The arbitration proceedings have long been regulated under our legislation. The regulations have undergone numerous amendments over time and have expanded their scope. In this respect, on 24 July 2025 the National Assembly has adopted Act for the Amendment and Supplementation of the International Commercial Arbitration Act (the “Act” or the “Amendment Act”), promulgated in Issue 63 of the State Gazette of 1 August 2025.
The adoption of these amendments is motivated by some problems related to the arbitration proceedings in Bulgaria in recent years. Among them are such issues as a decline in the public confidence in the arbitration as an institution; its use in criminal schemes; the uncontrolled establishment of arbitration courts; and the lack of means for subsequent control in view of the arbitration resolutions.
The Act aims to strengthen the legal security in arbitration proceedings, to facilitate the access thereto, and to restore the public’s confidence in the arbitration as a dispute resolution institution. By doing so, it is also intended to improve the business environment in Bulgaria by creating conditions for the prompt and effective resolution of commercial disputes. The main amendments adopted for the achievement of these objectives are:
- Amendment of the subject matter of the regulation;
- Establishment of an electronic Register of arbitrations with the Ministry of Justice;
- Introduction of new requirements for arbitrators and a simplified procedure for verifying the compliance therewith;
- Improvement of the procedural rules regulating arbitration proceedings and better protection of the parties’ rights;
- Introduction of new grounds for revocation and nullity of arbitration resolutions.
Subject Matter of the Regulation
The International Commercial Arbitration Act is renamed the “Arbitration Act”. In its initial provisions it is said that the regulation applies to the arbitration conducted in the territory of Bulgaria – regardless of whether it is administered by an arbitration institution having its seat in the Republic of Bulgaria or abroad. Ad hoc arbitration, for a specific dispute, is permitted only when it comes to international commercial disputes.
Electronic Register of Arbitrations
The introduction of a legal framework for the establishment of a Register of Arbitrations with the Ministry of Justice is among the key amendments in the Act. The aim is to create an electronic database containing information regarding the permanent arbitration institutions in Bulgaria, as well as information on the arbitration proceedings conducted in the country. Moreover, the registration of an arbitration, respectively of an arbitration proceeding, is a condition for lawful operation.
The information entered in the Register of Arbitrations shall be publicly accessible only in relation to the main circumstances regarding the identification of the arbitration institutions and the registered arbitrators.
The Minister of Justice have to adopt an Ordinance on the Conditions and Procedure for Maintaining, Accessing, and Storing the Register of Arbitrations within a 4-mounth term of the promulgation of the Act (until December 2025). Whitin the same period, the Register itself shall be established.
Requirements for Arbitrators
The Amendment Act gives the arbitration institutions discretion to determine in their internal rules whether their arbitrators could be persons who are not Bulgarian citizens. It is also required for every arbitration in Bulgaria to present and maintain a list of its arbitrators, without excluding the possibility for persons outside such list to act as arbitrators, provided they meet the statutory requirements – as long as that possibility is envisioned in the internal rules of the respective arbitration court.
The statutory requirements for arbitrators in Bulgarian arbitrations have been supplemented. In order to ensure professional and moral integrity, the following requirements are introduced: the person must not have been deprived of the right to exercise a certain profession or activity, must not occupy certain positions, must not be subject to insolvency proceedings / must not be declared insolvent and not rehabilitated to his rights, and must not have been convicted of bankruptcy offences.
To reduce the administrative burden of proving compliance with the stated requirements, most of them will be verified ex officio, and others – by declaration from the arbitrator.
Procedural Rules in the Arbitration Proceedings
The procedural rules governing the conduct of the arbitration proceedings have been improved in various respects. The amendments refine the rules on the appointment of an arbitrator in the absence of party agreement. They also introduce guarantees for the parties’ rights, some of which include the limitation of the scope of tacit or implied consent to an arbitration agreement – making it applicable only for traders or persons engaged in commercial activities; the introduction of a possibility for hearings to be conducted via videoconferencing, and more.
A key guarantee for the parties’ rights introduced with the amendments in the Act is related to the new conditions for the service of documents in the arbitration proceedings. It is provided that, for certain important procedural acts to be deemed duly received, they may be served via a notary or a private enforcement agent if the first attempt at service – via universal postal service for registered items or via courier service – has been unsuccessful. In case of subsequent unsuccessful service, there is an option to continue attempts or to terminate the proceedings at the claimant’s request. When it comes to the arbitration resolution itself, it is provided not only that it must be sent to both parties, but also that it must be published in the electronic case file of the proceedings or in the Register of Arbitrations in order to enter into force.
Revocation and nullity of the arbitration resolution
The Amendment Act adds new grounds for revocation of an arbitration resolution, including contradiction of the resolution with the public order in Bulgaria; and revocation in cases where a document, witness testimony, or expert opinion on which the resolution is based is found to be false, or where there has been a criminal act by a party, its representative, a member of the arbitral tribunal, or an arbitral staff member in connection with the resolution of the case. In addition, it is provided that the Supreme Court of Cassation may suspend the enforcement of the arbitration resolution without any security being provided if there is compelling written evidence of grounds for its revocation.
There are also changes regarding grounds for nullity of arbitration resolutions. They shall be declared null and void when rendered in disputes, the subject matter of which is not subject to arbitration, or when rendered by an arbitration court or arbitrator not registered in the Register of Arbitrations. Nullity shall be declared by the Supreme Court of Cassation upon the claim of a party to the proceedings or its legal successor. The court must also review nullity ex officio before issuing a writ of execution based on the relevant arbitration resolution.
Alongside these amendments, the Act expands the scope of subsequent administrative oversight and control over arbitration proceedings. New sanctions are introduced, the already existing ones are increased, and new powers are granted to the supervisory authorities – including the possibility to conduct random inspections and to order the deletion of an arbitration institution from the Register of Arbitrations.
Through the amendments to the Arbitration Act, the Bulgarian legislator intends to improve the overall efficiency of dispute resolution in the country. To increase the use of arbitration for the resolution of legal disputes and to better ensure the enforcement of arbitration resolutions, while relieving the workload of the judicial system at the same time.
Most of the provisions of the Act enter into force on the date of its promulgation, but its practical results remain to be observed.
You can read the full text of the Act here.
The article above is for information purposes only. It is not (binding) legal advice. For a thorough understanding of the subjects covered and prior acting on any issue discussed we kindly recommend Readers consult Ilieva, Voutcheva & Co. Law Firm attorneys at law.
