Key Dates

Date of Euro Adoption

01.01.2026

Dual Price Display

08.08.2025 – 08.08.2026

Dual Currency Circulation 

01.01.2026 – 31.01.2026

Conversion and Exchange Rate

Fixed rate: 1 EUR = 1.95583 BGN

Conversion: division using the full rate (6 decimal places)

Rounding: to the 2nd decimal according to general rules

Special rule: for salaries, compensations, pensions – always rounded up if there is a third decimal

Employment Contracts and Remuneration

Contracts concluded before 01.01.2026 → in BGN (paid in euros after 2026)

Contracts concluded after 01.01.2026 → in EURO

Salaries, compensations, allowances → in EURO after 01.01.2026

Bank Accounts and Payments

Dual Price Display

Mandatory only in consumer relations

Receipts: only the total amount in both currencies

Traders: fair and transparent price formation

Large traders (>10 million annual turnover) – daily online publication of prices

*Penalties: 10,000 – 100,000 BGN (repeat violation: up to 200,000 BGN)

Taxes

Declarations for past periods → in BGN

Declarations for future periods → in EURO

Amended declarations → in the currency of the relevant period

Accounting Documentation and Reporting

Accounting balances and annual financial statements → in EURO (from 2026, in thousands of EURO)

Rules: Conversion of shares, stakes, capital

After 01.01.2026, the capital declared in the Commercial Register will be converted and updated automatically

Commercial companies will have the obligation to update their articles of association/ statutes by converting the capital into euros and then declaring the updated document in the Commercial Register.

There are three possible scenarios:

  • Contract concluded and effective before 01.01.2026 – amounts are agreed in BGN.
  • Contract concluded and effective after 01.01.2026 – amounts are agreed in EUR.
  • Contract concluded before 01.01.2026 but effective after that date – amounts are agreed in BGN, since the decisive factor is the date of conclusion of the contract.

There is no legal obligation for employers to issue payslips in both currencies, as dual display applies only to consumer relations. However, employers may choose to do so at their discretion.

According to official information from the Bulgarian National Bank, IBANs will remain unchanged. Only the balances of BGN accounts will be converted into EUR as of 01.01.2026.

Even after the BGN is phased out, companies are still required to maintain a bank account in a Bulgarian bank in order to make payments to institutions.

The relevant factor is the tax period for which the declaration is submitted, not the accounting date. Amounts must be stated in the official currency valid at the end of that tax period.

Example: An invoice with a tax point in October 2025, issued in BGN but recorded in January 2026, must be declared in BGN, since the official currency for October 2025 was BGN.

The special rounding rule applies to each component of remuneration that forms part of the total “amount payable,” including derivatives of other accruals.

Additional clarifications:

  1. Sick leave compensations should also be rounded under the special rule.

Deductions, however, follow the general rounding rules, as applying the special rule would put the individual in a less favorable position.

 

No. All payments made before that date must be in the official currency valid at the time of payment – the Bulgarian lev.

If the question refers to payroll software (e.g., STIL), this depends on the service provider. It is expected that functionality will be developed to generate reports in the official currency valid for the respective period.

No amendments to existing contracts are required. Payments must be made in the official currency valid at the time of payment. For rounding, the general rules under Articles 12 and 13 of the Euro Introduction Act apply.

The law does not provide for special rules, but it specifies that all unpaid public liabilities and amounts unduly paid or collected before the euro adoption will be converted into EUR as of 01.01.2026, according to the general rules on conversion and rounding. After that date, all public receivables are to be paid in EUR.

Have additional questions about the euro introduction?

Contact us – the team at Sb Accounting & Consulting is available to provide information and practical support for a smooth transition to the new currency.

 

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