The legislative framework regulating the capital market activities in Bulgaria is fully harmonized with the corresponding EU Directives.

It has been a long-term government policy to stimulate the capital market development by tax incentive. Such incentives, amongst others, are the exemption of taxation of the capital gains from transactions at the regulated market and the 5% tax on dividends for individuals (decreased from 7% in 2008).

BSE-Sofia operates within the framework of the national legislation in accordance with the Rules and Regulations of the Exchange, adopted by the BSE-Sofia Board of directors.