Short lets in Sofia: the rules and the returns
Gross yields look better than a long let. Net of categorisation, cleaning, management and empty Februaries, the gap narrows fast.
Every Sofia landlord eventually asks whether to short-let instead. The honest answer depends on three things that have nothing to do with the headline nightly rate: the regulatory work, the operational work, and Sofia's demand curve — which is not a Mediterranean one.
The regulatory position
Short-term accommodation in Bulgaria is a categorised activity, not an informal arrangement. In outline:
- Categorisation. The property must be categorised by the municipality as a guest accommodation and receive a certificate. It is a paperwork exercise with a fee, not a discretionary approval, but it must be done.
- Guest register. You are required to register guests, including foreign nationals, through the prescribed system. This is an obligation, not a formality.
- Tourist tax. A per-person, per-night municipal tax applies and must be declared and paid.
- Tax treatment. Income from categorised short-term accommodation is treated differently from a simple long let, and heavier activity can bring you into VAT registration territory. Take accounting advice before you start, not after.
- The building. Blocks increasingly restrict short-letting in their internal rules, and neighbours have effective ways to make life difficult. Check the general assembly's decisions before you buy for this purpose.
Rules evolve, and enforcement has tightened across the EU. Verify the current requirements with the municipality rather than relying on a platform's summary.
What the numbers look like
A well-run central Sofia one-bedroom can gross 7–9% against a long-let median of 4.25%. That headline is real and so is what comes out of it:
| Line | Short let | Long let |
|---|---|---|
| Gross income | €12,000–15,000 | ≈€7,620 |
| Platform commission | −€1,800–2,300 | €0 |
| Cleaning & laundry | −€2,000–3,000 | €0 |
| Management (if used) | −€2,400–3,000 | −€690 |
| Utilities (you pay) | −€1,500 | €0 |
| Furnishing amortisation | −€800 | −€200 |
| Categorisation, tourist tax, accounting | −€600 | −€150 |
| Before income tax | ≈€3,000–5,400 | ≈€6,580 |
Illustrative for a central one-bedroom. A self-managed operator who cleans between guests keeps far more — and is running a small business, not holding an investment.
Sofia is not a beach city
This is the part the spreadsheets miss. Sofia's short-let demand is business travel, conferences, weekend city breaks and the winter ski transit to Bansko and Borovets. It is steadier than a resort and much lower at peak. Expect real occupancy in the 55–70% range for a well-run central flat rather than the 85% a pro-forma assumes, and expect February and August to disappoint for opposite reasons.
Where it works, if at all
The centre, Oborishte and the inner south, within walking distance of the metro and the restaurant streets. Outside that ring, nightly rates fall faster than occupancy rises, and the model stops working. Note the irony: those are exactly the neighbourhoods where purchase prices are highest and long-let yields lowest — Doktorski Pametnik at €5,800/m² at the top of the market. Short-letting is, in effect, a way of making expensive central property produce a yield.
Our honest read
If you live in Sofia, enjoy hosting and will do the work yourself, a central short let can meaningfully outperform a long let. If you are abroad and will pay a manager, the numbers converge on the long-let outcome while the regulatory exposure stays with you. For most foreign owners, a simple long let at €635 a month, taxed at an effective 9%, is the better risk-adjusted answer — see our yield table for where that pays best.
Our verdict
Whether short-letting a Sofia flat is worth it, scored from the standpoint of an owner deciding between the two models.
Frequently asked questions
Is Airbnb legal in Sofia?
Short-term letting is legal but regulated. The property must be categorised by the municipality as guest accommodation, guests must be registered through the prescribed system, and a per-person municipal tourist tax applies.
How much can you earn from a short let in Sofia?
A well-run central one-bedroom can gross €12,000–15,000 a year against about €7,620 on a long let, but cleaning, platform commission, management and utilities absorb most of the difference — often leaving less than the long let after costs.
What occupancy should I expect?
55–70% for a well-run central flat. Sofia demand is business travel, conferences, weekend breaks and ski transit rather than beach seasonality, so it is steadier and lower at peak than a resort.
Do I need to register guests?
Yes. Guest registration through the prescribed system is a legal obligation for categorised accommodation, alongside collecting and remitting the tourist tax.
Can my building stop me short-letting?
Increasingly, yes — blocks set internal rules through the general assembly, and neighbour opposition is effective in practice. Check the assembly’s decisions before buying with this plan.
Is short-letting better than a long let in Sofia?
For a hands-on owner living locally, often yes. For a remote owner paying a manager 20–25%, the two converge while the regulatory exposure stays with you. A long let at €635 taxed at an effective 9% is usually the better risk-adjusted answer.
Which Sofia neighbourhoods work for short lets?
The centre, Oborishte and the inner south, within walking distance of the metro and the restaurant streets. Outside that ring nightly rates fall faster than occupancy rises.
How is short-let income taxed?
Differently from a simple long let, and heavier activity can bring VAT registration into play. Take accounting advice before you start rather than at the first tax return.
Figures from our own sample of 18,058 Sofia for-sale listings and 6,176 long-let listings collected on 16 September 2026, and from OpenStreetMap. Asking prices, not achieved prices. Method.
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