Overview of Bulgarian Airbnb regulations for short-term rentals

Navigating short-term rental regulations in Bulgaria requires understanding the rules based on whether you’re an individual or a company. Whether you plan to invest in Varna, Sofia, or any other city in Bulgaria, here’s a concise guide covering the main steps and obligations.

If you’re an individual renting property for short-term stays, you must meet the following requirements:

1. Apartment Registration Register your rental property with the local municipality. You’ll need an application, proof of ownership or rental agreement (if not the owner), authorization documents (if applying through a representative), and a fee of BGN 20 per bed.

2. Registration in the Unified Tourism Information System (ESTI) This system tracks visitor stays in Bulgaria. Registration is mandatory and done online via the official ESTI website. You must report each stay on the day of check-in, collecting the guest’s name, date of birth, and identification number. Our system support ESTI export which generate CSV with the guests mandatory details.

3. Tourist Tax Declaration and Payment The tourist tax must be paid monthly to the municipality by the 15th of the following month. Rates vary from BGN 0.20 to BGN 3.00 per guest per night, depending on the municipality. Payments can be made in person or online.

4. VAT Registration for Foreign Platforms If you use foreign platforms like Airbnb or Booking.com, you need special VAT registration to handle VAT on their service fees. The VAT rate for such services is 20%, applied only to the platform’s commission.

5. Self-Employment Registration and Social Security Contributions If short-term rental is your primary source of income, you need to register as self-employed with the National Revenue Agency (NRA) and pay monthly social security contributions.

6. Patent Tax Payment Properties rented short-term must pay an annual patent tax. This tax, typically BGN 25 to BGN 250 per room, is due each January, or pro-rated if you begin renting later in the year.

7. Annual and Monthly Tax Obligations

   • Monthly: File self-employment social security contributions and VAT declarations.
   • Annually: Submit a patent tax declaration and income tax returns by April 30.

Companies renting property for short-term stays have additional obligations:

1. Company Registration The process for apartment registration mirrors that for individuals. Companies must also register their rentals with the local municipality and pay the necessary fees.

2. ESTI System Registration Companies are also required to register and regularly report visitor information in the ESTI system, similar to individual hosts.

3. Monthly Social Contributions and Taxes Companies must handle monthly corporate tax filings and make social security payments.

4. Corporate and Dividend Taxes Corporate tax is 10% of profits, and dividends are subject to a 5% withholding tax.

Following these steps will ensure compliance with Bulgarian short-term rental regulations. Adhering to local laws not only protects your business but also contributes to the country’s tourism infrastructure.