Bulgaria – Property Letting

How does the property letting process work in Bulgaria?

Rental relationships in Bulgaria fall under the Law on Obligations and Contracts, which grants landlords and tenants considerable freedom to tailor most terms by mutual agreement. This produces a flexible, contract-centred marketplace. Before putting a property on the rental market, landlords should confirm clear title, ensure the premises are in good order, and prepare a written agreement — while bearing in mind an important nuance concerning written versus verbal contracts.

A written rental contract is not a legal prerequisite for validity in Bulgaria, even though it is strongly advisable. Even where no written document exists, a rental relationship is nonetheless legally recognised, and both parties retain rights and obligations under the ZZD. This stands in contrast to jurisdictions such as Scotland or Ireland, where statutory protections are more closely tied to the existence of a written tenancy agreement. In Bulgaria, having a written contract is a matter of best practice rather than a condition of legality.

Landlords typically locate tenants through local property websites, estate agents, or personal networks. Unlike some countries — for example, Scotland with its Private Residential Tenancy register — Bulgaria has no centralised national register in which tenancy details must be lodged. Landlords are free to conduct their own tenant vetting, though doing so carefully is advisable given the realities of the eviction process discussed below.

A lease agreement — known in Bulgarian as “договор за наем” — is a legally binding document setting out the terms on which a tenant occupies a rental property and defining the rights and duties of each party. A thoroughly drafted agreement should address the rent amount and payment method, the lease duration, utility arrangements, permitted use of the premises, any subletting restrictions, and the conditions governing the deposit.

The maximum permitted term for a residential rental contract is 10 years. Should the lease expire while both parties continue to act as though the contract is in force, it is automatically extended as an open-ended agreement. If the landlord wishes the tenant to vacate upon expiry, explicit action is required, including a formal notice to leave.

Unless explicitly prohibited by the contract, tenants are permitted under Bulgarian law to sublet the property — so landlords who wish to prevent this must include a clear restriction. Landlords should also be aware that if a leased property changes ownership during the tenancy and the new owner is prepared to honour the lease, it continues on the same terms. The new owner does, however, have the right to terminate the lease by giving one month’s written notice.

This termination right is extinguished if the lease has been notarised and registered with the Property Register, in which case the new owner is bound by the lease until it expires. Registering a long-term lease with the Property Register is therefore highly advisable for tenants seeking security of tenure and for landlords who want the agreement to carry fuller legal force.

For these reasons, an acceptance and handover report documenting the property’s condition at the point of handover is always prepared. This inventory record is essential when resolving any disagreements over the deposit at the end of the tenancy.

What types of rental arrangements are available in Bulgaria?

Three broad categories of rental arrangement exist in Bulgaria: standard long-term residential lets, short-term residential lets, and holiday or tourist accommodation lets via platforms such as Airbnb or Booking.com. Each comes with its own regulatory framework and tax obligations.

Long-term residential letting is the predominant arrangement, typically running for a year or more under a standard written lease. It is governed by the ZZD and requires no special licence or registration beyond the general duty to declare rental income to the National Revenue Agency (NRA).

Bulgaria sets no national ceiling on short-term rental duration, with such lets broadly understood as stays of under 30 days. Although national law does not fix a specific maximum stay, cities such as Sofia, Varna, and Plovdiv may apply local rules. Short-term lets in private apartments are generally permissible but must comply with any building management rules or homeowners’ association bylaws in force.

Holiday and tourist accommodation lets — particularly those listed on platforms such as Airbnb or Booking.com — are subject to more extensive regulation. The rapid growth of the short-term rental market in Bulgaria, driven by these platforms, has drawn increasing scrutiny from regulators, resulting in legislation designed to manage the sector’s expansion.

Hosts must register the property with the local municipality and classify it as Class “B” accommodation, submitting the required application, supporting documentation, and a fee of approximately BGN 20 per bed (as of 2024). Operating an unregistered short-term tourist rental can attract substantial penalties.

Short-term rental contracts must also comply with consumer protection requirements under the Consumer Protection Act (CPA), ensuring transparency and fair dealing for guests. Contracts should set out pricing, included services, and any additional charges to avoid misleading practices.

Under 2023 EU regulations, short-term rental platforms such as Airbnb and Booking.com are required to verify that listed properties satisfy local and national rules before accepting listings. The framework also obliges platforms to share host and listing data with national authorities. As an EU member state, Bulgaria is bound by these requirements.

What rental income can landlords expect in Bulgaria, and how are rates set?

Bulgarian law places no restrictions on the rent that landlords and tenants may agree — there are no rent control mechanisms or government-imposed caps for either residential or commercial properties in the open market. Rental rates are entirely a matter for negotiation, determined by what both parties are willing to accept. This is a notably market-friendly approach, contrasting with countries such as Germany or Ireland, which maintain rent pressure zones and statutory caps in high-demand areas.

Under the Law on Obligations and Contracts, the rental market operates freely, and rent levels — including any increases — are determined solely by what the lease provides. The most common approach in long-term contracts is to include a clause permitting the landlord to raise rent once a year in line with changes in the inflation index over the relevant period.

Achievable rental rates in Bulgaria depend on factors including the property’s location, size, condition, and facilities. Researching the local market carefully is essential to pricing competitively while achieving a satisfactory return. Sofia, Varna, and Plovdiv attract the highest rents, while mountain resort areas such as Bansko experience pronounced seasonal fluctuation. Official data from the National Statistical Institute of Bulgaria (NSI) and the National Revenue Agency can assist landlords in understanding assessed property values, though market pricing is best gauged through local portals and agents.

Through 2024, the real estate market remained stable and balanced, with strong interest in new residential construction — particularly in the capital and major coastal cities. Energy-efficient modern residential developments are increasingly preferred. These trends are gradually lifting achievable rents in prime locations.

Do landlords need to provide a furnished or unfurnished property in Bulgaria?

Bulgarian law imposes no obligation on landlords to let a property furnished or unfurnished — the decision is entirely commercial and left entirely to the parties involved. In practice, furnished lets are very widespread, particularly in urban centres and tourist areas, and many tenants — especially those relocating internationally — expect at least a basic level of furnishing.

A standard furnished let in Bulgaria typically includes furniture, kitchen appliances, and white goods such as a washing machine, refrigerator, and cooker. Higher-end city apartments are frequently fully equipped. Unfurnished lets do occur, particularly in longer-term family tenancies where tenants prefer to bring their own possessions.

Under Bulgarian law, the landlord is obliged to hand over the rented premises in a condition that is fit for the agreed purpose of use, unless the parties agree otherwise. If the property is delivered in a state that does not conform to the agreement, the tenant is entitled to demand that it be put right, seek a rent reduction, or terminate the contract.

There is no specific statutory furnishing standard affecting the tax treatment of long-term residential lets. For holiday and tourist accommodation, however, the category assigned during municipal registration may be influenced by the level of facilities and services on offer. Higher-category tourist accommodation may attract different patent tax rates. It is worth consulting the Ministry of Tourism or a local adviser for the latest categorisation criteria.

Regardless of furnishing level, landlords should document the condition and contents of the property in a detailed inventory and handover report at the outset of each tenancy. This protects both parties in the event of any subsequent deposit dispute.

Do you need a licence or registration to let a property in Bulgaria?

Bulgaria does not impose nationwide licensing requirements for standard property letting. That said, regulations evolve over time and local or regional variations may apply. For straightforward long-term residential lets, the primary obligation is to declare rental income to the National Revenue Agency and file the required tax returns — not to obtain a letting licence.

The position differs considerably for holiday and tourist accommodation. Hosts operating short-term tourist rentals must register the property with the local municipality as Class “B” accommodation. This requirement applies equally to Bulgarian residents and non-resident foreign owners.

Non-resident owners of short-term rental properties face specific regulatory obligations, primarily centred on residency status, reporting, and tax compliance. The Foreigners in the Republic of Bulgaria Act requires non-resident property owners who generate income locally to register with the Migration Directorate if they spend extended periods in Bulgaria.

Certain buildings may have management rules or homeowners’ association bylaws that restrict short-term letting or impose particular conditions. Always review the building’s management regulations before listing a property for short-term rental. Landlords should verify current requirements directly with the relevant local municipality or the Ministry of Tourism, as rules in this area continue to develop.

How do you obtain a landlord licence or register as a landlord in Bulgaria?

For long-term residential lets, no formal licence needs to be obtained — but landlords must register their rental income and submit tax returns to the National Revenue Agency (NRA). For short-term tourist accommodation, a more structured registration process applies. The steps below describe registering a holiday or short-term rental property under the Tourism Act:

1. Assemble your documents. You will need a completed application form, proof of ownership or a rental agreement if you are not the owner, and authorisation papers if applying through a representative. You must also supply identification, a floor plan of the property, and details of its category and bed count.
2. Secure consent where required. The registration process requires neighbour consent — obtaining approval from neighbouring residents forms part of compliance, and is particularly relevant in multi-unit buildings where short-term letting may affect shared spaces.
3. Lodge your application with the local municipality. Submit the completed application and supporting documentation to the local municipal office, categorising the property as Class “B” accommodation, and pay the applicable fee of approximately BGN 20 per bed (as of 2024). Always confirm the current fee with your local municipal office, as amounts may change.
4. Undergo inspection and receive your certificate. The municipality will carry out an on-site inspection to confirm the property meets the minimum standards for the category applied for. Upon a successful outcome, a certificate is issued and must be displayed within the property.
5. Register with the NRA online platform. Once you have your tourism registration certificate, register with the NRA’s online system to report overnight stays and pay tourist tax. Tourist tax is levied on overnight accommodation and is payable by those providing such stays. Each municipality sets the rate within a band of BGN 0.20 to BGN 3.00 per overnight stay, according to the locality and category of the tourist facility. The tax is due by the 15th day of the month following the month in which the stays were provided.
6. Register as a sole trader where required. Property owners earning income through short-term platforms must register as sole traders in the Bulstat register and file a declaration with the NRA to initiate self-insurance and meet mandatory contributions to state social security, health, and pension insurance funds.
7. Submit patent tax declarations where applicable. Hosts using foreign platforms must register for VAT under Article 97a of the VAT Act. Patent tax is payable to the local municipality for certain short-term rental properties classified as tourist facilities under the Tourism Act. Hosts must file a Declaration for Patent Taxation with the municipality by 31 January each year, and the tax is then settled in four instalments over the course of the year.

Procedures and fees are subject to change. Always verify current requirements with your local municipality and the National Revenue Agency before making any submissions.

What are the rules around deposits in Bulgaria?

A deposit is not a statutory requirement under Bulgarian law, and it is perfectly possible to enter into a rental contract without one. In practice, however, parties commonly agree on a deposit as a safeguard for the proper performance of the tenant’s obligations — including settling utility bills and maintaining the premises in good condition.

There is no legal ceiling on the amount of deposit that may be negotiated. The established practice in Bulgaria is for the deposit to equal one month’s rent, paid at the point of signing. The deposit must be returned to the tenant at the conclusion of the tenancy provided all obligations have been properly fulfilled. In practice, landlords sometimes collect a security deposit of between one and three months’ rent.

Unlike some other legal systems — for example, German law with its detailed statutory deposit provisions — Bulgarian legislation contains no specific rules on deposits, leaving the arrangement entirely to the contracting parties. This means there is no statutory tenancy deposit protection scheme in Bulgaria comparable to the mandatory schemes operating in the UK or Ireland. Landlords are not legally required to hold deposits in a separate designated account, though doing so represents sound practice.

Carefully recording the property’s condition before and after the tenancy is critical to avoiding disagreements over deposit deductions. Providing tenants with clear instructions concerning the return of keys and any access devices assists in ensuring a smooth departure process. Any amounts withheld from the deposit should be itemised, backed by the handover report, and communicated to the tenant in writing.

Who is responsible for maintenance and repairs in Bulgaria?

As a general rule, the landlord bears responsibility for structural and major repairs, while the tenant is expected to handle internal upkeep, routine maintenance, and works relating to interior decoration. This broadly reflects the division found in many other European legal systems, such as those in France or Germany.

Under Bulgarian law, tenants are responsible for costs associated with day-to-day property use, including utility bills. The municipal waste collection fee, however, often falls into a grey area — while tenants produce the waste, landlords typically bear this charge unless the contract provides otherwise.

Landlords are prohibited from interfering with the tenant’s undisturbed enjoyment of the property, and this includes undertaking major renovation works without the tenant’s consent. Should a landlord fail in this obligation, they become liable for any resulting loss or damage suffered by the tenant.

Bulgarian law does not prescribe detailed statutory minimum habitability standards for rental properties in the same way that, for example, Scotland’s Repairing Standard or England’s Homes (Fitness for Human Habitation) Act do. Nonetheless, the landlord is required to hand over the property in a condition fit for its agreed purpose, and if the condition does not meet what was agreed, the tenant may demand rectification, a reduction in rent, or termination of the contract.

Disputes can be referred to the Bulgarian civil courts, though proceedings tend to be protracted — which underlines the value of a carefully drafted contract that specifies each party’s maintenance obligations in clear terms. Mediation services offer an alternative route to resolving disagreements without recourse to litigation.

How are letting agents used in Bulgaria, and what do they charge?

Licensed property agents in Bulgaria offer expertise in property management and lettings. These professionals bring local market knowledge and can assist landlords with competitive pricing, tenant screening, and coordinating property maintenance and repairs. For overseas landlords in particular, a reliable local agent or property management company is an extremely valuable resource.

There is no statutory cap on letting agent fees in Bulgaria — unlike the UK, where the Tenant Fees Act 2019 prohibited most charges to tenants by agents. In Bulgaria, fee structures vary by agency and region. As of 2024–2025, the typical market rate for a letting agent’s finder fee is approximately one month’s rent, charged on a one-off basis, though this varies. In some arrangements this fee is split between landlord and tenant; in others the landlord bears it entirely. Always agree and confirm the fee arrangement in writing before engaging an agent.

Comprehensive property management services — encompassing tenant sourcing, rent collection, maintenance coordination, and legal compliance — typically attract an ongoing monthly fee of between 8% and 15% of monthly rental income, though rates vary by provider and location. Confirm current rates directly with agents, as the market is unregulated and fees are negotiable.

Bulgaria has no central regulatory body for property agents equivalent to, say, the Property Ombudsman in the UK or the PSRA in Ireland. Landlords should carry out thorough due diligence on any agent they consider engaging, check references, and ensure that any management arrangement is documented in writing. The National Statistical Institute of Bulgaria and local chambers of commerce can sometimes point landlords towards registered business operators.

What taxes apply to rental income in Bulgaria?

Unlike many countries, Bulgaria does not use a progressive income tax system — personal income tax is levied at a flat rate of 10%, one of the lowest in the EU. This flat rate applies to rental income for both resident and non-resident individual landlords, as of 2025.

Resident landlords — those who satisfy the 183-day residency test or whose centre of vital interests is in Bulgaria — are taxed on their worldwide income. Resident individual landlords may deduct a flat rate of 10% to represent their expenses, meaning that tax at 10% is applied to 90% of gross rental income. Natural persons letting property to other natural persons must make advance quarterly tax payments into the account of the National Revenue Agency, calculated by multiplying the quarterly rental income (after the 10% expense deduction) by 10%. No payment is due for the final quarter of the year; the outstanding tax is settled by filing an annual tax declaration by 30 April of the following year.

Non-resident landlords are treated differently. For non-resident individuals, rental income earned in Bulgaria is subject to a quarterly one-off tax at 10%, with an obligation both to pay the tax and file a dedicated tax return on a quarterly basis. The 10% statutory expense deduction is not available to non-EU/EEA nationals. Tax on gross rent payable to non-residents is withheld at source at 10%. The tax must be remitted monthly unless a double taxation treaty between Bulgaria and the landlord’s country applies, in which case quarterly remittance may be permitted.

Real estate tax is levied on all property owners in Bulgaria. Owners are liable for this tax on their Bulgarian property, calculated on the assessed value as determined by the local tax authorities. Rates are set by the municipality where the property is situated, ranging between 0.1% and 0.45% (as of 2025).

Tourist tax applies to short-term holiday lets. Each municipality sets the tourist tax rate within a band of BGN 0.20 to BGN 3.00 per overnight stay, depending on the settlement and the category or registration of the tourist facility (as of 2025).

VAT may apply to short-term rental income where annual turnover exceeds the registration threshold. With effect from 1 January 2025, VAT registration in Bulgaria is required if turnover exceeds BGN 166,000 over any period of 12 consecutive months or fewer.

Short-term rental activity may in some cases be classified as a business rather than passive rental income. If an entire property that is not the owner’s primary residence is rented out while hotel-type services such as cleaning or laundry are provided, the activity may be treated as a business, with income taxed under the rules for sole traders at a rate of 15% on taxable income.

Tax rules in this area are complex and subject to change. Seek official guidance from the National Revenue Agency (NRA) and consider retaining a Bulgarian tax adviser — especially if you are a non-resident landlord or operate multiple short-term rental properties.

What are the rules around ending a tenancy or evicting a tenant in Bulgaria?

Bulgarian landlord and tenant law is widely regarded as broadly pro-tenant. In practice, the eviction process is slow and enforcement is inconsistent, making the system particularly tenant-friendly when disputes arise. Landlords should weigh this carefully when selecting tenants.

For fixed-term leases, landlords cannot remove a tenant without cause, preserving stability for tenants who have committed to a long-term arrangement. Where a landlord does seek to terminate a lease, tenants are generally entitled to prior notice unless there has been a material breach of the lease terms.

Eviction in Bulgaria cannot be carried out arbitrarily or outside due process. It is only possible through the civil court system, and only on legally valid grounds — such as non-payment of rent or a serious breach of contractual obligations.

If a tenant declines to vacate, the landlord must bring a claim before the courts and, once an enforceable judgment is obtained, proceed with enforcement. The physical vacation of the tenant and return of possession to the landlord is carried out with the assistance of a court-appointed bailiff engaged by the landlord.

While the Bulgarian legal system offers a clear framework for eviction proceedings, the practical effectiveness of enforcement is often slow and uneven. Even where landlords have valid legal grounds, the court process can be time-consuming, and enforcement through bailiffs may encounter delays — particularly in contested cases.

These realities lead many landlords to screen prospective tenants rigorously and to favour short-term or corporate leases. Using a well-drafted contract, maintaining constructive communication with tenants, and seeking legal advice promptly at the first sign of problems are the most effective ways to manage tenancy disputes in Bulgaria.

Notice periods for terminating open-ended leases are typically governed by the contract. Where the contract makes no provision, Bulgarian courts will generally consider what is reasonable in the circumstances. Always obtain advice from a Bulgarian-qualified lawyer before commencing any eviction proceedings.

What should expat landlords know about managing property remotely in Bulgaria?

Managing a rental property from outside Bulgaria is entirely feasible, but it demands careful preparation regarding legal authority, tax compliance, and day-to-day operations. Many foreign property owners successfully let Bulgarian properties at a distance, particularly in well-established resort markets such as the Black Sea coast and Bansko.

A power of attorney is a practical necessity for non-resident landlords who cannot be present in Bulgaria for lease signings, maintenance decisions, or dealings with the authorities. A Bulgarian notarised power of attorney grants a trusted representative — often a lawyer or property manager — the legal authority to act on the landlord’s behalf. This document must be drafted with precision to define the exact scope of the authority conferred.

Non-resident owners are subject to withholding tax on rental income generated by Bulgarian properties. They may also be required to file an annual tax return, with applicable rates and obligations varying according to their country of residence and whether they are EU or non-EU nationals. Where the tenant is a business or self-employed person, the withholding tax obligation typically rests with the tenant — but where the tenant is a private individual, the non-resident landlord must manage their own tax compliance.

Bulgaria’s membership of the EU and its extensive network of double taxation treaties enhance its attractiveness to international investors. Landlords should verify whether a tax treaty exists between Bulgaria and their country of tax residence, as this may affect how rental income is taxed and declared at home. The National Revenue Agency publishes a list of Bulgaria’s active double taxation agreements.

There are no formal restrictions on transferring rental income out of Bulgaria — funds can be remitted to overseas bank accounts freely. Non-resident landlords should nonetheless maintain thorough records of rental income received and taxes paid in Bulgaria to meet reporting requirements in their country of tax residence.

Licensed property agents and management companies in Bulgaria can handle pricing, tenant screening, and property maintenance and repairs — making them especially valuable to landlords managing their investments from abroad. Before departing, engage a management company under a clear written agreement setting out their responsibilities, reporting obligations, and fee structure.

Frequently Asked Questions

Can a non-resident own and let property in Bulgaria?

Yes. Non-resident foreign nationals may own and let residential or commercial property in Bulgaria without restriction. No nationality-based barriers to property letting exist. Non-resident landlords are liable for Bulgarian income tax on rental income at a flat 10% (as of 2025), with tax typically withheld at source or paid quarterly via a dedicated tax return filed with the National Revenue Agency. Always consult a local tax adviser for current requirements.

Do I need a local agent to let my property in Bulgaria?

There is no legal obligation to use a letting agent for long-term residential lets. However, for landlords based abroad, a local agent or property management company is strongly advisable for practical purposes — including finding tenants, collecting rent, coordinating maintenance, and handling Bulgarian-language documentation. For short-term tourist rentals, specialist management companies can also assist with the municipal registration process.

Is there any rent control in Bulgaria?

No rent control laws or government-imposed limits on rents exist for either residential or commercial properties in the open market in Bulgaria. Rent is negotiated freely between landlord and tenant. Any provision for annual rent increases should be incorporated into the original lease agreement — typically by reference to inflation indices.

How is a security deposit handled in Bulgaria?

There is no statutory maximum on the deposit amount that parties may agree, and the prevailing practice is for the deposit to equal one month’s rent. There is no statutory tenancy deposit protection scheme in Bulgaria, unlike in the UK or Ireland. The deposit amount, conditions for making deductions, and the procedure for returning it should all be set out clearly in the tenancy agreement. A detailed inventory and handover report is essential to support any subsequent deductions.

What taxes do I pay on rental income in Bulgaria as a non-resident?

Non-resident individual landlords are subject to a flat 10% one-off tax on gross rental income earned in Bulgaria, as of 2025. The 10% statutory expense deduction available to resident landlords does not apply to non-EU/EEA nationals. Tax is due on a quarterly basis. Where the tenant is a Bulgarian company or self-employed person, the obligation to withhold and remit the tax typically falls on the tenant. Consult the National Revenue Agency and a local tax adviser for current rules and any applicable double taxation treaty relief.

Do I need to register my property for short-term letting in Bulgaria?

Yes. Properties let for short-term tourist accommodation — including through platforms such as Airbnb or Booking.com — must be registered with the local municipality as Class “B” accommodation under the Tourism Act. The registration fee is approximately BGN 20 per bed (as of 2024). Letting without registration can attract substantial fines. Confirm the current registration requirements with your local municipality or the Ministry of Tourism.

How long does it take to evict a non-paying tenant in Bulgaria?

In practice, the eviction process in Bulgaria is slow and enforcement can be inconsistent. Eviction must proceed through the civil court system, and the combination of court proceedings and subsequent enforcement through a bailiff can take many months or longer in contested cases. Rigorous tenant screening, a well-drafted lease agreement, and prompt legal action at the first indication of default are all strongly recommended. Engage a Bulgarian-qualified lawyer as early as possible in any dispute.

Can I use a power of attorney to manage my Bulgarian rental property from abroad?

Yes. A notarised power of attorney is a standard and effective tool for non-resident landlords to authorise a local representative — such as a lawyer or property manager — to act on their behalf in Bulgaria. The document should specify precisely the powers being granted, such as signing lease agreements, collecting rent, engaging maintenance contractors, and managing tax filings. The power of attorney must be notarised and, where necessary, apostilled for use in Bulgaria.