The euro in Bulgaria: what every company owner needs to know from 1 January 2026

From 1 January 2026, the euro becomes the official currency of Bulgaria. The fixed exchange rate is 1 EUR = 1.95583 BGN — the same ratio at which the lev has been pegged to the euro for years. For the owner of an EOOD, OOD or sole trader (ET), this is not just a change of coins in the till — it affects accounting, employment contracts, tax returns, and even old invoices in the archive.

Accounting fully switches to euro

From the start of 2026, all new accounting entries, invoices, payrolls and tax returns are kept in euro. Balances carried over from 2025 are recalculated using the fixed rate of 1.95583. There is no need for manual rounding based on personal judgment — what matters is consistently using the same rate for the entire conversion of the opening balance, rather than mixing old and new calculations in one document.

Old invoices issued in lev in 2025 or earlier remain in lev in the archive — they are not reissued. If a correction, credit note or debit note is due on them after 1 January 2026, the note is now issued in euro at the fixed rate.

Salaries and social security contributions — the numbers are now in euro

The social security thresholds and rates for 2026 are set directly in euro:

• Contributions payable by the employee: 13.78% (10.58% for state pension and supplementary mandatory pension fund + 3.2% health insurance).
• Contributions payable by the employer: 18.52%, plus the "Work Accident and Occupational Disease" (TZPB) contribution of 0.4% to 1.1% depending on the main economic activity.
• Maximum insurable income: EUR 2,111.64 until 31 July 2026 and EUR 2,300 from 1 August 2026.
• Minimum insurable income for self-insured persons: EUR 550.66 until 31 July and EUR 620.20 from 1 August 2026.

Employers pay contributions by the 25th of the month following the month for which they are due — this rule does not change with the euro, only the numbers on the payroll are now in a new currency. If you have people on civil contracts or you self-insure as a manager, recalculate the new thresholds in the contracts and internal documents so there is no discrepancy between the paper archive and the payroll system.

Corporate tax and the annual return

The annual tax return under the Corporate Income Tax Act (ZKPO) is filed between 1 March and 30 June, and the tax is paid within the same deadline — by 30 June. For financial year 2026, the return is now prepared entirely in euro, including the balance sheet and the income statement. If the company keeps dual records because of a foreign owner or investor, keep in mind that the NRA accepts only euro-denominated returns for periods after 1 January 2026.

Dividends and VAT on intra-community transactions

The dividend tax remains 5% — calculated on the distributed amount in euro. If you are a shareholder expecting a profit distribution from previous years, the distribution protocol is now issued in euro.

For companies that buy goods from suppliers in other EU countries, the VAT registration threshold due to intra-community acquisition remains EUR 10,000 per year. Keep a close eye on your turnover in euro — under the old rate the amount in lev looked different, but the threshold itself does not change, only the currency in which it is tracked.

Contracts, prices and old documents in lev

Contracts signed before 1 January 2026 with prices in lev remain valid — there is no need to re-sign them. When annexing or renewing them, it is advisable to state the new amounts directly in euro, so there is no need for additional recalculation with every payment. If you have saved price lists, offers or invoice templates in lev, replace them before issuing your first invoice for 2026 to avoid an error in the issued document.

For a period after the introduction of the euro, it is common for prices in shops and offers to be shown in both currencies while customers get used to the new amounts — if you run a physical or online store with displayed prices, check whether your pricing display system supports dual display.

Registering a new company after the introduction of the euro

If you are still planning to register an EOOD or OOD, the state fees and all amounts related to incorporation are now announced in euro. Through Fiscala, company registration costs EUR 199, with state fees charged separately — the price is the same for Bulgarian citizens and for foreigners who want to set up a company in Bulgaria.

When it's a good idea to consult an accountant

Recalculating opening balances, reworking payroll with the new social security thresholds, and migrating accounting software to euro are technical steps where mistakes are easy to make, especially if the company has foreign partners or mixed contracts in lev and euro. If you are not sure exactly how to recalculate transitional balances or how the currency change affects your specific balance sheet, it is better to consult an accountant before filing your first return for 2026.

If you want help transitioning your accounting to euro or have questions about your specific company, call +359 899 115 149 during working hours Monday–Friday 09:00–18:00, or leave a request through the Fiscala website.