EU Blue Card for Highly-Qualified Foreign Employees

One of the options for work and stay in Bulgaria available to highly-qualified nationals of non-EU Member States is the so called EU Blue Card which represents a single employment and residence permit. The EU Blue Card is issued by the “Migration” Directorate of the Bulgarian Ministry of Interior after the foreign national has obtained a permit for highly-qualified employment in Bulgaria from the Bulgarian Employment Agency and a long-term stay visa type “D” or a continuous residence permit issued on another ground. Permit for Highly-Qualified Employment The application for a permit for highly-qualified employment is submitted with the Employment … Continue reading

Establishment of a Branch in Bulgaria

Setting up a Bulgarian branch by a foreign company is one of the legal forms for establishment of a business presence in Bulgaria. Usually the branch office is considered to be an alternative to being a (sole) shareholder of a Bulgarian company. The Bulgarian branch office is not a separate legal entity but a part of the foreign company. As a result, share capital of the branch is not required and the foreign company is liable for the liabilities incurred by the branch. Legal Representative of the Bulgarian Branch Though the Bulgarian branch office is not a separate legal entity … Continue reading

Copyright in works created by assignment under Bulgarian Law

Article 42 of the Bulgarian Copyright and Neighbouring Rights Acts (CNRA) regulates the creation of works by assignment in Bulgaria.  It provides as follows: *** “(1) The copyright created under assignment vests in the author of the work unless else is agreed in the assignment contract.  (2) If else is not agreed the assignor is entitled to exploit the work without the author’s permission and for the purposes for which its creation was assigned.” *** A question that brings about most controversy in the legal practice and doctrine is what “unless else is agreed” means.  That question has not been … Continue reading

Enforcement of Arbitral Awards Issued by Bulgarian Arbitration Tribunals/arbiters

General Comments As the popularity of alternative dispute resolution (legal arbitration and legal mediation) in Bulgaria grows, the need for raising the awareness of the validity and enforceability of the acts issued as a result of such procedures becomes obvious. This brief article is aimed at outlining the steps for enforcement of arbitral awards issued by a domestic (i.e. Bulgarian) arbitration tribunal or arbiter in Bulgaria. Enforcement of foreign arbitral awards is regulated by the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards and will be subject of a different publication. Although obtaining a favourable arbitral … Continue reading

Seconding Employees Abroad

A general principle of the Bulgarian labour law related to the secondment of employees from Bulgaria is the prohibition of a unilateral amendment by the employer of the employment agreement, a substantial element of which is the place of work. However, the nature of the employment or the needs of the employer sometimes require a temporary cross-border relocation of an employee to a subsidiary or affiliated company of the same group in another country, or to a client in the context of cross-border provision of services. This is commonly known as “posting” or ”secondment” and leads to a temporary change … Continue reading

Transformation of a Bulgarian Limited Liability Company into a Joint Stock Company

Various reasons may lead you to the resolution that a going limited liability company in Bulgaria is necessary to be transformed into a joint-stock company. Improvement of the image of the company with regard to future financing/projects, provision of certain anonymity to the shareholders, bond issue, planned listing of the company on the Bulgarian stock exchange, etc., is just a short list of the likely reasons for a Bulgarian company to be transformed. Bulgarian Company Transformation procedure: Preparation of a notarized transformation plan by the director(s) of the company The main purpose of this plan is to outline the mechanism … Continue reading

Real Estate Purchase in Bulgaria – General Overview

This publication aims to provide a general overview of certain legal and administrative procedures and requirements arising in connection with a purchase of a real estate or land in Bulgaria. Form of the real estate purchase contract The purchase of a real estate in Bulgaria is made through a written contract concluded in a special form – a notarial act or deed.  The notarial deed has to be signed before a notary officer acting in the court region where the property is located. Bulgarian Real Estate Register The notarial deed has to be registered with the Bulgarian Real Estate Register. … Continue reading

VAT Registration of Bulgarian Businesses

Bulgarian businesses are subject to VAT registration under specific rules. In this article you can find brief overview of the requirements for a VAT registration in Bulgaria as described by our VAT lawyers.  Mandatory VAT Registration for Taxable Turnover Any company making supplies of goods or services taxable in Bulgaria, thus accumulating a taxable turnover of BGN 50 000 (app. EUR 25 000) or more in the last 12 months, is obligated to register for VAT purposes in Bulgaria and start charging Bulgarian VAT of 20% on its supplies. The taxable transactions generating VAT-able turnover include not only domestic supplies of goods … Continue reading

VAT Registration of Foreign Businesses in Bulgaria

In the era of globalization and fast digitalization of the economy businesses could become international in a matter of a few clicks of the mouse and gain access to overseas markets for their goods and services instantly. What companies often underestimate or even forget is that the sale of goods and provision of services to buyers in other countries often creates an obligation for VAT registration either in their own country of establishment or in the country of destination. In this regard, here are the most common cases, where businesses must register for VAT purposes in Bulgaria. Our Bulgarian lawyers … Continue reading

Fast Track Bulgarian Citizenship

In order to acquire a Bulgarian citizenship a foreigner must normally undergo a lengthy and cumbersome procedure and fulfill a number of requirements,  including a mandatory period of residence in Bulgaria of approximately ten years, a good command of the Bulgarian language, renunciation of their current citizenship, etc. However, the amendments in the Bulgarian legislation in the past few years paved an easier and smoother path to the Bulgarian citizenship goal by introducing a fast-track Bulgarian citizenship procedure on the grounds of an investment made by the foreign individual in Bulgaria. This procedure is explored by our law firm and … Continue reading