Bulgaria is undergoing a transformative period, with the euro transition, a fully operational FDI regime, the newly adopted Personal Insolvency Act, and major energy and infrastructure initiatives reshaping the legal and business landscape across multiple sectors, according to Wolf Theiss Partner Radosveta Kojuharova.
“First and foremost, euro adoption dominates the agenda,” Kojuharova begins. “Bulgaria has now officially set its timeline, with mandatory dual pricing in place from August 8, 2025, through August 8, 2026. Importantly, the grace period for businesses to adjust expires on October 8, 2025. After that, failure to comply can result in heavy fines, ranging from BGN 2,000 to 20,000 and higher for large traders. The Competition Protection Commission is already monitoring compliance, publishing daily retailer price data, and launching sector inquiries. The real ‘finish line’ will be January 1, 2026, when euro cash enters into circulation alongside the lev for one month.”
In parallel, July marked another milestone, Kojuharova says. “Bulgaria’s FDI screening regime entered into full effect on July 22, 2025. For the first time, investors in critical sectors such as energy, defense, telecommunications, media, transport, water, healthcare, data processing, and financial infrastructure must obtain FDI clearance before closing transactions. Reviews are conducted by an FDI Council in around 45 days, extendable in complex cases.
She also notes targeted legislative amendments. “One concerns state-owned properties: the state now has an easier ability to dispose of such assets, supporting disposals with state-owned properties. The second development concerns water infrastructure. A Draft Law on Water Supply and Sewerage, tabled in July 2025, proposes an independent regulator, a new cost-based pricing model, and clearer roles for Bulgarian WSS Holding and other stakeholders. It also seeks consolidation in the management and provision of services, with the aim of improving coordination, investment planning, and compliance.”
Outside of these institutional reforms, Kojuharova highlights an important development in the energy sector. “Under the National Recovery and Resilience Plan, Bulgaria launched the RESTORE program, allocating about EUR 588 million to 82 BESS projects. This has created a surge of activity, with almost every local energy company now heavily engaged in constructing and financing energy storage facilities. Following the success of RESTORE Phase I, the Council of Ministers launched public consultations in late August for RESTORE Phase II.”
Another legislative milestone is the Personal Insolvency Act, adopted in June 2025, with first filings expected in 2026 after a nine-month delay and registry readiness. “For the first time, individuals will be able to be declared bankrupt,” Kojuharova says. “Eligibility requires debts above ten minimum wages – around BGN 10,770 (approximately EUR 5,510) – unpaid for more than 12 months, along with statutory good-faith criteria. It is a new mechanism for Bulgaria, and banks are already preparing collection strategies in anticipation of its impact on retail lending.”
Finally, looking at the big picture for Bulgaria, Kojuharova observes that “when you combine the euro transition, the fully operational FDI regime, the energy storage pipeline, the Personal Insolvency Act, Bulgaria’s entry into Schengen in January 2025, and the recent streamlining measures around state properties and water infrastructure, you see a genuinely transformative period for the economy. Each development pulls on a different practice lever: M&A and compliance must navigate the FDI screening regime, energy and real estate lawyers are absorbed by renewables and energy storage projects, banking is gearing up for the euro, and disputes will be reshaped by personal insolvency frameworks. It is a very active time, with change arriving from multiple directions at once.”
