The New Arbitration Act: More Trust, More Security, More Transparency
In 2025, Bulgaria carried out one of the most serious reforms of arbitration law in decades. The amendments to the Arbitration Act are not merely technical corrections – they change the very philosophy of arbitration itself. From a “closed” and difficult-to-track system, it is transforming into a more transparent, more predictable, and more reliable method of resolving commercial disputes.
For businesses, this means one fundamental thing: less risk and greater trust.
Three key pillars define the new model:
- the arbitration register,
- the new regime of nullity, and
- the new grounds for annulment of decisions.
1. Register of Arbitrations – the End of “Invisible” Arbitration
A central electronic register is being introduced under the Ministry of Justice, in which the following will be recorded:
- arbitration institutions;
- arbitrators;
- arbitration proceedings;
- issued decisions.
In practice, this means that arbitration will no longer be an “invisible process” existing only for the parties to the dispute. It will be possible to verify whether an institution is legitimate, whether arbitrators are properly registered, and whether a given proceeding actually exists.
What does business gain from this?
- certainty that disputes are resolved by real, legitimate bodies;
- protection against fictitious arbitrations and questionable panels;
- greater predictability when choosing arbitration clauses in contracts.
The register does not make arbitration “state-controlled,” but it makes it recognizable, verifiable, and institutionally legitimate. This is crucial for trust in arbitration as a business instrument.
As of 03.12.2025, the register is officially operational and can be found here:
2. Nullity of Arbitration – Legitimacy Instead of Formalism
In connection with the above register, the new rules introduce a clear principle: if an arbitral award is rendered by an unregistered arbitration body or by an arbitrator without legitimate status, it is null and void.
In other words – if the “court” does not legally exist, its decision does not legally exist either.
This is extremely important for traders because it:
- eliminates the risk of fake arbitrations;
- removes the possibility of pseudo-proceedings;
- creates a clear boundary between legitimate arbitration and fictitious structures.
Nullity may be established without any time limitation, which means long-term protection of legal certainty. This rule will start to apply from 03.03.2026. Thus, all arbitration bodies will have time until the beginning of the following month to register and take the necessary measures to comply with the law.
3. Annulment of Arbitral Decisions – Protection Against Extreme Injustices
The law restores an important ground for setting aside an arbitral award – when it contradicts public order in Bulgaria.
The rule states that if a decision grossly violates fundamental principles of law, the right to defense, or basic rules of a fair trial, it may be annulled.
This does not mean that every dissatisfaction with the outcome of a case will lead to annulment. It is not about re-examining the dispute, but about protection against extreme, systemic, and serious violations.
For business, this matters for one reason: arbitration remains fast and efficient, but now there is a “safety net” against extreme abuses.
This increases trust in arbitral awards and makes choosing arbitration safer, not riskier. This rule entered into force immediately after the publication of the amendments to the Arbitration Act – on 01.08.2025.
What Does All This Mean for Business?
The reform is not an “attack on arbitration”. On the contrary – it makes it stronger, more reliable, and more attractiveas a tool for resolving commercial disputes.
The new model builds arbitration as:
- an institution, not merely a contractual procedure;
- a legitimate legal mechanism, not a private arrangement;
- a system based on trust, not on risk.
Of course, new questions also arise – especially regarding the limits of confidentiality, given the existence of a public register and centralized institutional oversight. This is a real debate that is only just beginning.
Still, one thing is certain: Bulgarian arbitration is transforming from a “closed system” into a modern, regulated, and trusted form of business dispute resolution.
For traders, this means less legal uncertainty, lower risk, and greater confidence that arbitration can be an effective, fair, and reliable instrument in the contemporary economic environment.
“Dr. Miroslava Hristova” Law Firm can provide you with full assistance on all matters to related to the initiation and conduct of proceedings under the Arbitration Act. For more information, you may contact us at office@recht.bg.
The information presented in this article is based on the legislation in force as of the date of publication and does not constitute legal advice or guidance for action by persons interested in the topic. All liability is excluded.