Bulgaria Tax Changes — Live Tracker

What changed

Bulgaria becomes the 21st eurozone member on 1 January 2026. The lev (BGN) ceases to be legal tender after a one-month dual-circulation period (until 31 January 2026). All accounting records, tax filings, salaries, bank balances and contracts convert at the fixed rate of 1.95583 BGN per euro. The BNB will exchange leva for euros without limit for an extended transition period.

Who it affects

• Every Bulgarian company and self-employed person
• Anyone holding BGN bank accounts, cash or receivables/payables
• Companies running BGN payroll, BGN invoicing, BGN-denominated contracts

What to do

Update accounting software to handle the changeover (opening balances at 1 January convert at 1.95583). Re-paper key BGN contracts or rely on automatic statutory conversion. Train staff on dual pricing displayed during the transition. Reconcile bank balances post-conversion.

What changed

Bulgaria transposed the EU Pillar Two Directive. In-scope multinational groups with consolidated revenue of €750m+ now pay a domestic top-up tax to bring the effective rate on Bulgarian profits from 10% to 15%. Standard SME companies stay at 10%.

Who it affects

• Bulgarian entities of multinational groups with €750m+ revenue
• Standard SMEs and owner-managed companies are unaffected

What to do

In-scope groups must prepare GloBE Information Returns. Standard SMEs: no action needed, 10% rate continues.

What changed

Bulgaria is rolling out SAF-T XML reporting in line with OECD guidance. Large taxpayers report from 1 January 2026, medium-sized businesses from 2027, small businesses by 2028. The file standardises chart-of-accounts, transactions, master data and stock movements for tax-authority access.

Who it affects

• Large taxpayers (turnover thresholds set by NRA) from 2026
• All registered businesses by 2028

What to do

Confirm whether your accounting system can export SAF-T XML. Standardise chart-of-accounts mappings. AccountsOS handles SAF-T export when the requirement reaches your tier.

What changed

Despite earlier proposals to align with EU averages, Bulgaria's standard VAT rate stays at 20% through 2026 and beyond. The reduced 9% rate on hotels, restaurants and certain food products continues. Registration threshold remains BGN 100,000 (converted to ~€51,130 from January 2026).

Who it affects

• All Bulgarian VAT-registered businesses
• Tourism, hospitality and food businesses (9% rate)

What to do

Update invoice templates to reflect euro from 1 January 2026. VAT returns continue monthly via the NRA portal.