As of 1 January 2026, Bulgaria introduced the euro as the official currency. At the same time, the country started the year without adopted budget laws, which led to a “freezing” of the main thresholds, taxes, social security contributions and benefits at their 2025 levels, with the amounts being automatically converted into euros. As of this date, amendments to tax and accounting legislation also enter into force.

The key highlights are as follows:

Employment Remuneration and Social Security – Key Indicators

 

  • New minimum monthly wage – EUR 620.20 (BGN 1,213)

Employees receiving less than EUR 620.20 per month should sign an addendum to increase the wage or the employer should unilaterally increase it by order. Within 3 days from signing the addendum / issuing the order, the employer is obliged to submit an electronic employment record to declare to the NRA the new amount, already in EUR. The effective date of the change to the remuneration is as of 01.01.2026, as the change takes effect by virtue of law as of that date.

  • No change in the minimum monthly amount of insurable income (incl. for self-insured persons): EUR 550.66
  • No change in the maximum monthly amount of insurable income: EUR 2,111.64

The lack of adopted budget laws resulted in the minimum wage (EUR 620.20) currently being higher than the minimum insurable income for certain occupational groups (EUR 550.66), for which reason social security contributions for those persons will be calculated on the basis of the minimum wage.

  • The amounts of health and social security contributions and of state compensations stay in the same amount, but in euros.

Below are the more important indicators, converted into euros:

  • Benefit for raising a child up to 2 years of age: EUR 398.81 per month;
  • Unemployment benefit: daily min. amount: EUR 9.20, daily max. amount: EUR 54.78;
  • Non-taxable amount of food vouchers: up to EUR 102.26/month per employed person;
  • Health insurance contribution for a period of unpaid leave: will be calculated on EUR 275.33 (½ of EUR 550.66);
  • Health insurance contribution in case of illness/maternity/raising a child: will be calculated on EUR 550.66;
  • Health insurance contribution for unemployed persons: EUR 22.03/month.

Amendments to the Labour Code – Flexibility for Parents of Young Children

 

The amendments aim to facilitate balancing work and family obligations for employees who are parents/adoptive parents of children up to 12 years of age.

These employees have the right to propose to the employer a temporary change to their working hours and/or to switch to remote work.

The change is made in writing, by mutual consent of the parties, where such an option exists within the undertaking. The employee may request a return to the previous working conditions before the expiry of the agreed period.

Introduction of the Euro – Key Rules for Businesses Following the Updates to Tax and Accounting Laws

 

Key dates:

  • 01.01.2026 – the euro is the official currency;
  • 08.08.2025 – 08.08.2026 – dual display of prices (EUR and BGN);
  • 01.01.2026 – 31.01.2026 – dual circulation (lev and euro).

Currency conversion and rounding:

  • Official rate: 1 EUR = 1.95583 BGN (the rate is not rounded);
  • General rule: amount in BGN ÷ 1.95583 → rounding to the second decimal place;
  • Special rule for wages/pensions/benefits: at the third decimal place – rounding up.

Prices and payments:

  • Prohibition of unjustified price increases;
  • During the dual display period: prices in BGN and EUR (labels/advertisements/cash receipts/fiscal receipts);
  • During the dual circulation period: change in euros (or in levs if euros are not available);
  • Restriction during the dual circulation period: up to 50 lev coins in one transaction.

Contracts and bank accounts:

  • Contracts in levs: automatically interpreted in euros (without an addendum);
  • Bank/electronic accounts in levs: automatically and free of charge converted into euros.

Exchange of cash:

  • BNB: free, unlimited and indefinite exchange lev→euro;
  • Banks: free exchange for the first 6 months;
  • Bulgarian Posts: free exchange up to BGN 1,000/day for 6 months in settlements without bank branches.

Labour and remuneration:

  • As of 01.01.2026 all labour remuneration, bonuses, supplements, taxes, social security contributions and benefits, allowances and pensions are paid in euros.

Liabilities to the state:

  • Refund/offsetting of unduly paid amounts for public receivables paid before 01.01.2026 is carried out in euros;
  • Default interest: ECB base interest rate + 8 p.p.; for the period 01.01.2026 – 30.06.2026 it amounts to 10.15%

Tax and social security returns, financial statements:

  • Returns for past periods (before 01.01.2026) are filed in levs;
  • Returns for future and current periods – in euros;
  • Corrective returns are filed in the currency valid for the period being corrected;
  • The financial statements for 2025 will be prepared in levs; the statements for 2026 and onwards – entirely in euros.

Share capital of commercial companies:

  • January 2026: conversion of companies’ registered share capital in the Commercial Register ex officio;
  • By the end of 2026: companies should adopt amendments to their constitutive instruments/articles of association and file them for publication in the Commercial Register (without a state fee).

To be prepared for the amendments to tax and accounting legislation in force of 1 January 2026, check out our webinar with practical guidelines and frequently asked questions about the adoption of the euro in Bulgaria to learn everything you need to know.

Tax and Accounting Aspects of the Amendments to Tax and Accounting Legislation

 

Change of the rules for mandatory VAT registration under the VAT Act and new regimes for small enterprises:

  • As of 01.01.2026, the threshold for mandatory VAT registration is maintained and amounts to EUR 51,130 (BGN 100,000), but turnover will now be monitored on a calendar-year basis (not for the last 12 months, as was the case until now);
  • An application for VAT registration is submitted within 7 days of exceeding the threshold, and the review period has been reduced to 7 days;
  • The date of VAT registration will now be not as of receipt of the VAT registration act, as was the case until now, but as of the date following the date of exceeding the threshold;
  • Persons not registered as of 01.01.2026 should calculate their annual turnover for 2025 and, if the threshold is exceeded, register under the new rules.

Regimes for small enterprises (in Bulgaria and in the EU) are introduced, with VAT exemption at limits ≤ EUR 51,130 in Bulgaria and/or ≤ EUR 100,000 in the EU (for the current and the preceding year). In order to benefit from these regimes, persons should register with the NRA, thereby obtaining an identification number prefixed with the sign “BG” and suffixed with “-EX”. Persons from third countries cannot benefit from the regimes and are obliged to register prior to the first taxable supply in Bulgaria.

Standard Audit File for Tax purposes (SAF-T)

As of 01.01.2026, the new type of tax and accounting reporting to the NRA enters into force for the first wave of obligated persons, namely – large enterprises (as at 31.12.2023) with net sales revenue for 2023 above BGN 300 million or payments into NRA accounts for 2023 from taxes and social security contributions above BGN 3.5 million.

The SAF-T file is a structured, machine-readable file containing detailed accounting information arranged according to a single nomenclature and format applicable to all (XML).

The new reporting is envisaged to be introduced in stages for the different categories of enterprises in the period 2026-2030, with the aim of:

  • Reducing errors through automated checking and validation of data;
  • Better visibility of the chronology of accounting entries, which will facilitate the monitoring by the tax authorities.

We will keep you updated to what is new to the amendments to tax and accounting legislation during the whole 2026!