Payment of taxes on rental property

When short-term subletting real estate through platforms such as Airbnb and Booking, different taxes are due depending on the status of the person carrying out the activity.

The main options are:

1. An individual , including a sole proprietor. After the changes in tax legislation, which are in effect from 01.01.2020, income from this activity is mainly taxed with patent tax. In the event that the person does not meet the conditions for taxation with patent tax, he is taxed under the Personal Income Tax Act (PITA).

2. Legal entity - 10% corporate tax

   
   

Find out more about the category that best describes your situation here !

Step 1. Apartment registration

All apartments that are rented out short-term on platforms such as Airbnb and Booking should be registered with the OP Tourism as a class B accommodation - guest rooms and apartments.

Registration is carried out in the municipality where the apartment is located. It is necessary to submit an application for registration at a counter in an administrative service center, or electronically through the secure electronic delivery system. You have the right to register an apartment that is not your property. This is done with a rental agreement and again the declaration in question.

The registration fee is 20 BGN per bed, with double beds being paid double, i.e. 40 BGN. After submitting the documents, within 7 days OP Tourism issues a certificate with a number for the guest place.

Step 2. Registration in the Unified Tourist Information System (USTI)

Step 3. Declaration and payment of tourist tax (tourist fee)

Step 4. Payment of VAT

Step 5. Securing

Step 6. Tax

Detailed information about tax and administrative obligations, as well as personalized advice for your situation, can be found in our guide !

Sources:

Short-term rental on online platforms. NRA.

Regulations - tax and administrative obligations 2024. APII.