Short-term Rental Regulations: Airbnb and Booking Targeted by Tax Audits

The tourism sector in Bulgaria is preparing for serious changes in the regulation of short-term rentals. According to Minister of Tourism Ilin Dimitrov, the government's goal is to "illuminate" the market by ensuring equality between official hotels and shared accommodation platforms like Airbnb and Booking.

Control over short-term rentals
One of the main pillars of the new strategy is the adoption of a regulation that will require all owners of apartments and houses offered for short-term rent to be registered in the Unified Tourism Information System. This will allow the state to monitor overnight stays more effectively and ensure that all market participants pay the due taxes and social security contributions.

What does this mean for citizens and businesses?
For the average citizen renting out property, this means the necessity of official registration and taxation. For tourism businesses operating "in the light," the change is positive, as it will reduce unfair competition from unregulated properties. For travelers, this may lead to greater security and transparency in bookings.

Audit and budget discipline
The Minister also shared details regarding the current audit of the ministry by the National Audit Office. Dimitrov emphasized that a review of contracts considered ineffective is being conducted. As an example, he pointed to the termination of a contract for designing an advertising film on a hotel wall worth over 500,000 BGN, stating that the priority is saving funds for more aggressive and purposeful advertising of Bulgaria.

Development goals
Despite a hesitant start to the season, current data shows that resorts are already full, and the number of overnight stays is approaching last year's levels. The department's long-term strategy is to increase the number of tourists in the country from 4 to 8 million by the end of the term, with a focus on expanding the German market.