Schoenherr
11 Experts
5 Contributions by Schoenherr
PRACTICE NOTES
1. What is the applicable legislation?
Bulgaria’s FDI framework arises from an amendment to the Bulgarian Investment Promotion Act (the FDI Act), effective from 12 March 2024. Although the amendment is now in effect, the regime is not yet functioning because full rollout awaits the adoption of the FDI Act’s implementing and organisational regulations. In particular, one implementing regulation has been enacted, while a second is anticipated to be adopted shortly by the Council of Ministers. Consequently, the Act sets out a ‘transitional regime’: FDIs initiated after the amendment took effect but before those regulations are adopted do not need to file for FDI authorisation.
2. Which government or other body (or bodies) reviews foreign investments?
Screenable foreign direct investments under the FDI Act must be cleared by the newly created Interministerial Council for Screening of Foreign Direct Investments (the Council), which exercises
Competition
PRACTICE NOTES
1. What is the applicable legislation?
On 13 November 2025, the Act on Screening of Foreign Investments, Official Gazette No 136/2025 (FDI Act 2025), took effect.
2. Which government or other body (or bodies) reviews foreign investments?
Under the FDI Act 2025, foreign investments are examined through a two-tier process involving the Ministry of Finance and an FDI Commission. On 13 November 2025, the Act on Screening of Foreign Investments, Official Gazette No 136/2025 (FDI Act 2025), took effect. The Ministry of Finance serves as the principal authority, issuing the ultimate administrative ruling on a notified foreign investment, based on the FDI Commission’s opinion.
3. What is the scope of the foreign investment regime? Does it only apply to specific sectors or types of investors (e.g. foreign or non-EU / non-WTO)? Are there specific rules for certain types of investors (e.g. state-owned
Competition
PRACTICE NOTES
Coronavirus (COVID-19): Existing financings/utilised debt
Do finance documents in your jurisdiction generally provide lenders with termination rights in a crisis? If so, are standard material adverse effect (MAC) clauses enforceable in that context? Yes. Beyond LMA-based templates, Czech banks frequently embed MAC-related termination rights either in loan agreements or within their general terms and conditions (GTCs), empowering the lender to terminate unilaterally, cancel commitments, or vary fees and/or interest rates, together with reimbursement of any additional costs. Typically, MAC wording covers, among other items, a failure by the borrower to perform obligations under the finance documents, a deterioration in the borrower’s financial condition or the value of the security provided, or an inability of the lender to exercise rights and pursue claims arising from the finance documents. Any termination must not be baseless, and the present epidemic does not, of itself, amount to a
Banking & Finance
PRACTICE NOTES
What is the applicable legislation?
Foreign direct investment in the Czech Republic falls under Act No. 34/2021 Coll., as amended, dated 19 January 2021, on the Screening of Foreign Investments and Amendments to Related Laws (the Foreign Investments Screening Act). The Act has applied since 1 May 2021.
Which government or other body (or bodies) reviews foreign investments?
The Ministry of Industry and Trade (MIT) leads the screening of foreign investments in the Czech Republic. During reviews it consults other public authorities, such as relevant ministries, the Czech intelligence services, and the National Cyber and Information Security Agency, which provide their observations. Where required, the MIT escalates matters to the Czech government for a final decision.
What is the scope of the foreign investment regime? Does it only apply to specific sectors or types of investors (e.g. foreign or non-EU / non-WTO)? Are there specific rules for
Competition
PRACTICE NOTES
NOTE—to check whether notification thresholds in the Czech Republic and worldwide are met, see further: Where to Notify.
1. Have there been any recent developments regarding the Czech merger control regime and are any updates/developments expected in the coming year? Are there any other ‘hot’ merger control issues in the Czech Republic?
A 2023 bill amending Act No. 143/2001 Coll. on the Protection of Competition (the Act)—which aimed to introduce a so‑called ‘New Competition Tool’ alongside a call‑in model—has been withdrawn. Even so, the Office for the Protection of Competition (the Office) intends to table a new draft bill in early 2026. Regarding merger control, the Office is expected to put forward a far‑reaching call‑in mechanism, constrained solely by the aggregate Czech revenues of all parties, so acquisitions of companies with no turnover could still face review. The Office also plans to increase the
Competition
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