New EU regulation as of May 20, 2026: how the short-term rental market in Bulgaria will change

As of May 20, a new EU regulation governing the short-term rental market comes into force. It is expected to lead to a reduction in supply and a gradual increase in prices, as the current cost of overnight stays in Bulgaria remains significantly below the European average.

How the new mechanism will work

The regulation provides for the creation of a unified data exchange system between EU member states and short-term rental platforms. Each country is required to provide a digital entry point (API interface) through which information about registered properties will be transmitted: registration numbers, status, and possible restrictions.

Platforms, in turn, will begin to submit data on listed properties — the number of overnight stays realized, the number of guests hosted, and other key indicators. If discrepancies are found, the state will have the right to demand the removal of such property from the platforms.

The regulation applies to all platforms with more than 4,500 listings, including regional ones, and concerns any property rented out for short-term stays within the EU territory.

How ready Bulgaria is for the changes

Bulgaria already has a significant head start: a registration regime was introduced in the country back in late 2019 and early 2020, which largely coincides with European requirements. Nevertheless, local legislation will need to be updated to fully comply with the new rules. No significant changes are expected for end users — both property owners and tenants.

What will happen to the market

The main effect of the regulation will be increased control and the bringing of the sector out of the shadows. According to estimates, about half of the properties rented out for short-term stays in Bulgaria are still operating in the grey zone. After May 20, this will become practically impossible: unregistered properties will not be able to be advertised on major platforms, and finding clients independently will be extremely difficult. Nearly complete "transparency" of the sector is expected.

For consumers, the key advantage will be increased security — a significant reduction in fraudulent listings and the introduction of minimum standards for accommodation.

Administrative burden and taxes

For property owners, the administrative burden will not increase significantly, as it has existed since 2020. Taxes remain low in amount but varied by type: tourist tax, patent tax, and social security contributions. According to experts, the first step should be to completely "transparentize" the sector, and only then can consideration be given to simplifying procedures.

The state of the market after the pandemic

The short-term rental market in Bulgaria has experienced serious fluctuations. After a peak in 2019, there was a decline of about 50% during the pandemic, and now the sector is on the rise again. There is a pronounced seasonality — especially on the Black Sea coast and at winter resorts — while in large cities (Sofia, Plovdiv) demand is more evenly distributed throughout the year.

Why prices will rise

The upcoming upward price correction is linked not so much to inflation or the classic supply-demand ratio, but rather to regulatory changes. The expected reduction in supply will naturally affect prices. In the long term, price levels will depend on how successfully Bulgaria can develop as a tourist destination.

The issue of overtourism and the situation in Bulgaria

In the European debate, short-term rentals are often named as the main culprit of overtourism. The new regulation will provide real data on the basis of which appropriate policies can be developed. In Bulgaria itself, such a problem does not yet exist — on the contrary, a significant percentage of housing, especially in Sofia, remains uninhabited.

What this means for investors

Currently, the yield from short-term rentals is often lower than from long-term rentals. However, the expected reduction in supply could reverse this trend within the next year to a year and a half. For those who are willing to operate within the regulatory framework, a good opportunity is opening up to enter this market.