Euro Adoption in Bulgaria in 2026: What Changes for Businesses 

Start a company in Bulgaria is becoming increasingly attractive to foreign investors, thanks to favorable tax policies, competitive labor costs, and a strategic location in Southeast Europe. From January 1st, 2026, an important shift will further enhance Bulgaria’s economic stability: the official adoption of the euro as its national currency.

This decision, announced by the European Commission on June 4th, marks a significant milestone in the country’s path toward full integration into the eurozone. Having met all convergence criteria – including price stability, sound public finances, exchange rate stability, and long-term interest rates – Bulgaria is now formally ready to join the monetary union.

The European Central Bank has confirmed the country’s macroeconomic readiness, recognizing compliance with the necessary stability indicators. Against this backdrop, understanding how this monetary transition will impact business operations, accounting processes, and daily life is crucial for both residents and entrepreneurs.

Why Bulgaria Is Introducing the Euro

Bulgaria has been a member of the European Union since 2007 and has long committed to joining the eurozone. Until now, the Bulgarian lev (BGN) has been pegged to the euro at a fixed exchange rate of 1 EUR = 1.95583 BGN, providing monetary stability without full integration into the euro system.

With the formal adoption of the euro, Bulgaria will gain direct access to the financial mechanisms of the eurozone, benefiting from deeper integration into EU capital markets and streamlined international transactions. For companies, this means reduced currency exchange costs and protection from exchange rate volatility.

Existing contracts – including leases, salaries, and loans – will be automatically converted to euros using the fixed rate. No renegotiation will be required, and the original financial terms will be preserved.

For individuals, the transition will simplify payments and price comparisons within the euro area, enhancing transparency and economic mobility. The use of a shared currency is also expected to improve access to EU funding and monetary stability tools.

Read Also: EORI Registration in Bulgaria: What You Need to Know in 2025

What Will Change with the Euro in Bulgaria

The euro introduction will bring several operational changes that affect both citizens and businesses. The most immediate shift is the replacement of the lev with the euro in all transactions. During a transition period, prices in shops, service invoices, and contracts will be displayed in both BGN and EUR to ensure clarity and ease of understanding.

Banks, post offices, and certified financial institutions will provide free cash conversion services for at least six months. Bank accounts and financial products will be converted automatically, with no need for user action.

From a business perspective, accounting records, tax filings, and financial statements will need to be maintained in euros. Companies must update their accounting software, payroll systems, and billing tools to ensure continuity.

Salaries will be adjusted to euros without changing the underlying agreements. Tax laws and rates will remain unchanged at this stage, with any potential adjustments subject to future legislative decisions.

Read also: Managing Business Trips in Bulgaria: How to Optimize Tax Benefits

Euro Adoption in Bulgaria in 2026: Inflation Concerns and How to Prepare for the Transition

One of the most common concerns about adopting the euro in Bulgaria is its potential impact on inflation. In countries that previously adopted the euro, slight price increases were observed due to rounding or psychological price adjustments (e.g., 1.80 BGN becoming 0.99 EUR).

However, Bulgaria is implementing several safeguards to minimize unjustified price hikes. Mandatory dual pricing will allow consumers to compare values and report inconsistencies, while national consumer protection authorities will intensify their monitoring efforts.

The fixed exchange rate – in place since 1999 – will remain the same, ensuring that monetary value is preserved. Most analysts agree that any inflationary effect from the euro adoption in Bulgaria will be modest and temporary.

Businesses are encouraged to take proactive steps to manage the transition smoothly:

• Update internal systems: Ensure accounting software, POS terminals, and management tools are compatible with the euro.
  
• Train staff: Employees must be familiar with dual pricing, currency conversion practices, and effective communication with clients and suppliers.
  
• Revise internal documentation: Contracts, invoices, reports, and marketing materials that reference monetary values should be updated to reflect the new currency.
  

It’s also recommended that companies proactively inform stakeholders – including partners and customers – about the change, emphasizing that it does not affect prices or contract terms, but is simply a formal currency switch.

The euro’s introduction in Bulgaria from 2026 marks a major step in the country’s economic and institutional alignment with the European Union. For those who have already chosen to start a company in Bulgaria – or plan to do so – this is a pivotal moment to review business processes and adapt financial systems accordingly.

To ensure full compliance and avoid disruptions, it’s highly recommended to work with experienced professionals. Accountancy Bulgaria, financial advisor in Bulgaria, provides dedicated support to businesses relocating to or already established in Bulgaria. From contract alignment to staff training and regulatory guidance, Accountancy Bulgaria is your ideal partner for navigating the euro transition confidently and efficiently.