Rental yields in Bulgaria: What ROI can I realistically expect?

I am currently exploring real estate investment opportunities in Bulgaria and am trying to understand the typical rental yield percentages for residential properties in major cities like Sofia and Varna. Are the advertised yields often inflated, and what are the actual net returns after accounting for maintenance, taxes, and management fees? I would appreciate hearing from current landlords about their real-world experiences and whether short-term holiday lets are significantly outperforming long-term rentals in the current market.

In Sofia, you are looking at a gross yield of 4-6%. Once you deduct the 10% flat tax, maintenance, and the occasional vacancy, your net is usually closer to 3.5-4%. Keep in mind that property taxes in Bulgaria are relatively low, which helps the bottom line.

I own two units in Varna. Long-term rentals are stable, but the ROI is modest. Short-term lets perform better in the summer, but you have to account for high management fees if you aren't local to handle the key handovers.

Don't trust the advertised yields on sites like Imot.bg. They rarely account for periods where the apartment sits empty. Always subtract at least 15-20% from the 'promised' annual income to get a realistic net figure.

Short-term rentals are definitely more profitable, but they are a job, not a passive investment. If you are looking for something more hands-off, long-term residential is the way to go, even if the yield is lower.

I’ve found that prime locations in Sofia (Lozenets or Oborishte) hold value best, but the initial purchase price is higher, which suppresses the yield percentage. It's a trade-off between growth and cash flow.

If you ever decide to exit the market, make sure you understand the process beforehand. I found this guide on selling a property in Bulgaria while living abroad very helpful when I moved back to the UK.

Maintenance costs in Bulgaria are manageable, but finding a reliable property manager is the hardest part. Without one, you'll spend all your profit on repairs and tenant management.

Are you looking to live there eventually? Many investors buy for the long term and use the rental income to cover the mortgage and maintenance until they retire. Check out some tips on the best places to retire in Bulgaria for expats if that's your end goal.

The current market in Sofia is quite competitive for tenants. If you buy a modern, energy-efficient apartment, you will have no trouble finding high-quality tenants who pay on time.

I’ve been renting out in Varna for five years. My net return is around 3.8% after all taxes and fees. It's not a get-rich-quick scheme, but it's a solid hedge against inflation.

Watch out for the 'hidden' fees in new developments, like high maintenance charges for gated communities. These can eat up 20% of your rental income if you aren't careful.

Short-term lets in cities like Varna are very seasonal. You make bank in July and August, but income is practically zero from November to March. Budget accordingly for the off-season.

Many foreigners overestimate the returns because they forget to factor in the 10% income tax. It is a flat tax, but it still significantly impacts your net ROI at the end of the year.

My experience is that residential rentals in Sofia are very consistent. I prefer the lower-stress, long-term model over the headache of managing Airbnb turnovers every weekend.