April 13, 2026 – Bulgaria is among the European leaders in the number of properties rented out for short-term tourist rentals. However, we are on the verge of changes. A new European Union regulation will come into force on May 20, which could turn the game around. Mandatory registration of properties rented out will be introduced, and removal from the platforms will follow for those who do not meet the conditions.
The New Order in Tourism
Rumen Draganov, director of the Institute for Analysis and Assessment in Tourism, is convinced that the new rules will benefit Bulgarian business. According to him, they will create order and put all participants in the real estate market in an equal position. But what exactly does this mean?
First, property owners are at a disadvantage regarding the payment of taxes. Some contribute money to the budget, while others operate in the gray sector. Second, this type of rental prevents the possibility of long-term rental of housing to tenants seeking to rent a property for months or even a year. The supply of long-term rentals is decreasing, and the opportunities for daily rentals are increasing.
Simply put, owners prefer to take 100 euros for one day instead of 600 euros for a month. That is why this regulation was created. Online tour operators, who raise prices at the expense of other participants in the business, will have to register. Some countries have already introduced restrictions on the number of days apartments can be part of short-term rental platforms. An example of this is Vienna and Paris, where the limit is 90 days a year.
In our country, there are no such restrictions for now. Precisely because of this, the exact number of properties that are rented out for a short period of time to different clients is unknown. According to the Bulgarian Association for Tourist Properties and Innovations (ATII), there are over 10,200 properties in the Airbnb platform in the country, and over 15,100 in Booking. But the real figure is much larger. Until now, platforms were not obliged to check whether the owner has the necessary license. The ratio of apartments rented "in the dark" is approximately 3 to 1. Almost 40% of these properties are located in resorts such as Sunny Beach and Golden Sands. A significant percentage is also in Sofia.
Consequences for Consumers
Will the regulation, adopted in 2024 and coming into force in May 2026, affect prices for end customers? According to Draganov, the price is determined by the market. He adds that municipalities and the state spend tax revenues irresponsibly, and the idea is not to transfer funds to corrupt practices, but to discipline the market.
Nevertheless, Draganov believes that the new rules will not a priori stop the receipt of income without registration and payment of taxes. According to him, the sector will be structured, the loopholes will be identified, and updates will be made over time.
The EU regulation provides for software that will check in real time whether the property number is active. Some countries have already taken radical measures. Spain was the first in the fight against the illegal segment, removing the listings of about 200,000 houses and apartments that did not pay taxes. Currently, there are about 329,769 properties left in the country that are in the "light" part of the economy. This represents a decrease of about 37%.
Madrid introduced a mandatory national registration number from July 1, 2025. In just a month, Airbnb was forced to delete 65,000 unlicensed listings. If the owner does not have a number, the platforms are obliged to remove it within 48 hours.
The Mayor of Barcelona took an even more radical measure - he plans to completely remove all 10,000 licenses for tourist apartments by November 2028, to free up the market for long-term rentals for local residents.
If you calculate, with an average income of 25,000 euros per property, it turns out that the eliminated properties have generated about 1.5 billion euros in annual turnover, for which the Ministry of Finance has no information.
Italy also took steps in this direction. As early as January 1, 2025, a system with a national identification code was introduced. The lack of such leads to hefty fines for owners - from 800 to 8000 euros. If the code is not written in the advertisement, the fine can reach 5000 euros. The Italian state no longer relies on honesty, the platforms automatically withhold a flat tax between 21% and 26%, which makes income concealment impossible.
As of this year, there are approximately 1.3 million active short-term rental listings in France. According to AirDNA data, those that fell out were only 1% of them nationally, although there are many more in Paris, Marseille and Biarritz. From January 2025, the already recognized expenses of income from real estate are 30%, and not 50%, i.e. the tax is increased, and the maximum you can get from short rentals is limited from 77,700 euros to 15,000 euros per year.
In Germany, the regulations are not at the national level, but are determined by the individual cities through the Law on the Prohibition of the Unreasonable Use of Housing. As of 2025, there were 214,694 active listings on Airbnb. Of these, only 7216 were actively licensed in Berlin.
In Germany, there is also a recent court decision, according to which tenants who sublet their homes on Airbnb are not entitled to earn - they cannot receive more than they pay to the owner themselves.
The Bulgarian Reality
In Berlin, restrictions have already been introduced on the number of days apartments can be rented out. The limit is up to 90 days a year for renting the whole apartment without permission. In the two cities, fines for secret rental can reach up to 500,000 euros. As a result, 8,100 vacation apartments are no longer for tourists, but for Berliners.
In Bulgaria, experts predict that up to 50% of properties may disappear from the platforms if the owners do not legalize their activity by May 2026. The biggest "cleansing" will be in the big cities. In Sofia, over 4,000 listings are at risk, in Varna - 2,800, in Plovdiv and Burgas - over 2,500 in total, in Bansko - about 600.
What does the mathematics show for the gray segment in this sector in our country?
Thousands of Bulgarians have discovered how to earn well without paying taxes. On average, an apartment in Sofia or at the seaside generated about BGN 18,000 in revenue for the past year. If it is not registered, the owner saves between BGN 2,000 and BGN 5,000 from this amount. This includes 10% income tax, patent tax, tourist fees and social security contributions for self-employed persons.
For comparison, in Greece they have evaded between 3,100 and 11,000 euros per year, in Italy - up to about 8,500 euros, as well as in Paris. With the new rules, the National Revenue Agency must receive an automatic statement for each transfer to the owners' accounts from the short-term rental platforms.
Unfortunately, there are also dark sides to this business. If a person has taken a loan to buy the apartment or house they rent out through Airbnb, Booking or other sites, they have relied on the high income, which is 2-3 times higher than in the case of a long-term rental. They lose regular payments and will be forced to sell in order not to lose their home.
Other owners are people with inherited homes who have made a net profit from renting them out to tourists. They will not go bankrupt because this apartment or this house is an additional income for them. However, their income will decrease if they decide to rent out their properties long-term.
There are also property management companies that take care of many accommodations. Their business may shrink drastically if the owners do not legalize their activity.
Statistics show that more than half of the apartments in our country were occupied, with the share in Sofia being 60%. The average price per night is 75 euros, which can be more during the winter in Bansko, Borovets and Pamporovo, and during the summer at the seaside. The most sought after are one-room apartments, as they are often rented by couples. Larger properties are more expensive, but rarely find customers. Everything depends on the owners - how well they can react to the market, make discounts and advertise their property well.
In this business, neighbors are also involved. Not directly, but in some European countries they have the right to report to the tax authorities if income is concealed. In Spain, they accepted that a majority of 3/5 of the owners in the cooperative can prohibit short-term rentals for tourists in the building. In our country, there are also inter-neighbor scandals, and it is possible that someone from the second floor will provide information about constant turnover in an apartment on the third.
According to the new regulation, registration is not free and is not limited to submitting documents to the municipality. There is a fee per bed and entry into the national system ESTI, where guests must be accounted for every day. Fines are provided for unregistered objects.
Will the easily earned money of certain owners decrease in our country as well, as is already happening in other countries in Europe? It is possible to find loopholes for continuing uncontrolled profits. We will see…