Investing in Bulgarian property: the country enters the TOP 10 in Europe for rental yields

Bulgaria is rapidly strengthening its position on the European investment map. Rising purchasing power of the population, economic stability, preparations for the transition to the euro and record activity in the new-build market are creating conditions that attract investors from around the world.

Of particular interest are the figures published by the Global Property Guide portal: rental yields on Bulgarian property reach almost 5%, putting the country among the seven most profitable markets in Europe for residential investment.

A 5% yield: why is Bulgaria at the top?

Bulgaria ranked 7th among European countries with the highest rental yields. Several factors have contributed to this:

• Low taxes. Tax on rental income is just 10%, one of the lowest in the EU. For comparison, in Iceland the tax exceeds 30%, and in Ireland it is 20–25%.
• Affordable entry prices. Property prices in Bulgaria remain among the lowest in the EU. Even with the price growth of the last 5–7 years, the average price per square metre compares favourably with Italy, Spain, Greece and Croatia.
• Strong rental demand. Tourism is recovering: visitor numbers are comparable to pre-crisis levels. In large cities, demand for long-term rentals is growing. Many buyers are foreigners (Germany, Israel, Poland, Romania, Scandinavia), which boosts the liquidity of properties.
• Economic stability. Bulgaria’s transition to the euro on 1 January 2026 is strengthening investor confidence. This reduces currency risks and makes the market more predictable.

Bulgaria’s position compared with the rest of Europe

According to the William Russell ranking, Bulgaria outperforms countries such as Latvia, Ireland and Iceland in terms of yield.

It also outperforms some Central European countries where rental taxes are significantly higher.

Interestingly, most of the countries in the TOP 10 are from Eastern and Central Europe. The leader is Moldova, where yields are the highest thanks to the popularity of short-term rentals in Chisinau.

Where to buy property in Bulgaria for maximum rental yields

Bulgaria’s rental market is diverse. Different regions show different returns, demand and seasonality. Below is an overview of the most promising locations.

Sunny Beach and Nessebar. The highest short-term rental yields: 6–8%. Advantages: a long tourist season, high demand in summer (especially from Europeans), and low apartment prices compared with other resorts.

Varna. A stable yield of 5–6% (short-term + long-term rentals). Varna is the largest city on the coast, an economic and educational hub. Demand is year-round: tourists, students, IT professionals and families with children.

Burgas. Yield of 4.5–6%. Burgas is developing dynamically and becoming an alternative to Varna. The city’s advantage is a combination of resort and urban rentals.

Sofia. Yield of 4–5%, but the highest liquidity in the country. The capital leads in the number of new-builds, income levels and demand for long-term rentals. Sofia is the best choice for investors who want stability rather than seasonality.

Bansko. Yield of 5–7% on short-term rentals. This ski resort attracts winter tourists, digital nomads and family travellers. Prices remain affordable and demand for year-round rentals is growing.

Bulgaria is a country where real estate works as a stable investment instrument.

A 5% yield is a realistic figure that can be increased with the right choice of location and property type. Bulgaria’s resorts deliver maximum profit, its large cities offer stability, and the capital provides long-term liquidity.

For an investor in 2025–2026, Bulgaria is a market with strong growth potential, moderate risks and a low entry threshold.