What Is a Power of Attorney?

A power of attorney (пълномощно) is a legal document by which one person (the principal) authorizes another person (the attorney-in-fact or representative) to act on their behalf. In Bulgaria, powers of attorney are widely used by foreigners who cannot be physically present for legal transactions, company management, or property deals.

Types of Power of Attorney

General Power of Attorney

Grants broad authority to act on behalf of the principal in a wide range of matters. This can include:

• Managing bank accounts
• Signing contracts
• Representing before government authorities
• Handling correspondence and notifications

Special Power of Attorney

Grants authority for specific, defined actions only. Common examples:

• Purchasing or selling a specific property
• Registering a company in the Trade Register
• Representing in a specific court case
• Signing a particular contract

Irrevocable Power of Attorney

In certain commercial contexts, a power of attorney can be made irrevocable for a specific period or until a specific condition is fulfilled. This is less common and subject to legal limitations.

Notarization Requirements

Bulgarian law requires notarization for powers of attorney that authorize actions which themselves require a notarial form:

• Property transactions — buying, selling, mortgaging real estate
• Company registration — signing incorporation documents
• Court representation — filing lawsuits, making procedural declarations
• Bank operations — opening accounts, making large transfers (banks may have their own requirements)

For everyday matters (collecting mail, dealing with utility companies), a simple written power of attorney without notarization may suffice, though many institutions prefer notarized documents.

Creating a Power of Attorney in Bulgaria

Step 1: Draft the Document

The power of attorney should clearly specify:

• Full identification of both the principal and the representative
• Scope of authority — as specific as possible
• Duration — valid until a specific date or until revoked
• Any limitations on the representative’s authority

Step 2: Notarization

Both parties (or at minimum the principal) appear before a Bulgarian notary:

• The notary verifies the principal’s identity and legal capacity
• The notary reads the document and confirms understanding
• The principal signs before the notary
• The notary certifies the signature

Step 3: Translation (If Needed)

If the power of attorney will be used in another country or if the principal does not speak Bulgarian, a certified translation is prepared.

Powers of Attorney Issued Abroad

Foreigners can create a power of attorney in their home country for use in Bulgaria:

1. Draft the document according to Bulgarian requirements (ideally with a Bulgarian lawyer’s guidance)
2. Have it notarized by a local notary or at the Bulgarian embassy/consulate
3. Apostille the document (for Hague Convention countries)
4. Have it translated into Bulgarian by a certified translator
5. Notarize the translation in Bulgaria

Powers of attorney issued at a Bulgarian embassy or consulate abroad carry the same legal weight as those notarized in Bulgaria and do not require an apostille.

Common Uses for Foreigners

Foreign business owners and property investors in Bulgaria frequently use powers of attorney for:

• Company registration — authorizing a local lawyer to register the company
• Property transactions — signing notary acts for buying or selling property
• Bank account opening — authorizing a representative to open and manage accounts
• Tax and accounting matters — dealing with the National Revenue Agency
• Vehicle registration — registering or transferring vehicles
• Court proceedings — authorizing a lawyer to represent in court

Revocation

A power of attorney can be revoked at any time by the principal:

• Written revocation is recommended
• The representative and any third parties relying on the power should be notified in writing
• For notarized powers, the revocation should also be notarized
• Registration of revocation with the notarial register provides public notice

Legal Assistance in Troyan

A properly drafted power of attorney is essential for foreigners managing affairs in Bulgaria from abroad. Attorney Biser Dimov in Troyan prepares and manages powers of attorney for foreign clients, ensuring they meet all legal requirements and effectively serve your needs. Contact us to arrange your representation.