Short-Term Rental Regulations in Bulgaria: How to Legally Register an Airbnb Property

I recently bought an apartment in Sofia and want to list it on Airbnb for short-term rentals. However, I am getting conflicting information about the exact legal requirements, tourist taxes, and registration process with the local municipality. Could someone who has successfully gone through this process explain the step-by-step procedure to ensure my property is fully compliant with Bulgarian law?

Congratulations on your purchase in Sofia! The process can indeed feel overwhelming because regulations changed slightly last year. First, you need to get a classification certificate from the Sofia Municipality (Stolichna Obshtina) for your apartment as a 'guest room' or 'apartment' category one or two.

Don't forget that alongside Sofia's municipal registration, you also need to register with the National Revenue Agency (NAP) within 7 days of starting your rental activity. If you are looking to expand your portfolio later, you might find insights on Rural Houses in Bulgaria Under €30,000 quite interesting regarding property management outside the capital.

You will also need the consent of your neighbors! Under the Bulgarian Condominium Ownership Management Act, if you are turning a residential apartment into a short-term rental, you need a declaration of agreement signed by owners representing more than 50% of the common areas.

Once you have the municipal registration number, make sure you hook up with a local accountant. You'll need to report your income monthly or quarterly and pay the flat 10% corporate tax (or 10% personal income tax after deductions, depending on whether you register as a sole trader or physical person).

The tourist tax (turisticheski danak) is paid monthly to the municipality based on the number of nights guests actually stayed. It varies slightly depending on the Sofia district, so check with your local tax office (Tergovska nadzir).

If you ever decide to divest or manage things from abroad, reading about How to Sell Bulgarian Property Remotely can save you massive headaches with power of attorney and bank wire transfers later on.

Make sure you install a fire extinguisher and a smoke detector in the apartment too. While the municipality doesn't always strictly inspect this during the initial paperwork drop, insurance companies and emergency regulations require it for commercial lodging.

It took me about a month to get everything sorted out in the Oborishte district. Hire a local lawyer who speaks Bulgarian to handle the municipality paperwork—it cuts down the bureaucratic back-and-forth immensely.