After successfully completing all approval procedures, Bulgaria has formally adopted the euro as its national currency, which will enter circulation as legal tender starting from January 1, 2026.
I. As the date approaches, the requirement for mandatory dual pricing - displaying prices of goods and services, simultaneously in leva and euros - is becoming increasingly relevant. This temporary yet crucial measure aims to support consumers during the transition period by ensuring price transparency and limiting speculations. Still, there are some uncertainties about (1) the starting point of this requirement and (2) which practices it should be clearly distinguished from.
The use of multi-currency price tags is aimed at streamlining and optimizing product distribution processes, while reducing labelling costs. By applying a single label with prices in multiple currencies at a central logistics hub, the manufacturer achieves greater operational efficiency, which in turn contributes to more accessible pricing for consumers.
Displaying prices in both leva and euros on a multi-currency label is not linked to the official exchange rate between the two currencies, is not required by law and should not be misinterpreted as dual pricing. The prices displayed on such labels are determined based on economic factors and operational costs in each specific country, such as applicable taxes, transportation costs, storage expenses, remuneration, social security contributions, etc. This may result in differences in the price of the same product, depending on the market in which it is offered. Different prices in leva and euro on multi-currency labels is not an indication of price increases. In the context of the introduction of the euro in Bulgaria, price increases shall be permitted only when justified by objective economic factors, as explicitly provided for in the Introduction of Euro into the Republic of Bulgaria Act.
The National Revenue Agency, together with the Commission for Protection of Competition and the Commission for Consumer Protection are now performing coordinated inspections and enhancing monitoring to ensure compliance with this requirement.
II. Starting January 1, 2026, Bulgaria will officially adopt the euro as its national currency and the gradual changeover from the lev to euro will begin, with payments in euros being accepted across the country. Conversion and payments will be carried out at the fixed exchange rate of BGN 1.95583 leva per 1 euro. The conversion is a process of changeover of the existing currency with the new one at a fixed rate. Basically, it is a process of currency exchange, but it does not follow the usual market principles, such as separate buy/sell rates. The conversion will be carried out free of charge and with no time limit by the Bulgarian National Bank. Commercial banks and Bulgarian Posts will also offer free conversion services until June 30, 2026. After that date, they may apply standard exchange fees based on market rates. Other organisations engaged in currency exchange, such as exchange offices, online trading platforms, etc., will not participate in the currency conversion process and, accordingly, will not be bound by the fixed rate nor by the obligation to provide free exchange services. Such organisations will continue to operate on market principles, where the exchange rate is determined by supply and demand.
The navigation between conversion and exchange might seem ambiguous as both the official conversion and regular currency exchange involve changeover of leva into euros. However, the two are quite different. While currency conversion is a government function aimed at replacing one currency with another and easing the financial burden on citizens, currency trading remains a free-market commercial activity and is carried out for a fee. Since organisations engaged in currency exchange (except for banks and Bulgarian Posts) are not part of the official conversion process, they operate solely as commercial entities and are not required to apply the fixed exchange rate.
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