Bulgaria is approaching a major shift in its financial system with the upcoming adoption of the euro, and this change will affect not only how we handle money in everyday transactions but also salaries, company operations, and taxes. It’s time to look behind the scenes at how the euro will impact the world of work and business, clarifying questions that directly concern employees and entrepreneurs.
Salaries in euros: what employees need to know
One of the first concerns for workers is how their salaries will be converted. Bulgarian law provides a clear framework that favors employees. Once the euro becomes the official currency, all salaries will be paid in euros, using a special rounding method that always benefits the worker.
In practice, if the conversion from levs to euros results in a figure with more than two decimal places, it will be rounded up to the nearest cent. For instance, a gross salary of 2,000 BGN converted at the official rate of 1.95583 equals roughly 1,022.583 euros. Standard rounding would reduce this to 1,022.58 euros, but the law ensures the amount will instead become 1,022.59 euros. This approach guarantees that employees do not lose money in the conversion process.
Businesses prepare for change
Companies will also face adjustments, though the good news is that many key steps are automated and cost-free.
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Company capital
All company capital, including for LLCs, ADs, and KDAs, will automatically convert from levs to euros through the Registry Agency. No special action or fee is required from the company for this change. Within twelve months of the euro’s introduction, companies must update internal documents such as statutes or partnership agreements to reflect the new currency, submitting these updates to the Commercial Register with their next application. Importantly, shareholders’ rights and ownership stakes remain unaffected – the conversion preserves the legal and financial status of each partner. -
Financial statements and assets
From the euro adoption date onward, all accounting and reporting will be conducted in euros. Annual financial statements will be prepared in thousands of euros, with previous-year figures converted to allow meaningful comparisons. Assets and liabilities are calculated by dividing their lev value by the official conversion rate (1.95583) and rounding according to standard accounting rules. This ensures consistency and accuracy in financial reporting. -
Tax declarations
The currency used for tax filings depends on the official currency at the end of the reporting period. For example, a tax return covering 2025, when the lev was still official, will be submitted in levs, while the return for 2026 will be filed in euros. Any documents issued by the National Revenue Agency (NRA) after the euro’s introduction that relate to previous periods will indicate values in levs, but the actual amounts to pay or refund will be in euros.
Clarifying a common misconception about the BNB
A recurring myth suggests that the Bulgarian National Bank’s (BNB) reserves could be accessed by parliament for purposes like paying off national debt. This is entirely false. By law, the National Assembly cannot interfere with BNB reserves. Such action would violate the bank’s independence, breach European Union and European Central Bank regulations, and create serious financial instability. Even in crises, including systemic banking emergencies, only the BNB in coordination with the ECB can deploy its reserves. Public funds and central bank reserves are strictly protected from political influence.
Conclusion
The euro transition will affect salaries, business operations, and tax systems, but Bulgaria has laid out clear, structured procedures to safeguard employees, entrepreneurs, and the overall economy. Employees benefit from conversion rules that guarantee no loss in pay, while businesses have automated mechanisms to align capital, accounts, and reporting with the new currency. Tax processes are also clearly defined to ensure a smooth changeover. Meanwhile, public trust is reinforced by strict protections around the BNB’s reserves, ensuring that Bulgaria’s financial system remains secure and stable as the country joins the eurozone.
The shift to the euro is not just about exchanging money – it is a comprehensive transformation of how Bulgaria handles work, business, and finance, designed to be orderly, fair, and predictable for all involved.
