BULGARIA Law and Practice Contributed by: Marin Sarafov, Petya Norova, Iva Georgieva and Eduard Milchev, G&P Law
G&P Law 17 Tsar Asen St Sofia Bulgaria Tel: +359 88 333 3797 Email: office@gplawbg.com Web: gplawbg.com/en
1. Legal System 1.1 Legal System and Judicial Order
In certain cases, judicial proceedings are limited to two instances: (i) claims with a value not exceed - ing 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 out - side the state court system through arbitration. How - ever, 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 rela - tively short timeframe. 2. Restrictions on Foreign Investments 2.1 Approval of Foreign Investments 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
The Bulgarian legal system belongs to the continen - tal (civil) law tradition. The most significant distinc - tion 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 pow - er 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.
100 CHAMBERS.COM
Powered by FlippingBook