Cashing out USDC to your Bulgarian bank account
By xChange.bg team
Published
The situation
Georgi, 34, works in logistics in Burgas. Between 2023 and 2024 he moved part of his savings into USDC on a large international exchange, bit by bit, paying about EUR 9,900 in total. Now he has 12,000 USDC and a reason to use them: he and his partner are buying a flat, and the down payment is due next month.
He has three questions. An acquaintance offers to buy the USDC for cash through a peer-to-peer app, "no bank questions". His own bank has asked him before where a foreign transfer came from. And he has heard that crypto is taxed now, but not how much or when. He wants the euros in his own account, legally, without losing more than he needs to.
Where the cost or risk really comes from
The fee on the last step is only one piece. For someone cashing out a meaningful amount, the bigger risks sit elsewhere:
- Peer-to-peer deals with strangers. Selling to a person for cash or for a transfer from an unknown account leaves you with no statement, no clear counterparty and real fraud risk. The money you receive can also turn out to be linked to someone else's dispute.
- Unexplained money arriving at your bank. Banks check the origin of larger amounts. A transfer from an unknown foreign entity with no history behind it leads to questions and delays exactly when you need the money.
- Missing purchase records. The tax is calculated on the gain, which is the sale price minus what you paid. Without records of what you paid, you cannot prove your acquisition price.
- Tax. Under Bulgarian law, selling crypto-assets, stablecoins included, is taxable. Individuals pay 10% on the net result for the year after a 10% statutory deduction, so 9% of the net gain in practice. Getting this wrong costs more than any fee.
- Transfer mistakes. Sending USDC to the wrong address or on a network the receiving wallet does not use can mean losing it.
- Reporting. From the 2026 year, crypto providers covered by the DAC8 rules report users' yearly totals of purchases, sales and exchanges to the NRA, so the agency gets data it did not have before.
How to handle it
- Collect your history first. Download the trade history and statements from the exchange where you bought, and note the date and euro amount of every purchase. If you paid in another currency, convert at the rate of that day.
- Choose a route that pays into an account in your name. Options include:
- Selling on an exchange licensed to provide crypto-asset services in the EU and withdrawing euros by SEPA. In Bulgaria, since 1 July 2026 only licensed companies may offer crypto-asset services, and the FSC keeps the register.
- Sending the USDC to your xChange.bg wallet and using send to bank to pay out euros to your own IBAN at 1.25%, with a statement for each payout.
- Whatever you pick, compare the full cost: withdrawal fees, conversion rate and payout fee.
- Move the coins safely. Copy your receiving address from the app, choose the network it shows, and check it with the crypto address checker. Send a small test amount first and wait for it to arrive.
- Pay out in parts if it helps. Paying out in a few tranches lets you check the first one lands correctly in your bank before sending the rest.
- Keep the payout statements with the purchase records. Together they show where the money came from if your bank asks.
- Calculate and declare. Work out the gain or loss for each sale, add up the year, and declare it in Annex 5 of the annual return by 30 April of the next year. The crypto tax guide and the crypto tax calculator help with the numbers. This is not tax advice; for large amounts, talk to an accountant.
Setup checklist
- Full purchase history exported from every exchange and wallet you used
- Euro value of each purchase noted, with the date
- Receiving route chosen, paying into a bank account in your own name
- Receiving address and network checked, test transfer done
- Your own IBAN saved and checked with the IBAN checker
- Payout statements saved next to purchase records
- Reminder for the tax return: 10 January to 30 April of next year
Worked example
Georgi paid about EUR 9,900 for his 12,000 USDC. He sends them to his xChange.bg wallet; his exchange charges its own withdrawal fee, which is not included below. The example uses an illustrative rate of USD 1.15 per euro on the day of the payout.
| Step | Amount |
|---|---|
| USDC paid out to his own IBAN | 12,000.00 USDC |
| Payout fee, 1.25% | USD 150.00 |
| Converted to euros | USD 11,850.00 |
| Euros in his Bulgarian bank at 1.15 | EUR 10,304.35 |
The tax, if this is his only crypto deal in 2026. Taking the euros received as the sale price, the calculation under Article 33, paragraph 3 looks like this:
| Line | Amount |
|---|---|
| Sale price | EUR 10,304.35 |
| Acquisition price | EUR 9,900.00 |
| Gain | EUR 404.35 |
| Less 10% statutory expenses | EUR 40.44 |
| Taxable amount | EUR 363.91 |
| Tax at 10%, payable by 30 April 2027 | EUR 36.39 |
If the dollar had weakened and the euros received were below EUR 9,900, he would have a loss instead, which is netted against other gains of the same year. How fees enter the calculation is a detail to confirm with an accountant.
What this is based on
The tax rules come from the Personal Income Tax Act (ЗДДФЛ) on lex.bg: Article 33, paragraph 3 for sales and exchanges of crypto-assets, with the 10% statutory expense deduction; Article 48, paragraph 1 for the 10% rate; Article 53 and Article 67, paragraph 5 for the filing and payment deadlines. The National Revenue Agency's crypto-assets page confirms Annex 5, that no advance tax is due, and the record-keeping period. The DAC8 reporting rules are in the act amending the Tax and Social Insurance Procedure Code, published by the National Assembly. The FSC announced that only licensed companies may offer crypto-asset services from 1 July 2026. The payout fee is from the xChange.bg pricing page. Names, amounts and the exchange rate are illustrative.
Frequently asked questions
What is the safest way to turn USDC into euros in Bulgaria?
- Use a route that pays euros to a bank account in your own name and gives you a statement for each payout, such as a licensed exchange or the xChange.bg payout at 1.25%. Avoid peer-to-peer deals with strangers, which leave no clear paper trail and carry fraud risk.
Do I pay tax when I sell USDC for euros in Bulgaria?
- Selling a crypto-asset, stablecoins included, is covered by Article 33, paragraph 3 of the Personal Income Tax Act. Gains and losses for the year are added up, reduced by 10% statutory expenses and taxed at 10%. There is no advance tax.
Where and when do I declare the sale?
- In Annex 5 of the annual tax return under Article 50 of the Personal Income Tax Act. The return is filed between 10 January and 30 April of the next year, and the tax is paid by 30 April. For sales in 2026, that means by 30 April 2027.
What records should I keep?
- Purchase records with dates and euro prices, exchange statements, wallet transaction history, the payout statement and your own calculation. The NRA says you do not attach them to the return, but you keep them for 5 years after the limitation period for the tax expires.
Will my bank ask where the money came from?
- It may. Banks check the origin of large incoming amounts. A payout in your own name from a known provider, with a statement and a clear purchase history behind it, makes those questions easier to answer.
Will the NRA know about my crypto sales?
- Bulgaria adopted the DAC8 rules in September 2026, applying from 1 January 2026. Crypto providers covered by them report user identity and yearly totals of purchases, sales and exchanges to the NRA by 30 June of the following year.