Bulgaria Moves Closer to Euro Adoption

March 4, 2025

On February 25, 2025, the Minister of Finance and the Governor of the Bulgarian National Bank signed a request addressed to the President of the European Commission and the President of the European Central Bank for the preparation of extraordinary convergence reports on Bulgaria’s compliance with the criteria for joining the Eurozone. After reviewing these reports, the finance ministers in the Eurozone and the European Council will decide whether and when the country may join the Eurozone. Such a decision could be issued not earlier than in the summer of 2025, and within 1 month of its entry into effect, businesses in Bulgaria will be required to display prices and services in both euros and Bulgarian levs (BGN), as well as to start complete preparation for transitioning to the euro as the country’s official currency.

In this regard, we provide below a summary of the key requirements to be complied with before and after the introduction of the euro, as set out in the Law on the Introduction of the Euro in the Republic of Bulgaria.

1. Dual Price Display

Within 1 month after the European Council’s decision on adopting the euro (expected not earlier than in the summer 2025), all goods and services must be displayed with prices in both euros and Bulgarian levs. The dual price display will remain mandatory for 12 months following the euro’s introduction.
Exceptions: Some products, such as tobacco and fuels, are exempt from dual pricing due to technical or legal reasons. Bearer securities with values recorded in levs (such as postage stamps, lottery tickets, etc.) may continue to be used until they are sold on the market.
Conversion and Rounding: Prices in euros will be calculated based on the fixed exchange rate of 1.95583 BGN per 1 euro and rounded to two decimal places.
Fiscal Documents: During the dual pricing period, the total amount on cash register receipts must be shown in both euros and levs.
Financial Services & Accounts: All fees, commissions, account statements, insurance amounts, and values of investment and pension services must be displayed in both euros and levs, with this information provided to customers free of charge.
Transactions with financial instruments: Data on the turnover of trading venues and prices of financial instruments must also be published in EUR and BGN.

2. Dual Circulation Period

For a period of 1 month after the euro’s introduction, businesses must accept payments in both euros and levs but can return change or refund amounts only in euros (unless they lack sufficient euro cash reserves).
The same rule applies to public receivables.
Businesses may refuse to accept more than 50 coins in levs per transaction.

3. Supply of Euros

Before the official euro introduction date, there will be an initial supply and replenishment of euro banknotes and coins from the Bulgarian National Bank (BNB) to commercial banks and from commercial banks to businesses and individuals.
Commercial banks and Bulgarian Post will sell starter kits of euro banknotes and coins to businesses and individuals.
ATMs: ATMs must be stocked with euros before the official euro introduction date. After the transition, only euro banknotes will be available for withdrawal.

4. Currency Exchange

The BNB will exchange levs for euros without limitations at the official exchange rate.
Commercial banks (up to 30,000 BGN) and Bulgarian Post branches (up to 1,000 BGN per day per individual) will provide free currency exchange for the first six months after the euro’s introduction. After this period, banks may impose a fee.
For amounts exceeding the set limits, a prior request must be submitted to the bank or post office.

5. Currency Conversion

Account balances in levs: All bank accounts in levs will be automatically converted to euros upon the euro’s introduction.
Holders of bank accounts in both levs and euro can request to close one the bank accounts and transfer the balance to the other free of charge.
Company Capital Conversion: Companies must convert their capital to euros while ensuring shareholder and partner rights remain unaffected. Any rounding differences after conversion will be recorded as retained earnings or losses from previous years. Automatic conversion will be carried out in the Commercial Register by the Registration Agency.
Salary, Compensation, and Pension Payments: From the date of euro adoption, all salaries, compensations, and pensions will be paid in euros and recalculated according to the official exchange rate. If the third decimal place in the converted amount is greater than zero, the second decimal place will be rounded up. The same rule applies to outstanding payments in levs due before the euro introduction.

6. Documentation

Accounting Documents: All documents related to accounting and bookkeeping must be converted into euros after the euro’s introduction.
Tax and Social Security Documents: Monetary values in tax and social security declarations will be reported in the official currency of Bulgaria at the end of the relevant period. If the period includes both lev and euro transactions, the euro will be used for the relevant reporting period.

7. Compliance and Enforcement

Supervisory Authorities: Compliance with the legal requirements related to the introduction of the euro will be monitored by the Bulgarian National Bank, the Financial Supervision Commission, the Consumer Protection Commission, the National Revenue Agency and the Minister of Electronic Governance depending on the relevant requirements.
Administrative Measures: If violations of the law are established, the supervisory authority may prescribe remedial actions within certain terms and/or impose administrative penalties.

8. Administrative Penalties

Fines for Violations: Administrative fines for violations of the requirements range from BGN 50 to 6,000, depending on the severity. For repeated violations, fines may increase to up to BGN 12,000.
Corporate Sanctions: Legal entities and sole proprietors may be subject to administrative fines of BGN 100 to 50,000 depending on the violations. For repeated violations, penalties are doubled, reaching up to BGN 100,000.