Authored by the expert who managed and guided the team behind the Bulgaria Property Pack
Everything you need to know before buying real estate is included in our Bulgaria Property Pack
Bulgaria joined the euro area on January 1, 2026, which is making cross-border property investment simpler than ever for European buyers.
This guide breaks down everything you need to know about renting out residential property in Bulgaria as a foreigner, from legal requirements to realistic income expectations.
We constantly update this blog post to reflect the latest regulations, market data, and rental trends in Bulgaria.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Bulgaria.
Insights
- Bulgaria's gross rental yields range from 4.5% to 9% depending on the city, with resort areas like Bansko offering the highest returns but also the most volatility.
- Sofia short-term rentals average around 60% occupancy and roughly 65 euros per night, which can outperform long-term rents if you manage operations tightly.
- Foreigners can own Bulgarian apartments freely, but non-EU buyers face restrictions on direct land ownership, which matters if you want a house with a garden.
- Monthly holding costs for a typical Bulgarian rental apartment run between 120 and 260 euros, with building maintenance fees often being the largest expense.
- The Lozenets, Ivan Vazov, and Iztok neighborhoods in Sofia command the highest rents, often reaching 1,050 euros per month for a two-bedroom apartment.
- Bulgaria does not have national rent control, so landlords can set initial rents freely and include inflation-indexed review clauses in their lease contracts.
- Short-term rental hosts must register with the Unified Tourist Information System (ESTI) and report every guest stay, or face compliance penalties.
- Furnished apartments in Sofia rent about two to three weeks faster than unfurnished ones, especially in neighborhoods popular with expats and young professionals.
Fact-checked and reviewed by our local expert
Yeheli Samuels 🇧🇬🇮🇱
CEO and Founder, Dira Bulgarit - Israeli real estate in Bulgaria
Can I legally rent out a property in Bulgaria as a foreigner right now?
Can a foreigner own-and-rent a residential property in Bulgaria in 2026?
As of early 2026, foreign individuals can legally own residential units like apartments in Bulgaria and rent them out without any special restrictions.
Most foreign buyers simply purchase apartments in their own name, though some non-EU buyers use a Bulgarian company structure if they want to acquire property that includes land.
The main limitation foreigners face is that Bulgaria's Constitution (Article 22) restricts direct land ownership by non-EU citizens, which means buying a house with a plot requires either EU residency or a local company workaround.
If you're not a local, you might want to read our guide to foreign property ownership in Bulgaria.
Do I need residency to rent out in Bulgaria right now?
No, you do not need Bulgarian residency to rent out a property, and many foreign landlords manage their rentals entirely from abroad using local property managers.
However, you will need a Bulgarian tax identification number to properly declare and pay taxes on your rental income, which is considered Bulgarian-source income by the National Revenue Agency.
A local bank account is not legally required, but it is strongly recommended because tenants prefer paying into a local euro IBAN, and it simplifies your tax reporting.
Remote management is fully feasible if you hire a local property manager or set up a notarized power of attorney for banking and administrative tasks.
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What rental strategy makes the most money in Bulgaria in 2026?
Is long-term renting more profitable than short-term in Bulgaria in 2026?
As of early 2026, long-term renting in Bulgaria provides steadier income with less work, while short-term rentals can generate higher returns but only in prime tourist or business locations like central Sofia or Bansko.
A well-managed short-term rental in Sofia might earn 10,000 to 14,000 euros annually, compared to 7,000 to 9,500 euros for a comparable long-term rental, but the short-term option requires much more active management and carries higher vacancy risk.
Properties near ski lifts in Bansko, beachfront areas in Varna, or the business core of Sofia tend to favor short-term renting because they attract tourists and business travelers willing to pay premium nightly rates.
What's the average gross rental yield in Bulgaria in 2026?
As of early 2026, average gross rental yields in Bulgaria range from about 4.5% in prime Sofia neighborhoods to around 7% in secondary cities like Plovdiv and Varna, with resort areas sometimes reaching 9%.
Most residential properties in Bulgaria fall within a realistic gross yield range of 4.5% to 7%, though location and property condition create significant variation.
Smaller units like studios and one-bedroom apartments typically achieve the highest gross yields in Bulgaria because they have lower purchase prices relative to achievable rents, making them popular with yield-focused investors.
By the way, we have much more granular data about rental yields in our property pack about Bulgaria.
What's the realistic net rental yield after costs in Bulgaria in 2026?
As of early 2026, realistic net rental yields in Bulgaria land between 2.8% and 4.8% for long-term rentals and between 3.5% and 6.5% for well-operated short-term rentals.
Most Bulgarian landlords actually experience net yields in the 3% to 5% range after accounting for all their ongoing expenses.
The three main cost categories that eat into Bulgarian gross yields are building maintenance and common-area fees (especially high in newer complexes), property management fees (8% to 25% depending on strategy), and the combined burden of property taxes, insurance, and periodic vacancy.
You might want to check our latest analysis about gross and net rental yields in Bulgaria.
What monthly rent can I get in Bulgaria in 2026?
As of early 2026, typical monthly rents in Sofia are around 480 euros (490 USD) for a studio, 680 euros (695 USD) for a one-bedroom, and 900 euros (920 USD) for a two-bedroom apartment in good condition.
A decent entry-level studio in Sofia rents for 420 to 550 euros (430 to 560 USD) per month, with lower-cost options available in outer districts like Lyulin or Nadezhda.
A typical one-bedroom apartment in Sofia commands 580 to 780 euros (590 to 800 USD) monthly, depending on the neighborhood and whether it is furnished.
A standard two-bedroom apartment in Sofia rents for 780 to 1,050 euros (800 to 1,075 USD) per month, with the higher end found in premium areas like Lozenets and Iztok.
If you want to know more about this topic, you can read our guide about rents and rental incomes in Bulgaria.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Bulgaria versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.
What are the real numbers I should budget for renting out in Bulgaria in 2026?
What's the total "all-in" monthly cost to hold a rental in Bulgaria in 2026?
As of early 2026, the total monthly cost to hold a typical rental apartment in Bulgaria runs between 120 and 260 euros (125 to 265 USD), excluding mortgage payments and tenant-paid utilities.
Most Bulgarian rental properties fall within a realistic holding cost range of 120 to 400 euros (125 to 410 USD) per month, with newer complexes and resort properties sitting at the higher end due to elevated maintenance fees.
Building and common-area maintenance fees are typically the largest single holding cost in Bulgaria, especially in modern residential complexes that offer amenities like security, elevators, and shared gardens.
You want to go into more details? Check our list of property taxes and fees you have to pay when buying a property in Bulgaria.
What's the typical vacancy rate in Bulgaria in 2026?
As of early 2026, typical vacancy rates for well-located rental properties in Sofia run between 3% and 6%, while other Bulgarian cities see vacancy rates closer to 5% to 9%.
Landlords in Bulgaria should budget for roughly half a month to one and a half months of vacancy per year, depending on location and how competitively they price their units.
The main factor driving vacancy differences across Bulgarian neighborhoods is proximity to employment centers, universities, and metro stations, with areas like Studentski Grad seeing faster tenant turnover but also quicker re-letting.
Late summer (August and September) typically sees the highest tenant turnover in Bulgaria because students relocate before the academic year and young professionals often time moves around this period.
We have a whole part covering the best rental strategies in our pack about buying a property in Bulgaria.
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Where do rentals perform best in Bulgaria in 2026?
Which neighborhoods have the highest long-term demand in Bulgaria in 2026?
As of early 2026, the three neighborhoods with the highest overall long-term rental demand in Bulgaria are Lozenets, Ivan Vazov, and Center (Tsentar) in Sofia, thanks to their central locations and quality housing stock.
Families looking to rent in Bulgaria gravitate toward Lozenets, Iztok, and Ivan Vazov in Sofia, as well as Trakia in Plovdiv, because these areas offer good schools, parks, and a quieter residential feel.
Students drive strong rental demand in Studentski Grad and Geo Milev in Sofia, as well as Kapana and Center in Plovdiv, due to proximity to major universities.
Expats and international professionals prefer Lozenets, Oborishte, and Iztok in Sofia because these neighborhoods offer modern apartments, international restaurants, and easy access to business districts.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Bulgaria.
Which neighborhoods have the best yield in Bulgaria in 2026?
As of early 2026, the neighborhoods with the best rental yields in Bulgaria include Mladost and Lyulin in Sofia (near metro stations), Trakia in Plovdiv, and areas slightly inland from the beachfront in Varna.
These top-yielding neighborhoods typically deliver gross rental yields between 5.5% and 7.5%, compared to just 4% to 5% in prime central areas.
The main characteristic allowing these neighborhoods to achieve higher yields is that purchase prices remain relatively affordable while rents stay competitive because of good transport links and proximity to employers, which keeps the rent-to-price ratio favorable.
We cover a lot of neighborhoods and provide a lot of updated data in our pack about real estate in Bulgaria.
Where do tenants pay the highest rents in Bulgaria in 2026?
As of early 2026, the three neighborhoods where tenants pay the highest rents in Bulgaria are Lozenets, Center (Tsentar), and Oborishte in Sofia, followed by Briz and Chayka in Varna.
A standard apartment in these premium Sofia neighborhoods commands 800 to 1,200 euros (820 to 1,230 USD) per month, with luxury units reaching even higher.
What makes these neighborhoods command top rents is not just central location but also the combination of renovated building stock, walkable amenities, green spaces, and a concentration of embassy and corporate offices nearby.
The typical tenant profile in these highest-rent Bulgarian neighborhoods includes diplomats, corporate executives on assignment, senior IT professionals, and affluent young couples who prioritize lifestyle and convenience over budget.
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Bulgaria. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
What do tenants actually want in Bulgaria in 2026?
What features increase rent the most in Bulgaria in 2026?
As of early 2026, the three property features that increase monthly rent the most in Bulgaria are energy-efficient heating and cooling (tenants care deeply because utility bills can swing dramatically), a modern renovated kitchen and bathroom, and proximity to a Sofia metro station or major transport hub.
Energy efficiency alone can add a 10% to 15% rent premium in Bulgaria because tenants calculate that lower utility costs justify paying higher rent, especially during cold winters.
One commonly overrated feature in Bulgaria is high-end designer finishes, which landlords often overspend on while tenants simply want clean, functional, and modern rather than luxury.
An affordable upgrade that delivers strong returns for Bulgarian landlords is installing split-system air conditioning, which costs around 500 to 800 euros but can meaningfully boost both rent and tenant interest.
Do furnished rentals rent faster in Bulgaria in 2026?
As of early 2026, furnished apartments in Bulgaria typically rent two to three weeks faster than unfurnished ones, especially in Sofia neighborhoods popular with expats, students, and young professionals.
Furnished rentals in Bulgaria command a rent premium of roughly 10% to 20% over comparable unfurnished units, though landlords must factor in higher maintenance and replacement costs over time.
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How regulated is long-term renting in Bulgaria right now?
Can I freely set rent prices in Bulgaria right now?
Landlords in Bulgaria can freely set initial rent prices without any national rent control restrictions, which makes the market more flexible than many Western European countries.
Once a lease is signed, rent increases are not legally capped, but landlords typically cannot raise rent mid-contract unless the lease includes a specific rent review clause, often tied to an inflation index.
What's the standard lease length in Bulgaria right now?
The most common lease length for residential rentals in Bulgaria is 12 months, though six-month and open-ended leases with notice periods are also used.
Bulgaria does not impose a strict statutory maximum on security deposits for standard residential leases, with market practice typically being one month's rent and sometimes two months for furnished or high-end properties.
Security deposit return rules in Bulgaria are governed by the lease contract terms, and landlords are expected to return the deposit minus any documented damages within a reasonable period after the tenant vacates.
We made this infographic to show you how property prices in Bulgaria compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
How does short-term renting really work in Bulgaria in 2026?
Is Airbnb legal in Bulgaria right now?
Airbnb-style short-term rentals are legal in Bulgaria, but only if you comply with the country's tourism accommodation registration and guest reporting requirements.
Operating a short-term rental in Bulgaria requires registering your property with the relevant municipality and reporting every guest stay through the Unified Tourist Information System (ESTI).
Bulgaria does not have a single national cap on how many nights per year you can rent short-term, though building rules and homeowner associations may impose their own restrictions.
The most common consequence for operating a non-compliant short-term rental in Bulgaria is fines from municipal authorities and potential removal from booking platforms that require proof of legal registration.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Bulgaria.
What's the average short-term occupancy in Bulgaria in 2026?
As of early 2026, average annual occupancy for short-term rentals in Sofia hovers around 55% to 65%, while coastal and ski resort areas see more volatile occupancy tied to seasonality.
Most short-term rentals in Bulgaria experience occupancy rates ranging from 35% in seasonal resort towns to 65% in year-round demand centers like Sofia.
The highest occupancy months for Bulgarian short-term rentals are June through September for coastal properties and December through March for ski areas like Bansko, while Sofia sees steadier demand throughout the year with peaks during business travel seasons.
The lowest occupancy periods in Bulgaria are November and early December for coastal areas (before ski season starts) and April through May for ski resorts (after snow melts but before summer hiking picks up).
Finally, please note that you can find much more granular data about this topic in our property pack about Bulgaria.
What's the average nightly rate in Bulgaria in 2026?
As of early 2026, the average nightly rate for short-term rentals in Sofia is around 50 to 75 euros (50 to 75 USD), with coastal and ski areas ranging from 40 to 110 euros depending on season and location.
Most short-term rental listings in Bulgaria fall within a nightly rate range of 35 to 90 euros (35 to 90 USD), with budget-friendly studios at the low end and well-located two-bedroom apartments at the higher end.
The typical difference between peak and off-season nightly rates in Bulgaria can be 30 to 60 euros (30 to 60 USD), with beachfront Varna properties and ski-in Bansko units seeing the most dramatic seasonal swings.
Is short-term rental supply saturated in Bulgaria in 2026?
As of early 2026, the short-term rental market in Sofia is competitive but not fully saturated, with well-managed properties still achieving solid performance while average listings struggle with pricing pressure.
The number of active short-term rental listings in Bulgaria has been growing steadily, though compliance requirements like ESTI registration create friction that limits casual supply growth.
The most oversaturated neighborhoods for short-term rentals in Bulgaria include the Center (Tsentar) district of Sofia, the beachfront strip in Sunny Beach, and the gondola-adjacent zone in Bansko, where listing density is highest.
Neighborhoods that still have room for new short-term rental supply include Sofia's Iztok and Oborishte areas (strong expat and business traveler demand with less saturation), inland parts of Varna, and emerging areas of Plovdiv near the Old Town.
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What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Bulgaria, we always rely on the strongest methodology we can … and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why it's authoritative | How we used it |
|---|---|---|
| European Central Bank | The official central bank for euro area currency matters. | We used it to confirm Bulgaria's January 2026 euro adoption. We ensured all currency references reflect current monetary reality. |
| Bulgaria National Statistical Institute | Bulgaria's official government statistics agency. | We used it to ground our understanding of how Bulgaria measures housing prices. We cross-checked private market claims against official methodology. |
| FRED (St. Louis Fed) | A trusted public data portal republishing official series. | We used it to anchor the direction and pace of Bulgaria property price movements. We triangulated market reports against this official data feed. |
| Bulgaria Ministry of Finance | The official government source for tax rules. | We used it to confirm personal income tax filing requirements. We ensured our tax guidance reflects official processes. |
| Bulgarian Parliament Constitution | The primary source for constitutional ownership rules. | We used it to frame the foreigner land ownership restriction. We translated Article 22 into practical buying implications. |
| ESTI Tourism Portal | The official system for tourism accommodation reporting. | We used it to explain real operational requirements for short-term rentals. We clarified that ESTI compliance is non-negotiable for legal hosting. |
| Colliers Bulgaria | A major global real estate consultancy with local research. | We used it to triangulate demand drivers and tenant preferences in Sofia. We kept neighborhood guidance realistic based on what tenants actually rent. |
| AirDNA | A widely cited short-term rental analytics provider. | We used it to estimate Sofia occupancy and daily rates. We treated it as a market benchmark and adjusted conservatively for non-prime units. |
| Global Property Guide | A long-running comparative housing reference. | We used it to produce country-consistent gross yield estimates. We cross-checked those yields against our rent and price assumptions. |
| Bulgaria Law of Obligations | Maps directly to the named articles of Bulgarian lease law. | We used it to explain the legal default logic of leases. We translated law into practical guidance for landlords. |
We have made this infographic to give you a quick and clear snapshot of the property market in Bulgaria. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.