Significant amendments to Bulgaria’s arbitration framework were promulgated on August 1, 2025 (State Gazette, vol. 63). These changes respond institutionally to increased reports of misuse of arbitration due to insufficient transparency and limited state oversight of arbitral institutions.
The term “international trade” was removed from the Act’s title, now simply the Arbitration Act. The amendments align the Act’s applicability to both international and domestic arbitration. Article 1(2) explicitly excludes disputes related to property rights, alimony, employment and consumer claims from arbitration.
II. Status of Arbitration Institutions and Arbitrator Requirements
The law introduces a Register of Arbitrations administered by the Ministry of Justice, including: (1) permanent arbitration institutions headquartered in Bulgaria; (2) arbitral proceedings seated in Bulgaria, including ad hoc and foreign institutions; (3) names, professions and contact data of arbitrators. This enhances transparency and public trust. Arbitral tribunals must keep proper records and maintain an electronic case file for each dispute.
The law introduces a Register of Arbitrations administered by the Ministry of Justice, including: (1) permanent arbitration institutions headquartered in Bulgaria; (2) arbitral proceedings seated in Bulgaria, including ad hoc and foreign institutions; (3) names, professions and contact data of arbitrators. This enhances transparency and public trust. Arbitral tribunals must keep proper records and maintain an electronic case file for each dispute.
The power to appoint arbitrators in absence of party agreement is decentralized from the President of the Bulgarian Chamber of Commerce and Industry to the heads of respective arbitration institutions, enhancing autonomy and procedural flexibility.
Strict service requirements are introduced: statements of claim, evidence, hearing notices and awards must be served via registered mail or courier. If unsuccessful, service may be effected through a bailiff or notary. Crucially, awards must now be served on both parties as a prerequisite for enforcement, reducing the risk of unfairness from unilateral service.
The amendments aim to strengthen legal certainty and protect property rights by introducing new grounds for annulment, nullity and stay of enforcement.
Arbitral awards may be set aside for violation of public policy. Additionally, annulment is possible if, following judicial proceedings, it is proven that the award was based on forged documents, false witness testimony, untrue expert opinions or criminal acts by parties, arbitrators or institution staff related to the dispute.
Awards issued by tribunals or arbitrators not registered in the Register of Arbitrators are null and void, reinforcing the institutional reforms and providing further protection to parties.
The Supreme Court of Cassation may stay enforcement without security upon convincing written evidence of annulment grounds. District courts will conduct ex officio reviews for nullity or improper service before issuing enforcement orders.
The Inspectorate under the Minister of Justice is empowered to access all arbitration case archives ex officio and conduct random audits. Penalties have increased, and new administrative offenses introduced. The Minister of Justice can order deregistration of arbitration institutions for systematic serious violations.
The Minister must issue regulations within four months to establish the Register of Arbitrations. Permanent arbitration institutions must comply with legal requirements and apply for registration within three months of the Register’s creation.