As Bulgaria prepares to adopt the euro as its national currency from 1st ofJanuary 2026, all companies registered in Bulgaria will undergo an automatic conversion of their registered capital from BGN to EUR. The conversion will use the fixed exchange rate of 1 EUR = 1.95583 BGN, applied with mathematical precision and rounding to the second decimal place.
Below are the most important updates businesses operating in Bulgaria should be aware of:
I. Automatic Conversion for All Companies Registered Capital
The law provides that the transition to euro value of the registered capital requires no action from companies. Registered capital and the nominal value of shares/units will be automatically converted into euros.
✔️ No applications
✔️ No state fees
✔️ No administrative burden
1) Joint-Stock Companies (AD) & Partnerships Limited by Shares (KDA)
• Nominal share values will be recalculated and rounded to two decimals.
• The total capital amount in EUR may differ slightly from its BGN equivalent.
• Any resulting difference will be booked as retained earnings or accumulated loss, ensuring the preservation of the company’s capital structure and shareholder rights
2) Limited Liability Companies (OOD/EOOD)
• Capital will also be converted at the official rate and rounded accordingly.
• If rounding affects ownership proportions, companies may adjust their capital through a simplified procedure, applicable when deviations are up to 5%.
II. Mandatory Update of Corporate Documents
All companies must update their Articles of Association or company agreements to reflect capital values in euros by 31 December 2026.
The updated documents should be filed with the next submission to the Commercial Register.
✔️ No fee will be charged for these updates.
💡 What this means for business:
The euro introduction is designed to be smooth and minimally disruptive, yet it still requires timely attention to corporate documentation and accounting treatments.
Please contact European Law Firm Bulgarian member Milanova&Partners Law Firm for more information on the above process at office@milanova-law-firm.com.
