Bulgaria

[BG] Report on the compliance with the prohibition for offshore companies to own media in Bulgaria

IRIS 2014-8:1/10

Rayna Nikolova

New Bulgarian University

On 1 July 2014, the prohibition for offshore companies to own media or to take part in the ownership of media entered into force. The prohibition refers to periodical, radio and/or television (for more details see IRIS 2014-3/9). The ban is applicable to companies, who are registered in countries with a preferential tax regime and applies to any person related to them as well as their beneficial owners.

On 14 July 2014, the Council for Electronic Media (“CEM”) presented an expert report, in which the owners of the television companies, that are offshore companies, are listed as follows: bTV Media Group EAD, Nova Broadcasting Group AD, TV Seven EAD, Balkan Bulgarian Television EAD, Eurofootballprint EOOD and Pink BG EOOD.

The CEM has addressed requests to the above-mentioned media companies. The aims of these requests are to clarify the ownership relationships on media companies and to control the implementation of the statutory prohibition in the practice of the media. In case of non-compliance with the legal requirements a pecuniary sanction of BGN 50,000 to BGN 100,000 (approximately EUR 25,000 to EUR 50,000) may be imposed.