Introduction of the Euro in Bulgaria: A Step-by-Step Guide for the Dual-Currency Period (January 2026)
Calculators:
On January 1, 2026, Bulgaria will officially join the eurozone, marking the start of a critical transition period known as the “dual circulation” phase. During this 31-day period—from January 1 to January 31, 2026—the Bulgarian lev and the euro will both be legal tender in the country. This period is extremely important for merchants, accountants, and all citizens, as it requires compliance with specific rules and procedures.
What Is the Dual Circulation Period?
Legal Framework and Key Rules
During this 31-day period, the Bulgarian lev (BGN) and the euro (EUR) are both legal tender. This means that merchants are required to accept both currencies but must follow new rules for giving change.
The dual circulation period is a legally defined transitional phase during which merchants are required to accept payments in both leva and euros. The purpose of this period is to gradually phase out the Bulgarian lev from circulation and to facilitate the transition to the new currency for citizens. During these 31 days, the retail network essentially functions as a currency exchange office, helping people convert their available leva into euros through their daily purchases.
Key Rules for Merchants
During the dual-currency circulation period, merchants must comply with strict rules established by law. The most important requirement concerns the giving of change.
The Rule on Change: Merchants are required to give change exclusively in euros, regardless of whether the customer paid in leva, euros, or a combination of both. This rule is intended to accelerate the process of withdrawing levs from circulation. The only exception is in the event of an emergency situation where the merchant does not have euros on hand at that moment—in which case, it is permitted to give change in levs or a mix of currencies, but this should not become standard practice.
Coin Limit: Merchants are not required to accept more than 50 coins in a single transaction. This rule prevents cash registers from jamming due to an excessive amount of small change.
Fiscal receipts: As of January 1, 2026, cash registers will operate with the euro as the primary currency. Each fiscal receipt must show the final amount in both currencies, as well as the fixed exchange rate of 1.95583 leva per euro.
Three Main Payment Scenarios
During the dual-currency period, three different payment scenarios are possible. Understanding them is key for both merchants and consumers.
Scenario A: Payment in Euros Only
This is the simplest and most desirable option. When a customer pays entirely in euros, the process proceeds as usual without the need for conversion. For example, for a bill of 25 euros, the customer hands over a 50-euro bill and receives 25 euros in change. There is no currency risk or complex calculations.
Scenario B: Payment in Levs Only
This scenario will be most common in the first few days of January, when citizens try to “get rid of” their remaining levs. In this scenario, the process is as follows: the amount in leva is converted to euros by dividing it by the fixed exchange rate of 1.95583, after which the change in euros is calculated.
For example, for a bill of 15.30 euros, if the customer pays 40 leva, the system automatically converts the leva to 20.45 euros. It then calculates the change: 20.45 minus 15.30, which equals 5.15 euros. The cash register physically receives leva, but returns change only in euros, so merchants must have a sufficient supply of euro coins and banknotes.
Scenario B: Mixed Payment
The most complex scenario involves a payment using a combination of leva and euros. In this scenario, the system first converts the leva to euros, then adds the two amounts together and calculates the change. For example, for a bill of 45 euros, if the customer pays with a 20-euro banknote and a 50-lev banknote, the process is as follows: The leva are converted to 25.56 euros, which are added to the 20 euros, resulting in a total of 45.56 euros. The change is 56 euro cents, which is returned entirely in euro coins.
Accounting and IT Aspects
As of January 1, 2026, the official currency of Bulgaria is the euro, which means that all accounting systems must switch to using the euro as the primary currency. The opening cash balance as of January 1 is automatically converted to euros by dividing by 1.95583.
In January, it is critically important to maintain two subledger accounts for the “Cash” account: one for levs and one for euros, reflecting the physical cash on hand in both currencies. At the end of the day, the turnover is reported in euros, but the physical count includes counting banknotes in both currencies, which must match the total accounting balance in euros.
Important Dates and Deadlines
- Through December 31, 2025: Preparation period, dual pricing on labels
- January 1, 2026: D-Day—start of dual circulation
- January 1–31, 2026: Dual circulation period with mandatory change in euros
- February 1, 2026: End of dual circulation; only the euro is legal tender
- Through June 30, 2026: Option to exchange Bulgarian levs in cash for free at banks and the Bulgarian National Bank (BNB)
Practical Tips for Preparation
Starter kits with euros: The BNB will provide special kits containing euro coins to merchants before the start of January. It is extremely important to request these from your bank, as payments in levs during the first few days will quickly deplete your euro cash reserves for change.
Software update: Make sure your ERP or POS system can automatically switch the primary currency at midnight on January 1. This is critical for the smooth operation of cash register transactions.
Staff Training: Cashiers must be specifically trained not to instinctively give change in leva when a customer has paid in leva. It is recommended that leva be kept in a separate cash drawer and not used for giving change.
Conclusion
The dual-currency period represents a historic moment for the Bulgarian economy and requires careful preparation on the part of all participants in the commercial process. Compliance with legal requirements, high-quality software, and thorough staff training are key to a successful transition to the euro. For citizens, this is a convenient opportunity to convert their leva through everyday purchases, while for merchants, it is a responsible task to facilitate this process while strictly adhering to the rules for providing change exclusively in euros.
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