The European Union has taken another major measure to clarify the real estate market. This time the focus is on the segment of short-term rentals in the part of vacation properties that are rented out on large online platforms such as Airbnb and Booking. From May 20, a new regulation comes into force, which obliges platforms to carry out direct and automated data exchange with the respective country. Properties that are not registered in the municipalities and in the Unified Tourist Information System (ESTI) of the Ministry of Tourism will be removed from the platforms. They will be automatically removed from the sites because they will have to provide a registration number from the municipalities, the tourism industry explains.
According to data from the Bulgarian Association for Tourist Properties and Innovations (ATII), there are currently over 10,200 properties listed on Airbnb from across the country, and over 15,100 on Booking.com. The most are in Sofia – 2,200 on Airbnb, and 2,100 on Booking.com. Next is Varna with 1,300 properties, Bansko with 769 on Airbnb and 1,100 on Booking.com, and Plovdiv with over 650 properties. According to preliminary calculations, at least half of the vacation properties in our country will be removed from the major booking platforms.
The owners of vacation properties had 2 years in which to register the properties they rent out with the municipalities – Regulation 1028 was adopted by the European Parliament in 2024, and the final date on which the two-year transition period expires is May 20, 2026. After this date, platforms must send monthly reports to the EITI on the number of overnight stays and guests for each registered property. It will no longer be possible for property owners to declare fewer than the number of overnight stays. Each host will be required to have a unique registration number issued by the municipality.
After May 20, properties that do not have a valid number from the municipality will be automatically removed from the platforms. This will effectively brighten the market and owners who do not pay taxes on the profit of their properties will not be able to rent them out.
Individuals are required to register under the VAT Act, which is regulated in Art. 97a, due to the services they use from foreign platforms. This is a specific registration without the right to a tax credit, which means that the owner is required to pay 20% on the Booking or Airbnb commission. In addition, there is a patent tax, which varies according to the size of the property (approximately 128 euros for a one-bedroom apartment and up to 383 euros for a three-room apartment per year), a tourist tax and a 10% income tax. In addition, individuals must also pay social security contributions, which are close to 42% of income.
Detailed statistics on average property prices in Bulgaria by city and neighborhood can be seen at imot.bg