Rental yields in Sofia, after costs
Gross yield is a marketing number. Here is how it turns into what lands in your account, and which Sofia neighbourhoods do best on the net figure.
The headline range
Sofia long-let apartments generally produce 4–6% gross. The pattern is consistent: the most expensive central neighbourhoods sit at the bottom of that range because prices have risen faster than rents, while well-connected mid-priced neighbourhoods — the ones with a metro station and a full set of schools and shops — sit at the top.
From gross to net
| Line | Annual | Note |
|---|---|---|
| Gross rent | €9,600 | 5.3% gross yield |
| Void (3 weeks) | −€460 | Assumes one changeover a year |
| Management (8–10%) | −€860 | Skip if you self-manage and live locally |
| Maintenance & repairs | −€500 | Higher in older blocks |
| Building fund, tax, waste | −€380 | Landlord's share |
| Insurance | −€110 | |
| Income tax (effective 9%) | −€780 | 10% on 90% of gross |
| Net | €6,510 | 3.6% net on price |
Add the 4–5.5% acquisition costs and the first-year return is lower still. Yield investors in Sofia are, in practice, buying a modest income stream plus exposure to capital growth.
What actually drives rent
- Metro distance. Within 500 m of a station is the single strongest rent premium in the city.
- Furnishing and condition. Sofia tenants expect a furnished flat; an unfurnished let loses 10–15% of the rent and much of the tenant pool.
- Parking. Worth €40–80 a month on its own in the inner neighbourhoods.
- Heating type. Flats on district heating are cheaper to run and easier to let than electric-only ones.
- Building age. New blocks let faster in the outer estates; character stock rules the centre.
Where the numbers work best
Use our price index together with the per-neighbourhood pages: the combination to look for is a median below the city figure with a metro station under a kilometre away and at least two schools inside the boundary. Student-adjacent neighbourhoods do well on smaller units; family estates do better on two-bedroom flats.
Short lets
Short-term letting is regulated: the property needs municipal categorisation, the guest register must be kept, and the tax treatment differs from long letting. Gross yields can reach 7–9% in the centre, but occupancy, cleaning, management and the regulatory overhead absorb much of the difference — and Sofia is not a year-round tourist market.
Frequently asked questions
What rental yield can I expect in Sofia?
Long lets generally return 4–6% gross and roughly 3.2–4.5% net after voids, management, maintenance, building charges and the effective 9% income tax.
Which Sofia neighbourhoods have the best rental yields?
Mid-priced neighbourhoods with a metro station and a full set of local amenities — not the most expensive central ones, where prices have outrun rents.
Is rental income taxed in Bulgaria?
Yes: 10% tax on 90% of gross rent, an effective 9%. Non-residents are taxed on Bulgarian-source rental income and may also need to declare it in their country of residence.
Should I furnish a rental apartment in Sofia?
Yes. Sofia tenants expect furnished flats; letting unfurnished typically costs 10–15% of the rent and narrows the tenant pool considerably.
Are short lets worth it in Sofia?
They can gross 7–9% in the centre but need municipal categorisation, active management and cleaning, and Sofia lacks year-round tourist demand. Most owners end up ahead on a long let.
Written by the Apartment in Sofia editorial team and reviewed against the market sample of 16 September 2026. General information, not legal or tax advice — take advice on your own circumstances.
Want a shortlist for Sofia?
Tell us the budget and the size, and we will come back with what is actually available in the neighbourhoods that fit — including the listings that never make it onto the English-language portals.