Taxes · Property owners abroad

Rental income tax in Bulgaria for non-residents

If you live abroad and rent out an apartment or a house in Bulgaria – by the sea, in Sofia, in Bansko or anywhere else – the rent is taxed in Bulgaria. This guide explains the rate, who pays the tax, the deadlines and the return, based on the Bulgarian Personal Income Tax Act.

Are you a non-resident for Bulgarian tax?

Citizenship does not matter. Under the Personal Income Tax Act (Art. 4) you are a Bulgarian tax resident if any of these applies:

• you have a permanent address in Bulgaria (unless your centre of vital interests is not in Bulgaria);
• you stay in Bulgaria for more than 183 days in any 12-month period;
• your centre of vital interests is in Bulgaria – family, property, the place you work from or manage your property from.

If none of these applies, you are a non-resident, and the rules below apply to rent from property in Bulgaria. A resident pays tax on the rent differently – after a 10% deduction for expenses and with an annual return (see taxes in Bulgaria 2026).

The tax: 10% of the gross rent

Rent and any other payment for the use of movable or immovable property in Bulgaria, received by a foreign individual, is subject to a final tax (Art. 37(1), item 4). The rate is 10% (Art. 46(1)), and it is calculated on the gross amount of the rent (Art. 37(2)) – you cannot deduct the property tax, repairs, management fees or mortgage interest.

Who pays the tax and when

When you pay the tax yourself, the deadlines are 30 April (rent received January–March), 31 July (April–June), 31 October (July–September) and 31 January of the next year (October–December). The declaration is filed within the same deadline as the payment (Art. 56(1)).

If you have no Bulgarian personal number (EGN or LNCh), the NRA identifies you with a service number (Tax and Social Insurance Procedure Code, Art. 84(3)).

EU and EEA residents: recalculating the tax

If you are a tax resident of an EU member state or another EEA country, you can choose to have the final tax recalculated (Art. 37a). The recalculated tax equals the tax a Bulgarian resident would pay on the same income – for rent, 10% after a 10% deduction for expenses. You make the choice by filing the annual tax return (Art. 37a(4), Art. 50(2)) between 10 January and 30 April of the following year (Art. 53(1)), and the return must include all your income that has to be declared in Bulgaria.

With the example above and no other Bulgarian income: the recalculated tax is 10% of (€9,600 − €960) = €864, compared with €960 paid. The difference is refunded only up to the part of the Bulgarian tax that you cannot credit against the tax in your country of residence (Art. 37a(3)). The option does not apply to residents of an EEA country outside the EU with which Bulgaria has no tax treaty, or whose treaty does not provide for exchange of information or for assistance in tax collection (Art. 37a(6)).

Tax treaties and your home country

Where a tax treaty ratified by Bulgaria contains different rules, the treaty applies (Art. 75). Whether and how your country of residence taxes the same rent and credits the Bulgarian tax depends on the treaty and on that country's own rules – check this with an adviser there.

Local taxes on the property

The annual property tax and the waste collection fee are paid to the municipality where the property is, whether or not you live in Bulgaria. The rates are set by each municipality. The property tax is paid in two equal instalments – by 30 June and by 31 October – with a 5% discount if the whole amount is paid by 30 April (Local Taxes and Fees Act, Art. 28). For a property you bought, you do not file a separate property tax declaration (Art. 14(3)).

Short-term rentals to tourists have additional rules – for example the municipal tourist tax on overnight stays (Art. 61r) and the requirements of the Tourism Act. They are not covered on this page; ask us about your case.

How we help property owners abroad

• We calculate the tax each quarter and prepare and file the declaration with the NRA.
• We tell you the amount, the NRA bank account and the deadline – in English.
• For EU/EEA residents we check whether recalculation with an annual return makes sense and file it.
• For owners with several properties we compare renting personally with renting through a Bulgarian company – see Bulgarian EOOD for foreigners.

We work fully online – see online accountant in Bulgaria and our tax returns for individuals.

Questions

What is the tax rate on rental income for non-residents in Bulgaria?

10% of the gross rent, with no deduction for expenses. It is a final tax, so you do not file an annual return unless you are an EU/EEA resident and choose recalculation.

My tenant is a Bulgarian company. Do I have to do anything?

The company withholds the 10% tax from the rent, pays it to the NRA and files the declaration. You receive the rent after the tax.

My tenant is a private person. Who pays the tax?

You do. You pay 10% of the rent received in each quarter and file a declaration with the NRA by the end of the following month – 30 April, 31 July, 31 October and 31 January.

Can I deduct my expenses?

Not as a non-resident – the tax is on the gross rent. If you live in the EU or the EEA and choose recalculation, a standard 10% deduction applies instead of your actual expenses.

Do I need to come to Bulgaria to pay the tax?

No. The tax is paid by bank transfer to the NRA, and we can prepare and file the declaration for you.

I live in Bulgaria for part of the year. Am I a non-resident?

It depends on the 183-day rule, your permanent address and your centre of vital interests (Art. 4 of the Personal Income Tax Act). Send us your situation and we will tell you which rules apply.

Do I also pay property tax?

Yes. The annual property tax and the waste fee are paid to the municipality, whether you rent the property out or not.

Sources (checked on 2 November 2026): Personal Income Tax Act – Art. 4, 31, 37, 37a, 46, 50, 53, 55, 56, 65, 67, 75; Tax and Social Insurance Procedure Code – Art. 84; Local Taxes and Fees Act – Art. 14, 28, 61r (in Bulgarian). General information as of the date of checking – not legal advice.