Bulgaria’s Transition to the Euro: What to Expect Next in Currency Update News

Bulgaria Set to Adopt Euro in 2026: What Developers Need to Know

Sofia, Bulgaria – In a significant economic shift, Bulgaria is scheduled to embrace the euro as its official currency on January 1, 2026, replacing the Bulgarian lev. This transition will have direct implications for developers utilizing the App Store, specifically concerning pricing, reporting, and subscription management.The Council of the European Union established the official conversion rate at 1.95583 BGN = 1 EUR on July 8, 2025.

Impact on App Store Sales and Pricing

Starting January 1,2026,all App Store purchases and subscriptions within Bulgaria will be processed in euros. This change extends to the revenue received by developers selling applications and in-app content in the Bulgarian market. The conversion will affect both auto-renewing subscriptions and one-time purchases.

Bank Account Considerations

Developers who have designated the Bulgarian lev as their bank currency within App Store Connect will see an automatic switch to euros on December 1, 2025. Those utilizing alternative currencies for their bank accounts will continue to receive payments in their chosen currency.

Pricing Adjustments

For applications and in-app purchases with Bulgaria set as the primary storefront, prices will be updated to reflect the euro equivalent based on the established conversion rate.These prices will be rounded down to the nearest supported euro value. Developers using bulgaria as a base storefront should anticipate potential adjustments to pricing in other regions to maintain consistent equalization.

Other applications and in-app purchases will be converted to euros using standard equalization practices for euro markets subject to Value-Added Tax (VAT).

Pro Tip: Regularly review and adjust your app pricing strategy to optimize revenue in the newly adopted euro market.

Reporting and Subscription Updates

The transition will also encompass modifications to financial reporting. Sales and Trends reports will display transactions in euros after the currency change. Monthly financial reports will bifurcate earnings, categorizing sales before the change under the ‘BG’ report and subsequent sales under the ‘EU’ report.

Auto-renewable subscriptions will remain uninterrupted. The system will automatically update subscription prices to euros for both existing and new subscribers. Customers with active subscriptions will receive a notification via email detailing the currency change. All refunds processed after January 1, 2026, will be issued in euros, nonetheless of the original purchase date.

Transitional Requirements for In-App Purchases

In compliance with the Euro Act, developers are required to display both lev and euro prices for in-app purchases throughout the transitional period extending until August 8, 2026.this dual pricing information must be prominently displayed wherever pricing details are presented to users.

change	Date	Impact
Bank Currency Update (if BGN)	December 1, 2025	Automatic switch to EUR in App Store Connect
Currency Change for Purchases	January 1, 2026	All transactions in Bulgaria will be in EUR
Dual Pricing Requirement	Now – August 8, 2026	Display both BGN and EUR prices for in-app purchases

did you Know? While bulgaria has been working towards Eurozone membership for years, the formal adoption date was confirmed after meeting the necessary economic criteria.

Do you think the euro adoption will significantly impact the Bulgarian app market? How will this change affect your development and pricing strategies?

Understanding Eurozone Expansion

Bulgaria’s entry into the Eurozone is part of a broader trend of expansion within the European Union. Other countries, such as Croatia which adopted the euro in January 2023, have demonstrated the logistical adjustments required for a successful currency transition. These transitions often involve significant preparation for businesses and consumers alike.

The European Central Bank (ECB) plays a pivotal role in managing the euro and ensuring price stability within the Eurozone. For more information regarding the Eurozone and the euro, please visit the ECB’s official website.

Frequently Asked Questions about Bulgaria’s Euro Adoption

Frequently asked Questions

• What is the conversion rate for the euro in Bulgaria?
• How will the euro adoption affect my App Store payouts?
• Do I need to manually update my app prices?
• What if I use Bulgaria as my base storefront?
• Will auto-renewable subscriptions be affected?
• What is the deadline for displaying dual prices?

Share your thoughts on this important economic event in the comments below!

What are the primary economic challenges Bulgaria faces in meeting the Maastricht criteria for Eurozone adoption?

Current Status of Euro Adoption in Bulgaria

Bulgaria remains committed to joining the Eurozone, with a target date of January 1, 2024, initially set, but now realistically looking at 2025. As of late September 2025, the country is navigating the final stages of readiness, focusing on fulfilling the Maastricht criteria – a set of economic conditions required for Eurozone membership. These criteria cover areas like price stability (inflation), sound public finances (government debt and deficit), exchange rate stability, and long-term interest rates.

Currently, Bulgaria participates in the Exchange Rate Mechanism II (ERM II) since July 2020. This acts as a ‘waiting room’ for Euro adoption, requiring the Bulgarian Lev to remain within a narrow band against the Euro. successful participation in ERM II for at least two years without severe tensions is a prerequisite.

Key Economic Indicators & Recent Developments

Several economic indicators are under scrutiny as Bulgaria progresses towards Euro adoption:

* inflation: controlling inflation is paramount. Recent data shows fluctuating inflation rates, requiring continued vigilance from the Bulgarian National Bank (BNB). The BNB is employing monetary policy tools to manage price increases.

* Government Debt: Bulgaria’s government debt-to-GDP ratio is a key concern. Maintaining this within the Maastricht Treaty limit of 60% is crucial.

* Budget Deficit: The budget deficit must remain below 3% of GDP. Fiscal discipline and responsible government spending are essential.

* Exchange Rate: The Bulgarian Lev has been pegged to the Euro at a fixed rate of 1.95583 BGN/EUR since 1999. Maintaining this stability within ERM II is vital.

* Interest Rates: Long-term interest rates need to be in line with those of other Eurozone countries.

Recent reports indicate that Bulgaria is making progress in some areas, but challenges remain, especially regarding inflation and structural reforms. The European Commission regularly assesses Bulgaria’s readiness and provides recommendations.

What’s Changed As the Initial Target Date?

The original target of January 1, 2024, proved overly optimistic. Several factors contributed to the delay:

1. Economic Shocks: Global events, including the COVID-19 pandemic and the war in Ukraine, created meaningful economic instability, impacting Bulgaria’s ability to meet the convergence criteria consistently.
2. Inflationary Pressures: Surging energy prices and supply chain disruptions fueled inflation, making it harder to achieve price stability.
3. Political Instability: Frequent changes in government and political uncertainty hindered the implementation of necessary structural reforms.
4. Technical Preparations: The logistical and technical preparations for switching to the Euro – including updating IT systems, training personnel, and informing the public – require substantial time and resources.

Impact on Businesses and Consumers

The transition to the Euro will have a significant impact on both businesses and consumers in Bulgaria:

* Businesses:

* Reduced transaction Costs: Eliminating exchange rate fluctuations and conversion fees will lower costs for businesses engaged in trade with eurozone countries.

* Increased Price Transparency: Prices will be directly comparable across the Eurozone, fostering competition.

* Access to Eurozone Financing: Businesses will have easier access to financing from Eurozone banks.

* Accounting Adjustments: Businesses will need to adapt their accounting systems to the Euro.

* Consumers:

* Price Adjustments: There’s potential for initial price adjustments as retailers convert prices from Lev to Euro. Monitoring for unfair rounding practices will be critically important.

* Easier travel: Traveling within the Eurozone will become more convenient without the need for currency exchange.

* psychological Impact: The Euro may be perceived as a more stable and prestigious currency, potentially influencing consumer behavior.

practical Tips for Preparing for the Euro

* Businesses:

* Review Contracts: Examine contracts with suppliers and customers to identify clauses related to currency exchange.

* Update IT Systems: Ensure accounting and payment systems are Euro-compatible.

* Train Staff: Educate employees on the Euro and the conversion process.

* Dual Pricing: Consider displaying prices in both lev and Euro in the period leading up to the switch.

* Consumers:

* Familiarize Yourself with Euro Denominations: Learn to recognize Euro banknotes and coins.

* be Aware of Conversion Rates: Understand the official conversion rate (1 EUR = 1.95583 BGN).

* Report Suspicious Pricing: If you suspect unfair price increases after the Euro adoption, report it to the relevant authorities.

Historical Context: Bulgaria and European Monetary Integration

Bulgaria’s aspiration to join the Eurozone is rooted in its broader European integration efforts. The country joined the European Union in 2007 and has been working towards fulfilling the requirements for Euro adoption ever as. The fixed exchange rate regime between the Lev and the Euro, in place since 1999, demonstrates a long-standing commitment to currency stability and alignment with the Eurozone. Interestingly, historical analysis, even dating back to the region’s medieval past (as noted in some academic forums regarding Bulgarian power dynamics), demonstrates