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Tax on rental income in Bulgaria

Rental income of individuals in Bulgaria is taxed at the flat 10 per cent rate, but the base is not the gross rent: the law recognises a statutory deduction for expenses, and the tax applies to what remains. The second decisive factor is who the tenant is — where the tenant is a business, the withholding and declaration mechanism changes.

Real estate · Last reviewed: 2026-08-16

The base is not the gross rent

For individuals, a statutory percentage of expenses is deducted from rental income before tax is applied, so the tax actually paid is not simply 10 per cent of the gross rent. The deduction percentage is set by legislation and can change, which is why no figure appears here — confirm the value in force with the revenue agency. The advantage is that no expense receipts are required; the trade-off is that actual expenses are not deducted on top.

When the tenant is a company

The tenant's status determines the mechanism
TenantWho accounts for the taxLandlord's duty
IndividualThe landlordAdvance payments and annual return
Company or legal entityThe tenant withholds at sourceReport the income in the annual return
Short-term accommodationDepends on the nature of the activityRegistration and a separate regime may apply

Withholding does not remove the filing duty

Even where a corporate tenant withholds and pays the tax, the income is still reported in your annual return. Ask the tenant for a written statement of sums paid and tax withheld, and keep it.

The sequence across a tax year

  1. Put the lease in writing

    Rent, term, payment date and who bears which costs form the documentary basis for the declaration.

  2. Keep payments traceable

    Bank transfers make both filing and any dispute far easier to evidence.

  3. Check advance obligations

    Depending on the tenant's status, advance instalments may fall due during the year — verify the deadlines with the revenue agency.

  4. File the annual return

    The return can be filed electronically, and filing on time may open certain reliefs.

Why short-term letting is different

Letting by the night or week is often treated as providing a service rather than as ordinary rent. That can trigger categorisation or registration duties under tourism legislation, a different tax treatment, and a municipal tourist tax. Building rules may also restrict short-term accommodation, and where you let through a platform, the platform's own reporting obligations affect the picture. Discuss the structure with an accountant before you start.

No rates or amounts are given here

The statutory expense deduction, filing deadlines and the tourist tax all change, and the tourist tax differs by municipality. The only stable reference is the 10 per cent flat rate on personal income. Consult the revenue agency and an accountant for your own case.

This is not legal or financial advice

This page explains the process in general terms and points to the official sources of the competent authorities. For decisions specific to your own situation, consult a lawyer, an accountant or the relevant institution. Rules and amounts change over time.

Frequently asked questions

I live abroad — where is my Bulgarian rent taxed?

The country where the property is located generally has taxing rights, while your country of residence may also require a declaration, with a double taxation treaty resolving the overlap. Assess both sides together rather than assuming one cancels the other.

Who pays the tax when the tenant is a company?

The company withholds the tax when paying the rent and remits it. You still report the income in your annual return and should keep the tenant's statement of sums paid and tax withheld.

Can I deduct repair and maintenance costs?

The system works on a statutory expense percentage rather than documented costs, so actual expenses are not deducted on top. That matters for properties with high maintenance requirements.

Sources

The information on this page is based on the official sources listed below. Legislation changes — open the links and verify the current position.

  1. Национална агенция за приходите (НАП) — https://nra.bg/ · 2026-08-16
  2. Закон за данъците върху доходите на физическите лица (lex.bg) — https://lex.bg/ · 2026-08-16
  3. Портал за електронни административни услуги (eGov) — https://egov.bg/ · 2026-08-16
  4. Агенция по вписванията — https://www.registryagency.bg/ · 2026-08-16

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