STEPS YOU NEED TO TAKE
STEP I – Preparatory Phase
А) Monitoring of Legal Framework:
а) Track the progress of the EU Council’s decision regarding the official euro adoption date (likely January 1, 2026);
b) Comply with regulations from the Council of Ministers, and follow the detailed guidelines issued by the Bulgarian National Bank (BNB) and the National Revenue Agency (NRA);
B) Internal Company Organization:
а) Establish a working group for the euro transition, including accountants, IT specialists, and legal experts;
b) Review and classify all contracts involving payments and obligations in BGN (leva);
c) Confirm the validity of long-term employment contracts – no amendments are needed unless otherwise agreed;
C) Software and IT systems:
а) Update accounting software to support dual reporting (in BGN and EUR) during the transition period;
b) Ensure system functionality for conversion using the fixed rate of 1 EUR = 1.95583 BGN, with no rounding of the rate itself;
STEP II – Dual Display Period and Awareness – Requirements for Accountants
А) As of July 8, 2025 ual display of monetary amounts (in BGN and EUR) in documents is expected to begin;
B) Prepare clients and employees through clear informational campaigns regarding the upcoming changes;
STEP III – Official Euro Introduction (expected date: January 1, 2026)
А) Currency Conversion:
а) All amounts in BGN will be converted to EUR by dividing by 1.95583, without rounding the exchange rate;
b) Rounding Rule:
– Round to the second decimal place;
– If the third digit < 5 → no change;
– If the third digit ≥ 5 → increase the second digit by 1;
B) Salaries
а) Salaries will be paid in euro, applying the favorable rounding rule – if the third digit is > 0 increase the second;
b) Ensure that gross salaries in EUR are equal to the BGN amount divided by 1.95583;
STEP IV – After the Euro Introduction (from 2026 onward)
A) Taxes and Social Security Contributions:
а) Declarations for past periods (ending before euro introduction) must be submitted in BGN;
b) Declarations for current and future periods must be submitted in EUR;
c) Amended declarations must be submitted in the currency valid for the period being corrected;
B) Reporting, Auditing, and Financial Statements:
а) Financial statements for 2025 will be prepared in BGN;
б) Reports for 2026 will be fully in EUR;
в) At year-end closing for 2025, dual reporting and conversion into EUR will be required for comparative purposes;
C) Food Vouchers – Valid electronic food vouchers issued before the euro adoption date and denominated in BGN may be used until their expiration.
Have additional questions about the euro introduction?
Contact us – the team at Sb Accounting & Consulting is available to provide you with information and practical support for a smooth transition to the new currency.