file shall be kept for each entered arbitral institution with its seat in the Republic of Bulgaria and for each proceeding under Article 4(1), item 2 and paragraph 2, in which the applications, the documents certifying the entered circumstances, the published acts and other documents shall be attached, which may also contain personal data for the identification of the persons representing or managing the legal entity under which the arbitration was established, the arbitrators and the parties to the arbitration proceedings under Article 4(1), item 2 and paragraph 2.

 

(4) The Register under paragraph 1 is public in the part containing data on the arbitral institutions and the names and professions of the arbitrators attached to them. The remaining data and documents in the Register under paragraph 1 are accessible only to the Minister of Justice and to the persons to whom the keeping of the Register has been assigned, to the Inspectorate under the Minister of Justice pursuant to the Judiciary Act, and to the courts.

 

(5) The conditions and procedure for keeping, accessing and storing the Register under paragraph 1 shall be determined by an ordinance issued by the Minister of Justice.

 

(6) The Ministry of Justice shall collect fees in amounts determined by a tariff of the Council of Ministers for the provision of the following services from the Register under paragraph 1:

 

1. entry or deletion of an arbitration as a permanent institution;

 

2. entry of changes in the circumstances concerning an entered permanent institution;

 

3. entry of circumstances concerning arbitration proceedings constituted before an arbitration established for the resolution of a specific dispute or before a permanent arbitral institution with its seat outside the territory of the Republic of Bulgaria, as well as of arbitrators outside the list of the arbitration;

 

4. issuance of a certificate of an entered permanent arbitral institution;

 

5. provision of a written reference on entered circumstances;

 

6. issuance of a certified paper copy of an electronic image of an application or annexes thereto.

 

(7) References and certificates may not contain personal data that are not the subject of public entry or publication.

 

(8) (Amended – SG No. 87 of 2025) All actions related to the Register under paragraph 1 shall be performed electronically. The services under paragraph 6, items 4–6 may also be provided on the basis of a written application.

 

Article 6b.

 

(New – SG No. 63 of 2025, in force as of 3 December 2025) (1) The following shall be entered in respect of permanent arbitral institutions:

 

1. the unique identification code, name and legal form of the legal entity under which the arbitral institution was established;

 

2. the registered office and address of management, the addresses of the offices where arbitration activities are conducted, and the website;

 

3. the names of the members of the management bodies of the legal entity;

 

4. the names, profession and contact details of the members of the management body of the arbitration, if any;

 

5. the names, profession and contact details of the arbitrators through whom the permanent institution conducts arbitration activities;

 

6. the specialisation of the arbitration activities, if applicable.

 

(2) If an arbitrator in a specific case is a person outside the list of the arbitration, the data under paragraph 3, items 2 and 3 shall be entered in the file of the arbitral institution in respect of the case heard with his or her participation.

 

(3) The following circumstances shall be entered in respect of arbitration proceedings constituted before an arbitration established for the resolution of a specific dispute or before a permanent arbitral institution with its seat outside the territory of the Republic of Bulgaria:

 

1. the date of receipt of the request for examination of the arbitral dispute;

 

2. the names or designations and addresses of the parties;

 

3. the names, profession and contact details of the arbitrators selected or appointed to resolve the dispute; where they are arbitrators of a permanent arbitral institution with its seat outside the territory of the Republic of Bulgaria, the name, identification number and seat of the foreign arbitral institution shall also be entered;

 

4. the date and number of the arbitral award.

 

(4) In the cases under paragraph 3, the following shall be attached:

 

1. the request for examination of the arbitral dispute and the response to the request, if any;

 

2. the notice of the forthcoming open hearing for examination of the arbitration case – date and manner of conduct;

 

3. the arbitral award, which shall be published with a view to its entry into force by being attached to the Register under Article 6a.

 

Article 6c.

 

(New – SG No. 63 of 2025, in force as of 3 December 2025) (1) An application for entry of a permanent arbitral institution shall be submitted by the person representing the legal entity under which the arbitral institution was established, or by a proxy with a special power of attorney.

 

(2) An application for entry of an arbitration under Article 4(1), item 2 and paragraph 2 shall be submitted by the chairperson of the arbitral tribunal in the specific case within a seven-day period from its constitution.

 

(3) An application for entry under Article 6b(2) shall be submitted by the persons under paragraph 1.

 

(4) An application for entry of changes in the circumstances under Article 6b(1), (2) and (3) shall be submitted within a seven-day period from their occurrence. The rules applicable to the application for initial entry of circumstances shall apply accordingly to this application.

 

(5) The documents to be attached to the application shall be regulated in the ordinance under Article 6a(5). Templates of declarations and other documents necessary for the entry shall also be adopted by that ordinance.

 

Article 6d.

 

(New – SG No. 63 of 2025, in force as of 3 December 2025) (1) The Minister of Justice shall rule on the application for entry within a seven-day period by a reasoned decision. Where the requirements of Articles 4, 6b or 6c have not been complied with and the deficiencies are not remedied within a seven-day period, the Minister of Justice shall refuse the entry by a reasoned decision. A refusal may also be issued where the facts and circumstances under Article 52(6) or Article 53 exist in respect of the arbitration whose entry is sought. An arbitration deleted on the basis of Article 6e(1), item 3 may not be re-entered.

 

(2) The refusal shall be subject to appeal under the Administrative Procedure Code.

 

Article 6e.

 

(New – SG No. 63 of 2025, in force as of 3 December 2025) (1) An arbitral institution shall be deleted from the Register under paragraph 1:

 

1. at the request of the person representing the legal entity under which it was established; the request may also be submitted by a proxy with a special power of attorney with notarised signature of the principal;

 

2. upon termination of the legal entity under which the arbitral institution was established;

 

3. in the cases under Article 52(6).

 

(2) In the cases under paragraph 1, pending arbitration proceedings shall be completed by an arbitral tribunal constituted in accordance with the rules applicable at the commencement of the proceedings.

 

(3) The archive of the deleted arbitral institution shall be transferred to the Ministry of Justice.

 

Chapter Two. ARBITRATION AGREEMENT

 

Article 7.

 

(1) An arbitration agreement is the agreement of the parties to submit to arbitration all or certain disputes that have arisen or may arise between them in respect of a defined contractual or non-contractual legal relationship. It may be an arbitration clause in another contract or a separate agreement.

 

(2) (Amended – SG No. 63 of 2025, in force as of 1 August 2025) The arbitration agreement must be in writing. The agreement shall be deemed to be in writing if it is contained in a document signed by the parties, or in an exchange of letters, telexes, telegrams, electronic communications or other means of communication.

 

(3) (Supplemented – SG No. 8 of 2017, amended – SG No. 63 of 2025, in force as of 1 August 2025) An arbitration agreement shall also be deemed to exist where the respondent accepts in writing or by a statement recorded in the minutes of the arbitration hearing that the dispute be examined by the arbitration, as well as where the respondent files a counterclaim or a set-off defence. The same shall apply where the respondent participates in the arbitration proceedings by filing a written response, presenting evidence or appearing at an arbitration hearing without challenging the jurisdiction of the arbitration.

 

(4) (New – SG No. 63 of 2025, in force as of 1 August 2025) The second sentence of paragraph 3 shall not apply where the respondent is a natural person, with the exception of a person who is a party to the dispute in his or her capacity as a sole trader, entrepreneur, partner or shareholder, manager or member of a management body of a company, or procurator, as well as a person who has assumed an obligation or provided security for an obligation of a trader or entrepreneur that is the subject of the dispute.

 

Article 8.

 

(1) (Amended – SG No. 59 of 2007, in force as of 1 March 2008) A court before which an action is brought in respect of a dispute that is the subject of an arbitration agreement shall terminate the proceedings if a party invokes the agreement within the time limit for responding to the statement of claim. If the court finds that the arbitration agreement is null and void, has lost its effect or cannot be performed, the proceedings shall not be terminated.

 

(2) Arbitration proceedings may be commenced, continued and an award may be rendered therein notwithstanding that proceedings in respect of the same dispute are pending before a domestic or foreign court.

 

Article 9.

 

Any party to an arbitration agreement may request from a court, before or during the arbitration proceedings, the securing of the claim or of evidence.

 

Article 10.

 

The provisions of Article 8(1) and Article 9 shall also apply where the arbitration agreement provides for arbitration in another State.

 

Chapter Three. CONSTITUTION OF THE ARBITRAL TRIBUNAL

 

Article 11.

 

(1) The arbitral tribunal may consist of one or more arbitrators, the number of whom shall be determined by the parties. Where the parties have not determined their number, there shall be three arbitrators.

 

(2) (Amended – SG No. 93 of 1993, amended – SG No. 63 of 2025, in force as of 1 August 2025) An arbitrator may also be a person who is not a national of the Republic of Bulgaria if the rules of the relevant arbitral institution so permit, as well as where the person is an arbitrator of a foreign arbitral institution or an arbitrator in a dispute under Article 4(2).

 

(3) (New – SG No. 63 of 2025, in force as of 1 August 2025) Where the rules of the relevant arbitral institution so permit, a person who is not included on the list of the arbitral institution may also be designated as an arbitrator if he or she meets the requirements of paragraph 4.

 

(4) (New – SG No. 8 of 2017, former paragraph 3, amended – SG No. 63 of 2025, in force as of 1 August 2025) An arbitrator may be a capable adult citizen who:

 

1. has not been convicted of an intentional offence of a general nature, regardless of rehabilitation;

 

2. holds a higher education degree;

 

3. has at least eight years of professional experience;

 

4. has not been deprived of the right to practise a particular profession or activity or to hold a particular office;

 

5. is not the subject of insolvency proceedings, is not an unrehabilitated bankrupt, or has not been convicted of bankruptcy;

 

6. possesses high moral qualities and professionalism.

 

(5) (New – SG No. 63 of 2025, in force as of 1 August 2025) The requirements of paragraph 4 shall not apply to arbitrators of a permanent arbitral institution with its seat outside the territory of the Republic of Bulgaria when hearing an arbitration case on the territory of the Republic of Bulgaria.

 

(6) (New – SG No. 63 of 2025, in force as of 3 December 2025) The circumstances under paragraph 4 shall be established of the court’s own motion in respect of items 1, 5 and 6 on the basis of a document of completed higher education in respect of item 2, and on the basis of a written declaration by the arbitrator in respect of items 3 and 4.

 

Article 12.

 

(1) The parties may agree on the procedure for constituting the arbitral tribunal.

 

(2) In the absence of an agreement on the procedure:

 

1. if the arbitral tribunal consists of three arbitrators, each party shall appoint one arbitrator and the two arbitrators shall appoint the third;

 

2. (amended – SG No. 63 of 2025, in force as of 1 August 2025) if a party fails to appoint an arbitrator within 30 days of receipt of a request by the other party to do so, or if the two arbitrators fail to reach agreement on the third arbitrator within 30 days of their appointment, the third arbitrator shall be appointed, at the request of either party, by the head of the arbitral institution or, in the case of international arbitration for the resolution of a specific commercial dispute, by the President of the Bulgarian Chamber of Commerce and Industry;

 

3. (amended – SG No. 63 of 2025, in force as of 1 August 2025) if the arbitral tribunal consists of a sole arbitrator and the parties cannot agree on the arbitrator, he or she shall be appointed by the authorities under item 2 at the request of either party.

 

(3) (Amended – SG No. 63 of 2025, in force as of 1 August 2025) When appointing an arbitrator, the appointing authority under paragraph 2, items 2 and 3 shall take into account the qualifications required by the parties’ agreement, as well as all circumstances ensuring the appointment of an independent and impartial arbitrator.

 

(4) (Amended – SG No. 63 of 2025, in force as of 1 August 2025) The decision of the appointing authority under paragraph 2, items 2 and 3 shall be final.

 

Article 13.

 

When a person is approached to act as an arbitrator, he or she shall disclose all circumstances that may give rise to justifiable doubts as to his or her impartiality or independence. The arbitrator shall have this obligation also after his or her appointment.

 

Article 14.

 

(1) A challenge to an arbitrator may be made only if there are circumstances that give rise to justifiable doubts as to his or her impartiality or independence, or if he or she does not possess the qualifications agreed by the parties.

 

(2) A party may challenge an arbitrator appointed by it or in whose appointment it participated only on grounds that became known to it after the appointment.

 

Article 15.

 

(1) The parties may agree on the procedure for challenge. They may not exclude the application of Article 16.

 

(2) In the absence of an agreement, a challenge to an arbitrator may be made no later than 15 days after the party became aware of the constitution of the arbitral tribunal or after it became aware of the circumstances giving rise to the challenge.

 

(3) The request for challenge shall be made in writing to the arbitral tribunal, stating the grounds therefor.

 

(4) The arbitral tribunal shall rule on the challenge unless the arbitrator withdraws from his or her function or the other party agrees to the challenge.

 

Article 16.

 

(Amended – SG No. 38 of 2001) (1) (Amended – SG No. 59 of 2007, in force as of 1 March 2008) If the arbitral tribunal does not uphold the challenge, the party that made it may, within a seven-day period of being notified, request the Sofia City Court to rule on it. The Sofia City Court shall examine the appeal under the procedure of Chapter Twenty-One “Appeal against Rulings” of the Civil Procedure Code; its decision shall be final.

 

(2) The arbitral tribunal may continue the examination of the case and render an award thereon notwithstanding the challenge and the appeal under paragraph 1.

 

Article 17.

 

(1) Where an arbitrator is unable to perform his or her duties or unjustifiably fails to act, his or her mandate shall be terminated.

 

(2) (Amended – SG No. 59 of 1998) If in the cases under the preceding paragraph the arbitrator does not resign of his or her own accord or the parties do not reach agreement on the termination of his or her mandate, either party may request the Sofia City Court to rule on the termination of the mandate. The court’s decision shall be final.

 

Article 18.

 

Where the mandate of an arbitrator is terminated, another arbitrator shall be appointed in accordance with the procedure by which the arbitrator whose mandate was terminated was appointed.

 

Chapter Four. JURISDICTION OF THE ARBITRAL TRIBUNAL

 

Article 19.

 

(1) The arbitral tribunal shall rule on its own jurisdiction, including where it is challenged on the ground of non-existence or invalidity of the arbitration agreement.

 

(2) An arbitration agreement included in a contract is independent of the other terms of the contract. The nullity of the contract does not in itself mean the invalidity of the arbitration agreement contained therein.

 

Article 20.

 

(1) An objection that the arbitral tribunal lacks jurisdiction must be raised no later than the response to the statement of claim. It may also be raised by a party that appointed or participated in the appointment of an arbitrator.

 

(2) Where a question is raised that falls outside the jurisdiction of the arbitral tribunal, the objection of lack of jurisdiction must be raised immediately.

 

(3) The arbitral tribunal may uphold an objection of lack of jurisdiction raised later if there is a justifiable reason for the delay.

 

(4) The arbitral tribunal shall rule on the objections under the preceding paragraphs by a ruling or in the award on the merits.

 

Article 21.

 

Unless the parties have agreed otherwise, the arbitral tribunal may, at the request of one of them, order the other party to take appropriate measures to secure the rights of the applicant. When admitting such measures, the arbitral tribunal may require the applicant to provide security.

 

Chapter Five. CONDUCT OF THE ARBITRATION PROCEEDINGS

 

Article 22.

 

The parties to the arbitration proceedings are equal. The arbitral tribunal shall afford each of them an opportunity to protect their rights.

 

Article 23.

 

The arbitration proceedings shall commence on the day on which the respondent receives a request that the dispute be referred to arbitration, unless the parties have agreed otherwise.

 

Article 24.

 

The parties may agree on the procedure that the arbitral tribunal is to follow in conducting the case. In the absence of an agreement, the arbitral tribunal shall conduct the case in the manner it deems appropriate. In both cases it shall be obliged to afford each of the parties equal opportunities to protect their rights.

 

Article 25.

 

The parties may agree on the place where the arbitration case is to be heard. In the absence of an agreement, the place shall be determined by the arbitral tribunal, taking into account the circumstances of the case and the convenience of the parties.

 

Article 26.

 

(Amended – SG No. 63 of 2025, in force as of 1 August 2025) Where both parties have their registered office, permanent address or habitual residence in the Republic of Bulgaria, except where one of them is an enterprise with predominantly foreign participation, the arbitration proceedings shall be conducted in the Bulgarian language. In other cases the parties may agree on the language or languages to be used in the arbitration proceedings. In the absence of an agreement, the language or languages shall be determined by the arbitral tribunal. It may order that any written evidence be accompanied by a translation into the language or languages agreed by the parties or determined by the arbitral tribunal.

 

Article 27.

 

(1) The statement of claim shall indicate the names and addresses of the parties, the circumstances on which the claim is based and the relief sought; the written response of the respondent shall set out its position thereon.

 

(2) The statement of claim and the response shall be submitted within the time limit agreed by the parties or determined by the arbitral tribunal.

 

(3) Together with the statement of claim and the response, the parties shall present the written evidence and indicate other evidence that they will present.

 

Article 28.

 

The respondent may file a counterclaim no later than with the response to the statement of claim.

 

Article 29.

 

Either party may, during the arbitration proceedings, amend or supplement its claim or defence unless otherwise agreed. The arbitral tribunal may refuse to admit the requested amendment if it considers that it would create particular difficulties for the other party.

 

Article 30.

 

(1) (Former text of Article 30 – SG No. 63 of 2025, in force as of 1 August 2025) The parties may agree that the case be decided solely on the basis of written evidence and submissions, without being summoned. The arbitral tribunal may schedule a hearing with the participation of the parties if this is necessary for the proper resolution of the case.

 

(2) (New – SG No. 63 of 2025, in force as of 1 August 2025) Unless otherwise agreed between the parties, where necessary an arbitration hearing may be conducted by videoconference. The arbitral tribunal shall regulate in its rules the procedure for conducting such a hearing.

 

(3) (New – SG No. 63 of 2025, in force as of 1 August 2025) Procedural acts and statements of the arbitrators, the parties, their representatives and the other participants in the proceedings shall be recorded in an appropriate manner allowing the storage and reproduction of the information.

 

Article 31.

 

(1) The parties shall be timely notified of the arbitration hearing or of an inspection and examination of documents, goods or other objects by the arbitral tribunal.

 

(2) (New – SG No. 8 of 2017) Each party shall be given the opportunity to inspect the case file remotely, including through the website of the arbitral tribunal.

 

(3) (Former paragraph 2 – SG No. 8 of 2017) Written evidence and submissions, as well as the reports of experts, shall be timely transmitted to the parties.

 

Article 32.

 

(1) (New – SG No. 63 of 2025, in force as of 1 August 2025) The statement of claim and the evidence attached thereto, the notice of scheduling of the first arbitration hearing for examination of the arbitration case, and the arbitral award rendered shall be served on the respondent on the territory of the Republic of Bulgaria in one of the following manners in the order indicated:

 

1. by registered mail of the universal postal service or by a courier service performed by a person entered in the public register of operators performing non-universal postal services;

 

2. through a notary or a private enforcement agent if the documents could not be served in the manners under item 1.

 

(2) (New – SG No. 63 of 2025, in force as of 1 August 2025) At the request of the claimant, service under paragraph 1, item 2 may also be used for the first dispatch of the said documents, as well as for the service of other notices and documents in the case, the claimant bearing the corresponding costs regardless of the outcome of the case.

 

(3) (New – SG No. 63 of 2025, in force as of 1 August 2025) The process server shall certify with his or her signature the date and manner of service, the capacity of the person to whom the notice was served, and all actions in connection with an attempted service.

 

(4) (Former paragraph 1, amended – SG No. 63 of 2025, in force as of 1 August 2025) Where the party cannot be found at its address of management or at its permanent and current address after diligent search, as well as at the address indicated in the contract concluded between the parties, the notice shall be deemed to have been received if the attempts at service have been certified by the process server.

 

(5) (Former paragraph 2, amended – SG No. 63 of 2025, in force as of 1 August 2025) The notice shall also be deemed to have been delivered where the addressee has refused to receive it, as well as where he or she has failed to appear to receive it after a notice to that effect has been left. The process server shall certify these circumstances in writing.

 

(6) (New – SG No. 63 of 2025, in force as of 1 August 2025) Paragraph 4 and the second hypothesis of paragraph 5 shall not apply to a party that is a natural person within the meaning of Article 7(4), except where the party has already regularly received the statement of claim or a previous notice under the procedure of paragraph 1.

 

(7) (New – SG No. 63 of 2025, in force as of 1 August 2025) Where the attempts to serve the statement of claim or the notice of scheduling of the first open arbitration hearing are unsuccessful, including by applying paragraphs 4 and 5, at the request of the claimant a new attempt at service shall be made within a period of up to three months from the last attempt, or the case shall be terminated at his or her request. Upon termination of the case due to the impossibility of summoning the respondent, the claimant shall have the right to bring the action before the competent court, the suspension of the limitation period during the terminated arbitration proceedings being preserved.

 

(8) (New – SG No. 63 of 2025, in force as of 1 August 2025) On the basis of an express written request by the parties, documents and notices may also be sent to them at an electronic address indicated by them. In respect of the respondent this possibility shall apply after he or she has been notified of the claim brought against him or her under the procedure of paragraph 1.

 

Article 33.

 

The arbitral tribunal shall terminate the proceedings if the claimant fails to file the statement of claim within the time limit agreed by the parties or determined by it. This provision shall not apply if the omission is due to a justifiable reason.

 

Article 34.

 

The arbitral tribunal shall examine the case even if the respondent fails to respond to the statement of claim. Failure to respond shall not be deemed an admission of the claim.

 

Article 35.

 

The arbitral tribunal shall continue the proceedings and render an award on the basis of the evidence even if one or both of the parties fail to appear at the hearing.

 

Article 36.

 

(1) The arbitral tribunal may appoint one or more experts to give an opinion for the clarification of certain issues requiring specialised knowledge. It may order the parties to provide the experts with the necessary information or to grant them access for the examination of documents, goods or other objects where this is necessary for the preparation of the opinion.

 

(2) The arbitral tribunal may, at the request of either party or of its own motion, require the expert, after presenting his or her opinion, to participate in a hearing in order to give clarifications. At the request of the parties, other experts may also be appointed to give opinions on the disputed issue.

 

Article 37.

 

The arbitral tribunal or the interested party with its approval may request the competent court to collect certain evidence necessary for the case. The court shall be obliged to execute the request in accordance with the provisions of the Civil Procedure Code.

 

Chapter Six. RENDERING OF THE AWARD AND TERMINATION OF THE PROCEEDINGS

 

Article 38.

 

(1) The arbitral tribunal shall resolve the dispute by applying the law chosen by the parties. Unless otherwise agreed, the choice of law shall refer to the substantive law and not to the conflict-of-laws rules.

 

(2) If the parties have not designated the applicable law, the arbitral tribunal shall apply the law indicated by the conflict-of-laws rules that it considers applicable.

 

(3) In all cases the arbitral tribunal shall apply the terms of the contract and take into account the trade usages.

 

(4) The arbitral award is final and puts an end to the dispute.

 

Article 39.

 

(1) Where there is more than one arbitrator, the award shall be rendered by a majority unless the parties have agreed otherwise. An arbitrator who does not agree with the award shall set out his or her dissenting opinion in writing.

 

(2) If a majority cannot be formed, the award shall be rendered by the presiding arbitrator.

 

Article 40.

 

If the parties conclude a settlement, the case shall be terminated. They may request the arbitral tribunal to record the settlement in an arbitral award on agreed terms. Such an award shall have the force of an award on the merits of the case.

 

Article 41.

 

(1) The award must be reasoned unless the parties have agreed otherwise or it is rendered on agreed terms pursuant to a settlement. It must indicate the date and the place of arbitration.

 

(2) The award shall be signed by the arbitrator or by the arbitrators. In arbitration proceedings with more than one arbitrator, the signatures of the majority of the members of the arbitral tribunal shall be sufficient if those who have signed indicate the reason for the missing signature.

 

(3) (Supplemented – SG No. 93 of 1993, amended – SG No. 63 of 2025, in force as of 3 March 2026) The award shall be published by being attached to the electronic case file, and where it is rendered by an arbitration constituted for the resolution of a specific dispute or by a permanent arbitral institution with its seat outside the territory of the Republic of Bulgaria – in the Register under Article 6a. The award signed by the arbitrators shall be sent to the parties. Upon service on both parties it shall enter into force and be subject to compulsory enforcement.

 

Article 42.

 

The arbitral tribunal shall terminate the case by a ruling where:

 

1. the claimant withdraws the claim, unless the respondent objects and the arbitral tribunal finds that the respondent has a legitimate interest in the rendering of an award;

 

2. the parties agree that the proceedings be terminated;

 

3. the arbitral tribunal finds that there is another obstacle to the examination of the case on the merits.

 

Article 43.

 

(1) The arbitral tribunal may, at the request of either party or of its own motion, correct the award in respect of a calculation, writing or other obvious factual error that it has made. The other party shall be notified of the requested correction by the applicant or by the arbitral tribunal if it acts of its own motion.

 

(2) Either party, after notifying the other, may request the arbitral tribunal to interpret the award.

 

(3) A request for correction or interpretation must be made within a period of 60 days after receipt of the award, unless the parties have agreed on another period. Where the arbitral tribunal acts of its own motion, it shall make the correction within a 60-day period from the rendering of the award.

 

(4) On the correction and interpretation of the award the arbitral tribunal shall hear the parties or give them an opportunity to present their written submissions within a period determined by it. It shall rule on the correction or interpretation within a 30-day period from the request. The decision on these matters shall be rendered in accordance with Articles 39 and 41. The correction and interpretation shall form part of the award.

 

Article 44.

 

The arbitral tribunal may, at the request of the parties, render an additional award on claims on which it has not ruled. The party requesting the addition must notify the other party of the request made by it within a 30-day period from receipt of the award. Where the request is well-founded, the arbitral tribunal shall render an additional award within a 60-day period, applying mutatis mutandis the provision of Article 43(4).

 

Article 45.

 

The arbitral tribunal may extend the time limit for the correction, interpretation or supplementation of the award.

 

Article 46.

 

The mandate of the arbitral tribunal shall terminate upon the completion of the arbitration proceedings, except in the cases under Articles 43 and 44.

 

Article 46a.

 

(1) (New – SG No. 8 of 2017, former text of Article 46a, amended – SG No. 63 of 2025, in force as of 1 August 2025) Every arbitral tribunal shall maintain a registry and an archive.

 

(2) (New – SG No. 63 of 2025, in force as of 3 March 2026) The registry shall provide information on the arbitration cases from their constitution until their transfer to the archive. The registry shall also be maintained in electronic form, an electronic case file being formed for each case. Access to the electronic case file shall be provided to the parties, to the arbitrators selected or appointed to examine and resolve the case, to the courts, to the Minister of Justice and to the Inspectorate under the Minister of Justice pursuant to the Judiciary Act.

 

(3) (New – SG No. 63 of 2025, in force as of 3 March 2026) Completed cases shall be stored in the archive for 10 years from their completion. Awards and the reasons therefor, as well as concluded settlements, shall be stored for 50 years.

 

Chapter Seven. SETTING ASIDE, RECOGNITION AND ADMISSION OF COMPULSORY ENFORCEMENT OF THE ARBITRAL AWARD

 

Article 47.

 

(1) (Amended – SG No. 46 of 2002, former text of Article 47 – SG No. 8 of 2017) An arbitral award may be set aside by the Supreme Court of Cassation if the party seeking the setting aside proves any of the following grounds:

 

1. it was under a legal incapacity at the time of conclusion of the arbitration agreement;

 

2. (amended – SG No. 63 of 2025, in force as of 1 August 2025) the arbitration agreement was not concluded or is invalid under this Act or under another law chosen by the parties in the case of international arbitration;

 

3. (repealed – SG No. 8 of 2017, new – SG No. 63 of 2025, in force as of 1 August 2025) the arbitral award is contrary to the public policy of the Republic of Bulgaria;

 

4. it was not duly notified of the appointment of an arbitrator or of the arbitration proceedings, or for reasons beyond its control it was unable to take part in the proceedings;

 

5. the award resolves a dispute not provided for in the arbitration agreement, or contains a ruling on matters outside the subject-matter of the dispute;

 

6. the constitution of the arbitral tribunal or the arbitral procedure was not in accordance with the agreement of the parties, unless that agreement is contrary to the mandatory provisions of this Act, or, in the absence of an agreement, where the provisions of this Act were not applied.

 

(2) (New – SG No. 8 of 2017, amended – SG No. 63 of 2025, in force as of 3 March 2026) An arbitral award is null and void where it has been rendered:

 

1. by an arbitration that is not entered in the Register under Article 6a;

 

2. by an arbitrator who is not entered in the Register under Article 6a in the cases under Article 6b(1), item 5 or under Article 6c(2) and (3);

 

3. in respect of a dispute the subject-matter of which is not capable of being resolved by arbitration.

 

(3) (New – SG No. 63 of 2025, in force as of 1 August 2025) In addition to the cases under paragraph 1, an arbitral award may be set aside by the Supreme Court of Cassation also if the falsity of a document, of the testimony of a witness, of an expert’s report on which the award is based, or a criminal act of a party, of its representative, of a member of the arbitral tribunal or of an employee thereof in connection with the resolution of the case has been established in the proper judicial procedure.

 

Article 48.

 

(1) An action for setting aside may be brought within a period of three months from the day on which the applicant received the award. Where a request for correction, interpretation or supplementation of the award has been made, the period shall run from the day on which the arbitral tribunal ruled on the request.

 

(2) (New – SG No. 63 of 2025, in force as of 1 August 2025) In the cases under Article 47(3) an action for setting aside shall be brought within a three-month period counted from the day of entry into force of the judgment or of the decision on an action under Article 124(4) or (5) of the Civil Procedure Code.

 

(3) (New – SG No. 63 of 2025, in force as of 1 August 2025) An action for a declaration of nullity of an arbitral award may be brought by the parties and their successors before the Supreme Court of Cassation without limitation in time. Where the court is seised with an action for setting aside under Article 47(1) or (3), it shall rule on the nullity of the award even without a request to that effect.

 

(4) (Amended – SG No. 59 of 1998, amended – SG No. 38 of 2001, amended – SG No. 46 of 2002, former paragraph 2, amended – SG No. 63 of 2025, in force as of 1 August 2025) The stay of enforcement of an arbitral award as a provisional measure in actions under Article 47 shall be admitted by the Supreme Court of Cassation against the provision of security in the amount of the interest in the setting aside of the arbitral award. The Supreme Court of Cassation may also stay enforcement without security where there is convincing written evidence of the existence of a ground for setting aside. Provisional measures admitted under Article 9 and acts performed by an enforcement agent up to the stay of enforcement shall be preserved.

 

(5) (New – SG No. 93 of 1993, repealed – SG No. 38 of 2001, new – SG No. 46 of 2002, amended – SG No. 59 of 2007, in force as of 1 March 2008, former paragraph 3, amended – SG No. 63 of 2025, in force as of 1 August 2025) The amount of the state fee for the examination of actions under Article 47 shall be determined by a tariff of the Council of Ministers.

 

Article 49.

 

(1) (New – SG No. 38 of 2001, amended – SG No. 8 of 2017, former text of Article 49, amended – SG No. 63 of 2025, in force as of 1 August 2025) If the Supreme Court of Cassation sets aside the arbitral award by a final judgment on any of the grounds under Article 47(1), items 1 and 2, the interested party may bring an action on the dispute before the competent court. Where the arbitral award is set aside on any of the grounds under Article 47(1), items 3, 4, 5 and 6 or paragraph 3, the state court shall return the case to the arbitral tribunal for a new examination, and either party may request that the case be examined by other arbitrators. Upon a declaration of nullity of the arbitral award on any of the grounds under Article 47(2), the interested party may refer the dispute for examination by the competent court.

 

(2) (New – SG No. 63 of 2025, in force as of 3 December 2025) The Supreme Court of Cassation shall send to the Minister of Justice an electronic copy of every decision by which it declares an arbitral award null and void or sets it aside.

 

Article 50.

 

(Repealed – SG No. 93 of 1993)

 

Article 51.

 

(Amended – SG No. 93 of 1993) (1) (Amended – SG No. 8 of 2017, supplemented – SG No. 63 of 2025) The district court in whose district the permanent address or registered office of the debtor is located shall, at the request of the interested party, issue a writ of execution on the basis of a final and published arbitral award. The arbitral award and proof that it has been served on the debtor in the enforcement proceedings shall be attached to the request. Where the debtor has no permanent address or registered office on the territory of the Republic of Bulgaria, a writ of execution on the basis of a final arbitral award shall be issued by the Sofia City Court.

 

(2) (New – SG No. 63 of 2025, in force as of 3 March 2026) The district court shall of its own motion verify in the Register under Article 6a and in the electronic case file the circumstances under Article 41(3) and Article 47(2), as well as the service of the award on the debtor in the enforcement proceedings.

 

(3) (New – SG No. 38 of 2001, amended – SG No. 59 of 2007, in force as of 1 March 2008, repealed, new – SG No. 63 of 2025, in force as of 3 March 2026) An electronic copy of the order by which the court refuses to issue a writ of execution on the basis of an arbitral award shall be sent to the Minister of Justice.

 

(4) (Former paragraph 2, supplemented – SG No. 63 of 2025, in force as of 1 August 2025) For the recognition and enforcement of a foreign arbitral award the international treaties concluded by the Republic of Bulgaria shall apply, the request being brought before the Sofia City Court.

 

Chapter Eight. SUPERVISION AND ADMINISTRATIVE PENAL LIABILITY

 

(New – SG No. 8 of 2017, title amended – SG No. 63 of 2025, in force as of 1 August 2025)

 

Article 52.

 

(New – SG No. 8 of 2017) (1) The Minister of Justice shall exercise supervision over compliance with this Act by arbitral tribunals and by arbitrators through the Inspectorate under the Minister of Justice pursuant to the Judiciary Act.

 

(2) (Supplemented – SG No. 63 of 2025, in force as of 3 March 2026) Supervision shall be exercised through an inspection ordered by a decision of the Minister of Justice of his or her own motion or on the occasion of a signal or complaint by an interested person. The decision shall designate the arbitral tribunal or the arbitrators subject to supervision, the inspectors to whom the supervision is assigned, the time limit for carrying out the inspection and the period covered by the inspection, as well as other circumstances. For the purposes of the inspections every arbitral tribunal shall provide permanent official access of the Inspectorate under the Minister of Justice pursuant to the Judiciary Act to the electronic archive of all pending and completed cases.

 

(3) The chairperson of the arbitral tribunal shall ensure free access to the official premises and to the official archive for the performance of the inspection ordered by the Minister of Justice.

 

(4) A protocol shall be drawn up of the findings of the inspection.

 

(5) The Minister of Justice may issue binding instructions to the arbitral tribunal and the arbitrators with a time limit for remedying the established violations of the provisions of this Act.

 

(6) (New – SG No. 63 of 2025, in force as of 3 March 2026) The Minister of Justice shall have the right to order the deletion of an arbitration from the Register under Article 6a where systemic serious violations of this Act by arbitrators are established, or where the institution under which the arbitration was established fails to maintain the conditions for the establishment of an arbitration under Article 4(3) or Article 46a. The Minister of Justice shall rule by a reasoned decision, which shall be subject to appeal under the Administrative Procedure Code.

 

Article 53.

 

(New – SG No. 8 of 2017) (1) (Amended – SG No. 63 of 2025, in force as of 1 August 2025) An arbitrator who renders an award in a dispute that cannot be examined by arbitration by virtue of Article 19(1) of the Civil Procedure Code, and the award is declared null and void on that ground by the Supreme Court of Cassation, shall be punished by a fine of BGN 1,000 to 5,000. A pecuniary sanction of BGN 5,000 to 25,000 shall be imposed on the arbitral tribunal or on the legal entity under which it was established.

 

(2) (New – SG No. 63 of 2025, in force as of 3 March 2026) An arbitrator who renders an award without being entered in the Register under Article 6a in accordance with Article 6b(1), item 5 or paragraphs 2 and 3 shall be punished by a fine of BGN 1,000 to 10,000. A pecuniary sanction of BGN 5,000 to 50,000 shall be imposed on the legal entity with its seat in the Republic of Bulgaria under which the arbitration was established.

 

(3) (New – SG No. 63 of 2025, in force as of 3 March 2026) Where an arbitration fails to comply with the requirements of Article 46a or Article 51(2), a pecuniary sanction of BGN 5,000 to 50,000 shall be imposed on the legal entity with its seat in the Republic of Bulgaria under which it was established.

 

(4) (Former paragraph 2, amended – SG No. 63 of 2025, in force as of 1 August 2025) In the event of a repeated violation the fines or pecuniary sanctions under paragraphs 1–3 shall be three times the amount.

 

(5) (Former paragraph 3 – SG No. 63 of 2025, in force as of 1 August 2025) An arbitrator or a legal entity that fails to comply with the binding instructions under Article 52(5) shall be punished by a fine or a pecuniary sanction in the amount of BGN 2,500.

 

Article 54.

 

(New – SG No. 8 of 2017) (1) The act establishing an administrative offence under Article 53 shall be drawn up by the inspectors under Article 52(2), and the penal decree shall be issued by the Minister of Justice.

 

(2) The acts establishing the offences shall be drawn up and the penal decrees shall be issued, appealed and enforced under the conditions and in accordance with the procedure of the Administrative Offences and Penalties Act.

 

ADDITIONAL PROVISIONS

 

§ 1.

 

(New – SG No. 93 of 1993) In Article 1(1) and (2), Article 11(2), Article 47(2), Article 49(2) and Article 50(2) the words “People’s Republic of Bulgaria” shall be replaced by “Republic of Bulgaria”.

 

§ 1a.

 

(New – SG No. 63 of 2025, in force as of 1 August 2025) For the purposes of this Act:

 

1. “International arbitration” means arbitration with a place on the territory of the Republic of Bulgaria where one of the parties has its permanent address, habitual residence, registered office or place of effective management outside the territory of the Republic of Bulgaria.

 

2. “Commercial dispute” means a dispute within the meaning of Article 365, items 1–3 of the Civil Procedure Code.

 

3. “Videoconference” means a communication link by means of a technical device for the simultaneous transmission and reception of image and sound between participants in the proceedings who are located in different places, allowing the recording and storage of the information on an electronic medium.

 

4. “Process server” means a notary, enforcement agent, courier or postal employee through whom the arbitration sends documents and notices to the parties.

 

5. “Entrepreneur” means a person within the meaning of Article 760a of the Commercial Act.

 

6. “Repeated” means a violation committed within a one-year period from the entry into force of a penal decree by which the person was punished for the same type of violation.

 

7. “Systemic violation” exists where three or more violations of the law have been committed over the course of one year.

 

8. “Serious” means a violation that constitutes a ground for nullity or for setting aside of an arbitral award under Article 47(1), items 1–4 or paragraph 3.

 

TRANSITIONAL AND FINAL PROVISIONS

 

(Title amended – SG No. 93 of 1993)

 

Selected key transitional provisions (as amended):

 

§ 24. (In force as of 3 December 2025) Persons who conduct arbitration activities as a permanent institution on the territory of the Republic of Bulgaria shall bring their activities into compliance with the requirements of this Act and submit an application for entry in the Register under Article 6a within a three-month period from its establishment.

 

§ 25. Arbitration cases pending as of the date of entry into force of this Act, including those constituted for the resolution of a specific dispute in deviation from Article 4(2), shall be completed in compliance with the requirements of this Act. Registration under Chapter One “a” shall be effected before the date of rendering of the arbitral award.

 

§ 26. An action for nullity of an award rendered before the entry into force of this Act may be brought until the expiry of the period under Article 48(1) and only on the grounds provided for in the law as of the date of rendering of the award.

 

§ 33. The Act shall enter into force on the day of its promulgation in the State Gazette, with the exception of certain provisions that enter into force four or seven months after promulgation, as specified in the Act.