Euro adoption in Bulgaria is a major milestone for businesses and citizens, introducing new rules for pricing, accounting, and tax compliance starting in 2026. This guide presents a comprehensive Q&A covering all essential aspects of the transition from leva to euro.

What is the period for dual display of prices of goods and services?

The period for the dual display of prices of goods and services in euro and leva begins on 8 August 2025 and ends on 8 August 2026.

How should the price be displayed on the issued fiscal/system receipt until 8 August 2026?

Prices must be recorded and reported only in euro and cents, but the total final amount payable by the consumer must be displayed in the fiscal/system receipt (or another document registering the payment) in both euro and leva, together with the official exchange rate of the lev to the euro.

In what currency should tax documents under Art. 112, para. 1 of the VAT Act (invoices, protocols, notices) be issued?

• Until 31 December 2025 – only in leva.
• After 1 January 2026 – only in euro.

What is the period of the dual circulation of the lev and the euro?

From 1 January 2026 to 31 January 2026.

What does this mean for businesses during euro adoption Bulgaria?

• Banknotes and coins in leva continue to be legal tender in Bulgaria.
• Cash payments may be made in both leva and euro. Mixed payments are allowed unless self-service devices are used.
• If vending machines, devices, or self-service systems (including those without electrical power) are used, only euro may be accepted.

How is change returned during the dual circulation period?

• Entirely in euro.
• If the merchant does not have sufficient euro cash – change is returned entirely in leva.
• Mixed change is not allowed.

What is the deadline and exchange rate for converting levs into euros?

Bulgarian National Bank:
Exchanges banknotes and coins from leva into euro free of charge, in unlimited quantities, and without time limits, at the official exchange rate.

Banks and “Bulgarian Posts” EAD:

• Until 30 June 2026 – exchange is free, in unlimited quantities, at the official rate.
• After 30 June 2026 – may charge a fee for cash exchange or deposits.
• After 31 December 2026 – service may be discontinued.

What are the general rules for converting levs into euros?

Round to the second decimal place based on the third:

• .(0–4) → round down
• .(5 and above) → round up

What are the special rules for converting levs into euros?

They apply to remuneration, compensation, cash and social assistance, pensions under Part I of the Social Security Code and supplements thereto, and guaranteed receivables under the Law on Guaranteeing Receivables of Workers and Employees in the Event of Employer Insolvency.

The amount received is rounded to the second decimal place based on the third decimal place:

• .(0) → the second decimal place is retained
• .(1 and above) → the second decimal place is increased by 1 unit

What happens with the capital of companies registered in the Commercial Register?

Automatic conversion is performed by the Registry Agency.

Are there any additional obligations regarding the articles of association and statutes of commercial companies related to this revaluation?

Yes. Commercial companies must adopt the necessary changes and submit them for publication in the Commercial Register by 31 December 2026.

• A copy of the articles of association or partnership agreement must be submitted at the same time as the first subsequent application for entry, deletion, or publication in the Commercial Register.
• No state fee is payable.

We have revalued the shares of the individual partners, but the total does not match the capital that is automatically revalued in the Commercial Register. What should we do?

It is necessary to amend the partnership agreement in order to preserve the rights of the partners.

The amendment may be up to 5% of the registered capital. In this case, the rules of the Commercial Law for increasing or decreasing the capital do not apply.

In the accounting system, exchange rate differences are expected to arise when converting the accounting accounts from levs to euros. What should be done with them?

• When the transactions relate to equity, they are reported as retained earnings or accumulated losses from previous years.
• When the transactions relate to all other accounts, they are reported as current accounting income and expenses and recognised for tax purposes.

In what reporting currency are the annual financial statements for 2025 and 2026 prepared?

• 2025 – in leva
• 2026 – in euros

The comparative data for 2025 are also recalculated and presented in euros.

The notes to the annual financial statements indicate the reason for the change in the reporting currency from Bulgarian levs to euros.

In what reporting currency are the annual tax returns for 2025 prepared?

In BGN. Payment is in EUR.

In what currency is the monthly VAT return for December 2025 prepared and submitted?
In BGN. Payment is in EUR.

If tax returns, declarations under the Gambling Act, declarations for mandatory social security contributions, and other documents relating to the period before and including 31 December 2025 need to be submitted, in what currency are they prepared and submitted?

• Corrective annual tax return under Article 92 of the Corporate Income Tax Act for 2025 (by 30 September 2026) → in BGN
• Declarations Form No. 1 and Form No. 6 for work performed until 31 December 2025, including corrective returns → in BGN
• Report under Article 73(1) of the Income Tax Act due 28 February 2026 → in BGN
• Report under Article 73(6) of the Income Tax Act for taxable income paid in 2025 → in BGN
• Corrections to VAT returns after the deadline → in leva

If tax returns, declarations under the Gambling Act, declarations for mandatory insurance contributions, and other documents relating to the period before 31 December 2025 and 31 January 2026 inclusive need to be submitted, in what currency should they be prepared and submitted?

In euros.

What are the special rules for converting levs into euros?We are undergoing a tax audit for periods prior to 31 December 2025, and we expect the tax report to be delivered to us after 1 January 2026. In what currency will it be prepared?

In leva.

Can public receivables to the state and municipalities be paid in Bulgarian levs until 31 January?
Yes, when cash payment is permitted.

On 1 January 2026, I will revalue the accounting cash register from levs to euros, but do I have to physically exchange the levs for euros?

There is no such requirement in the law.

Until 31 January 2026, during the period of dual circulation of the lev and the euro, if payments are also made in levs, a new analytical account in levs should be created, which will be considered a foreign currency account.

In 2026, if I receive a document in leva dated 2025, but the annual financial report for 2025 has already been approved, for which year and in which currency should I account for it?

For 2026 and in euros.

If in January 2026 you receive a rent invoice issued in euros but relating to rent for December 2025, for what period and in what currency should you report it?

For December 2025, in Bulgarian levs, converted at the official exchange rate.

If you intend to exercise your right to deduct tax credit in 2026 for invoices issued in 2025 in Bulgarian levs, in what currency should you indicate them in the purchase journal and VAT returns under the VAT Act?

In euros, converted at the official exchange rate.

If, after 1 January 2026, I have to issue a debit/credit note for an invoice issued before 31 December 2025 in leva, what currency should it be in?

In euros.

The euro transition introduces important operational and regulatory changes for businesses in Bulgaria. For further questions or tailored assistance, please contact the TGS Bulgaria team. Contact us here to learn more.