Airbnb Rental Yields in Bulgaria: What Are the True Returns After Fees and Taxes?

I am currently looking into purchasing an investment property in Sofia or along the Black Sea coast with the goal of listing it on Airbnb. While many listings show high potential gross revenue, I am struggling to calculate the realistic net profit once platform fees, property management costs, local taxes, and maintenance are factored in. Has anyone here actually crunched the numbers for the current Bulgarian market, and what kind of net yield should I realistically expect? I would appreciate any advice on hidden costs or tax implications for non-residents.

In Sofia, you are looking at a gross yield of 6-8%, but after Airbnb fees (3%), property management (20-25%), and the 10% flat tax, you are lucky to net 3-4%. Don't forget that maintenance and utilities can eat into your profit significantly.

The Black Sea coast is highly seasonal. You might get great numbers in July and August, but the rest of the year is dead. Make sure you check if your building has Act 16, otherwise, you will have massive trouble with electricity billing and legal rentals.

Don't forget the tourist tax! It varies by municipality. Also, if you aren't a resident, you'll need a local accountant to handle your tax filings, which is another recurring cost to factor into your ROI.

Many people forget to account for the 'hidden' costs of being a landlord, like replacing furniture after wear and tear from short-term guests. If you don't have a reliable cleaning crew, your reviews will tank, and so will your occupancy.

I've been managing units in Sunny Beach for years. Expect the management agency to take 25% off the top. If you aren't there to oversee things, you have to pay for that peace of mind.

If you are thinking about the cost of living long-term, it's helpful to see the Real Cost of Living in Bulgaria, which helps you understand the local labor costs for cleaners and maintenance staff.

For non-residents, the 10% flat tax is manageable, but the bureaucracy is the real killer. You need to register as a business if you plan on doing this professionally, otherwise, you are operating in a grey area.

Sofia is much better for year-round rental, especially near the university or business parks. The coast is a gamble unless you have a prime location right on the beach.

My advice: always build in a 15% vacancy buffer. Even in the peak season, things happen—last-minute cancellations or maintenance issues can ruin your cash flow projections.

Don't overlook the cost of professional photography and listing optimization. If you want to compete with the top listings, you can't just take phone pictures of the living room.

Are you sure about the property management fees? Some agencies in Varna charge up to 30% if they handle everything from check-in to laundry. That really destroys your net yield.

If you are looking at Bulgaria for a long-term investment, keep in mind that the market is maturing. It is no longer the 'cheap' playground it was 10 years ago, so calculate your exit strategy carefully.