Airbnb Tax in Bulgaria 2026 — Complete Guide for Property Owners

What You Will Learn from This Article

• The differences between long-term rental and short-term accommodation for tax purposes.
• How the patent tax for accommodation works and what the amounts are.
• When you are taxed under the ITNPA as a sole trader and how the tax is calculated.
• In which situations patent tax is more advantageous than income tax.
• Why you must register for VAT, even with low turnover.
• The six steps for full registration of your activity.
• What social security contributions you owe.

Long-Term Rental vs Short-Term Accommodation

The tax treatment depends on the nature of the activity. Bulgarian legislation draws a clear distinction between the two types of letting.

Key rule: If you provide accommodation for periods under 30 days with additional services (cleaning, linen, check-in), the activity qualifies as hotel-type accommodation under the Tourism Act, not as a standard lease. This determines the tax regime.

Patent Tax — When and How Much

The patent tax for “accommodation with up to 20 rooms” is regulated by Art. 61z et seq. of the Local Taxes and Fees Act (LTFA). It is a fixed annual tax that does not depend on your actual revenue.

Conditions for using patent tax

1. The accommodation property has no more than 20 rooms.
2. Annual turnover for the previous year does not exceed BGN 100,000 (EUR 51,130).
3. The person is not registered for VAT (except for registration under Art. 97a or Art. 99).
4. The activity is carried out by a natural person, including as a sole trader.

Patent tax amounts

The specific amount is determined by the municipal council and depends on the category of the settlement and the location of the property.

Example: You rent out a one-bedroom apartment in Sofia (1 bedroom = 1 room for accommodation purposes) with a patent tax of BGN 200/room. Your annual tax is BGN 200 (EUR 102.26), regardless of whether you earn BGN 2,000 or BGN 20,000 from the activity.

Filing and payment

• A tax declaration under Art. 61n of the LTFA is filed with the municipality where the property is located, by 31 January of the tax year.
• The tax is paid in four equal instalments: by 31 January, 30 April, 31 July, and 31 October.
• If the activity begins after 31 January, the declaration is filed immediately before starting.

Income Tax Under the ITNPA (as Business Income)

If you do not meet the conditions for patent tax (turnover exceeding BGN 100,000, voluntary VAT registration under Art. 100, or a property with more than 20 rooms), your short-term rental income is taxed under the general rules of the ITNPA as business income of a sole trader.

Tax base: Taxable income is calculated under Art. 26-29 of the ITNPA. A rate of 15% applies to the taxable base (Art. 48(2) of the ITNPA).

Two approaches for determining expenses

1. Actual expenses: You maintain accounting records and deduct documented business expenses (repairs, consumables, furniture, cleaning, platform commissions, utility bills, etc.).
2. Standardised expenses: For hotel-type accommodation activities, the standardised expense rate is 40% of revenue. No documentation of actual expenses is required.

Example under ITNPA:

• Annual Airbnb revenue: BGN 18,000 (EUR 9,203).
• Standardised expenses (40%): BGN 7,200 (EUR 3,681).
• Taxable base: BGN 10,800 (EUR 5,522).
• Tax at 15%: BGN 1,620 (EUR 828).
• Plus social security contributions (approx. 27.8% on chosen insurable income).

When Is Patent Tax More Advantageous

In most cases, patent tax is significantly more advantageous than taxation under the ITNPA. Consider the comparison below.

Scenario 1: Apartment in Sofia, 1 room, annual revenue BGN 12,000 (EUR 6,136)

*Social security contributions are the same in both cases, as they are calculated on a chosen insurable income.

Difference: With patent tax you save BGN 880 (EUR 450) per year in this example.

Scenario 2: Apartment in a resort town, 2 rooms, annual revenue BGN 30,000 (EUR 15,338)

When is ITNPA more advantageous? In practice, almost never for turnover below BGN 100,000. The only scenario is minimal revenue (below BGN 1,000 per year), where the fixed patent tax could exceed 15% of the taxable base.

VAT Under Art. 97a — Mandatory Registration

One of the most frequently overlooked aspects of operating through Airbnb and Booking.com is the mandatory VAT registration under Art. 97a of the Value Added Tax Act (VATA).

Why is it mandatory?

Airbnb Ireland UC and Booking.com B.V. are established outside Bulgaria (in Ireland and the Netherlands, respectively). When these platforms provide services to you (intermediation, payment processing, advertising), you are the recipient of a service from a person established in another EU Member State. Under Art. 97a(1) of the VATA, every taxable person established in Bulgaria who receives services with a place of supply in Bulgaria from a person established in another EU Member State is required to register for VAT.

Important: This registration is mandatory regardless of the size of your turnover. Even if you earn BGN 500 per year from Airbnb, the obligation to register under Art. 97a exists.

What this means in practice

1. You file an application for registration under Art. 97a with the NRA no later than 7 days before the date the tax becomes due (in practice, before the first transaction).
2. For each commission from Airbnb/Booking.com, you issue a protocol under Art. 117 of the VATA (reverse charge mechanism).
3. You file a monthly VAT return and registers.
4. The VAT charged is 20% on the platform's commission. Since short-term accommodation is a taxable supply at a reduced 9% VAT rate (if you are registered under Art. 96 with turnover exceeding BGN 100,000), you can claim input VAT credit. With registration under Art. 97a only, you do not have the right to input VAT credit.

Example: Airbnb charges a 3% commission. On annual revenue of BGN 12,000, Airbnb's commission is approximately BGN 360 (EUR 184). VAT to charge: BGN 360 x 20% = BGN 72 (EUR 37) per year. This amount is at your expense.

6 Steps to Register Your Short-Term Rental Activity

To lawfully operate short-term accommodation through Airbnb or another platform in Bulgaria, you need to complete the following steps.

Step 1: Categorisation of the Property Under the Tourism Act

Under Art. 113 of the Tourism Act, every accommodation property must be categorised. For apartments rented on a short-term basis, a simplified procedure applies for registration as “guest rooms” or “guest apartments.”

Documents: Application to the mayor's office, proof of ownership, declaration of compliance with requirements, photographs of the property.

Fee: BGN 50 to BGN 250 (EUR 25.56 to EUR 127.82) depending on the municipality and capacity.

Timeline: Up to 60 days for issuance of the categorisation certificate.

Step 2: Registration in ESTI

The Unified Tourism Information System (ESTI) is mandatory for all accommodation providers. Registration is done online at esti.tourism.government.bg.

In ESTI, you register every overnight stay of every guest, entering data from the guest's identity document, dates of stay, and number of nights.

Step 3: Registration with the NRA

You file a declaration for registration as a self-insured person with the National Revenue Agency (NRA). If you are not a registered sole trader, you register as a natural person conducting business activity.

If you opt for patent tax, you also file a tax declaration under Art. 61n of the LTFA with the municipality.

Step 4: VAT Registration Under Art. 97a of the VATA

You file an application for registration under Art. 97a with the Territorial Directorate of the NRA at your permanent address. The deadline is 7 days before the date the VAT becomes due (before the first receipt of a service from Airbnb/Booking.com).

Documents: Standardised application form, copy of your platform profile, agreement with Airbnb/Booking.com (Terms of Service).

Step 5: Registration as a Self-Insured Person

You file declaration form OKd-5 with the NRA to declare the start of activity as a self-insured person. You choose an insurable income (minimum BGN 933 / EUR 477 for 2026) and the types of social security risks covered.

Deadline: Within 7 days of starting the activity.

Step 6: Registration with the Municipality for Tourist Tax

You file a declaration with the municipality where the property is located for tourist tax purposes. The tourist tax ranges from BGN 0.20 to BGN 3.00 (EUR 0.10 to EUR 1.53) per overnight stay, as determined by the municipal council.

Reporting: By 31 January of the following year, you file a declaration under Art. 116 of the Tourism Act reporting the overnight stays and the tourist tax due.

Social Security Contributions for Short-Term Rental Operators

If you operate short-term accommodation on a systematic basis (rather than occasionally), you are treated as a self-insured person and owe social security contributions.

Contribution rates (2026)

Insurable income: You choose an insurable income between the minimum (BGN 933 / EUR 477 for 2026) and the maximum (BGN 3,750 / EUR 1,917). During the annual reconciliation, the insurable income is determined based on actual income from the activity.

Example: At the minimum insurable income of BGN 933, the monthly contributions are:

• Without supplementary pension: BGN 933 x 27.8% = BGN 259 (EUR 132) per month, or BGN 3,112 (EUR 1,591) per year.
• With supplementary pension: BGN 933 x 32.8% = BGN 306 (EUR 156) per month, or BGN 3,672 (EUR 1,878) per year.

Important: Contributions are due regardless of whether you earn income, for as long as you are registered as a self-insured person. If you cease activity (for example, outside the tourist season), file a declaration to suspend the activity to stop the accrual of contributions.

Special case for employees: If you have a primary job under an employment contract and additionally rent out your property through Airbnb, your employment contributions count. Additional contributions are due only if the sum of your employment insurable income and your business income exceeds the minimum insurable income. During the annual reconciliation, you may owe no additional contributions if your employment income already exceeds the maximum insurable income.

Frequently Asked Questions

Conclusion

Taxation of Airbnb and short-term rental income in Bulgaria involves multiple obligations: taxes (patent tax or ITNPA), VAT registration under Art. 97a, social security contributions, tourist tax, and Tourism Act registrations. Patent tax is the most advantageous option for most property owners with up to 20 rooms and turnover below BGN 100,000, but it requires compliance with all accompanying obligations.

Missing even one of these obligations can result in significant fines and back taxes with interest. With the introduction of automatic data exchange under the DAC7 Directive, the risk of detection is real.

This article is provided for informational purposes only and does not constitute legal or tax advice. Tax legislation is subject to change and each individual case may have specific circumstances requiring professional assessment. For questions relating to your particular situation, we recommend consulting a qualified tax adviser or lawyer. Innovires Legal accepts no liability for actions taken solely on the basis of the information in this article.