Rental Yields in Bulgaria
Gross yields by city
Source: Global Property Guide: Gross rental yields in Bulgaria (July 2026)1
Average gross yields on flats in the third quarter of 2026, from asking prices and rents. The national average is 4.27%.1
Sofia by district
| District | Asking price, € per m² | Asking rent, € per m² a month | Gross yield |
|---|---|---|---|
| Obelya | 1,761 | 9.25 | 6.3% |
| Lyulin 5 | 1,883 | 8.47 | 5.4% |
| Mladost 4 | 2,504 | 10.69 | 5.1% |
| Ovcha Kupel | 2,301 | 9.35 | 4.9% |
| Druzhba 1 | 2,615 | 9.61 | 4.4% |
| Krastova Vada | 3,240 | 11.90 | 4.4% |
| Studentski Grad | 2,704 | 9.79 | 4.3% |
| Boyana | 2,890 | 10.21 | 4.2% |
| Manastirski Livadi | 2,903 | 9.89 | 4.1% |
| Mladost 1 | 2,886 | 9.51 | 4.0% |
| Vitosha | 2,837 | 9.30 | 3.9% |
| Center | 3,445 | 10.79 | 3.8% |
| Dianabad | 3,212 | 10.02 | 3.7% |
| Iztok | 4,256 | 11.13 | 3.1% |
| Oborishte | 4,008 | 10.47 | 3.1% |
| Izgrev | 4,293 | 10.98 | 3.1% |
| Lozenets | 4,047 | 10.02 | 3.0% |
| Ivan Vazov | 4,208 | 10.02 | 2.9% |
| Doktorski Pametnik | 5,567 | 11.38 | 2.5% |
Source: imot.bg: Average asking prices of property in Sofia by district (8 October 2026, in Bulgarian); imot.bg: Average asking rents in Sofia by district (8 October 2026, in Bulgarian)2,3
Gross yield is the monthly rent per m² times 12, divided by the price per m², from the median asking prices and rents of all flats listed on imot.bg on 8 October 2026. Agreed prices and rents are usually a little lower.2,3
From gross to net
Net yields, after taxes, repairs, agents’ fees and other costs, are typically 1.5 to 2 percentage points lower than gross yields.1
- Buying costs: about 5.5 to 10% on top of the price, which lowers the return in the first years.
- Annual property tax and waste fee: set by each municipality, a small share of the tax value of the property.
Source: Innovires Legal: Buying property in Bulgaria as a foreigner 2026 (24 March 2026); RSM Bulgaria: Real estate tax factsheet 20265,4
The rental yield calculator works out gross and net yields for your own figures.
Tax on rent
| Owner | Tax on rent |
|---|---|
| Individual | 10% after a 10% allowance for costs, with quarterly advance payments |
| Company | Part of profit, taxed at 10% |
| VAT | Residential rent to individuals exempt; commercial rent 20% if the landlord is registered |
Source: RSM Bulgaria: Real estate tax factsheet 20264
The details are on Property Taxes and Income Tax.
Frequently Asked Questions
What is the average rental yield in Bulgaria?
The average gross rental yield on flats in Bulgaria was 4.27% in the third quarter of 2026, from 3.84% in Sofia to 4.72% in Burgas.
Which Sofia districts have the highest rental yields?
The cheaper outer districts. From October 2026 asking prices and rents, gross yields were about 6.3% in Obelya, 5.4% in Lyulin 5 and 5.1% in Mladost 4, against about 3% in Lozenets, Iztok and Izgrev.
What is the difference between gross and net rental yield?
Gross yield is the yearly rent divided by the price. Net yield deducts taxes, repairs, agents fees and other costs, and is typically 1.5 to 2 percentage points lower.
How is rental income taxed in Bulgaria?
An individual pays 10% income tax on rent after a 10% allowance for costs, with quarterly advance payments. A company includes rent in its profit, taxed at 10%.
Sources
- Global Property Guide: Gross rental yields in Bulgaria (July 2026)
- imot.bg: Average asking prices of property in Sofia by district (8 October 2026, in Bulgarian)
- imot.bg: Average asking rents in Sofia by district (8 October 2026, in Bulgarian)
- RSM Bulgaria: Real estate tax factsheet 2026 (PDF)
- Innovires Legal: Buying property in Bulgaria as a foreigner 2026 (24 March 2026)
Figures checked 15 October 2026. Prepared by InvestBulgaria for general information. It is not investment, tax or legal advice; please confirm details with a qualified adviser before acting.
