Taxes payable when renting out an apartment

Taxes payable when renting out an apartment

Question:
Hello!
What taxes are paid (municipality and National Revenue Agency) when renting out an apartment, as an individual, for the summer season with realized income of BGN 6,000 for two months (July and August). We have a patent registration and the equipment has a categorization.
Thanks in advance!

Answer:
Hello,
Once you have registered a patent, you will owe (rather, you will have already paid) patent tax for the calendar year. It is determined individually by each municipality based on different criteria. You will also owe the following taxes:
- tourist tax, which is determined by the relevant municipality. It is based on the number of nights and is also determined individually by each different municipality.
- insurance contributions 27.8% - they are due for the period in which you performed activity and are calculated on the basis of the total income received for that period. i.e. if we assume that your income is BGN 6,000.00 for 2 months (or 3,000 on a monthly basis), then the insurance you will owe will be in the amount of BGN 1,878.00. If you are already insured on some other basis (manager of a company, employment contract and others), you will owe insurance contributions on an amount that, combined with your other insurance income, does not exceed the maximum insurance income (which is BGN 3,400.00 at the moment)
- VAT - if you use the Booking and/or Airbnb platforms or use other services from companies outside Bulgaria (for example, you pay for advertising on Google and/or Facebook), you will have to register for VAT according to Art. 97a and you will owe 20% VAT on the value of the services received (for example, you receive an invoice for a commission from Booking worth BGN 100. in this case, you will owe BGN 20 VAT, which you will have to declare and contribute to the state budget).
We hope we have been helpful!
Greetings!