How will your VCC change after the adoption of the euro?

On July 8, 2025, the Council of the European Union made a Decision on the adoption by Bulgaria of the euro. According to this decision, our country fulfils the necessary conditions for the adoption of the single European currency. Bulgaria will use the euro from January 1, 2026. From this date, the euro will become the official currency in our country. The exchange rate at which we will join the eurozone is 1 euro = 1.95583 Bulgarian leva.

What obligations do companies have when adopting the euro?

As in all areas of public life, changes will occur in the commercial turnover after the adoption of the euro. For example, every Bulgarian company is obligated to:

• Display the prices of its goods and services in both euros and leva. This is called dual display of prices, which will be in effect from August 8, 2025, to August 8, 2026.
• Provide change entirely in euros when receiving payment in cash, either in leva or euros. This is called dual circulation, and it will be valid from January 1, 2026, to January 31, 2026.

More information about all companies’ obligations can be found here.

What will happen to your VCC after the adoption of the euro?

According to the law, all legal entities must adjust their internal documents and make amendments to their articles of association or founding acts within 12 months from the date of the introduction of the euro in Bulgaria. For example, the law explicitly states that LLCs must file a copy of their articles of association in the commercial register with the recalculated capital and shares, reflecting the new euro amounts. This is the legal requirement for joint-stock companies (JSCs) and limited partnerships (LPs) also. Although there is no specific legal clause for VCCs, we can assume by analogy that the same applies if the capital amount is written in the articles of association.

The announcement of copies of the articles of association and the founding acts is made simultaneously with the first subsequent application. No state fee is charged for the announcement of these acts.

The commercial register is required to automatically adjust the listed capital amount of each company to euros. This applies to LLCs, JSCs, and LPs, but not to VCCs, as the capital amount is not registered for variable capital companies. You can read more about this here.

Are there any changes expected in the accounting for VCCs?

Yes, there will be changes. The balances in accounting accounts in leva will be recalculated into euros according to the currency exchange rules. Also, the value of each individual asset or liability will be recalculated from leva to euros. There are some exceptions, which your accountant will inform you about.

From January 1, 2026, ongoing accounting documentation and reporting will be done in euros. The annual financial reports will be compiled in thousands of euros, with data from the previous reporting period converted into thousands of euros. The annual financial reports of each company should be prepared in the currency that is the official currency of Bulgaria at the end of the reporting period, and the comparable data for the previous period should be in the same currency.

How to register a new VCC after the adoption of the euro?

After January 1, 2026, a new VCC or sole-owned VCC will be registered with a minimum capital of one euro cent (0.01 EUR). Shares of the same class must have the same nominal value, while shares from different classes may differ in size. The capital amount in the variable capital company must also be reflected in the shareholders book. If you do not have a shareholders book, you can create an electronic one on our platform here.