The Euro in Bulgaria: What Does It Mean for Business?

4 July 2025

The Euro in Bulgaria: What Does It Mean for Business?

1. What Really Changes for Businesses?

As the Law on the Introduction of the Euro in the Republic of Bulgaria (LIERB) enters into force, Bulgaria takes a strategic step towards joining the euro area. This is not merely a financial change, but a new operational reality for businesses. As of January 1, 2026, the euro will replace the Bulgarian lev (BGN) at the fixed exchange rate of 1.95583 BGN/€, becoming the sole legal tender in Bulgaria. The transition period will be a short and intensive one, requiring readiness across finance, legal, systems, and communications domains.

2. Key Areas of Business Impact

2.1. Share Capital and Corporate Identity

All companies will need to update their registered capital in the Commercial Register to reflect the new currency. For example, if your capital is BGN 50,000.00, it will be automatically converted to €25,564.59, following the rounding rules defined in the LIERB (to the second decimal place). This requires statutory amendments and alignment of foundational documents (articles of association, founding acts, etc.) with the euro-based capital structure in accordance with the LIERB.

2.2. Contracts, Liabilities, and Pricing

All existing contracts denominated in BGN will remain valid, but their values will be automatically converted into euros. This may result in rounding differences in accounting. Currency clauses in long-term agreements should be reviewed and adapted as per LIERB requirements.

2.3. Payment and Accounting Systems

All systems – ERP, accounting software, invoicing, cash registers – must support dual currency for at least one month before and one month after euro introduction. Bank accounts will be automatically redenominated in euros without the need for a new IBAN, though new bank agreements may be required.

2.4. Public Price Display and Labelling

Businesses must update product labels, websites, offers, online stores, brochures, and price lists to display prices in both BGN and EUR during the dual circulation period. This period starts one month after the euro adoption (i.e. from January 1, 2026) and ends 12 months after the introduction of the euro (i.e. January 1, 2027).

Exceptions from dual price display requirements include:

• Goods and bearer securities or payment instruments with prices permanently printed during manufacturing;
• Tobacco product prices shown on packaging or banderoles;
• Prices of petroleum and natural gas used as motor fuel shown on totems or pump displays;
• Taxi service prices shown on in-vehicle meters;
• Issuance of VAT documents under Art. 112(1) of the VAT Act (invoices, credit/debit notes, protocols).

3. Strategic Opportunities

Beyond regulatory compliance, the euro introduction will bring lower transaction costs, easier access to markets and investors, and simplified export pricing models.

4. Action Checklist: What to Do Now

5. Conclusion

The euro transition is not just a legal step – it is a business transformation. Each company has a unique opportunity to treat the euro changeover not only as a regulatory obligation, but as a modernization and restructuring moment. With a clear strategy, timely preparation and strong legal support, this change can become a competitive advantage.

Our team at Dimov & Tashev Law Firm offers:

• Full preparation of corporate documents and procedural support to ensure compliance;
• Contractual analysis and legal assistance during the transition period;
• Internal trainings and communication materials for staff;
• Legal guidance on tax, accounting and regulatory issues.