With the formal decision of the Council of the European Union from 8 July 2025 on Bulgaria's accession to the euro area, our country was officially admitted to the monetary union with effect from 1 January 2026 at the irrevocably fixed conversion rate of 1 EUR to 1.95583 BGN.

This article provides detailed dates and obligations to help you plan the transition as efficiently as possible. Bulgaria's adoption of the euro is not only an important economic step for the country, but also poses a serious challenge for every business and citizen.

This article aims to link the legal framework to practical explanations of the transition process in understandable steps that can be implemented in your business. However, this article does not cover all aspects of the introduction of the euro, but rather aims to explain the topics that are most important to our readers and customers. The article will be continuously updated as new developments arise.

I. Important dates for the transition to the euro in Bulgaria

Regarding Bulgaria's accession to the euro area, the following dates are important for businesses, public authorities and citizens:

• 8 July 2025 – decision of the Council of the EU on Bulgaria's accession to the euro area;
• 8 August 2025 – start of dual pricing in leva and euros (one month after the decision). From this date, all retailers and service providers are required to display their prices in both leva and euros;
• 1 January 2026 – introduction of the euro as the official currency in Bulgaria. From this date, the Bulgarian lev will be replaced by the euro for cash payments and financial transactions;
• 1 January – 31 January 2026 – period of parallel circulation of the Bulgarian lev and the euro as legal tender;
• 31 December 2026 – abolition of mandatory dual pricing in both currencies. It was valid for 12 months from the introduction of the euro.

II. Principles

Principle of consumer protection
The conversion of prices and other values from leva into euro may not lead to placing consumers in a financially less favourable position than they would have been if the euro had not been introduced as the currency of the Republic of Bulgaria. The introduction of the euro may not lead to price increases for goods and services, unless this is justified by objective economic factors.

Principle of efficiency and cost-effectiveness
The introduction of the euro shall be carried out in the most efficient and expedient manner possible, without the costs incurred by those affected being borne by the public purse. The rules on approval by a public authority shall not apply if changes to statutes or other internal acts are required as a result of the introduction of the euro in the country.

Principle of clarity
Consumers shall receive clear, accurate and timely information on the principles, rules and procedures for the introduction of the euro, including the modalities and rules for the exchange of leva into euros, the conversion of leva into euros and the pricing of goods and services and other amounts in euros.

Principle of transparency
The process of introducing the euro as the currency of the Republic of shall be carried out in a transparent manner, with the relevant authorities, bodies and people giving the public timely, detailed, clear, accurate and understandable information.

Principle of continuity and automatic conversion of amounts from leva to euro

• The introduction of the euro shall not affect the validity of existing legal instruments that refer to or are denominated in leva.
• Amounts denominated in leva in existing legal instruments shall be considered amounts in euros, converted at the official exchange rate and subject to the conversion rules or special rounding rules provided for by law.
• The introduction of the euro shall not entail any change in the provisions of legal instruments or any discharge of debt, nor shall it justify the non-fulfilment of legal obligations, nor shall it give any party the right to unilaterally modify or terminate a legal instrument.
• References in legal instruments to leva without any indication of value shall be deemed to be references to the euro.

III. Basic rules

Before we move on to the specific requirements, two basic rules that apply in general shall be considered:

1. Conversion rule (Art. 12 of the Law on the Introduction of the Euro in the Republic of Bulgaria (LEI)): The conversion of leva into euro shall be carried out by dividing the amount denominated in leva by the official conversion rate (1.95583). This conversion rate shall not be rounded or reduced by one or more digits during conversion. Banks and authorities are not entitled to use a different conversion rate when converting credit balances, liabilities and receivables.

2. Rounding rule (Art. 13 LEI): After conversion, the resulting amount shall be rounded to the second decimal place in accordance with the following mathematical rounding rule:

>> if the third decimal place is less than 5, the second decimal place remains unchanged:

Example: 782.44 Lv. / 1.95583 = 400.055... → 400.06 €)

>> if the third decimal place is equal to 5 or higher, the second decimal place is rounded up by one.

Example: (799.99 Lv. / 1.95583 = 409.028... → 409.03 €

An exception to the rule regarding the decimal place on which rounding is based is only permitted if this law or another legal provision of the European Union prescribes rounding to a different decimal place.

The conversion from leva to euro can be done in the following way:

At the bank
This is the safest and most convenient option. Banks will automatically convert leva account balances into euros on Euro Day (1 January 2026). If you have large amounts of money and want to exchange them beforehand, you can contact your bank and negotiate an individual exchange rate.

At exchange offices
This is not a recommended option unless you need cash in euros. Exchange rates may include fees and be unfavourable.

Online platforms and Fintech services
Platforms such as Revolut, Wise and Paysera offer currency conversions at low commissions, which seems quite suitable for individuals and smaller amounts of money.

Tip: If you do not have an urgent need for euros, you should not rush to exchange your currency, as your leva-denominated accounts will be automatically converted to euros at the officially set conversion rate of 1.95583 on 1 January 2026.

Between 1 January and 31 January 2026, both currencies – the lev and the euro – will be in circulation as legal tender.

3. The rule on change (Art. 25 (1) LEI) is one of the most important practical provisions for the first few weeks after the introduction of the euro. The basic idea is that for every payment – whether in Bulgarian leva or in euros – the merchant shall return the balance entirely in euros. The only exception is if the merchant does not have enough euros and is forced to give the change entirely in Bulgarian leva. Mixed change (in euros and Bulgarian leva) is not permitted – the balance shall be given entirely in one currency.

Merchants may limit the number of coins to 50 leva per transaction.

During the one-month period, companies that accept cash payments shall keep their cash balances in both Bulgarian leva and euros. This is necessary because, although the company's legal accounting currency is the euro, both currencies will be present in the cash register. During this one-month period, cash balances in leva shall be recorded in the same way as any other foreign currency (US dollars, pounds, etc.). Even if the leva balances are kept in subledger accounts for control purposes, all transactions shall be recorded in euros in the general ledger accounts.

When the leva cash balance is deposited at the bank, it is credited to the company's account in euros at the official exchange rate. The entry is made by transferring the amount from the subledger account ‘Cash balances in leva’ to an account denominated in euros, thereby setting the cash balance in leva to zero or reducing it accordingly.

Important: No need to worry – years after the introduction of the euro, you will still be able to exchange Bulgarian leva at the Bulgarian National Bank.

IV. Legal aspects relating to the individual parties involved in the introduction of the euro

The introduction of the euro as the official currency in Bulgaria will result in significant changes to the day-to-day business of every company. Depending on the legal form of the company, you should be prepared for the following:

1. It is not necessary to re-register the company
The company name, UIC (BULSTAT) and entry in the commercial register remain unaffected.

Companies shall adopt amendments to the documents referred to in Art. 9 (2) LEI, as well as shall bring their internal documents beyond those referred to in Art. 9 (2) LEI, into compliance with the requirements of the law within 12 months from the date of introduction of the euro in the Republic of Bulgaria (Art. 32 LEI).

2. Bank accounts will be converted automatically
If your company has a current account in Bulgarian leva, it will be converted automatically into euros in accordance with the general conversion and rounding rules, without any fees or commissions for the customer and while retaining the contractual terms and conditions applicable prior to the conversion.

It is not necessary to close one account and open a new one. However, if you currently have two bank accounts – one in Bulgarian leva and one in euros – you can close one of the two accounts after 1 January 2026 and thus save on the bank charges for maintaining one account.

The IBAN remains unchanged, only the currency changes.

Account balances will be converted at a fixed conversion rate of 1 euro = 1.95583 leva.

3. Company capital – special features for the individual legal forms

Capital registered in Bulgarian leva is converted into euros. For example, capital of BGN 5.000 will then be 2.556,46 euros. Companies do not have to register the changed amount in euros in the commercial register, as this is done ex officio by the registration agency.

Pursuant to Art. 32 LEI, commercial companies shall amend their internal business documents within a period of 12 months from the date of introduction of the euro in the Republic of Bulgaria by bringing the amounts of shares, business shares and capital into line with the provisions of the law.

The difference between the capital value resulting from the application of the conversion rule and the capital value shall be shown as profit/loss carried forward.

Copies of the adjusted documents shall be submitted with the next application for registration, deletion or publication in the commercial register.

A. Public Limited Companies (PLC):

Conversion of the nominal value of shares and conversion of the capital of commercial companies

The conversion of the nominal value of a share from leva to euros is done by dividing it by the total amount of the official conversion rate and rounding the result according to the general rounding rules. The capital of a public limited company and a limited partnership with shares in euros consists of the nominal value of a share in euros multiplied by the number of shares.

B. Limited Liability Companies (LLC):

The capital of a limited liability company is converted by dividing it by the total amount of the official conversion rate and rounding the result according to the general rounding rules. The share of each shareholder in the capital of the limited liability company is determined by the distribution among the shareholders according to their share in the capital before conversion.

The capital is automatically converted and entered in the commercial register ex officio. The company may then distribute the converted capital among the shareholders in proportion to their shares prior to the conversion. If the sum of the newly calculated shares does not match the automatically converted capital (due to rounding), the shareholders may decide to change the capital by up to 5% in a simplified procedure.

4. Taxes and insurance contributions – new amounts in euros
All tax and social security obligations are calculated and paid in euros. The monthly tax returns under the Bulgarian Value Added Tax Act (VAT Act) – D1 and D6 – will be in euros from the date of introduction of the euro. The thresholds, contributory income and thresholds for compulsory registration (e.g. under the VAT Act) will be converted into euros and announced.

5. Other conversion cases

 Conversion of public liabilities
All public liabilities outstanding prior to the introduction of the euro and amounts wrongly paid or collected from public liabilities shall be converted on the date of introduction of the euro in the Republic of Bulgaria in accordance with the general conversion and rounding rules.

Claims and debts determined and collected by the Bulgarian National Revenue Agency, including liabilities transferred for enforcement, whose value on the last day before the introduction of the euro is one stotinka, shall not be converted on the date of introduction of the euro and shall be deemed to have been written off.

Conversion of loans
The new interest rate applicable to variable-rate loan agreements may not exceed the interest rate agreed in these agreements prior to the introduction of the euro.

The introduction of the euro does not result in any change to the fixed interest rate in loan agreements; this remains the same as before the introduction of the euro.

Conversion of remuneration, compensation, allowances, social benefits and pensions in accordance with Part One of the Bulgarian Social Insurance Code

A special rounding rule applies here (if the third decimal place is greater than zero, the second decimal place is rounded up by one) for:

Remuneration, compensation, allowances, social benefits and pensions in accordance with Part One of the Social Insurance Code.

Conversion of wages
Each calculation (including derivations from other calculations) that is to be included in the total amount is rounded separately in accordance with the specific rounding rule.

The calculations include, among other things, basic salary, allowances for professional experience, allowances for academic qualifications, paid leave, compensation for temporary incapacity to work at the employer's expense, vouchers, etc.

N.B. Each deduction to be deducted from the total amount to be paid is rounded separately in accordance with the specific rounding rule.

The deductions include, in particular, those for loans, deposits, pledges, membership fees, etc.

V. Tax and accounting aspects for taxpayers upon the introduction of the euro

With the upcoming introduction of the euro as the official currency in Bulgaria, natural persons and persons registered under the VAT Act shall take the following specific actions and be informed of the upcoming changes:

• Commercial companies;
• Sole traders;
• Freelancers;
• Self-employed persons (e.g. consultants, architects, craftsmen, etc.) who are registered under the VAT Act.

1. Value added tax

1.1. No new registration under the VAT Act is required

• Your existing registration under the VAT Act remains valid and no new application is required.
• Your VAT ID number (e.g. BG123456789) remains assigned to you.

1.2. Invoicing in euros

• All invoices and tax documents shall be issued in euros from the date of introduction.
• Invoices denominated in leva will be invalid after the date of introduction of the euro.
• When correcting old invoices (issued in leva), the correction documents shall also be issued in euros, but with the converted amount.

1.3. Advance VAT returns

The advance VAT returns and VAT registers that you have to submit every month need to be fully converted to euros.

The returns to be submitted during the month of the introduction of the euro will have dual validity – for part of the period in leva and for the rest of the period in euros.

1.4. The turnover relevant for VAT returns shall be converted into euros.

The thresholds will be recalculated according to the fixed conversion rate: 100.000 BGN = 51.129,19 euros. For the sake of simplicity, the threshold may be changed again in the future, for example to 50.000 euros.

2. Accounting aspects
The monetary values in the corrective declarations and other documents shall be indicated in the currency unit which, at the end of the period for which the corrective declaration or document is submitted, is the official currency of the Republic of Bulgaria.

2.1 Companies, sole traders and freelancers

From the date of introduction of the euro, companies shall convert their accounting and annual statements to the euro. For the conversion of assets, liabilities and other entries, the fixed conversion rate (1 EUR = 1.95583 BGN) shall apply. Companies shall convert all assets and liabilities of their company existing at the time of the introduction of the euro analytically for each individual asset and liability into euros. The differences in the conversion of individual accounting items from leva to euros, with the exception of subscribed capital and other elements of equity, shall be recognised as income (gains) and expenses (losses) for the conversion period (the period for which the euro was introduced as the official currency unit) in the income statement, respectively in the profit and loss account (for companies applying IFRS).

A reclassification of items in connection with the conversion is not permitted. Revaluation reserves and similar items are not reclassified as income (gains) and expenses (losses) until the asset is derecognised or the liability is settled.

Income (gains) or expenses (losses) resulting from the conversion of balance sheet items from leva to euro are taken into account for tax purposes.

Adjustment of contracts and documents
Contracts, invoices, price lists, menus and other documents shall be adjusted and reported on the specified date. In the case of investment contracts, the same contractual clauses shall remain in force after the application of the general conversion and rounding rules, which are free of charge and commission for the customer, in that the interest rate on the date of introduction of the euro in the Republic of Bulgaria may not be lower than the interest rate applicable before that date.

Changes to cash payments
Cash registers and POS systems shall be converted to the euro and issue receipts in euros. Cash holdings in leva shall be exchanged for euros at the bank.

Payments and taxes
All payments to public authorities – taxes, insurance contributions, etc. – shall be made in euros after the introduction date. Tax returns and accounting shall also be adjusted to the new currency. However, monetary values in tax and contribution returns submitted for a past tax/insurance period shall be reported in the currency unit that was valid in the Republic of Bulgaria at the end of the corresponding tax/insurance period. If the period for which the return or document is submitted ends or falls within the period of parallel circulation of leva and euro, the monetary values in the tax/insurance contribution return shall be stated in euros.

Transitional period for the Bulgarian lev
During the one-month transitional period, businesses may also accept leva as payment, but after that only euros.

Restrictions on cash payments
The restrictions on cash payments remain in place, but they apply in euros (the equivalent of 10.000 BGN is 5.111,92 euros).

Invoices
There is no obligation to display prices in both leva and euros on invoices. From 1 January 2026, invoices shall be issued in euros.

Cash registers and receipts
The changes are significant and require careful technical preparation, as two different requirements with overlapping periods of validity shall be met.

Until 31 January 2026, the final amount shall be shown on the receipt in both Bulgarian leva and euros, stating the official exchange rate.

From 1 January 2026, all cash registers shall be set up to record and display all payments (to the NRA) in euros and euro cents only.

From 1 January 2026 to 31 December 2026, cash register systems shall record sales and taxes in euros, with the equivalent in leva according to the official exchange rate included on the receipt.

2.2. Natural persons

Cash payments
After the expiry of the one-month period, cash payments in leva are no longer legitimate; only the euro may be used for this purpose.

Exchange of leva for euros
Natural persons may exchange their leva amounts at banks at the fixed conversion rate free of charge for a certain period of time.

The Bulgarian National Bank will exchange leva banknotes and coins at the official conversion rate free of charge, for unlimited amounts and without any time restrictions.

During the first six months after the introduction of the euro in the Republic of Bulgaria, credit institutions shall exchange banknotes and coins in leva for euros at the official conversion rate free of charge, whereby the exchange of amounts exceeding BGN 30,000 per transaction will only be possible free of charge after prior notification three working days in advance.

After the six-month period has expired, credit institutions may introduce a commission for the exchange of banknotes and coins from leva to euro in cash, as well as for the deposit and related exchange of banknotes and coins in leva into accounts.

During the first six months after the introduction of the euro in the Republic of Bulgaria, Bulgarian Post will exchange banknotes and coins in leva at the official conversion rate up to an amount of BGN 1.000 per day per person free of charge.

Amounts from BGN 1,000 to BGN 10,000 per day per person will be exchanged by the Bulgarian Post as banknotes and coins in leva for euros free of charge only after prior registration 3 to 5 working days in advance and only at the previously announced post offices in the country. Bulgarian Post will not exchange banknotes and coins in leva worth 10,000 BGN or more per day per person into euros.

Bulgarian Post will exchange banknotes and coins in leva for euros only in localities where there are no branches or offices of credit institutions, providing this service as a service of general economic interest for a period of six months from the introduction of the euro in the Republic of Bulgaria.

After the six-month period has expired, Bulgarian Post may set a commission for the exchange of banknotes and coins in leva into euros.

Credit institutions may not refuse to provide this service within 12 months of the introduction of the euro. Bulgarian Post may only refuse to provide this service if it does not have sufficient cash reserves.

After 12 months from the introduction of the euro in the Republic of Bulgaria, credit institutions and Bulgarian Post will discontinue the service of exchanging cash amounts with banknotes and coins from leva into euros.

Change and price labels
When making sales, change shall be paid out in euros only, and the prices of goods and services shall be displayed in euros.

Transitional period for the Bulgarian lev
During the one-month transitional period, individuals may make payments in both leva and euros.

Loans and other private-law payments
After the transitional period, all private-law payments and cash transactions shall be made in euros only.

3.1. Annual financial statements

Annual financial statements from January 1, 2026 onwards shall be prepared and presented in euros.

In the annual financial statement for the transition year, the comparative data from the last reporting period (which was presented in leva) shall now be converted into euros and disclosed.

The reason for the change in the reporting currency shall be stated in the notes to the annual financial statement.

Documents denominated in leva that were received between the euro introduction date and the approval of the annual financial statements will be recorded in euros in the current reporting period. If, after the euro introduction date, the company receives a document relating to a period to be reported in leva, this document shall be recorded in leva for the last reporting period.

VI. Dual pricing

 This is the most noticeable and significant change for merchants. Companies' information systems shall be equipped to handle this.

The dual pricing period runs from 8 August 2025 up to and including 31 December 2026.

The following applies to price labelling in leva and euros:

• Prices shall be displayed immediately next to each other.
• They shall be clear, legible, unambiguous and easy to identify.
• They shall be written in the same font size and shall not contain any unnecessary information that could be misleading to consumers.
• In the case of commercial offers and advertising in audio and video form, prices may only be announced or displayed in leva until the date of introduction of the euro and thereafter only in euros.
• When pricing goods per unit of measurement, the retailer may only indicate the purchase price of the goods twice. When indicating price reductions and price comparisons, the retailer may only indicate the final price twice.
• The total amount shall be stated on the cash register/system receipt in euros and leva, together with the official conversion rate of the lev to the euro and the symbol or currency abbreviation (e.g. Lv./BGN and €/EUR).
• Prices applicable to consumers – on labels, menus, websites, online shops, catalogues and advertising – shall be displayed in euros. Exceptions apply to products with permanent labelling such as tobacco products, signs at petrol stations and taximeters.

The requirement for dual pricing does not apply to the following:

• the purchase price of goods and the nominal value of bearer securities and means of payment which are permanently and directly affixed during their manufacturing process and for which dual pricing is not technically possible;
• the purchase price of tobacco products, which is affixed to the consumer packaging or to the tax stamp – cigars and cigarillos – and for which they are sold to end consumers in retail outlets;
• the purchase price of petroleum and natural gas-based products used as fuel and displayed on information boards and petrol pumps;
• the price for the transport service, which is displayed on the taximeter display;
• the issuance of invoices, credit and debit notes for invoices and protocols.

These exceptions do not exempt merchants from their obligation to provide clear, legible, unambiguous and easily identifiable dual pricing in any other way.