From January 1, 2026, the euro will become Bulgaria’s official currency for invoicing, financial reporting, and all monetary transactions, replacing the lev at the fixed exchange rate of 1 euro = 1.95583 leva, as determined by the European Council.
Our team has summarized the most important information for companies regarding the introduction of the euro as the official currency in Bulgaria, based on the amendments to the Law on the Introduction of the Euro, adopted on second reading by the National Assembly on July 30, 2025, and officially published in the State Gazette on August 8, 2025.
Here are the key changes companies need to prepare for:
1. Dual Display of Consumer Prices
From August 8, 2025, to August 8, 2026, companies will be required to display prices in both leva and euros.
- Prices for all goods and services offered to consumers must be shown in both currencies with precise conversions, including on receipts.
- Price tags must clearly display both currencies, using symbols or abbreviations, in the same size, style, and font colour so that the values are easily readable and recognizable.
- Retailers must adapt cash registers and POS systems to handle euro prices.
- Insurance companies and financial institutions must also display service prices in both currencies.
2. Exceptions to the Dual Display Requirement
Certain exceptions are provided:
- Invoices, credit notes, and debit notes will continue to be issued only in leva until December 31, 2025; after January 1, 2026, they must be issued only in euros.
- Marketing content (including audio and video formats) may continue showing prices only in leva until January 1, 2026.
- For the education and publishing sectors, dual pricing will apply from January 1, 2026, for books, textbooks, and other printed materials (including study texts, illustrated children’s books, coloring books, and sheet music).
- Specific cases are exempt, such as prices for transport services shown on taxi meters, personalized paper travel documents, prices displayed on self-service devices and systems, fuel prices shown on signs and pumps, etc.
3. Enhanced Price Control
- The amendments extend the period of enhanced price monitoring from August 8, 2025, to August 8, 2026, whereas the previous law provided for monitoring only during the dual circulation period (January 1 to February 1, 2026).
- The Council of Ministers will be able to introduce measures—without parliamentary approval—against speculative price increases for essential goods and services such as basic food items, household electricity and heating, prescription medicines, and personal hygiene products.
- Large retailers will be required to publish daily prices of essential goods on their websites.
- Small retailers may voluntarily provide pricing data to the Consumer Protection Commission (CPC).
- From October 8, 2025, to August 8, 2026, speculative price hikes will be subject to fines ranging from BGN 5,000 to 10,000 (approx. €2,556 to €5,113).
- Repeat offenses will be fined between BGN 10,000 and 200,000 (approx. €5,113 to €102,270).
- For companies with turnover above BGN 50 million, fines can reach up to 0.5% of turnover, and for repeat violations up to 1%, capped at BGN 1 million (approx. €511,000).
- The CPC and the National Revenue Agency (NRA) will be authorized to determine whether a price increase is justified.
4. Grace Period
- A two-month grace period will apply from August 8, 2025, to October 8, 2025, during which the NRA and CPC will issue written instructions instead of imposing sanctions.
- No fines will be imposed during this period for non-compliance with the dual pricing rules, to give businesses time to adapt systems and labels.
- Violations after October 8, 2025, may result in penalties.
5. Dual Circulation of Euro and Lev Banknotes and Coins
- Between January 1, 2026, and February 1, 2026, merchants must accept payments in leva but give change in euros. If they lack sufficient euro cash, they may give the entire change in leva. All refunds during this period must be made in euros, unless there is insufficient euro cash.
- During the dual circulation period, merchants may refuse to accept more than 50 lev coins (including stotinki) in a single transaction.
- For the first six months after euro adoption, banks will exchange lev banknotes and coins free of charge. For sums over BGN 30,000, a three-day prior notice may be required.
- During the first six months, Bulgarian Posts EAD will exchange up to BGN 1,000 per person per day free of charge, and sums between BGN 1,000 and 10,000 per day only in designated post offices with 3–5 working days’ notice.
- After the first six months, financial institutions may charge for lev-to-euro exchange. Only the Bulgarian National Bank will be obliged to provide free cash exchange services indefinitely.
- All lev-denominated bank accounts and deposits will be automatically converted to euros at no cost to clients.
- Until February 28, 2026, companies with multiple euro accounts at the same institution may consolidate them free of charge if they request so within two months after euro adoption.
- All company financial systems must be technically prepared to operate in euros and must stop accepting lev payments after January 31, 2026.
6. Impact on the Work Environment
- Budgets, KPIs, and all financial and accounting documents must be recalculated in euros.
- Payroll, accounting, and HR management software must be updated for euro operations.
- All contracts, including employment contracts, will be automatically converted to euros on January 1, 2026, without requiring annexes.
- A general rounding rule will apply for currency conversion: amounts will be rounded to the second decimal place based on the third decimal place.
- A special rounding rule will apply to salaries, benefits, social payments, and pensions to avoid employee financial losses: amounts will be rounded to the nearest euro cent if the third decimal digit is not zero.
7. Conversion of Company Capital
- Converting company capital from leva to euros will not affect shareholder or partner rights and ownership stakes.
- The nominal value of shares and the capital amount will be calculated in euros at the official exchange rate and rounded.
- Within 12 months after euro adoption, companies must file their updated statutes or articles of association reflecting the converted capital and shares in the Commercial Register—free of state fees.
The transition to the euro is more than a legal requirement—it’s a turning point that will shape how Bulgarian businesses operate and compete in the broader European market. A well-managed transition can strengthen market stability in Bulgaria. As the country enters the final stages of euro adoption, compliance—or lack thereof—with legal measures will play a key role in the economic and business climate during and after the adaptation period. For companies, the coming months will require precise currency conversion, transparency, and clear communication with clients, partners, and employees. Meeting the deadlines and requirements will protect businesses from legal and financial risks.
This summary is for informational purposes only and does not constitute legal advice.
For more information, you can contact us at: office@kdp-law.com
