Bulgaria Joins the Eurozone: What Freelancers Need to Know

As of January 1, 2026, Bulgaria is officially part of the Eurozone. If you're a freelancer in Bulgaria, this means real changes in how you issue invoices, receive payments, and plan your finances. The good news? The transition isn't as complicated as it might seem at first glance.

What you'll learn

• How the fixed exchange rate works and what happens to your bank accounts
• The new social security contribution values in euros for 2026
• How to issue invoices and update your contracts
• What changes with tax declarations
• Practical steps for a smooth transition

The fixed exchange rate and what it means for you

The most important thing to remember: €1 = BGN 1.95583. This rate has been fixed since 1999 and cannot be changed. When converting, amounts are rounded to the nearest eurocent using standard mathematical rules.

What happens to your bank accounts

On 01.01.2026, all bank accounts in Bulgarian leva (BGN) were automatically converted to euros. You don't need to do anything - your bank handles the conversion automatically and free of charge. If you had BGN 10,000 in your account, the next day you'll see €5,112.92. Your IBAN number stays the same, so you don't need to notify clients or contractors.

What to do with cash in BGN

During January 2026, a dual circulation period is in effect - you can pay in both BGN and euros everywhere. After 31.01.2026, the lev goes out of circulation, but don't worry about your cash savings at home.

Commercial banks will exchange lev banknotes and coins for free until 30.06.2026. After that date, the Bulgarian National Bank (BNB) continues to exchange BGN indefinitely and without fees. You'll never lose your cash - you'll just need to visit the BNB if you decide to exchange it after June.

Social security in euros - the new values for 2026

From January 2026, social security contributions for periods from 2026 onwards are calculated and paid in euros. For contributions covering earlier periods (such as December 2025), the same rule as declarations applies - they are calculated in BGN but paid in euros at the fixed exchange rate.

Minimum and maximum insurance income

At the time of euro adoption, temporary values apply, which will be updated after the 2026 budget is adopted:

If you were previously insured at the minimum income of BGN 1,077, after conversion this equals €550.66. Watch for the official announcement of new values from the NSSI (National Social Security Institute).

Social security contribution rates

The contribution percentages remain unchanged. As a self-insured person (born after 1959), you owe:

You're required to pay pension and health insurance (27.8%). If you want the right to sick leave and maternity benefits, you need to add 3.5% for the General Disease & Maternity Fund (31.3% total). This is declared to the NRA (National Revenue Agency) and can only be changed at the beginning of the calendar year.

Practical example: calculating monthly contributions

Here's what the contributions look like at an insurance income of €1,000:

At the minimum insurance income of €550.66, the contributions are €153.08 (basic) or €172.36 (with sickness & maternity) respectively.

From January 2026, you declare your income in euros directly in the declarations you submit to the NRA. No manual conversion to BGN is needed.

Taxes and declarations - what changes

The good news is that tax rates remain unchanged. The flat income tax stays at 10%, and the normative expenses for most freelance professions remain at 25% (or 40% for creative and legal activities). The only change is the currency.

The annual tax declaration for 2025

The declaration for 2025 income (which you submit by 30.04.2026) will be in BGN - because you're reporting a year when the currency was the lev. But when you transfer the tax owed to the NRA, the payment will be in euros at the fixed rate.

Example: If you owe BGN 1,500 in tax for 2025, you pay €766.94 (1,500 ÷ 1.95583).

What's submitted in euros from 2026

Declarations for periods from 2026 onwards are filled and paid entirely in euros. Here's a summary of which declarations use which currency:

Invoices and contracts in euros

From January 1, 2026, all new invoices you issue must be in euros. This is one of the most tangible changes in your daily work as a freelancer.

How invoices change

If you use invoicing software, check if it's already updated for euro operations. Most popular platforms in Bulgaria made this change automatically. If you issue invoices manually or with Excel, simply change the currency from BGN to euros.

If you use Effortless Tax for invoicing, the system is already updated - all new invoices are issued directly in euros.

Here's what the conversion looks like in practice:

Conversion uses the fixed rate of 1.95583. Simply divide the amount in BGN by this number to get the value in euros.

What to do with existing contracts

You don't need to re-sign all your contracts. Amounts in BGN are automatically converted at the fixed rate. However, it's advisable to send a brief addendum or annex to active contracts.

Here's sample text you can use:

"As of 01.01.2026, all amounts under this contract are expressed in euros (€) according to the fixed exchange rate of €1 = BGN 1.95583. The monthly fee of BGN 500 becomes €255.65."

Practical tips

• Update your price list with euro prices now
• Inform your clients about the new amounts before the first invoice in euros
• Keep copies of old contracts for reference

What stays the same

Most things in your tax life remain unchanged. The euro is simply a change of payment unit, not the tax system.

Here's what does NOT change:

• Tax rates - the flat income tax remains 10%. Normative expenses also stay the same: 25% for most freelancers and 40% for creative and legal professions.
• BULSTAT registration - no re-registration or number change is required. Your BULSTAT remains valid.
• NRA registration - if you're already registered as a self-insured person, you don't need to do anything additional. The system will automatically work with euros.
• Declaration deadlines - the annual tax declaration deadline remains 30.04. Quarterly VAT declarations also keep their deadlines.
• Social security contributions - the percentages stay the same, they're just calculated in euros instead of BGN.

In short: your tax burden doesn't increase because of the euro.

Checklist: what to do

Preparing for the euro doesn't require drastic changes, but a few steps will save you headaches:

1. Check your bank accounts - the conversion is automatic, but make sure everything is in order
2. Update your invoicing software - set € as the primary currency
3. Review client contracts - for long-term contracts, consider an annex for the euro transition
4. Exchange your cash BGN at a bank - free until 30.06.2026
5. Update your price lists - recalculate your rates in euros using the official rate of 1.95583

Conclusion

The transition to the Eurozone isn't a reason to panic - on the contrary, as a freelancer in Bulgaria, it will only open more opportunities for you. The fixed rate of €1 = BGN 1.95583 guarantees there won't be surprises when converting your prices and contracts.

The most important steps are simple - update your invoicing software, review client contracts, and follow official announcements from the NRA. Staying informed is the key to a smooth transition, and you've already taken the first step by reading this guide.

Frequently asked questions