What changed in Bulgaria in 2025 and what awaits it in 2026

What Bulgarians will remember about 2025

The country entered 2025 without a government – it was formed after lengthy negotiations only on 16 January. The government included representatives of GERB, “DPS — Novo Nachalo”, BSP and ITN. This government turned out to be one of the shortest-lived in the country’s history: it resigned as early as the beginning of December after mass protests. The trigger for the protests was the 2026 budget adopted by the government, which envisaged tax increases. The budget was withdrawn, but that did not help: the protesters began to insist on a change of government and to speak out against corruption, the GERB party and Delyan Peevski. Young people took an active part in the rallies in all the country’s major cities.

One of the main events of the year can be considered the launch of the process of transition to the euro. On 8 July the European Parliament and the Council of the EU took the final decision on Bulgaria’s accession to the eurozone. Already in August price tags in shops began to be written in two currencies, and later the minting of Bulgarian euro coins began. Representatives of opposition parties organised protests against the transition to the euro from the new year, but did not receive much support. On the contrary, citizens are actively buying up starter packs of euro coins in order to have the new currency in hand as early as 1 January.

Entry into the eurozone is important not only for citizens but also for business: price controls have been tightened in Bulgaria, since August there has been a requirement to display prices in two currencies, accounting has changed, and software has had to be updated. All this has become a real challenge for entrepreneurs.

During the year the question of building a new nuclear power plant, Belene, for Bulgaria’s energy independence was under consideration. Negotiations also continue on the construction of new power units at Bulgaria’s only nuclear power plant, Kozloduy.

For foreigners in Bulgaria, 2025 will also be remembered for changes in migration legislation. It was synchronised with European directives, and as a result holders of the “EU Blue Card” can now change employer after 12 months of work, change position, and also work in Bulgaria with a Blue Card issued in another EU country. Another important innovation was the appearance of such grounds for obtaining a long-term residence permit as digital nomad: foreigners receiving an annual income of more than 50 Bulgarian minimum wages outside the EU can obtain a Bulgarian long-term residence permit for a year and extend it once. The law enshrined the possibility of obtaining a long-term residence permit for those taking a post-study programme or doctoral studies. At the same time, the requirements for trade representatives have been tightened: the annual turnover of the parent company must now be at least 100 thousand leva.

Property prices continued to rise in 2025, with average growth of 7 – 10% compared with the previous year. Although price growth has been constant in recent years, in 2025 many people tried to hurry with their purchase, fearing that after the transition to the euro property would become even more expensive.

What awaits Bulgaria in 2026

The main event of 2026 is, of course, the transition to the euro. Until the end of January both currencies will circulate in the country, buyers will be able to pay in leva but will receive change only in euros. From 1 February only the euro will circulate. Until 1 July cash can be exchanged at any commercial bank or at post offices without a commission; from 1 July a commission will be charged for this. From 2027 commission-free exchange will be guaranteed only at the BNB. There, cash leva are planned to be exchanged for euros indefinitely.

A profitable solution will be to put money into a bank account, so that leva are automatically converted into euros on the night of 31 December to 1 January at the fixed rate. Many banks are currently offering favourable terms for opening and topping up accounts.

Whether the transition to the euro will be accompanied by price growth is still unclear: expert opinions on this differ. Nevertheless, the majority are optimistic and predict economic growth. Prices will rise, but a simultaneous rise in citizens’ incomes is expected. Increased interest in Bulgaria on the part of foreign investors is anticipated, as well as a general revival of economic ties with other countries due to the absence of any need for currency conversion.

Many experts assume that the growth of property prices in Bulgaria will slow down after the transition to the euro. The rapid rise in the price of flats and houses was linked to the fear that prices would rise even further; as a result demand grew, and prices grew with it. In 2026 a decrease in demand for property is expected and, accordingly, a stabilisation or even a slight fall in prices.

Bulgaria enters 2026 without an adopted budget. This is not the first time in the country’s history: at the beginning of 2025 the budget had also not been adopted. Nevertheless, various surprises of an economic nature are possible at the budget adoption stage.

As for politics, in 2026 new early parliamentary elections will in all likelihood be held. At present the main political forces are not ready to form a government, and if their positions do not change, elections cannot be avoided. Judging by the polls, the GERB party is still in the lead, but the emergence of new players cannot be ruled out, since Bulgarians are currently disappointed in most political parties, while at the same time the demand for change in society is very great.

Foreign citizens in Bulgaria are most concerned about changes in migration policy. For now no new changes are expected in this area. If any do appear, they will most likely be aimed at further synchronising Bulgarian migration legislation with pan-European norms.