New short-term rental rules in Bulgaria from 20 May 2026: what changes for owners and investors

From 20 May 2026, Regulation (EU) 2024/1028 comes into force in the European Union, radically transforming the short-term rental market. The new requirements directly affect Bulgaria and every property listed on platforms such as Airbnb and Booking.com.

For the property market, this is one of the most significant events of recent years, with the potential to influence prices, yields and investment strategies.

The essence of the new EU regulation is that the new law introduces uniform rules across the whole of Europe and is aimed at combating the «shadow» rental market.

The key requirement:  every property must hold a valid registration number. Without it, the listing cannot be published, the platform is obliged to remove the property, and the account may be blocked.

Platforms are also obliged to:

• verify registration numbers,
• share booking data with state authorities,
• monitor that listings match the actual data.

In practice, this means a large-scale «clean-up» of the market.

According to expert estimates:

• Airbnb has more than 10,000 properties,
• Booking has more than 15,000,
• up to 50% of them may disappear.

The reason is simple - a significant share of properties is let without official registration or tax accounting.

Why half of the market is at risk

Bulgaria has long had registration under the Tourism Act, but:

• many owners ignored it,
• some properties were let «grey»,
• reporting was not carried out in the ESTI system (Unified System of Tourist Information).

From 2026, anonymous rentals become impossible. The platforms automatically check the data, and any discrepancies lead to the listing being removed.

Short-term consequences for the market

A sharp reduction in supply.

If the forecast is confirmed:

• the market will lose up to 30–50% of its properties,
• only registered flats will remain.

Rising short-term rental prices

Fewer listings → higher prices

Expected growth:

• +10–20% and more in popular regions.

Shift to long-term rentals

Some owners will not want to become legalised or will move into the long-term rental market. This may: increase supply in the long-term segment, and stabilise or lower prices in cities.

To stay in the market, property owners will need to:

1. Register the property with the municipality and obtain a registration number.
2. Enter it into the ESTI system and provide mandatory guest reporting.
3. Sort out tax matters: possible VAT registration, and payment of tourist tax and income tax.

Impact on real estate investment

Advantages for investors

• the market becomes more transparent,
• competition decreases,
• the yield of legal properties grows,
• buyer confidence increases.

Risks

• an increased tax burden,
• the need for administration,
• a more difficult market entry.

The strongest impact is expected in: Sunny Beach, Varna, Burgas and Nessebar. These are regions with a high share of tourist rentals.

The new EU regulation is not a ban on short-term rentals but a transition to a civilised market.  What will fundamentally change: the «grey segment» will disappear, professional players will remain, the quality of supply will grow, and the yield of legal properties will increase.

If you are considering purchasing property in Bulgaria for short-term letting, the key question now is not only «where to buy», but «whether it can legally be let».

It is important to check: whether registration is possible, whether the property meets the requirements, and whether there is a management company.

From 2026, the short-term rental market in Bulgaria will become more transparent and will grow in quality and profitability.

For investors, this means less chaos - more stability and predictability.

Need help with property investments in Bulgaria?

The specialists at Bulgaria Avenue will help you:

• select a property with rental potential,
• assess yield taking the new rules into account,
• check the possibility of registration,
• guide you through the transaction.

Get in touch - we will find you a liquid property that reflects the new realities of the market.