Procedure for renting out a property
Procedure for renting out a property
Question:
Hello!
I am an individual, I am about to rent an apartment, a studio type. My intentions are to rent it out for overnight stays. The owner of the property is informed and agrees. I will use the AirBnb and Booking platforms for a period of about five months. Can you explain to me what the process is with the documentation and registration of income, taxes, etc., which institutions should I contact? Is it possible for things to happen this way, since the property belongs to another person who will rent it out to me, and then I will rent it out? I am currently working for another company, but I may soon be unemployed, I have not carried out commercial activity so far. In fact, does it matter whether I am employed or unemployed in order to carry out such activity?
Thanks in advance!
Answer:
Hello,
Directly to your questions. The steps you need to take are as follows:
1. To conclude a lease agreement for this real estate, which accurately mentions the property, the lease period and the remuneration due.
2. Categorization of the apartment - after submitting an application to the municipality in which the property is located. Attach a copy of the lease agreement to the application.
3. Registration for a patent - after submitting an application to the municipality in which the property is located. Attach a copy of the lease agreement to the application.
4. Registration in the Bulstat register - after submitting an application to the Bulstat Register at the Registry Agency. A declaration of authenticity is filled out in a form with the application and a copy of the lease agreement is attached again. There is also a state fee of 15 BGN.
5. VAT registration on the basis of Art. 97a of the VAT Act - this registration is mandatory if you receive services from companies outside Bulgaria (for example, AirBnb and Booking, which you indicate that you will use).
6. Registration in the online platform - ESTI (unified tourist information system)
After that, you will be able to start your activity, for which you must submit a declaration "okd 5" to the NRA, informing them of the date you start your activity and the corresponding insurance.
Regarding the insurance itself - for the time you are carrying out your activity, you will have to self-insure on an amount of your choice, but not less than the minimum insurance income and not greater than the maximum insurance income. If at the end of the year your average monthly income from this activity is higher than the amount on which you were insured, you will have to pay insurance contributions on the difference. Your total insurance income cannot exceed the maximum insurance income. In this vein, if while performing this activity you are insured under an employment contract, this must be taken into account when recalculating your social security contributions at the end of the year.
In addition to the above commitments, you will also have the following periodic obligations:
1. Submitting a VAT declaration - monthly by the 14th of the following month. Such a declaration is also submitted in the months in which you have no activity.
2. Submitting a declaration form 1 for social security contributions - monthly by the 25th of the following month. This declaration is submitted only for the months in which there is declared activity and insurance.
3. Submitting an annual tax declaration - once a year by 30.04 of the following year.
4. Submitting a declaration form 6 - once a year by 30.04 of the following year.
We hope that we have been useful to you!
Greetings!
