Renting out apartments, guest houses and rooms through Airbnb и Booking is among the most popular ways of short-term accommodation in Bulgaria. When the activity is carried out through a company (EOOD or OOD), it carries a number of tax obligations that it is good to know in advance.
In this manual, an accounting firm Rodi Consult (Varna) summarizes the most important moments, updated for 2026.
In short: When renting through Airbnb or Booking through a company, two transactions occur - receiving an intermediary service from the platform (mandatory registration under Art. 97a and self-assessment of 20% VAT on commissions) and an accommodation service to the guest (corporate tax 10%, and in the case of a categorized object - 9% VAT and tourist tax).
Two separate transactions for each booking
- between the platform and the landlord — brokerage service for a commission;
- between the landlord and the guest — the accommodation service itself.
Deal #1: the platform and the landlord
Airbnb and Booking are foreign companies. According to the VAT Act, when a taxable person receives a service from a person established outside Bulgaria, a VAT arises for him. mandatory registration under Art. 97a of the VAT Act — regardless of turnover. The application must be submitted at least 7 days ago the first reservation.
What does registration under Art. 97a mean?
Advantage: you owe VAT only on commissions, not on booking income. The platform issues an invoice without VAT, and you charge yourself via a protocol under Art. 117. Example: for a commission of 100 euros, you owe 20 euros in VAT.
Disadvantage: under this regime you are not entitled to a tax credit. See more about this in our article about the VAT tax credit.
When is the transition to general registration under Art. 96?
From January 1, 2026, the threshold for mandatory registration under Art. 96 is 51,130 euros per calendar year. Details in the article When is VAT registration mandatory?.
Deal #2: the landlord and the guests
Revenue from reservations is revenue from services. Under the CITA, a tax is due on the profit. corporate tax 10%. Under the VAT Act: while you are only under Art. 97a, you do not charge VAT on rents; after general registration, you do.
The reduced rate of 9% and categorization
Accommodation is subject to tax. 9% (Art. 66 of the VAT Act), but only if the object is categorized under Tourism Law. Categories: class A (hotels, complexes), class B (guest houses, hostels, campsites), class C (guest rooms and apartments). For class C, consent from neighbors is not required.
Documentation and tourist tax
When the guests are individuals, an invoice is issued only upon request; otherwise, a sales report is prepared. The tourist tax under the Tourism Tax Act is included in the tax base, determined by the municipality for each overnight stay, paid by the 15th, and the declaration is submitted by January 31st.
FAQ
Do I need VAT registration when renting through Airbnb or Booking?
Yes. Since the platforms are foreign, the landlord is required to register under Art. 97a of the VAT Act — regardless of turnover. The application is submitted to the National Revenue Agency no later than 7 days before the first reservation through the platform.
What is VAT due upon registration under Article 97a?
When registering only under Art. 97a, you owe 20% VAT only on the platform's commissions, but not on the revenue from reservations. The tax is self-assessed with a protocol under Art. 117 of the VAT Act, and there is no right to a tax credit under this regime.
What VAT rate applies to accommodation?
Accommodation services are taxed at a reduced rate of 9%. However, to apply it, the facility must be categorized or registered under the Tourism Act and in all cases, overnight accommodation must be provided.
What tax is due on rental income through platforms?
Revenues from reservations are revenues from services for the company. According to the Law on Corporate Income Tax, they participate in the annual financial result and a corporate tax of 10% is due on the profit.
What is the tourist tax?
The tourist tax under the Tourism Tax Act is due for each overnight stay. The amount is determined by the municipal council within legal limits. The tax is paid by the 15th of the following month, and an annual declaration is submitted to the municipality by January 31.
The conclusion
Renting through Airbnb and Booking through a company requires early registration under Art. 97a, correct self-assessment of VAT and turnover monitoring, and in the case of the 9% rate — and categorization. Failure to do so easily leads to fines.
Are you renting out a property through Airbnb or Booking? Explore Rodi Consult accounting services or is contact us. Phone: +359 893 474 576.
This article is for informational purposes only and does not constitute tax advice. Please consult an accountant for your specific situation.
