ARBITRATION ACT - 2025
(Title amended in the State Gazette No. 63 of 2025, in effect from 01.08.2025)
Published in the State Gazette (SG) No. 60 of 05.08.1988, amended and supplemented in SG No. 93 of 02.11.1993, amended in SG No. 59 of26.05.1998, amended and supplemented in SG No. 38 of 17.04.2001, amended in SG No. 46 of 07.05.2002, Decision No. 9 of 24.10.2002 of Constitutional Court of the Republic of Bulgaria - SG No. 102 of 01.11.2002, amended in SG No. 59 of 20.07.2007, in effect from 01.03.2008, amended and supplemented in SG No. 8 of 24.01.2017, amended and supplemented in SG No. 63 of 01.08.2025, in effect from 01.08.2025
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Chapter I”a” |
GENERAL PROVISIONS REGISTER OF ARBITRATIONS |
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Chapter II |
ARBITRATION AGREEMENT |
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Chapter III |
ARBITRAL TRIBUNAL COMPOSITION |
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Chapter IV |
JURISDICTION OF THE ARBITRAL TRIBUNAL |
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Chapter V |
ARBITRATION PROCEEDINGS |
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Chapter VI |
RENDERING AN AWARD AND TERMINATION OF PROCEEDINGS |
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Chapter VII |
SETTING ASIDE, RECOGNITION AND ENFORCEMENT OF THE AWARD |
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Chapter VIII |
CONTROL AND LIABILITY TO ADMINISTRATIVE SANCTIONS (The heading amended – SG No. 63 of 2025) |
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ADDITIONAL PROVISIONS (The heading amended – SG No. 63 of 2025, in effect from 01.08.2025) |
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TRANSITIONAL AND FINAL PROVISIONS (The heading, amended - SG No. 93 of 1993) |
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TRANSITIONAL PROVISIONS |
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TRANSITIONAL PROVISION |
TRANSITIONAL AND FINAL PROVISIONS (Law on Amendment and Supplementation of the Law on Foreign Commercial Arbitration, SG No. 63 of 2025, in effect from 01.08.2025)
Chapter I
GENERAL PROVISIONS
Art. 1. (1) (Amended - SG No. 93 of 1993, No. 63 of 2025, in effect from 01.08.2025). This Act shall apply to arbitration, based on arbitration agreements when the place of the arbitration is within the territory of the Republic of Bulgaria.
(2) (Amended - SG No. 93 of 1993, No. 63 of 2025, in effect from 01.08.2025). Arbitration may resolve property disputes and disputes for filling gaps in contracts or their adaptation to newly arisen circumstances. The disputes specified in art. 19, para (1) of the Civil Procedure Code cannot be resolved by arbitration.
Art. 2. (Amended - SG No. 93 of 1993, abrogated - SG No. 38 of 2001).
Art. 3. (Amended - SG No. 63 of 2025, in effect from 01.08.2025). Parties to arbitration proceedings may also be a state or a state agency.
Art. 4. (Amended - SG No. 93 of 1993, No. 63 of 2025, in effect from 03.12.2025). (1) Arbitration within the territory of the Republic of Bulgaria can be conducted by:
1. a permanent arbitration institution with its seat in the Republic of Bulgaria, entered into the Register of Arbitrations in accordance with Chapter I”a”;
2. foreign arbitration institution with its seat outside the territory of the Republic of Bulgaria.
(2) An international arbitration with a place within the territory of the Republic of Bulgaria may also be established for resolving a specific commercial dispute.
(3) An arbitration institution under para (1), item 1 shall be established to 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. to have adopted rules for the structure and organization of arbitration activities, as well as a fee schedule for fees and expenses incurred during the performance of the activity, and to maintain a list of arbitrators;
2. to maintain an office, court registry, archives, and a website with a link to the electronic case management system;
3. members of the governing body, if any, and those listed in the list of arbitrators must meet the legal requirements established by art. 11, para (4).
(4) Regarding arbitration under para (1), item 2 and para( 2), data for each arbitration proceeding shall be entered in the Register under art. 6a.
Art. 5. A party that knows that any provision of, or requirement under, these Rules has not been complied with and yet proceeds with the arbitration without promptly stating its objection to such non-compliance, shall be deemed to have waived its right to object
Art. 6. Proceedings of a state court related to arbitration proceedings shall be admissible only in the cases provided for by this Act
Chapter I "а"
(New – SG No. 63 of 2025, in effect from 03.12.2025)
REGISTER OF ARBITRATIONS
Art. 6а. ( (New – SG No. 63 of 2025,, in effect from 03.12.2025) (1) The Register of Arbitrations is a structured electronic database containing information about permanent institutions conducting arbitration activities with its seat in the Republic of Bulgaria, as well as about arbitration proceedings with the place of arbitration located within the territory of the Republic of Bulgaria, initiated before an arbitration established for the resolution of a concrete dispute, or before a permanent arbitration institution with its seat outside the territory of the Republic of Bulgaria. The Register of Arbitrations is kept and maintained by the Ministry of Justice.
(2) The circumstances are recorded and the acts are announced in compliance with the requirements of the Personal Data Protection Act and 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 that is required to be announced by law.
(3) For each registered arbitration institution with its seat in the Republic of Bulgaria and for each proceeding under art. 4, para (1), item 2 and para (2), an electronic account shall be kept, in which the applications, documents certifying the entered circumstances, announced acts and other documents, which may also contain personal data for the identification of the persons representing or managing the legal entity by which the arbitration was established, the arbitrators and the parties to the arbitration proceedings under art. 4, para (1), item 2 and para (2), are attached.
(4) The register under para (1) is public in the part containing data regarding the arbitration institutions and the names and professions of the arbitrators associated with them. The remaining data and documents in the Register are accessible only to the Minister of Justice and persons authorized to maintain the Register, the Inspectorate under the Minister of Justice in accordance with the Judiciary Act and the court.
(5) The conditions and procedure for maintaining, accessing and storing the Register under para (1) shall be determined by a regulation 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 para (1):
1. registration or deletion of an arbitration as a permanent institution;
2. recording changes in circumstances regarding a registered permanent institution;
3. entry of circumstances regarding arbitration proceedings initiated before an arbitration established to resolve a specific dispute, or before a permanent arbitration institution with its seat outside the territory of the Republic of Bulgaria, as well as arbitrators outside the list of the arbitration;
4. issuance of a certificate of registered permanent arbitration institution;
5. making a written report on recorded circumstances;
6. issuance of a certified hard copy of an electronic image of an application or its attachments.
(7) Reports and certificates may not contain personal data that is not subject to public registration or announcement.
(8) All actions related to the Register under para (1) shall be carried out electronically. Services under para (6) may also be provided on the basis of a written application.
Art. 6b. (New – SG No. 63 of 2025, in effect from 03.12.2025) (1) Regarding permanent arbitration institutions, the following data shall be entered:
1. unified identification code, name and legal organizational form of the legal entity to which the arbitration institution was established;
2. seat and business address, address of the offices where arbitration activities are carried out, and website;
3. the names of the members of the management bodies of the legal entity;
4. names, professions and contact details of the members of the management body of the arbitration, if any;
5. names, profession and contact information of the arbitrators whom are engaged in the arbitration activities of the permanent institution;
6. specialization of the arbitration activity, if applicable.
(2) If an arbitrator for a specific case is a person outside the list of the arbitration institution, the specific arbitration case file in the account of the arbitration institution shall also list the data under para (3), items 2 and 3 for the case resolved with their participation.
(3) For arbitration proceedings initiated before an arbitration established for the resolution of a specific dispute, or before a permanent arbitration institution with its seat outside the territory of the Republic of Bulgaria, the following information shall be recorded:
1. the date of submission of the request for arbitration;
2. the names, respectively the titles, and the addresses of the parties;
3. the names, professions, and contact information of the arbitrators selected or appointed to resolve the dispute, and when they are arbitrators at a permanent arbitration institution with its seat outside the territory of Bulgaria, the name, registration number, and address of the foreign arbitration institution are also recorded;
4. the date and number of the arbitration award.
(4) In the cases under para (3), the following documents shall be attached:
1. the request for arbitration and the response to it, if entered;
2. a notice for an upcoming open session concerning the arbitration case – date and method of holding it;
3. the arbitration award, which is announced with a view to its entry into force by attachment into the Register under art. 6а.
Art. 6c. (New – SG No. 63 of 2025, in effect from 03.12.2025) (1) An application for registration of a permanent arbitration institution is submitted by the representative of the legal entity that established the arbitration institution, or by an authorized representative with explicit powers of attorney.
(2) An application for registration of an arbitration under art. 4, para (1), item 2 and para (2) is submitted by the chairman of the arbitration panel in the specific case within seven days from its formation.
(3) An application for registration under art. 6b, para (2) is submitted by the persons under para (1).
(4) An application for registration of changes of the circumstances under art. 6b, para (1), (2) and (3) is submitted within seven days from their occurrence. Regarding this application the rules. The rules regarding the application for initial registration of circumstances shall apply respectively to this application.
(5) The documents that shall be attached to the application are determined by the regulation under art. 6a, para (5). It specifies sample declarations and other documents necessary for registration as well.
Art. 6d. (New – SG No. 63 of 2025, in effect from 03.12.2025) (1) The Minister of Justice renders a decision on the registration application within seven days with a reasoned ruling. If the requirements under art. 4, 6b or 6c are not met and the deficiencies are not corrected within seven days, the Minister of Justice refuses the registration. A refusal may also be issued when the facts and circumstances under art. 52, para (6) or art. 53 are present regarding the arbitration, the registration of which has been requested. An arbitration, deleted on the basis of art. 6e, para (1), item 3, cannot be re-registered.
(2) The refusal is subject to appeal pursuant to the Administrative Procedure Code.
Art. 6e. (New – SG No. 63 of 2025, in effect from 03.12.2025) (1) An arbitration institution is deleted from the Register under para (1):
1. upon a request by the representative of the legal entity to which it is established; the request may be submitted by an authorized representative with explicit powers of attorney with notarization of the signature of the principal as well;
2. upon termination of the legal entity to which the arbitration institution is established;
3. in the cases under art. 52, para (6).
(2 In the cases under para (1), pending arbitration proceedings are concluded by an arbitration panel formed in accordance with the applicable rules at the commencement of the proceeding..
(3) The archives of the deleted arbitration institution are transferred to the Ministry of Justice.
Chapter II
ARBITRATION AGREEMENT
Art. 7. (1) An arbitration agreement shall mean consent of the parties to submit to arbitration the resolution of all or certain disputes which may arise or have arisen between them in connection with a specific contractual or non- contractual legal relation. This may be an arbitration clause in a contract or a separate agreement.
(2) (Amended - SG No. 63 of 2025, in effect from 01.08.2025) The arbitration agreement shall be in writing. An agreement shall be deemed of being in writing if contained in a document signed by the parties or in the exchange of letters, telex messages, telegrammes, electronic messages or other means of communication.
(3) (Supplemented – SG No. 8 of 2017, amended - SG No. 63 of 2025, in effect from 01.08.2025) An arbitration agreement shall be deemed to exist also when the respondent in writing or by a statement, recorded in the minutes of the arbitration hearing, accepts the dispute to be heard by an arbitration as well as submits a counter claim or a set-off objection. The same is presumed when the respondent participates in arbitration proceedings by filing a written reply, presenting evidence or attending the arbitration hearing, without challenging the jurisdiction of the arbitration
(4) (New – SG No. 63 of 2025 г., in effect from 01.08.2025 г.) Para (3), sentence two shall not apply where the respondent is a natural person, with the exception of the person who is a party to the dispute in their capacity as a sole trader, entrepreneur, partner or shareholder, manager or member of a management body of a company or an authorized authority, as well as having obligated themselves or provided collateral for obligations of a trader or entrepreneur that are subject to the dispute.
Art. 8. (1) (Amended in SG No. 59 of 2007) The state court, before which a statement of claim is submitted in a dispute which is subject of an arbitration agreement, shall terminate the proceedings if a party states its reliance on that agreement within the term for written reply to the statement of claim. However, if the court finds that the arbitration agreement is null and void, inoperable or cannot be executed, the court proceedings shall not be terminated.
(2) Arbitration proceedings may be commenced, continued and an award may be issued regardless of a pending case on the same dispute before any domestic or foreign court.
Art. 9. Each of the parties to an arbitration agreement may request from a court to order a provisional remedy of the claim or perpetuation of the evidence before or during the arbitration proceedings.
Art. 10. The provisions of art. 8, para (1) and art. 9 shall also apply when the arbitration agreement provides for arbitration in another country.
Chapter III
ARBITRAL TRIBUNAL COMPOSITION
Art. 11. (1) An Arbitral Tribunal may consist of one or more arbitrators whose number shall be determined by the parties. When their number is not determined by the parties, the arbitrators shall be three.
(2) (Amended in SG No. 93 of 1993, No. 63 of 2025, in effect from 01.08.2025) An arbitrator may also be a person who is not a citizen of the Republic of Bulgaria if the rules of the relevant arbitration institution allow it, as well as when they are an arbitrator for a foreign arbitration institution or for a dispute under art. 4, para (2).
(3) If the rules of the relevant arbitration institution allow it, a person who is not included in the list of the arbitration institution may be appointed as an arbitrator, if he meets the requirements under para (4).
(4) (New – SG No. 8 of 2017, Former para 2. – amended SG No. 63 of 2025, in effect from 01.08.2025) An arbitrator may be a capable adult citizen, who:
1. has not been convicted for intentional crime of general character regardless of expungement;
2. has higher education;
3. has at least 8 years of professional experience;
4. is not deprived of the right to exercise a certain profession or activity, or to hold a specific position;
5. is not in bankruptcy proceedings and have not been reinstated in their rights as bankrupt or been convicted regarding bankruptcy;
6. possesses high moral qualities and professionalism.
(5) (New – SG No. 63 of 2025, in effect from 01.08.2025) The requirements under para (4) shall not apply to arbitrators at a permanent arbitration institution with its seat outside the territory of the Republic of Bulgaria, when conducting an arbitration case within the territory of the Republic of Bulgaria.
(6) (New – SG No. 63 of 2025, in effect from 03.12.2025) The requirements under para (4) shall be established ex officio under items 1, 5 and 6, on the basis of a document for completed higher education under item 2 and on the basis of a written declaration by the arbitrator under items 3 and 4.
Art. 12. (1) The parties may agree on the procedure for composition of the Arbitral Tribunal.
(2) Failing such agreement on the procedure:
1. if the tribunal is of three arbitrators, each of the parties shall appoint one arbitrator and the two shall appoint the third arbitrator;
2. (Amended - SG No. 63 of 2025, in effect from 01.08.2025) if a party fails to appoint an arbitrator within 30 days from the receipt of the request of the other party to do so, or if the two arbitrators fail to reach agreement on the third arbitrator within 30 days from their appointment, the arbitrator is appointed on the request of one of the parties by the head of the arbitration institution, or by the President of the Bulgarian Chamber of Commerce and Industry, for international commercial ad hoc cases;
3. (Amended - SG No. 63 of 2025, in effect from 01.08.2025) if the Arbitral Tribunal is of a sole arbitrator and the parties fail to agree on his/her appointment, the latter shall be appointed on the request of one of the parties by the same bodies under item 2.
(3) (Amended - SG No. 63 of 2025, in effect from 01.08.2025) When the appointing authority under para (2), items 2 and 3, is to appoint an arbitrator they shall have due regard of his/her qualification as provided for by the agreement between the parties as well as of all circumstances likely to secure the appointment of an independent and impartial arbitrator.
(4) (Amended - SG No. 63 of 2025, in effect from 01.08.2025) The decision of the appointing authority under para (2), items 2 and 3 shall be final.
Art. 13. When a person is nominated for arbitrator, he/she shall disclose all circumstances which may give rise to reasonable doubts of his/her impartiality or independence. The arbitrator shall have this obligation after his/her appointment as well.
Art. 14. (1) An arbitrator may be challenged only if circumstances giving rise to reasonable doubts concerning his/her impartiality or independence exist or if he/she does not have the necessary qualification as agreed on by the parties.
(2) A party may challenge an arbitrator appointed by it or in whose appointment it participated only for reasons which the said party has become aware of after the appointment.
Art. 15. (1) The parties shall be free to agree on the procedure for challenge. They shall not exclude the application of art. 16.
(2) Failing such agreement, a challenge of an arbitrator may be made not later than 15 days after the party has become aware of the composition of the Arbitral Tribunal or after the party has become aware of the circumstances substantiating the challenge.
(3) The request for a challenge shall be made in writing to the Arbitral Tribunal, pointing out the grounds for it.
(4) The Arbitral Tribunal shall decide on the challenge, unless the concerned arbitrator withdraws from office or the other party agrees on the challenge.
Art. 16. (Amended in SG No.38 of 2001). (1) Amended in SG No. 59 of 1998, No. 59 of 2007). If the Arbitral Tribunal rejects the challenge, the party which made it may within a seven-day term from being notified of the rejection request from the Sofia City Court to decide on it. The Sofia City Court shall rule on the complaint in accordance with Chapter 21 “Appeal against Rulings” of the Civil Procedure Code and its decision shall be final.
(2) The Arbitral Tribunal may proceed with the hearing of the case and render an award on it in spite of the challenge and the complaint under para (1).
Art. 17. (1) When an arbitrator is unable to perform his/her duty or fails to act without justifiable reasons, his/her mandate shall terminate.
(2) (Amended – SG No. 59 of 1998). If in the cases of the above para (1) the arbitrator does not withdraw from office or the parties cannot agree on the termination of his/her mandate, each of the parties may request from the Sofia City Court to decide on the termination of the mandate. The decision of the Court shall be final.
Art. 18. When the mandate of an arbitrator is terminated, another arbitrator shall be appointed following the procedure for appointment of the arbitrator, whose mandate has terminated.
Chapter IV
JURISDICTION OF THE ARBITRAL TRIBUNAL
Art. 19. (1) An Arbitral Tribunal shall rule on its own jurisdiction even when the jurisdiction has been challenged on the grounds of nonexistence or invalidity of the respective arbitration agreement.
(2) arbitration agreement, included in a contract, shall be independent of its other provisions. The nullity of a contract shall not mean ipso facto invalidity of the arbitration agreement contained therein.
Art. 20. (1) The challenge of jurisdiction of the Arbitral Tribunal shall be made with the reply to the statement of claim at the latest. It may be made also by the party which appointed or participated in the appointment of an arbitrator
(2). If an issue exceeding the scope of jurisdiction of the Arbitral Tribunal is raised, the challenge of jurisdiction shall be made immediately.
(3) The Arbitral Tribunal may admit a challenge of jurisdiction even when made at a later date if there is a justifiable reason for the delay.
(4) The Arbitral Tribunal shall decide on the challenge under the above para (3) by a ruling or by the award on the case.
Art. 21. Unless otherwise agreed on by the parties, the Arbitral Tribunal may on a request of one of them order the other party to take appropriate measures for securing the rights of the petitioner. If such measures are admitted the Arbitral Tribunal may determine a guarantee which the petitioner shall produce.
Chapter V
ARBITRATION PROCEEDINGS
Art. 22. The parties in arbitration proceedings shall be equal. The Arbitral Tribunal shall give each of them the opportunity of defending its rights.
Art. 23. Unless otherwise agreed on by the parties, arbitration proceedings shall commence on the day of receipt of the request for arbitration by the respondent.
Art. 24. The parties may agree on the procedure to be followed by the Arbitral Tribunal in hearing of the case. Failing such agreement, the Arbitral Tribunal shall be free to conduct the proceedings in a way it considers appropriate. In both cases the Arbitral Tribunal shall provide each party an equal opportunity of defending its rights.
Art. 25. The parties may agree on the place of arbitration. Failing such agreement, the place of arbitration shall be determined by the Arbitral Tribunal, taking into consideration the circumstances related to the case and the convenience of the parties.
Art. 26. (Amended - SG No. 63 of 2025, in effect from 01.08.2025) When both parties have their seat, permanent address or habitual residence in the Republic of Bulgaria, except when one of them is an enterprise with predominant foreign participation, the arbitration proceedings shall be conducted in Bulgarian language. In other cases the parties may agree on the language or languages to be used during the arbitration proceedings. Failing such agreement, the language or languages shall be determined by the Arbitral Tribunal. The latter may order each piece of written evidence to be accompanied by a translation into the language or languages agreed on by the parties or determined by the Arbitral Tribunal.
Art. 27. (1) The statement of claim shall indicate the names and addresses of the parties, the facts supporting the claim, the relief or remedy sought and the amount claimed, while the written reply of the respondent shall set out his/her position on them.
(2) The statement of claim and the reply to it shall be submitted within a term agreed on by the parties or fixed by the Arbitral Tribunal.
(3) Along with the statement of claim and the reply the parties shall submit their written evidence and indicate other pieces of evidence to be submitted later.
Art. 28. The respondent may submit a counter claim along with the reply to the statement of claim at the latest.
Art. 29. Unless otherwise agreed on by the parties, each party may during the arbitration proceedings correct or supplement its claim or objection. The Arbitral Tribunal may not admit the correction if the Tribunal considers that it may create excessive difficulties for the other party .
Art. 30. (1) ( Former text of art. 30 – SG No. 63 of 2025, in effect from 01.08.2025) The parties may agree on the case to be resolved only on the basis of the written evidence and opinions, without being summoned to the hearings. The Arbitral Tribunal may order a hearing with the participation of the parties if found necessary for the adequate resolution of the case.
(2) (New – SG No. 63 of 2025, in effect from 01.08.2025) Unless otherwise agreed on between the parties, an arbitration hearing may be conducted via videoconference, if necessary. The arbitral tribunal shall regulate in its rules the procedure for conducting such a hearing.
(3) (New – SG No. 63 of 2025, in effect from 01.08.2025) The procedural actions and statements of the arbitrators, the parties, their representatives and the other participants in the proceedings shall be recorded in an appropriate manner that allows the storage and reproduction of the information.
Art. 31. (1) The parties shall in due time be notified of the arbitration hearing or of the actions of the Arbitral Tribunal concerning inspections and verification of documents, goods and chattels.
(2) (New – SG No. 8 of 2017) Each party shall be provided with the opportunity to check the proceedings remotely, including via the website of the arbitration court.
(3) (Former para 2. – SG No. 8 of 2017) Written evidence and statements, including reports of the experts shall be made available to the parties in due time.
Art. 32. (1) (New – SG No. 63 of 2025, in effect from 01.08.2025) The statement of claim and the evidence attached to it, the notice of scheduling the first arbitration hearing for the arbitration case and the rendered arbitration award shall be served on the respondent within the territory of the Republic of Bulgaria in one of the following ways in the specified sequence:
1. via a universal postal service for registered shipments or via courier services performed by a registered entity listed in the public register for non-universal postal services;
2. via a notary or a private bailiff, if the documents could not be served in the ways specified in item 1.
(2) (New – SG No. 63 of 2025, in effect from 01.08.2025) At the request of the claimant, service under para (1), item 2 may also be utilized in the initial sending of the specified papers, as well as for the service of other notifications and documents in the case, with the respective costs borne regardless of the outcome of the case.
(3) (New – SG No. 63 of 2025, in effect from 01.08.2025) The process server certifies with their signature the date and the way of service, the capacity of the person to whom the notification was served, as well as all actions in connection with an attempt to serve.
(4) (Former para (1), amended – SG No. 63 of 2025, in effect from 01.08.2025) If, after diligent search, the party cannot be located at their registered address or permanent and present address, or at the address indicated in the contract between the parties, the notice is considered to be received if the attempts to serve are certified by the process server.
(5) (Former para (2), amended – SG No. 63 of 2025, in effect from 01.08.2025) The notice is also deemed served if the recipient has refused to receive it, as well as when they have not appeared to receive it after an invite was left for that purpose. The process server certifies these circumstances in writing.
(6) (New – SG No. 63 of 2025, in effect from 01.08.2025) Para (4) and the second hypothesis of para (5) shall not apply to a party that is a natural person under art. 7, para (4), except where the party has already actually received the statement of claim or a previous notification in the way under para (1).
(7) (New – SG No. 63 of 2025, in effect from 01.08.2025) When attempts to serve the statement of claim or the notice of scheduling the first open arbitration hearing are unsuccessful, including via the ways under para (4) and (5), at the request of the claimant a new attempt to serve may be made within three months of the last attempt or the case shall be terminated at their request. If the case is terminated due to the impossibility of summoning the respondent to hearings, the claimant has the right to bring their claim before the competent court, while the statute of limitations is suspended during the terminated arbitration proceedings.
(8) (New – SG No. 63 of 2025, in effect from 01.08.2025) Based on the express written request of the parties, documents and notifications may also be sent to an electronic address specified by them. Regarding the respondent, this option may apply after their notification of the submitted claim in the ways under para (1).
Art. 33. The Arbitral Tribunal shall terminate the proceedings if the claimant fails to submit the statement of claim within the term, agreed on by the parties or set by the Tribunal. This provision, however, shall not apply if the failure is due to an justifiable reason.
Art. 34. The Arbitral Tribunal shall hear the case also if the respondent fails to submit a reply to the statement of claim. The absence of a reply shall not be treated as acceptance of the claim.
Art. 35. The Arbitral Tribunal shall continue with the proceedings and render its award on the basis of the evidence even if one or both parties fail to attend the hearing.
Art. 36. (1) The Arbitral Tribunal may appoint one or more experts to give their opinions for clarification of some issues requiring specific knowledge. The Tribunal may order the parties to submit to the experts the necessary information or to provide access for them for inspection of documents, goods and chattels, when necessary for drawing their reports.
(2) On request of any of the parties or on its own initiative the Arbitral Tribunal may order the expert, after submission of his/her report, to take part in the hearing and give clarifications. On requests of the parties, other experts may also be appointed to report on the issue under dispute.
Art. 37. The Arbitral Tribunal or the interested party with the approval of the Tribunal may request from the competent state court to collect certain evidence necessary for the case. The state court shall be bound to fulfill the request according to the provisions of the Civil Procedure Code.
Chapter VI
RENDERING AN AWARD AND TERMINATION OF PROCEEDINGS
Art. 38. (1) The Arbitral Tribunal shall resolve the dispute applying the law chosen by the parties. Unless otherwise agreed on, the choice of law shall concern substantive law and not rules of conflict of laws.
(2) If the parties have not designated the applicable law, the Arbitral Tribunal shall apply the law indicated by the rules of conflict of laws which the Tribunal considers applicable.
(3) In any case the Arbitral Tribunal shall apply the provisions of the contract, taking into account the trade usages as well.
(4) The arbitral award shall be final and put an end to the dispute.
Art. 39. (1) When the arbitrators are more than one, unless otherwise agreed on by the parties, the award shall be made by a majority vote. An arbitrator who disagrees with the award shall state his/her dissenting opinion in writing.
(2) If a majority decision cannot be reached, the award shall be made by the presiding arbitrator.
Art. 40. If the parties reach a settlement the proceedings shall be terminated. They may request from the Arbitral Tribunal to reproduce the settlement in an award by consent. Such an award shall have the force of an award on the merits of the case.
Art. 41. (1) The award shall be reasoned, unless otherwise agreed on by the parties or issued under a settlement on agreed terms. It shall indicate the date and place of the arbitration proceedings.
(2) The award shall be signed by the sole arbitrator or the arbitrators. In case of arbitration proceedings with more than one arbitrator, the signatures of the majority of the members of the Arbitral Tribunal shall suffice, provided those who signed the award have indicated the reason for the missing signature.
(3) (Amended – SG No. 93 of 1993, No. 63 of 2025, in effect from 03.03.2026). The award shall be declared upon its publication in the electronic file of the case, and when it is rendered by an arbitration established to resolve a specific dispute, or by a permanent arbitration institution with its seat outside the territory of the Republic of Bulgaria – in the Register under art. 6a. The award, signed by the arbitrators, shall be served on the parties. After its delivery to both parties it comes into effect and is subject to enforcement.
Art. 42. The Arbitral Tribunal shall terminate the case by a ruling when:
1. the claimant withdraws his/her claim, unless the respondent objects to that and the Arbitral Tribunal establishes that the respondent has a legitimate interest in the rendering of an award;
2. the parties agree on termination of the proceedings;
3. the Arbitral Tribunal establishes the existence of an obstacle for hearing the case on its merits.
Art. 43. (1) On the request of any of the parties or on its own initiative the Arbitral Tribunal may correct the award regarding the calculation, spelling or any other obvious factual error. The other party shall be informed about the requested correction either by the requesting party or by the Arbitral Tribunal, if acting on its own initiative.
(2) Each party, after informing the other one, may request the Arbitral Tribunal for interpretation of the award.
(3) The request for correction or interpretation shall be made within 60 days from the date of receipt of the award, unless the parties agreed on another term for it. When the Arbitral Tribunal is acting on its own initiative, it shall make the correction within 60 days from the date of rendering the award.
(4) Regarding the correction and the interpretation of the award, the Arbitral Tribunal shall hear the parties or give them the possibility of submitting their written opinions within a term prescribed by the Tribunal. The latter shall decide on the correction or the interpretation within 30 days from the date of the request. The decision on these issues shall be made in compliance with art. 39 and art.41 above. The correction and the interpretation shall become a part of the award.
Art. 44. On a request of the parties, the Arbitral Tribunal may render an additional award on claims omitted in the award. The party which requests the additional award shall inform the other party about the request made by it within 30 days from the date of receipt of the award. When the request is grounded, the Arbitral Tribunal shall render an additional award within 60 days in compliance with the provisions of art. 43, para (4).
Art. 45. The Arbitral Tribunal may extend the term related to the correction, interpretation and addition to the award.
Art. 46. The powers of the Arbitral Tribunal shall end with the conclusion of the arbitration proceedings, except in the cases related to art. 43 and art. 44 above.
Art. 46а. (New – SG No. 8 of 2017) (1) (Former text of art. 46а, amended – SG No. 63 of 2025, in effect from 01.08.2025) Any arbitration court shall keep administrative records and archives.
(2) (New – SG No. 63 of 2025, in effect from 03.03.2026) The administrative records provide information on arbitration cases from their initiation until their transfer to the archives. The administrative records must also be maintained in electronic form, with an electronic file established for each case. Access to the electronic file is provided to the parties, to the arbitrators appointed or designated to consider and resolve the case, to the court, to the Minister of Justice, and to the Inspectorate under the Minister of Justice in accordance with the Judiciary Act.
(3) (New – SG No. 63 of 2025, in effect from 03.03.2026) The archive records contain the files of the closed cases for a period of 10 years from completion of the proceedings. After the expiry of this term, the awards and the reasons thereof, as well as the concluded settlements shall be kept for a period of 50 years.
Chapter VII
SETTING ASIDE, RECOGNITION AND ENFORCEMENT OF THE AWARD
Art. 47. (Изм. - ДВ, бр. 93 от 1993 г., изм. и доп., бр. 38 от 2001 г., изм., бр. 46 от 2002 г.) (Amended – SG No. 93 of 1993, amended and supplemented – SG No. 38 of 2001, amended – SG No. 46 of 2002) (1) (Former text of art. 47, amended – SG No. 8 of 2017) The arbitration award may be set aside by the Supreme Court of Cassation if the party requesting the setting aside proves any of the following grounds:
1. the party has been incapable at the conclusion of the arbitration agreement;
2. (Amended – SG No. 63 of 2025, in effect from 01.08.2025) no arbitration agreement has been concluded or it has been null and void according to this Act or according another law chosen by the parties for international arbitration cases.;
3. (Repealed – SG No. 8 of 2017, new – SG No. 63 of 2025, in effect from 01.08.2025) the arbitration award is contrary to public order in the Republic of Bulgaria;
4. the party has not been duly notified of the appointment of an arbitrator or of the arbitration proceeding or has been unable to take part in the proceeding; owing to causes beyond its control;
5. the award has resolved a dispute not provided for in the arbitration agreement or contains a ruling outside the subject of the dispute;
6. the composition of the Arbitral Tribunal or of the arbitration procedure has not been in compliance with the agreement between the parties, unless the said agreement has been in conflict with the mandatory provisions of this Act or failing such agreement – when the provisions of this Act have not been applied.
(2) (New – SG No. 8 of 2017, amended – SG No. 63 of 2025, in effect from 3.03.2026) The arbitration award shall be null and void when issued:
1. by an arbitration not registered in the Register under art. 6а;
2. by an arbitrator not registered in the Register under art. 6а in the cases under art. 6b, para (1), item 5 or under art. 6c, para (2) and (3);
3. on disputes the subject of which is not arbitrable.
(3) (New – SG No. 63 of 2025, in effect from 1.08.2025) Except in the cases under para (1), the arbitration award may be annulled by the Supreme Court of Cassation when the falsity of a document, of a witness's testimony, of an expert's conclusion, upon which the award was based, or a criminal act by the party, their representative, a member of the arbitration panel, or its employee in connection with the proceedings on the case, is established via the appropriate judicial process.
Art. 48. (1) A request for setting aside may be made within 3 months from the day on which the requesting party received the award. When a request for correction, interpretation or addition to the award has been made, the term shall be effective from the day when the Arbitral Tribunal decides on that request.
(2) (New – SG No. 63 of 2025, in effect from 1.08.2025) In the cases under art. 47, para (3), a claim for annulment shall be filed within three months from the day the judgment or the decision on a claim under art. 124, para (4) or (5) of the Civil Procedure Code comes into effect.
(3) New – SG No. 63 of 2025, in effect from 1.08.2025) A claim for establishing the nullity of an arbitration award can be filed by the parties and their successors before the Supreme Court of Cassation without time limitation. When the court is seized with a claim for annulment under art. 47, para (1) or (3), it also shall deliberate on the nullity of the decision even without a request for this.
(4) (Amended – SG No. 59 of 1998, SG No. 38 of 2001, SG No. 46 of 2002, former para (2), amended – SG No. 63 of 2025, in effect from 1.08.2025) Stay of execution of an arbitration award as a provisional remedy to actions under art. 47 shall be admitted by the Supreme Court of Cassation against a guarantee of the amount equal to the interest from setting aside the arbitration award. The Supreme Court of Cassation may suspend enforcement even without security when conclusive written evidence exists for the respective ground for annulment. The security granted under art. 9 and the actions taken by a bailiff until the suspension of enforcement shall be preserved.
(5) (New – SG No. 93 of 1993, repealed in No. 38 of 2001, new in No. 46 of 2002, amended in No. 59 of 2007, former para (3), amended – SG No. 63 of 2025, in effect from 1.08.2025). The amount of the state fee for hearing claims under art. 47 of this Act shall be determined by a tariff of the Council of Ministers.
Art. 49. (Repealed – SG No. 93 of 1992, new in SG No. 38 of 2001, amended in SG No. 8 of 2017) (1) (Former text of art. 49, amended – SG No. 63 of 2025, in effect from 01.08.2025) If the Supreme Court of Cassation by a decision in force sets aside an arbitration award on some of the grounds of art. 47, para (1), items 1 and 2, the interested party may bring an action on the dispute before the competent court. When the arbitral award has been set aside on some of the grounds of art. 47, para (1), items 3, 4, 5 and 6 or para (3), the state court shall return the case to the arbitration court for a new hearing, as each of the parties may request the case to be heard by other arbitrators. If the arbitration award is declared null and void on any of the grounds under art. 47, para (2), the interested party may refer the dispute for consideration by the competent court.
(2) (New – SG No. 63 of 2025, in effect from 03.12.2025) The Supreme Court of Cassation refers to the Minister of Justice an electronic copy of each of its decisions declaring an arbitration award null and void or reversing it.
Art. 50. (Abrogated – SG No. 93 of 1993).
Art. 51. (Amended – SG No. 93 of 1993) (1) (Amended – SG No. 8 of 2017, supplemented – SG No. of 2025, in effect from 03.03.2026) The District Court in the region of which the domicile or legal seat of the debtor party is, on a request of the interested party shall issue a writ of execution based on the arbitration award in force and announced. A copy of the arbitration award and evidence of the award being served on the debtor party of the execution shall be attached to the request. When the debtor does not have a permanent address or a seat within the territory of the Republic of Bulgaria, a writ of execution based on the arbitration award in force is issued by the Sofia City Court.
(2) (New – SG No. 63 of 2025, in effect from 3.03.2026) The district court shall conduct an ex officio inspection of the Register under Art. 6a and the electronic file of the case to verify the circumstances under art. 41, para (3) and art. 47, para (2), as well as whether the decision is duly served on the debtor.
(3) (New – SG No. 38 of 2001, amended in No. 59 of 2007, abrogated, new – SG No. 63 of 2025, in effect from 03.03.2026) An electronic copy of the order by which the court refuses to issue a writ of execution based on an arbitration award shall be sent to the Minister of Justice.
(4) (Former para (2), supplemented – SG No. 63 of 2025, in effect from 01.08.2025) The international treaties, to which the Republic of Bulgaria has been a party, shall apply for recognition and enforcement of foreign arbitration awards, and the claim shall be submitted before the Sofia City Court.
Chapter VIII
(New – SG No. 8 of 2017)
CONTROL AND ADMINISTRATIVE LIABILITY
(The heading amended – SG No. 63 of 2025, in effect from 01.08.2025)
Art. 52. (New – SG No. 8 of 2017) (1) The Minister of Justice shall exercise control over the observance of this Act by the arbitration court and the arbitrators by the Inspectorate under the Minister of Justice in accordance with the Judiciary Act.
(2) (Supplemented - SG No. 63 of 2025, in effect from 03.03.2026) The control shall be exercised by means of inspection assigned with order of the Minister of Justice ex officio or in connection with a signal or complaint raised by an interested party. The order of the Minister of Justice shall specify the arbitration court, respectively the arbitrators, which are subject to control, the inspectors to which the control has been assigned, time frame for carrying out the inspection, and the period that shall be covered by the inspection, as well as other circumstances. For conducting the checks, each arbitration court shall provide permanent official access to the Inspectorate under the Minister of Justice in accordance with the Judiciary Act to the electronic archive of all pending and concluded cases.
(3) The President of the arbitration court shall provide free access to the office premises and to the official records of the court for conducting the inspection assigned by the Minister of Justice.
(4) A protocol shall be drawn up on the inspection findings.
(5) The Minister of Justice may issue mandatory instructions to the arbitration court and the arbitrators with a specified term to remedy the established violations of the provisions of this Act.
(6) (New – SG No. 63 of 2025, in effect from 03.03.2026) The Minister of Justice may order the deletion of an arbitration from the Register of Arbitrations under art. 6a in cases of systematic serious violations of this Act by arbitrators or when the entity under which the arbitration was established does not maintain the conditions for establishing an arbitration under art. 4, para (3) or art. 46a. The Minister of Justice shall issue a reasoned decision, which is subject to appeal pursuant to the Administrative Procedure Code.
Art. 53. (New – SG No. 8 of 2017) (1) (Amended – SG No. 63 of 2025, in effect from 01.08.2025) An arbitrator who issues an award for a dispute that cannot be considered by arbitration within the meaning of art. 19, para (1) of Civil Procedure Code, and the decision is declared null on this basis by the Sofia City Court, shall be sanctioned by a fine of BGN 1000 to 5000. A pecuniary sanction of BGN 5000 to 25000 shall be imposed on the arbitration court, respectively the legal entity to which it is established.
(2) (New – SG No. 63 of 2025, in effect from 03.03.2026) An arbitrator who issues an award and is not registered in the Register under art. 6a in accordance with art. 6b, para (1), item 5 or para (2) and (3), shall be sanctioned by a fine of BGN 1000 to 10000. A pecuniary sanction of BGN 5000 to 50000 shall be imposed on the legal entity with its seat in the Republic of Bulgaria, to which the arbitration is established.
(3) (New – SG No. 63 of 2025, in effect from 03.03.2026) When an arbitration does not meet the requirements under art. 46a or art. 51, para (2), A pecuniary sanction of BGN 5000 to 50000 shall be imposed on the legal entity with its seat in the Republic of Bulgaria, to which the arbitration is established.
(4) (Former para (2), amended - SG No. 63 of 2025, in effect from 01.08.2025) In case of a second violation the fines, respectively the pecuniary sanctions under para (1) - (3) shall be in triple size.
(5) (Former para (3), amended - SG No. 63 of 2025, in effect from 01.08.2025) An arbitrator or a legal entity which does not comply with the mandatory instructions under art. 52, para (5), shall be sanctioned by a fine or pecuniary sanction of BGN 2500.
Art. 54. (New – SG No. 8 of 2017) (1) The act establishing the presence of an administrative violation under art. 53 shall be drawn up by the inspectors under art. 52, para (2), and the penal decree shall be issued by the Minister of Justice.
(2) The acts for establishment of the presence of violations shall be drawn up and the penal decrees shall be issued, appealed and enforced under the conditions and in pursuance of the procedure of the Administrative Violations and Sanctions Act.
ADDITONAL PROVISIONS
(New – SG No. 93 of 1993, The heading amended – SG No. 63 of 2025, in effect from 01.08.2025)
§ 1. In art. 1, para (1) and (2), art. 11, para (2), art. 47, para (2), art. 49, para (2) and art. 50, para (2) the words “National Republic of Bulgaria” shall be replaced with “the Republic of Bulgaria".
§ 1а. (New – SG No. 63 of 2025, in effect from 01.08.2025) Within the meaning of this law:
1. "International Arbitration" is an arbitration based in the Republic of Bulgaria when one of the parties has a permanent address, habitual residence, registered office, or actual management location outside the territory of the Republic of Bulgaria.
2. "Commercial dispute" is a dispute under art. 365, items 1-3 of the Civil Procedure Code.
3. "Videoconference" is a communication connection through a technical means for simultaneous transmission and reception of image and sound between participants in the process situated in different locations, allowing recording and storing information on an electronic medium .
4. "Process server" is a notary, bailiff, courier or postal officer, via which the arbitration sends papers and notifications to the parties.
5. "Entrepreneur" is a person under art. 760а of the Commerce Act.
6. "Second" is the violation committed within one year of the entry into force of a penal decree by which the person was punished for the same type of violation.
7. "Systematic violation" occurs when three or more violations of the law are committed within a year.
8. "Gross" is a violation which is a ground for nullity or for setting aside an arbitration award under art. 47, para (1), item 1-4 or para (3).
TRANSITIONAL AND FINAL PROVISIONS
(The heading, amended - SG No. 93 of 1993)
§ 2. (Former § 1, amended – SG No. 93 of 1993) In the Civil Procedure Code (promulgated in Izvestia No. 12 of 1952, amended and supplemented - No. 92 of 1952, No. 89 of 1953, No. 90 of 1955, No. 90 of 1956, No. 90 of 1958, No. 50 and 90 of 1961; amended – No. 99 of 1961; amended and supplemented – SG No. 1 of 1963, No. 23 of 1968, No. 27 of 1973, No. 89 of 1976, No. 36 of 1979, No. 28 of 1983, No. 41 of 1985, No. 27 of 1986, No. 55 of 1987, No. 60 of 1988, No. 31 and 38 of 1989, No. 31 of 1990, No. 62 of 1991, No. 55 of 1992,No. 61 of 1993) in art. 237, “a” and art. 242, para 2 the words “the Arbitration Court at the Bulgarian Chamber of Commerce and Industry and the settlements concluded before it, when the arbitration is obligatory” shall be substituted by “the arbitral tribunals and the settlements concluded before them in arbitration proceedings”.
§ 3. (New – SG No. 93 of 1993, amended and supplemented SG No. 38 of 2001, abrogated - SG No. 63 of 2025, in effect from 01.08.2025).
§ 4. (New – SG No. 93 of 1993) This Act shall apply to pending arbitration cases. It shall also apply to the arbitration awards rendered before its adoption if they have not been fulfilled but the term for request for setting aside of these awards, provided for by art. 48, para (1) shall become effective from the day of entry into force of this Act.
§ 5. (New – SG No. 93 of 1993) Article 98 of Decree No. 56 on the Economic Activity (promulgated in SG No. 4 of 1989, amended in No. 16 of 1989, amended and supplemented in Nos. 38, 39 and 62 of 1989, Nos. 21, 31 and 101 of 1990, Nos. 15 and 23 of 1991, amended in No. 25 of 1991, amended in Nos. 47, 48 and 62 of 1991, No. 60 of 1992, No. 84 of 1993) shall be abrogated.
§ 6. (Former § 2, amended – SG No. 93 of 1993) The implementation of this Act shall be entrusted to the Minister of Justice.
TRANSITIONAL PROVISIONS
(Law on Amendment and Supplementation of the Law on Foreign Commercial Arbitration, SG No. 38 of 2001)
§ 8. Paragraph 2 of this Law shall apply also to pending cases before the Arbitral Tribunals and to appeals before the Sofia City Court.
§ 9. Paragraphs 4 and 5 of this Law shall apply to existing arbitration awards and pending cases for their setting aside. The claimant may transform his/her request for annulment of the arbitration award into a request for its setting aside according to art. 47, while the new para (3) of art. 51 shall also apply to pending proceedings for recognition and admission of execution of foreign arbitration awards.
TRANSITIONAL PROVISION
(Law on Amendment and Supplementation of the Law on Foreign Commercial Arbitration, SG. No. 46 of 2002, Decision No. 9 of the Constitutional Court of the Republic of Bulgaria, SG, No 102 of 2002)
§ 3. (1) (Declared unconstitutional by the Constitutional Court of the Republic of Bulgaria with regard to the words “lifts the imposed security measures”, SG. No. 102 of 2002). Articles 47 and 48 shall apply to the pending proceedings for setting aside of arbitration awards. In these cases Sofia City Court within two weeks of the entry into force of this Law shall terminate the proceedings pending before it, shall lift the ordered remedial measures and send the case to the Supreme Court of Cassation.
(2) When there is a court decision made by the court of the first or the second instance on the existing proceedings under art. 47, the proceedings shall continue following the abrogated procedure.
TRANSITIONAL AND FINAL PROVISIONS
(Law on Amendment and Supplementation of the Law on Foreign Commercial Arbitration, SG No. 63 of 2025, in effect from 01.08.2025)
§ 23. Within 4 months of the publication of this Act in the State Gazette:
1. The Council of Ministers shall adopt the amendments and supplementations of Tariff No. 1 for State Fees collected by the courts, the prosecutor's office, the investigative services and the Ministry of Justice of 1992 (Published in the State Gazette No. 71 of 1992; amended - SG No. 92 of 1992, No. 32 and 64 of 1993, No. 45 and 61 of 1994, No. 15 of 1996, No. 2, 28 and 36 of 1997, No. 20, 24 and 95 of 1998, No. 14 of 2000; Decision No. 798 of the Supreme Administrative Court of 2001 – SG No. 19 of 2001; amended - SG No. 89 of 2001, No. 83 of 2002, No. 66 of 2003; Decision No. 295 of the Supreme Administrative Court of 2004 – SG No. 6 of 2004; amended - SG No. 69 of 2004, No. 94 of 2005, No. 35, 75 and 105 of 2006., No. 75 of 2007, No. 22 of 2008, No. 39 and 77 of 2009, No. 30 of 2011, No. 98 of 2012, No. 88 of 2013, No. 35 of 2017, No. 20 of 2022, No. 63 of 2023, No. 25 of 2024. and No. 34 and 52 of 2025), according to this Act.
2. The Council of Ministers shall adopt the amendments and supplementations of Tariff for State Fees collected by the courts according to the Civil Procedure Code, of 2008 (Published in the State Gazette No. 22 of 2008; amended - SG No. 50 of 2008, No. 24 of 2013 and No. 35 of 2017).
3. the Minister of Justice shall issue the regulation under art. 6a, para (5) and shall establish the Register under art. 6а.
§ 24. (In effect from 03.12.2025 - SG No. 63 of 2025) Persons engaged in arbitration activities as a permanent institution within the territory of the Republic of Bulgaria, shall adjust their activities into compliance with the requirements of this Act and apply for registration in the Register under art. 6а within three months of its establishment.
§ 25. Pending arbitration cases as of the date when the law comes into force, including those formed for resolving a specific dispute in deviation from art. 4, para (2), shall be concluded while adhering to the requirements of this law. Registration under Chapter 1 “a” shall occur before the date of the issuance of the arbitration award.
§ 26. A claim for nullity of an award rendered before the entry into force of this law may be filed up within the terms under art. 48, para (1) and only on the grounds provided in the law at the time of the award's rendering.
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§ 33. The law shall come into effect on the day of its publication in the "State Gazette", with the exception of:
1. paragraphs 4, 5, § 7, item 4 (regarding para (6) of art. 11), § 16, item 2 и § 24, which come into effect within 4 months of the publication of this law in the “State Gazette”;
2. paragraphs 12, § 13, item 2, § 14, item 2, § 17, item 1, letter "а" и item 2, § 19, § 20, item 2 and § 27, which come into effect within 7 months of the publication of this law in the “State Gazette”.
[1] An authorized signatory is a person authorized and entrusted by a trader to manage the enterprise, with the authorization being registered in the Commercial Register