If you rent out an apartment, house, garage, or other property as an individual, you owe an effective 9% taxon the rent received (10% on 90% of the income after the automatic 10% normative-expenses deduction). This guide walks through exactly how it's calculated, when to pay, how to declare, and the specifics for Airbnb, foreign owners, and multi-property landlords.
2026 rental tax in brief
- Taxable base: 90% of rent received (automatic 10% normative-expenses deduction under Art. 31 PITDA).
- Rate: 10% income tax → effective 9% of gross rent.
- Advance tax: paid quarterly for the first three quarters. Q4 has no advance — settled with the annual return.
- Declaration: Annex 4 to the annual return under Art. 50 PITDA, deadline 30 April.
- 5% discount for electronic filing by 31 March with payment by the same date.
1Who pays rental tax
The regime depends on who rents out the property and under what intent:
Individual (private landlord)
The standard case — owner renting 1-2 properties on long-term leases.
- • 10% normative recognized expenses (automatic, no documents).
- • 10% tax on the remaining 90% → effective 9%.
- • No social contributions.
- • No mandatory NRA registration.
Business / EOOD
When you rent professionally (3+ properties, short-term, with services).
- • Taxed under corporate tax (10%) or as SOL.
- • Right to deduct actual expenses (repairs, fees, depreciation).
- • Social contributions on your salary.
- • Possible mandatory VAT registration above €51,130 turnover per calendar year (new 2026 threshold under Art. 96 VATA).
When you cross into "business activity"
The NRA may decide your activity is a business — not just renting — if: (a) you rent out 3+ properties simultaneously, (b) you provide services (cleaning, linen change, reception) typical of hotel operations, or (c) you systematically use platforms (Airbnb, Booking) for short-term stays. In those cases you must register and be taxed as an EOOD, ET, or SOL.
2How the tax is calculated
For an individual renting out property, the formula is simple:
Tax = (Gross rent − 10% expenses) × 10%
= Gross rent × 90% × 10% = Gross rent × 9%
Example
You rent an apartment in Sofia for €800/month (€9,600 a year).
- • Gross annual rent: €9,600
- • Normative recognized expenses (10%): −€960
- • Taxable base: €8,640
- • Tax (10%): €864 a year (~€72/month)
- • Net to you: €9,600 − €864 = €8,736
Are actual expenses deductible?
No. For individuals the 10% normative-expenses deduction is mandatory and not a choice. Even if you paid for repairs, fees, or insurance — you cannot deduct them as expenses if you are taxed under Art. 31 PITDA.
For real expenses you have to switch to an EOOD/OOD, ET, or SOL — where expenses are recognized, but you pick up social contributions and mandatory accounting.
3Advance tax — quarterly
Individuals receiving rent owe advance tax for the first three quarters of the year. Q4 has no advance — it is settled with the annual return.
| Quarter | Income period | Payment deadline | Form |
|---|---|---|---|
| Q1 | January – March | By 30 April | Art. 55 PITDA decl. |
| Q2 | April – June | By 31 July | Art. 55 PITDA decl. |
| Q3 | July – September | By 31 October | Art. 55 PITDA decl. |
| Q4 | October – December | No advance owed | Settled in annual return |
When the tenant is a company
If the tenant is a legal entity or a registered self-employed person, they withhold and remit the advance taxfor you. You receive the rent net (with 10% withheld on the taxable base) and don't file quarterly declarations — you only declare in the annual return.
4Annual return — Annex 4
Rental income is declared in Annex 4 of the annual return under Art. 50 PITDA. Filing deadline: 30 April of the following year.
What you fill in on Annex 4
- • Gross annual income — total rent received.
- • 10% normative expenses — calculated automatically.
- • Taxable base and 10% tax.
- • Advance tax already paid — reduces the final tax.
- • Tax withheld by a corporate tenant — if applicable.
- • Income payer — tenant's details if the tenant is a company or registered self-employed person.
5% discount for electronic filing
File electronically with PIC or KEP by 31 March and pay the full tax by the same date — you get a 5% discount on the tax (capped at €255.65 / BGN 500). Paper filing earns no discount.
5Airbnb, Booking and short-term rentals
Short-term rentals (under 30 days) through platforms like Airbnb and Booking often aren't treated as "rent" but as hospitality services. The NRA may require you to register as an ET, EOOD, or SOL, plus mandatory municipal registration and a guest log.
Long-term rental (3+ months)
- • Taxed under Art. 31 PITDA — effective 9%.
- • No municipal registration.
- • No tourist tax.
Short-term (Airbnb / Booking)
- • Often a business → ET/EOOD/SOL.
- • Municipal registration + categorization required.
- • Tourist tax due.
- • Patent tax possible under specific conditions.
6Foreign owners renting Bulgarian property
Bulgarian residents are taxed under the rules above. Non-resident individuals who own and rent out property in Bulgaria owe a 10% final withholding tax under Art. 37(1)(4) PITDA — typically withheld by the tenant if the tenant is a company or a registered self-employed person.
Important for non-residents
Non-residents do not get the 10% normative-expenses deduction. The 10% final tax is computed on the full gross rent. The payer withholds and remits it by the end of the month following the quarter of accrual (Art. 55 PITDA declaration, form 4001).
If your country of residence has a double-taxation treaty with Bulgaria, you declare the income there too but get a credit for tax paid in Bulgaria.
7Common mistakes
1. Skipping advance tax
Many landlords pay only at year-end. This triggers interest on unpaid Q1-Q3 advance tax. The interest rate is the BNB base rate + 10 points.
2. Trying to deduct actual expenses
For individuals under Art. 31 PITDA, only the 10% normative deduction applies — actual repairs, fees, and insurance are not deductible.
3. Short-term rentals without registration
An Airbnb listing without municipal and NRA registration triggers fines from ~€500 to ~€1,500 per inspection. Property categorization is mandatory.
4. Cash income without paperwork
The lease itself doesn't need to be registered, but you must issue a document (receipt, contract, cash voucher) to the tenant. Without a paper trail, the NRA may dispute your declared amount.
5. Foreign tenant — no withholding
If the owner is a non-resident, a corporate tenant must withhold 10%. If they fail, both they and the owner are liable for the unwithheld tax.
6. Skipping the return because "there's no profit"
There is no minimum threshold for rental income — any rent received must be declared, even when repairs or expenses exceed the income. The penalty for skipping starts at ~€100 (BGN 200) and increases on repeat offenses.
Calculate your exact rental tax
Enter your gross rent and see the annual and quarterly advance tax for 2026.
Quick reference:
- • Art. 31 PITDA — 10% normative-expenses deduction.
- • Art. 55 PITDA — quarterly advance tax.
- • Art. 50 PITDA — annual return (Annex 4).
- • Art. 37(1)(4) PITDA — final withholding tax at source for non-residents.
- • NRA portal:
nra.bgwith PIC or KEP.