Doing Business In... 2026 Comparisons

The Bulgarian legal system belongs to the continental (civil) law tradition. The most significant distinction between the legal system of Bulgaria and those of other common-law jurisdictions is the absence of a doctrine of binding judicial precedent. This means that, in the event of a dispute brought before a court, the court is not legally bound by previous judicial decisions rendered in identical or similar cases. While courts may take existing case law into consideration, they are under no obligation to follow it.

Bulgaria follows the principle of separation of power among the branches of government with judicial power comprising the courts, the prosecution service, and the investigative authorities.

Judicial proceedings are generally subject to a three-tier court system, as follows:

• District court – acts as the court of first instance for cases with a monetary value (generally) below EUR12,500.
• Regional court – acts as an appellate court for the district court, or as the court of first instance for cases with a monetary value (generally) over EUR12,500.
• Court of Appeal – acts as an appellate court in cases where the regional court has acted as the court of first instance in higher-value disputes.
• Supreme Court of Cassation – the highest judicial authority exercising supervisory jurisdiction to ensure the uniform and correct application of the law.

In certain cases, judicial proceedings are limited to two instances: (i) claims with a value not exceeding approximately EUR2,500; and (ii) administrative cases. Administrative disputes are adjudicated within a separate two-tier system of administrative courts, structured as follows:

• administrative court – as first-instance court; and
• supreme administrative court – the highest judicial authority in administrative matters.

For businesses, disputes may also be resolved outside the state court system through arbitration. However, arbitration is available only where the parties have expressly agreed to submit their disputes to arbitration. The parties enjoy substantial procedural autonomy, determining (i) the rules governing the arbitration proceedings; (ii) the procedural framework itself; and (iii) the applicable law.

Court proceedings may occasionally be prolonged. However, where the parties co-operate effectively with the court, disputes can often be resolved within a relatively short timeframe.

Foreign investment in Bulgaria can fall in a specific approval regime, including Foreign Direct Investment Screening (FDI Screening) under Regulation (EU) 2019/452.

FDI Screening became operational in Bulgaria in July 2025, through the Bulgarian Investment Promotion Act (BIPA), which enforces that, in some cases, investors’ endeavours need to undergo prior approval.

An investment must undergo FDI screening when the following conditions under BIPA are met.

• The investor must qualify as a “foreign investor” by being:
1. a non-EU individual and legal entity established outside the EU; or
2. an EU-based entity that is directly or indirectly controlled by a non-EU person or that acts on behalf of a non-EU person in relation to the investment; and
• the transaction must qualify as a “foreign direct investment”, ie:
1. be an investment that establishes or maintains lasting and direct links between the investor and a Bulgarian enterprise, not just a “one time” deal with no actual after-effect on the economy; or
2. be an expansion of an existing investment, eg, by increasing production capacity, diversifying production, or establishing a new place of business; and
• it must fall within sectors or activities that may affect security or public order, eg:
1. critical infrastructure, whether physical or virtual, including energy, transport, water, etc; or
2. critical technologies and dual-use items including, artificial intelligence, etc; or
3. supply of critical inputs, including energy or raw materials, as well as food security; or
4. access to sensitive information, including personal data, or the ability to control such information; or
5. the freedom and pluralism of the media; and
• at least one of the following quantitative or structural thresholds must be met:
1. the investment results in the acquisition of at least 10% of the capital of a company operating in Bulgaria, or the value of the investment exceeds EUR2 million; and/or
2. the investment results in the acquisition of at least 10% of the capital of a Bulgarian undertaking that performs hi-tech activities, regardless of the investment amount; and/or
3. the investment qualifies as a “new investment” (eg, establishment of a new enterprise, greenfield-related expansion of an existing enterprise, diversification of production, or a major change in production processes, and the amount of the investment exceeds EUR2 million).

FDI screening may still be triggered in certain special circumstances even where the thresholds are not met, such as for investments:

• from Russia or Belarus; or
• relating to critical oil-related infrastructure; or
• cases where national security authorities request or propose screening due to potential security concerns.

Some investors, such as those from countries that are part of the EU or the European Economic Area, enjoy a more favourable regime and are treated as low risk.

If the above criteria are met, the investor should file an application and supporting documents at the Bulgarian Investment Agency, being the point of contact for the matter.

The application is reviewed by the Interagency Screening Council (ISC) at the Bulgarian Council of Ministers in a statutory 45 calendar-day period (extendable once by up to 30 days).

The ISC may either:

• approve the investment;
• initiate a comprehensive review; or
• reject the approval altogether.

What happens if the investment is rejected? In the case of a rejection, the investment is prohibited because it is considered to pose a risk to national security or public order.

Depending on the timing of the rejection, if it is issued:

• before the transaction is finalised – then the transaction cannot be legally finished and is not binding; or
• after the transaction is finalised – then the authorities may order measures to unwind or neutralise the investment.

In the case of non-compliance in the procedure (eg, by providing inaccurate and/or misleading information), the investor can be subject to a fine of 5% of the investment value (but no less than approximately EUR25,500), and additional restrictions may be imposed to ensure public order and national security.

The Bulgarian FDI screening regime expressly allows the competent authority to approve a transaction subject to some conditions (commitments) where risks are identified but can be adequately managed.

Although BIPA does not provide an exhaustive list of the types of commitments, these can include:

• governance and control commitments –
1. restrictions on the percentage of shares that may be acquired; and/or
2. certain strategic decisions remain subject to approval by Bulgarian-resident directors; and
• information and data security commitments –
1. data localisation to be done within Bulgaria or the EU; and/or
2. restrictions will be imposed on cross-border data transfers, etc.

The authority’s decision can be challenged by the investor before the Bulgarian administrative court in cases of:

• a refusal;
• challenging the conditions imposed by the authority; and
• certain procedural irregularities affecting the review process, as a fair procedure is guaranteed for all.

The scope of the legal challenge here lies in proving and providing evidence that there are no risks to national security or public order, or that they can be adequately mitigated.

Even though the courts are usually deferential on national security assessments, placing them above all else, they can annul unlawful or insufficiently reasoned decisions.

While Bulgarian legislation provides for several forms of legal entities, the most common types of corporate vehicles are:

• the limited liability company (LLC);
• the joint stock company (JSC); and
• the newly implemented variable capital company (VCC).

Limited Liability Company (LLC)

Best use scenario:

• small-to-medium enterprises;
• family-owned businesses; and
• project companies involving a single holding parent company.

When to avoid:

• for investment capital endeavours;
• for heavily regulated business activity and licensing; and
• for project companies when more participants are involved.

The LLC was the conservative “go-to” option for most small and medium-sized enterprises. This was mainly for lack of a better option in the past, and is now a tradition, regardless of its faults.

An LLC is a capital corporate form consisting of the traditional: (i) decision-making body (a general meeting (GM) of shareholders/a sole owner); and (ii) an executive management body (be it singular or collective).

The shareholders’ liability is limited to the extent of paying in the amount for subscribing to shares in the capital. After that, shareholders are practically free from monetary liabilities – after the LLC is fully incorporated, it becomes liable for each and all relations it is a party to, living its separate corporate life.

The minimum number of shareholders for an LLC is practically one, with a minimum capital amount of EUR1, while each share cannot be less than EUR0.01. In the case of several shareholders, comprising a GM, internal rules for decision-making are adopted in the form of the articles of association (AoA), which become public when the LLC is established. Major decisions are made via convening a general meeting (GM) and voting. Structural decisions require a shareholders’ majority of three quarters of the capital, while other topics usually require 50% + 1 vote for validity. Shareholders can additionally sign an internal shareholders’ agreement to arrange for other topics like task distribution, deliverables, etc.

What to watch out for:

Although this is the most common form, its old legal framework and operative issues make it less than ideal for a big business and this can often lead to a deadlock situation, such as:

• participation of new shareholders (investors) is dependent on the other shareholders’ confirmation, making it uncertain and remedied only by internally imposed penalties;
• share transfers require a special form of notarisation in Bulgaria (or legalisation procedures for foreign notarisations) and subsequent filings at the registry;
• deals concluded by management without the respective GM authorisation are still considered valid and binding for the company, creating risk of unauthorised and damaging deals; and
• inheritance of shareholding is largely dependent on the confirmation of the other shareholders, which can leave the heirs of founders out of the company.

Joint Stock Company (JSC)

Best use scenario:

• big enterprises with IPO perspectives;
• public companies in large industries;
• project holding companies; and
• for a specialised/licensed activity – banking, insurance, etc.

When to avoid:

• for small enterprises or low starting funds; and
• when the aim is flexibility in management and speed of decision-making over structure.

The JSC remains the most well-regulated (but constrictive and slow-to-use) option for big businesses and IPO endeavours. In some cases, this is the only option for public companies and specialised enterprises (eg, banks).

Its corporate structure includes a GM as the decisions-making body and a board of directors in a one-tier system; or a GM as the decisions-making body and a management board and supervisory board in a two-tier system. The management tier system is freely chosen upon incorporation.

The minimum number of shareholders is one, but the minimum capital is in the amount of EUR25,000 making the entry point a bit higher to reach. Specialised enterprises (pension funds, insurance companies, hospitals, banks, etc) need starting capital of at least EUR4–5 million.

Shares in the JSC can be either registered (materialised, hard copy) or dematerialised (virtual, kept at a specialised authority, eg, a central depository). Shares can also be issued in different classes, with different rights and obligations assigned to each class – like a voting veto or extra dividends. Shareholding must be duly reflected in the shareholders’ book, making it a central document on calculating majority rights for voting. Pre-emptive rights, like right of first refusal (RoFR), drag along, tag along, etc, if implemented, must be fully described in the company’s AoA.

What to watch out for:

The JSC offers a mix of pros and cons, such as:

• a simple share-transfer form, not needing a notary, but RoFR restrictions may apply and the shareholder’s book entry is subject to the executive director’s support;
• the management body must be a collective (at least three persons), which is safer for decision-making, but not ideal for fast decisions;
• depending on the types of shares, dematerialised shares make the JSC eligible for IPO and stock-market participation, but the shareholders will always be dependent on an investment broker to accommodate the transaction; and
• reporting standards are higher, with the necessity of a third-party audit over financial reports, making running costs higher.

Variable Capital Company (VCC)

Best use scenario:

• a start-up;
• for venture capital participation with several investment rounds;
• for fintech, or other fast-growing industries where the product is key; and
• where flexibility on management and control is required.

When to avoid:

• when an LLC/JSC is needed to meet statutory requirements;
• for an IPO listing – the company must first be transformed into a JSC; and
• for small-to-medium and family-owned businesses, where an LLC works better.

The VCC’s aim is to service the start-up scene, offering a mix of both LLC and JSC characteristics. Venture companies, start-ups and scalable enterprises are the intended target for this legal form. The capital, being labelled as “variable”, is not fixed but always changing, with a view to constant growth because of investments.

The VCC has only been in use since 2025 and Bulgarian business is still somewhat hesitant to engage, as better understanding of corporate and financial affairs is required.

The emphasis in the VCC is on speed, servicing the market and flexibility. The AoA of the VCC can be “moulded” to best suit the needs of the shareholder while, of course, remaining within the confines of the law.

Intended only as a “start-up” vehicle, there are two thresholds at which the VCC should be transformed either into an LLC or JSC:

• when the annual turnover (or assets) exceed approximately EUR2,050,000; and
• when there are more than 50 persons on the staff.

The minimum number of shareholders is again one. There is no explicit minimum starting capital stated in the law, and no requirement for opening a bank account to begin with. As with other corporate entities, however, the single share amount should not be less than EUR0.01.

No shareholders will be visible in the Commercial Register; only the management body is.

The VCC uses the conveniences of the other corporate forms in:

• low starting costs (like an LLC);
• choosing the best management approach – either singular, board (as in a JSC) or a mix;
• avoiding notary certifications of share transfers and implementing a shareholders’ book (like a JSC); and
• vesting, employee stock ownership plans (ESOPs) and other employee incentives.

What to watch out for:

• loss of controlling rights on the part of the founder(s) when investors buy in;
• passing both statutory thresholds (staff number and EUR2,050,000 annual turnover/assets); and
• maintaining proper vesting policies for staff and executive members.

LLCs

LLC incorporation can take between a week and 1.5 months depending on several factors.

The LLC’s incorporation consists of:

• signing several documents (resolutions, AoA, statutory declaration);
• opening a bank account at a Bulgarian bank to pay in capital; and
• filing and review at the Commercial Register (CR).

The main delay comes with the bank, as all company-related participants must satisfy statutory know-your-customer (KYC) requirements, which can sometimes take up to three weeks, even when the prep work is done beforehand.

After that, all documents are filed at the CR for review, which takes around two business days.

JSCs

The timing is similar with a JSC, but with caveats in case of licensed activity.

JSC establishment requirements are similar to those of LLCs, including the need for a capital bank account.

Where specific activities (banking, insurance, etc) are practised, the respective licensing is required, which can take up to six months, depending on the regulator.

VCCs

VCC incorporation is the fastest.

Since there is no formal requirement for a bank account to pay the capital into, the establishment of a VCC depends mostly on document preparation and filing at the CR, which takes approximately two business days.

The preparation required in finding the best solutions to implement in the AoA is the more difficult and time-consuming task.

All Companies

All company forms must follow basic corporate housekeeping.

Any changes in structure must be filed at the CR, for example, changes:

• in the company’s name or address;
• to the AoA;
• to the capital;
• to the shareholders; and
• in management.

Additionally, companies must file the name of their ultimate beneficiary under the local anti-money laundering legislation, especially when foreign companies participate.

Each company must file its approved annual financial report and, in some cases, this must be audited.

All of the above are applicable to LLCs, while JSCs and VCCs have extra obligations.

JSCs

JSCs are subject to higher reporting standards and must, in most cases, present third-party audited reports.

Internally, the management body undertakes to provide timely reporting on operational matters when requested by the GM (and/or the supervisory board in a two-tier system).

In the case of a licensed activity being carried out, the regulators usually require more frequent reporting and can carry out activity inspections.

VCCs

VCCs borrow the best practices from JSCs, but require “bullet-proof” accounting.

The accounting team, engaged in servicing the VCC, is central to operations. It will be obliged to reflect how shareholding and monetary contributions are distributed in the company, while the shareholders’ book states who owns what.

LLCs

LLCs can have either one or several managers.

It is advisable for relations between the company and the appointed manager(s) to be strictly governed and laid out in a management agreement, supplementing the legislative framework. Basic limitations on financial thresholds, authorisations and internal liability matters can be described therein.

Where several managers are appointed, the company can be represented (i) by each manager individually; (ii) jointly by all; or (iii) in another mixed form (eg, by two out of three managers).

There are no prohibitions for management members to be shareholders or vice versa.

JSCs

A JSC can be managed either in a single- or two-tier style.

However, a JSC is managed by a board, whichever system is chosen. Board members are appointed for a mandate of up to five years, with no prohibition on being reappointed.

Single-tier system

In the case of a single-tier system, the company is managed and represented by a board of directors (BoD) consisting of three to nine persons. The BoD’s members are elected and appointed by the GM, while the BoD itself adopts internal rules and regulations for its work. The BoD may appoint a single executive director, who takes on the responsibility of representing the company before third parties.

Two-tier system

When using a two-tier system, the management body consists of a:

• management board; and a
• supervisory board, which observes the work of the management board and sets the standards.

Here, the supervisory board’s members (three to seven persons) are elected by the GM, while the management board’s members (three to nine persons) are elected by the supervisory board. To avoid a conflict of interests, no board member can be part of both the supervisory and management boards at the same time. It is either one or the other.

VCCs

A VCC can use either a single or group of managers, as chosen by the founder/shareholder(s).

Choices vary between:

• appointing a single manager;
• having multiple managers who work independently; or
• having a collective board with collective liability, or any mix of the above.

Supervisors, observers, secretaries, etc, can also be appointed.

All management types and work rules must be duly reflected in the AoA.

Until the implementation of the VCC, Bulgarian corporate entities worked on the principle that the managing body was only internally liable to the company (shareholders), while all deals with third parties concluded by said management without the GM’s authorisation, were considered valid and binding. In any case, creditors of the company may pose their claims only before the company itself, not its management.

LLCs

Managers and officers

The above rule for only internal liability of the manager works in full force in an LLC.

Legislation makes little differentiation between officers and managers, CEOs, COOs, CFOs, etc (the latter are internal differentiations based on a contractual level). The important distinction is who is registered as a company representative at the CR.

Managers’ liability towards third parties and authorities is severely limited under the legal framework, which does state, however, that managers can be fined for non-compliance of financial reporting. In some cases, managers can be personally liable for certain tax breaches.

Shareholders

Once shareholders have subscribed for shares, they are free from other monetary obligations.

All shareholders do have basic statutory operative obligations towards the company, such as, (i) to participate in the GM/management and to follow its resolutions; and (ii) to provide support for the company’s activity realisation, etc.

Shareholders can be penalised and/or outright removed if they damage the company in any way or work against its interests, all subject to a GM resolution.

JSCs

Managers

Management responsibilities and liabilities in JSCs are stricter.

Members of the BoD (or management board) are expected to present a guarantee in the form of a monetary sum in the amount of three times their gross annual salary.

Being a collective body, the liability itself is distributed equally between BoD members by default, regardless of internal distribution of roles as CEO, COO, CFO, etc, unless appealed before the GM.

Board members have strict rules imposed over confidentiality, non-competition, and carrying out their duties in a professional manner.

Shareholders

JSC shareholders are obliged to pay the respective share subscription price and participate in the company’s affairs by voting at the GM and following its resolutions, much like the shareholders of an LLC.

VCCs

Managers

Management of a VCC is a fairly new concept in terms of Bulgarian corporate liability standards.

While the above rules for LLCs and JSCs are applied respectively, the VCC introduces the concept of “piercing the corporate veil” in Bulgarian legal practice. This means that the appointed manager may be personally responsible before third parties for misconduct in the company affairs.

The law provides that the appointed manager (or BoD member) will be assessed on how they:

• perform their duties with the care of a prudent businessperson, balancing the risks of the business with the expected return for the company; and
• avoid any conflict of interest between their own interests and those of the company.

At the same time, managers and/or shareholders exercising control, who have acted intentionally, will be jointly and severally liable to creditors for damages suffered as a result of the transactions and actions of the company.

Shareholders

Shareholders’ liability is to pay the respective share subscription price and participate in the company’s affairs by voting at the GM and following its resolutions, much like for the other company forms, unless there are additional stipulations in the AoA. If, as a result of their intentional actions, shareholders cause damage to the company, they may be liable to the company’s creditors.

Employment relationships in Bulgaria are primarily governed by specific pieces of legislation passed by the Bulgarian Parliament, reflecting Bulgaria’s civil law tradition. The Bulgarian Labour Code establishes mandatory minimum standards regarding the formation, performance and termination of employment relationships. The legal framework is supplemented by the Social Security Code, the Health and Safety at Work Act, the Labour Migration and Labour Mobility Act in relation to third-country nationals and certain cross-border employment situations, the Protection Against Discrimination Act and various secondary legislation, mainly ordinances, regulating specific aspects of employment conditions.

As an EU Member State, Bulgaria has implemented the principal EU directives governing employment law matters. Consequently, Bulgarian employment legislation reflects common European standards in areas such as working time, fixed-term and part-time work, transparent and predictable working conditions, gender equality, etc.

Bulgarian employment law is predominantly statutory and is characterised by a high degree of mandatory regulation. The parties may agree on terms that are more favourable to the employee than those prescribed by law, but contractual provisions that reduce the statutory level of protection are generally unenforceable (even null and void).

Although judicial decisions do not constitute a formal and generally binding source of law, the case law of the Bulgarian Supreme Court of Cassation and the Bulgarian Supreme Administrative Court plays an important role in ensuring the consistent interpretation and application of employment and social security legislation.

Employment relationships are established through individual written employment contracts, which must comply with the mandatory requirements of the Labour Code. Collective bargaining agreements may also apply where concluded at enterprise, sectoral, industry or municipal level. Such agreements regulate matters including remuneration, working conditions and benefits, and bind employers that are parties to the agreement or otherwise become bound under the applicable statutory rules. Internal workplace rules and employer internal policies may further regulate the organisation of work, provided they comply with mandatory legislation and any applicable collective bargaining agreement.

Specific Requirements

Employment contracts must be concluded in writing before the employee commences work. The written form is mandatory under the Bulgarian Labour Code and cannot be replaced by an oral agreement. Before the employee starts work, the employer must provide the employee with a signed copy of the employment contract and a copy of the notification submitted to the Bulgarian National Revenue Agency (NRA) as evidence that the employment agreement was registered with the NRA. Failure to comply with these requirements may expose the employer to administrative sanctions.

The Bulgarian Labour Code prescribes the mandatory minimum content of an employment contract. The contract must specify, among other things:

• the parties;
• the place of work;
• the job position and nature of the work;
• the date of signing the employment agreement and the date of commencement of work;
• the duration of the contract (indefinite period or fixed-term employment); and
• the paid annual leave and additional paid annual leave (if any) entitlement.

Employment contracts may be concluded for either an indefinite or a fixed term (permitted only in the expressly provided circumstances).

Probation

The parties may also agree on a probationary period of up to six months for the benefit of the employer, the employee or both.

Amendments

Employment contracts may generally only be amended by mutual written agreement between the employer and the employee. Unilateral amendments by the employer are permitted only in the limited circumstances expressly provided for by Bulgarian labour legislation.

Restrictive covenants

Post-termination restrictive covenants are recognised only to a limited extent under Bulgarian law. While confidentiality obligations and, in appropriate circumstances, carefully drafted non-solicitation clauses may remain enforceable after the termination of employment, non-compete obligations are considered unenforceable (even null and void). Restrictive covenants are generally permissible during employment.

Standard Terms

Bulgarian employment law prescribes both normal and maximum working time. The standard working week is 40 hours, organised as an eight-hour working day over a five-day working week. Part-time employment arrangements are also recognised and may be agreed by the parties. Depending on the nature and organisation of the work, Bulgarian legislation also permits shift work, flexible working hours, aggregated calculation of working time, open-end working time and on-call duties, subject to the statutory conditions applicable to each arrangement. Bulgarian employment legislation also provides for reduced working hours for certain categories of employees, including those performing work under hazardous or otherwise harmful working conditions, as well as in other cases expressly provided for by operation of the law.

Rest periods

Employees are entitled to statutory minimum rest periods. As a rule, employees are entitled to a minimum uninterrupted daily rest period of 12 hours between two working days and a minimum uninterrupted weekly rest period of 48 consecutive hours in a five-day working week.

Regulation of night work

Night work is subject to specific statutory regulation. Night working hours are shorter than daytime working hours, and employees performing night work are entitled to additional remuneration, enhanced health and safety protection and periodic medical examinations. Special restrictions apply to certain categories of employees, including minors and pregnant employees.

Overtime

Overtime work is generally prohibited unless it falls within the limited exceptions expressly provided for by the Labour Code, such as work required for national defence, the prevention or mitigation of disasters, etc.

Grounds for Termination

Bulgaria is not an “employment at will” jurisdiction. Employment contracts may be terminated only on the grounds and in accordance with the procedures expressly provided for by the Labour Code. Depending on the applicable legal basis, an employment contract may be terminated:

• by mutual agreement, by either party upon notice;
• without notice in the circumstances prescribed by law;
• upon expiry of a fixed-term contract; or
• by operation of law.

Dismissals

Employer-initiated dismissals are permissible only on statutory grounds, which broadly fall into business-related reasons (eg, closure of the enterprise, redundancy, reduction in workforce, etc).

Bulgarian employment law imposes strict substantive and procedural requirements on dismissals. Depending on the legal ground relied upon, the employer may be required to apply statutory selection criteria and conduct a statutory selection process where only part of the workforce is affected, or obtain prior approval from the Labour Inspectorate or consult the competent medical authorities in cases involving employees entitled to protection against specific unilateral termination grounds (eg, pregnant female employees or employees in advance in-vitro treatment, etc). Failure to comply with the applicable legal requirements may result in the dismissal being declared unlawful by the courts.

Employees may challenge the lawfulness of their dismissal before the competent court. Where a dismissal is found to be unlawful, the court may order the employee’s reinstatement and award compensation of up to six months’ gross remuneration for the period during which the employee was unemployed as a result of the unlawful dismissal.

Severance

Bulgarian law does not provide for a general statutory entitlement to severance pay upon termination of employment. However, employees are entitled to receive all outstanding remuneration accrued up to the termination date, including compensation for any unused paid annual leave and payment in lieu of notice (if applicable).

Collective Redundancies

Collective redundancies are specifically regulated by Bulgarian labour legislation, which implements the relevant EU legislation. Where the statutory thresholds are met, employers must initiate prior information and consultation procedures with employee representatives and trade unions, where such representatives exist, with a view to discussing measures to avoid or reduce the proposed redundancies and mitigate their consequences. The employer must also notify the competent Employment Agency. Non-compliance with the strict collective dismissal legal framework may result in material administrative sanctions for the employer but does not affect the lawfulness of each individual termination of employment.

Bulgarian employment law recognises several forms of employee representation but does not require employers to establish a permanent employee representative body comparable to a “works council” (popular in other EU countries). Employee representation is primarily exercised through trade union organisations and employee representatives.

Trade Unions

Trade unions have statutory rights to represent and protect the collective interests of their members, conduct collective bargaining, negotiate and conclude collective bargaining agreements, and monitor employers’ compliance with employment legislation and collective bargaining agreements. In parallel, employees may elect representatives for information and consultation purposes, who represent all employees and their interests, irrespective of trade union membership.

Employee Representatives

The Labour Code requires employers to provide information and conduct consultations with employee representatives in the cases prescribed by law, particularly where proposed measures are likely to affect employees’ interests. These include, among others, collective redundancies, transfers of undertakings, etc.

Employees also elect health and safety representatives, who participate in monitoring compliance with occupational health and safety requirements, workplace risk assessments and the development of preventative measures, while co-operating with the employer and the competent public authorities on occupational health and safety matters.

In the context of employment relationships under Bulgarian law, the following public receivables must be paid:

• income tax;
• social securities contributions;
• health insurance contributions; and
• contributions to the Guaranteed Workers’ and Employees’ Receivables Fund – not applicable for 2026, until the adoption of the State Budget Act for 2026 by the National Assembly.

Income tax is withheld and paid by the employers. It represents 10% of the remuneration paid to the employee, deducted with the contributions for health insurance and social securities owed by the employee, and the tax benefits, if any. Since documentation and payments are made by employers, employees are not obliged to declare their incomes to the NRA, unless they receive any payments on the basis of other relations. Other taxes may also apply to employees if they work and receive remuneration or other payment on the basis of other contracts different from employment agreements.

The following social contributions (charges) are usually paid in the context of employment relationships:

• pension contributions – between 12.8% and 20.8% of the insurance income depending on several factors, eg, date of birth;
• general illness and maternity contributions – 3.5% of the insurance income;
• unemployment contributions – 1% of the insurance income; and
• work-related accident and professional illness contibutions – defined in the State Budget Act.

The insurance income is defined by the gross wage. If the gross wage is below the minimum for the state, payments will be made on the basis of the minimum gross wage. The State Budget Act usually defines a maximum insurance income, and for any payments received over that maximum, no social charges will be paid.

Social securities contributions are usually divided between employees and employers in a certain ratio. Employers pay all social charges for work-related accidents and professional illnesses.

Health insurance charges amount to 8% of the insurance income and they are divided 60:40 between employers and employees.

Companies doing business in Bulgaria could be liable for the following taxes if they qualify as local entities:

• corporate income tax;
• value added tax;
• withholding tax on dividends and liquidation shares;
• taxes on interests for some foreign companies; and
• qualified domestic minimum top-up tax on large multinational companies.

Corporate Income Tax

The corporate income tax rate is 10% of the annual profits of a company. The income of a company according to its accounts is transformed by the application of different components, eg, permanent tax differences, temporary tax differences, etc, to define company profits. Local entities and foreign entities that have branches and places of economic activity in the territory of Bulgaria will be liable for corporate income act on the income of those branches/places of economic activity.

Value Added Tax

The standard VAT rate is 20% of the price of transactions or services provided. It is applicable for any taxable supply, import of goods, and some intra-community acquisitions in Bulgaria, including new vehicles and excise tax goods. Certain supplies could be charged a zero rate, eg, export of goods, international transport services, etc.

Any company performing independent economic activities in the territory of Bulgaria, having turnover amounting to more than EUR51,130 for the previous 12 months is obliged to register for VAT purposes. The registration could also be voluntary prior to reaching a turnover of EUR51,130. Registered companies are entitled to tax credit.

Withholding Tax

Taxes on dividends and liquidation shares distributed by local entities to foreign companies could be withheld in the territory of Bulgaria. The tax rate is 5% of the gross amount of the dividends and liquidation shares. These taxes do not, however, apply to companies which are local entities in another EU or EEA member state. 

Minimum Top-Up Tax

Bulgaria has introduced the qualified domestic minimum top-up tax on large multinational companies in its Corporate Income Tax Act, as implementation of the OECD Pillar Two Safe Harbours. However, this does not provide a blanket “guaranteed safe harbour” to corporate taxpayers under the OECD framework.

In Bulgaria, VAT must be declared and paid to the NRA by the seller of goods or services who is registered for VAT purposes. Almost any seller who is registered for VAT purposes is entitled to VAT credit. This means that sellers are entitled to deduct the VAT they were charged for supplies to them from the VAT they declare, and pay the difference to the NRA.

Certain exceptions to this rule are listed in the VAT Act, for example, entities which perform intra-community acquisitions or which are voluntarily registered for VAT purposes, etc, will not benefit from VAT credit. 

VAT credit should also not be used for certain transactions, for example, VAT-exempt supplies, acquisitions or imports of motorcycles and lightweight cars, as well as the supply of any goods or provision of services for maintenance, repair, improvement and operation of motorcycles and cars.

The Bulgarian Corporate Income Tax Act provides for several tax incentives to encourage specific economic activities, for example:

• tax relief for conducting manufacturing activities in municipalities with unemployment rates higher than the national average;
• tax relief as a state aid to farmers – this could be applied via income tax credit of up to 60% on the taxable income of the farmer;
• for income tax purposes, accounting expenses for donations; and
• in order to avoid double taxation, income derived from dividend distribution from other entities registered under Bulgarian law or in another member of the EU or the EEA, is not recognised as company income. 

The aforementioned tax incentives are the most common examples, but do not represent the complete list.

This is not applicable in Bulgaria.

The Bulgarian Corporate Income Tax Act regulates thin capitalisation as a means to restrict recognition of interest expenses when a company is financed through a disproportionately high amount of debt compared to its equity. These rules aim to limit the risk of distributing the profits of the company through interest, resulting in the deduction of the tax base for corporate income tax.

These rules do not apply for bank credit and financial leasing, unless the parties to the financing are related parties or the financing was guaranteed with the participation of related parties.

Thin capitalisation rules apply in cases where the capital raised exceeds the equity of the respective company three times.

Transfer pricing rules are applicable in the territory of the Republic of Bulgaria to serve as a guarantee for market prices in transactions between related, including affiliated, parties.

In cases of audits by the NRA, it is the companies that bear the burden of proof that the terms, and especially the price of a transaction, meet the requirements to be defined as market price.

Several methods to define market price can be used – for example, the comparable uncontrolled prices method, market prices method, value-added method, net transaction profit method, or allocated profit method.

In cases of groups of companies, transfer pricing policies must be introduced.

The rules for anti-evasion of taxes under Bulgarian law include several institutes, besides the transfer pricing rules described above. The anti-evasion measures under the Corporate Income Tax Act include, for example:

• the general prohibition of anti-evasion transactions or sets of transactions – when one or more supply transactions, including those between unrelated parties, are entered into under terms that could result in tax avoidance;
• the identification of specific cases as tax avoidance transactions, eg, when there is a significant excess of quantities of materials, raw materials, and other production costs compared to what is customary for a business, and there are no objective reasons for this, etc; and
• the definition of sham transactions as tax avoidance schemes per se.

These rules could also apply to individuals and personal income tax (eg, when transactions are between related parties).

The burden of proof in cases of audits by the NRA is borne by the taxable entity or person.

Bulgaria is a member state of the EU and applies the EU tariff rules, including the Union Customs Code (UCC) and the Common Customs Tariff (CCT).

The tariff rates and policies are defined by the EU’s Common Commercial Policy and CCT, WTO agreements and bilateral agreements with other states, the EU’s free trade agreements and preferential trade arrangements, the EU’s general preferential scheme, EU anti-dumping and anti-subsidy investigations, geopolitical and economic measures, etc.

The most unfavourable or more stringent tariff treatment applies to:

• goods from Russia and Belarus – to mitigate the EU’s economic dependency on these states;
• agricultural products – as part of the protection rules for the agricultural sector; and
• the import of steel and aluminium from China, Russia and Brazil – as anti-dumping measures. 

Merger control in Bulgaria is governed by the Bulgarian Competition Protection Act (CPA) and administered by the Bulgarian Commission for Protection of Competition (CPC). Concentrations meeting the statutory jurisdictional thresholds are subject to mandatory prior notification and may not be implemented before obtaining clearance from the CPC.

What Constitutes a Concentration?

A concentration arises where a transaction results in a lasting change of control over an undertaking. This includes mergers between previously independent undertakings, acquisitions of direct or indirect sole or joint control over one or more undertakings or parts thereof, and the establishment of a full-function joint venture performing, on a lasting basis, all the functions of an autonomous economic entity. The acquisition of a minority shareholding does not, in itself, constitute a notifiable concentration.

When is Notification Required?

Bulgarian merger control applies not only to domestic transactions but also to foreign-to-foreign transactions, provided that the statutory thresholds are met. Notification is mandatory where the aggregate Bulgarian turnover of all undertakings concerned exceeds EUR12.78 million (BGN25 million) during the preceding financial year and either:

• the Bulgarian turnover of each of at least two undertakings concerned exceeds EUR1.53 million (BGN3 million); or
• the Bulgarian turnover of the target undertaking exceeds EUR1.53 million (BGN3 million).

Turnover is assessed at group level in accordance with the CPA.

Since November 2025, the CPA has also permitted voluntary notification in respect of concentrations that fall below the mandatory thresholds. In addition, the 2025 amendments introduced a call-in power enabling the CPC to require notification of a below-threshold transaction within six months of its completion, where the combined Bulgarian turnover of all participants exceeds EUR12.78 million (BGN25 million) and the transaction raises concerns that effective competition may be significantly impeded, in particular as a result of the creation or strengthening of a dominant position.

The CPA imposes a standstill obligation on notifiable concentrations. Transactions requiring notification may not be implemented before the CPC grants clearance. Failure to notify, or implementation of a transaction prior to clearance (gun-jumping), may result in fines of up to 10% of the aggregate group turnover of the acquiring undertakings for the preceding financial year.

Notification

Merger control proceedings are conducted before the CPC. A notification must generally be submitted after the transaction documents have been executed, a public tender offer has been announced, or control has been acquired, but before any steps are taken to implement the transaction. Exceptionally, upon request of the parties, the CPC may assess a concentration prior to signing where the parties can demonstrate a genuine intention to conclude the transaction or have publicly announced an intention to make a tender offer.

In cases of a merger or the acquisition of joint control, the notification must be filed jointly by the parties. In cases of sole control, the obligation falls on the acquirer alone.

The notification must be submitted in the standard form approved by the CPC and include comprehensive information regarding the parties and their corporate groups, the ownership and control structure, the nature and legal basis of the transaction, the relevant markets, etc.

A filing fee of EUR1,022.58 applies upon submission, together with an additional fee of 0.1% of the combined Bulgarian turnover of all participating undertakings for the preceding year – capped at EUR30,677.51 (BGN60,000) – payable if the concentration is cleared.

Review

The proceedings are initiated within five working days of receipt of the notification if all the required documents and information are provided. Following receipt of a complete notification, the CPC will carry out a “Phase I” preliminary review, lasting for 25 business days. If the CPC concludes that the concentration does not raise competition concerns, it issues an unconditional clearance decision or, where appropriate, clears the transaction subject to commitments offered by the parties.

Where the transaction gives rise to serious doubts as to its compatibility with effective competition, the CPC will open a “Phase II” in-depth investigation, to be completed within 90 business days (although this can be slightly extended).

A notifiable concentration may not be implemented before clearance is granted, subject only to the limited statutory exceptions provided by the CPA. Clearance decisions do not carry an expiry date under Bulgarian law but remain valid only for as long as the circumstances on which the CPC based its assessment have not materially changed prior to actual closing.

Final decisions of the CPC are subject to judicial review before the Administrative Court – Sofia Region, the judgments of which may be appealed on points of law before the Supreme Administrative Court (the decisions of which are final).

Prohibition

The CPA prohibits agreements between undertakings, decisions of associations of undertakings and concerted practices that have as their object or effect the prevention, restriction or distortion of competition on the relevant market. These rules largely mirror the legal framework set out in Article 101 of the Treaty on the Functioning of the European Union (TFEU). Where the relevant conduct can affect trade between EU member states, the CPC applies both the CPA and Article 101 TFEU in accordance with Regulation (EC) No 1/2003.

The prohibition applies to both horizontal and vertical arrangements, irrespective of whether co-ordination results from a written or oral agreement, a decision of an association of undertakings or a concerted practice. It covers, among other practices, direct or indirect price-fixing or the fixing of other trading conditions, the allocation of markets or sources of supply, limitations or control of production, etc. Agreements infringing the prohibition are null and void to the extent of the restriction.

The CPA applies on the basis of the effects doctrine. Accordingly, it applies to agreements and practices implemented both within and outside Bulgaria where they have the object or effect of preventing, restricting or distorting competition on the Bulgarian market.

Exemptions

The CPA recognises exemptions corresponding to those under EU competition law. Agreements that contribute to improving the production or distribution of goods or promoting technical or economic progress, while allowing consumers a fair share of the resulting benefits, may benefit from exemption where all statutory conditions are satisfied.

Investigations and Sanctions

The CPC is responsible for investigating and sanctioning infringements of the prohibition. It has extensive investigative powers, including the power to require information, conduct unannounced inspections, obtain oral explanations and seize evidence. Undertakings participating in prohibited agreements may be fined up to 10% of their total turnover for the preceding financial year.

Judicial Review

Final decisions of the CPC are subject to judicial review before the Administrative Court – Sofia Region, the judgments of which may be appealed on points of law before the Supreme Administrative Court (the decisions of which are final).

Legislation

The CPA prohibits the abuse of a monopoly, dominant or collective dominant position. The rules are contained in Chapter Four of the CPA and largely correspond to Article 102 of the TFEU. Significant legislative amendments regarding the abuse of a monopoly, dominant or collective dominant position entered into force on 26 June 2026. Where the conduct is capable of affecting trade between EU member states, the CPC applies both the CPA and Article 102 TFEU in accordance with Regulation (EC) No 1/2003.

Definition of Dominant Position and Abusive Conduct

A dominant position exists where an undertaking, having regard to factors such as its market share, financial resources, access to the market, technological advantages and commercial relationships, is able to behave independently of its competitors, suppliers or customers. Following the June 2026 amendments, an undertaking holding a market share of at least 50% is presumed to be dominant, unless it demonstrates that it does not possess the characteristics of dominance prescribed by the CPA. The burden of rebutting the presumption rests on the undertaking. Prior to the June 2026 amendments, however, the burden of establishing the existence of a dominant position rested on the CPC.

The 2026 amendments also introduced a statutory concept of collective dominance. Two or more undertakings may be found jointly dominant where economic interdependence or other factors enable them to act, to a significant extent, independently of their competitors, suppliers and customers, and thereby restrict competition.

The CPA prohibits abusive conduct capable of preventing, restricting or distorting competition and harming consumers. Examples include the direct or indirect imposition of unfair purchase or selling prices or other unfair trading conditions, limiting production, etc. The amendments of 26 June 2026 also introduced a separate prohibition on the imposition of excessive prices by undertakings holding a monopoly, dominant or collective dominant position.

The CPA applies on the basis of the effects doctrine. Accordingly, it applies to unilateral conduct carried out both within and outside Bulgaria where it has the object or effect of preventing, restricting or distorting competition on the Bulgarian market.

Investigations and Sanctions

The CPC is responsible for investigating and sanctioning infringements of the prohibition on abuse of monopoly, dominant and collective dominant positions. It may conduct inspections, require information, order the cessation of the infringement, impose behavioural or structural remedies, and levy fines of up to 10% of the undertaking’s total turnover for the preceding financial year.

Judicial Review

Final decisions of the CPC are subject to judicial review before the Administrative Court – Sofia Region, the judgments of which may be appealed on points of law before the Supreme Administrative Court (the decisions of which are final).

Under Bulgarian law, a patent is an exclusive right granted for an invention that is new, involves an inventive step, and is industrially applicable. Patent protection is governed primarily by the Patent and Utility Model Registration Act.

The patent holder has the exclusive right to the invention, which includes the right to use the invention, the prohibition on third parties using it without the patent holder’s consent, and the right to dispose of the patent.

Patent protection is obtained through registration with the Patent Office of the Republic of Bulgaria. The application undergoes a formal examination and a substantive examination to determine whether it meets the requirements for patentability. The term of protection is 20 years from the filing date, provided that annual maintenance fees are paid.

Patent rights may be enforced through civil proceedings and, in certain circumstances, criminal proceedings.

Available legal remedies include interim relief and court claims through which one may seek a declaration and/or cessation of the infringement, compensation for damages, seizure and destruction of the infringing goods, publication of the court decision, and reimbursement of legal costs. Customs measures against infringing goods are also possible.

A trade mark is any sign capable of distinguishing the goods or services of one person or undertaking from those of others that is capable of being represented in the State Register of Trademarks in a manner that enables the clear and precise determination of the subject matter of the protection afforded by the registration. Such signs may consist, for example, of words, including personal names, letters, numerals, drawings, figures, the shape of goods or their packaging, colours, sounds, or any combination of such signs.

Protection

Trade mark protection is governed by the Marks and Geographical Indications Act (MGIA). Trade mark rights are acquired through registration before the Patent Office of the Republic of Bulgaria (PORB). The registration process includes both a formal examination and a substantive examination. If the trade mark complies with the requirements set out in the MGIA, it is published in the next issue of the official bulletin of the PORB. From the date of publication, a three-month opposition period begins to run. If no opposition is filed within this period, the trade mark proceeds to registration.

Protection is granted for an initial period of ten years from the filing date and may be renewed indefinitely for successive ten-year periods. Registered trade marks become vulnerable to revocation if they are not put to genuine use within a continuous period of five years following registration.

Enforcement

Trade mark ownership may be enforced through civil proceedings and, in certain circumstances, criminal proceedings, and customs intervention against counterfeit goods may also be sought.

Available legal remedies include:

• interim relief and court claims through which one may seek a declaration and/or cessation of the infringement;
• compensation for damages;
• seizure and destruction of the infringing goods;
• hand-over of the items involved in the violation;
• publication of the court decision; and
• reimbursement of legal costs.

Under Bulgarian law, a design protects the visible appearance of a product or part of it, as determined by the characteristics of its shape, lines, design, ornamentation, colour scheme, or a combination thereof. Design protection is governed by the Industrial Design Act.

Protection is obtained through registration before PORB. To be registrable, a design must be new and possess individual character (be original). The registration process includes both a formal examination and a substantive examination. If it is determined that the design applied for is eligible for registration, the applicant is sent a notice granting a one-month period to pay the fees for registration, issuance of the registration certificate, and publication. Once the applicant pays the fees, the design is registered.

The initial term of protection is five years from the filing date and may be renewed for additional five-year periods up to a maximum term of 25 years.

Design rights may be enforced through civil proceedings and, in certain circumstances, criminal proceedings. The same legal remedies are available as for trade mark infringement (see 7.2 Trade Marks).

Under Bulgarian law, copyright protects original literary, artistic, musical, audio-visual, photographic and other creative works, including computer software and databases that satisfy the originality requirement. Databases may benefit from copyright protection where they constitute original intellectual creations and may also be protected through the sui generis database right where a substantial investment has been made in terms of both quantity and quality. Copyright protection is governed by the Copyright and Related Rights Act.

Copyright arises automatically upon creation of the work and does not require registration or any other formalities. In principle, only individuals can be copyright holders, while legal entities can be copyright holders only in cases specified by law.

As a general rule, copyright protection lasts for the lifetime of the author and for 70 years after their death. For certain works, such as anonymous works, computer databases, and films, the 70-year term begins at different points in time.

Copyright may be enforced through civil proceedings and, in certain circumstances, criminal proceedings.

The same legal remedies are available as for trade mark infringement (see 7.2 Trade Marks).

Under Bulgarian law, other intellectual property rights and related assets may include trade secrets, know-how, domain names and confidential business information.

Trade Secrets

Trade secrets are protected under the Trade Secret Protection Act. A trade secret is any commercial information, know-how, or technological information that simultaneously meets all of the following requirements:

• it is secret in the sense that, as a whole or in the precise configuration and assembly of its components, it is not generally known or readily accessible to persons within the circles that normally deal with this type of information;
• it has commercial value because it is secret; and
• reasonable measures have been taken to keep it secret by the person who lawfully controls the information.

A trade secret holder is any natural or legal person who lawfully controls a trade secret.

Enforcement mechanisms include interim relief and court claims through which one may seek a cessation or prohibition of use; prohibition of the production, offering for sale and use of the infringing goods; destruction of the infringing goods; prohibition of the provision of services that have significantly benefited from the trade secret; as well as an award of damages for the losses suffered and reimbursement of legal costs. Contractual confidentiality obligations and unfair competition rules may provide additional protection.

Know-How and Business Information

Know-how and business information may be protected through previously executed contractual arrangements. Their protection may be enforced through legal proceedings for breach of contractual obligations.

Domain Names

Domain names may be protected through their registration with the relevant registrars. Protection of domain names may be enforced by initiating proceedings before the World Intellectual Property Organization (WIPO) or in accordance with the dispute resolution procedures established by the relevant registrar.

The protection of personal data in Bulgaria is primarily governed by Regulation (EU) 2016/679 or the General Data Protection Regulation (GDPR), which applies directly and without the need for national implementing legislation, and the Bulgarian Personal Data Protection Act (PDPA), which has very limited application and supplements the GDPR in areas where EU member states are permitted to adopt national rules. The Bulgarian legal framework also includes sector-specific legislation governing the processing of personal data in particular fields, such as electronic communications, healthcare, financial services and employment (primarily the legal basis for processing of such personal data).

The GDPR’s core principles – lawfulness, fairness and transparency, purpose limitation, data minimisation, storage limitation, integrity and confidentiality, and accountability – apply in full.

The Commission for Personal Data Protection (CPDP) is the national supervisory authority responsible for monitoring and enforcing compliance with data protection legislation. It exercises the full range of investigative and corrective powers conferred by the GDPR, including the power to conduct inspections, issue warnings and reprimands, order corrective measures and impose administrative fines.

The PDPA supplements the GDPR by regulating matters left to national law.

The GDPR applies in Bulgaria on the basis of both the establishment and the targeting criteria, giving it broad extraterritorial effect.

Under the establishment criterion, the GDPR applies to the processing of personal data carried out in the context of the activities of an establishment of a controller or processor in the EU, irrespective of whether the processing itself takes place within the EU.

Under the targeting criterion, the GDPR also applies to controllers and processors not established in the EU that process the personal data of data subjects in the EU, where the processing activities relate to the offering of goods or services to those individuals – irrespective of whether payment is required – or the individuals’ behaviour is monitored, in so far as that behaviour takes place within the EU.

The GDPR also applies to the processing of personal data by a controller that is not established in the EU where the law of a member state applies by virtue of public international law.

Controllers and processors subject to the GDPR solely by virtue of the targeting criterion are generally required to designate a representative established in a member state of the EU, unless one of the exemptions provided for in the GDPR applies.

The CPDP is the independent national supervisory authority responsible for monitoring and enforcing compliance with the GDPR and PDPA. It is established as an independent public authority and performs its functions free from external influence, in accordance with the requirements of the GDPR.

The CPDP is entrusted with supervising the application of data protection legislation across both the public and private sectors.

The CPDP exercises the full range of investigative, corrective, authorisation and advisory powers conferred by the GDPR. In particular, it may carry out planned or ad hoc inspections, investigate complaints submitted by data subjects, require controllers and processors to provide information and documentation, conduct audits, etc, during investigations. Following an investigation, the CPDP may issue warnings and reprimands, ordering controllers or processors to comply with the GDPR.

The CPDP also has extensive enforcement powers. It may impose administrative fines in accordance with the GDPR, taking into account factors such as the nature, gravity and duration of the infringement, etc.

As a member of the European Data Protection Board (EDPB), the CPDP co-operates with the supervisory authorities of other EU member states through the GDPR’s consistency and co-operation mechanisms.

Decisions of the CPDP are subject to judicial review before the Bulgarian administrative courts. In addition to the supervisory proceedings before the CPDP, data subjects may seek judicial protection and compensation for material and non-material damages arising from infringements of data protection legislation in accordance with the GDPR and Bulgarian law.

Since Bulgaria joined the Eurozone in January 2026, much of its legislation is being adapted.

So far, Bulgaria has managed to maintain its position as a favourable investment location due to its:

• EU presence;
• low corporate tax; and
• investor-friendly reforms.

However, fast-paced industries such as fintech and crypto still rely on the approval of government regulators (even after the Markets in Crypto-Assets Regulation (MiCA) entered into force), which are generally conservative.

In detail, the following legislative reforms are expected:

• Both FDI screening and merger control remain dynamic topics, being the latest spheres to undergo legislative amendments.
• Corporate law is expected to expand by implementing the EU-Inc form, but the timing of this is uncertain.
• Employment law-related legislative developments are likely to continue to be driven by the implementation of EU initiatives and evolving labour market practices, particularly in relation to platform work and pay transparency.
• Tax is not expected to change much, other than in terms of annual increases in the amounts of social, pension and health securities due.
• The Bulgarian competition law framework has recently undergone significant reform following amendments to the Bulgarian Competition Protection Act, which came into force on 26 June 2026. The principal developments are expected to arise from the interpretation and application of the new provisions by the Commission for Protection of Competition and the Bulgarian courts.
• The intellectual property sphere is to undergo further legislative amendments due to the heavy usage of AI in all spheres of business.
• Principal developments in personal data protection are expected to result from the evolving European digital regulatory framework, including the progressive application of the AI Act, the Data Act and the Data Governance Act.