Many foreign owners rent out their Bulgarian property: a flat in Sofia let to a long-term tenant, an apartment on the coast let to holidaymakers. Both are allowed, but they follow different rules. A long-term lease is mostly a matter of a good contract and paying tax on the rent; a holiday let is a regulated tourist activity, and since May 2026 EU rules make unregistered listings disappear from the platforms.
Long-term rental
A written lease protects both sides. It should set the rent and how it is paid, the deposit, who pays utilities and building fees, the condition of the property with a signed inventory, and how either side can end the lease. Because you are abroad, also agree how the tenant reaches someone locally for repairs — usually a property manager or a person with your power of attorney.
Tax on the rent
As an owner who is not tax resident in Bulgaria, you owe a 10% final tax on the rent from the Bulgarian property:
- If the tenant is a company (or a self-employed person renting for the business), it withholds the tax from each payment and pays it to the tax authority.
- If the tenant is a private individual, you declare and pay the tax yourself, quarterly, by the end of the month following each quarter.
- If you live in the EU or EEA, you can file an annual Bulgarian return and have the tax recalculated as if you were resident, which brings in a 10% statutory deduction for expenses.
- Your country of residence may tax the rent too, usually giving credit for the Bulgarian tax under a double tax treaty.
Most residential rent is exempt from VAT, so a long-term lease of a home does not normally bring VAT into play.
Short-term holiday lets
Letting to tourists by the night or week is a tourist accommodation activity:
Registration
The property must be categorised or registered under the Tourism Act — for most flats and houses as rooms or an apartment for guests, through the municipality — before it is advertised.
Platform listing
Under the EU short-term rental regulation, in force since 20 May 2026, each listing must show its registration number; platforms remove listings without one and share booking data with the authorities.
Guests
Guest stays are recorded in the national tourist information system.
Tourist tax
A small per-night tax, set by each municipality, is declared and paid by the host.
VAT
If accommodation income crosses the VAT threshold, registration becomes mandatory — see VAT registration in Bulgaria.
Before choosing holiday lets, also read the building's house rules and any decisions of the owners' association: they can limit how the property is used and affect relations with neighbours.
Managing it from abroad
A local manager or agent can handle tenants, cleaning, repairs and payments under a power of attorney — see powers of attorney signed abroad. Keep the rent flowing to an account in your name, keep copies of contracts and payments, and make sure the property tax and waste fee are paid each year, as unpaid local taxes will hold up any later sale.
Questions clients ask
Do I need a Bulgarian company to rent out my flat?
No. You can rent it out as a private owner. A company becomes worth considering only for a larger portfolio or a hotel-style operation.
The rent is paid into my bank account abroad. Do I still owe Bulgarian tax?
Yes. The tax follows the location of the property, not of the bank account. Bulgaria taxes rent from Bulgarian property, and the authorities receive data from platforms and banks.
Can I deduct my costs?
Under the 10% final tax on the gross rent, no. If you live in the EU or EEA and choose the annual recalculation, a 10% statutory deduction applies. Owners planning to sell later should also read selling your Bulgarian property from abroad.
This guide is general information about Bulgarian law as it stood on the date of publication. It is not legal advice for your specific case.
