Sofia, Bulgaria – The Sofia Municipality is planning a significant increase in the city’s tourist tax, set to take effect next year, pending approval from the Sofia Municipal Council.
The proposed hike marks the first revision of the tax in over a decade, a move seen as necessary to modernize Sofia’s tourism infrastructure.
Deputy Mayor for Tourism Nikola Barbutov revealed the details of the plan, which includes changes not only to the tourist tax but also to the patent tax for short-term rental properties like Airbnb.
The most notable aspect of the proposed change is the rise in the tourist tax rates for accommodations, ranging from one-star hotels to five-star establishments.
According to the new rates, one-star hotels and apartments will see an increase from 0.40 leva to 1 leva per night per person, while two-star hotels will have their tax raised from 0.60 leva to 1.50 leva per night.
Three-star hotels will see a jump from 0.80 leva to 2 leva per night, four-star hotels from 1 leva to 2.50 leva, and five-star hotels from 1.20 leva to 3 leva per night per person.
The changes come after years of static rates, which were maintained even through the pandemic when Sofia, like many other cities, sought to attract tourists amid global travel restrictions.
However, with tourism on the rebound and the city looking to improve its public infrastructure, officials see this as a necessary adjustment.
In addition to the tourist tax, the proposal also targets short-term rental properties. The patent tax for establishments with up to 20 rooms, which includes platforms like Airbnb, will see a significant increase.
During the COVID-19 pandemic, the annual tax per property was reduced to 25 leva to alleviate financial pressures. However, under the new proposal, this rate will rise to 250 leva per property per year, signaling a return to pre-pandemic levels and then some.
Anton Penev, director of the Municipal Enterprise “Tourism,” emphasized that the additional revenue from these tax hikes will be reinvested into the city’s tourism infrastructure.
“We are committed to enhancing Sofia’s appeal as a leading destination for both tourists and business travelers,” Penev said.
Planned improvements include the creation of information centers, the construction of new public toilets, and promotional activities aimed at positioning Sofia as a prime destination for international events and congresses.
Municipal officials believe the updated tax rates will help Sofia remain competitive as a tourist destination while addressing the growing need for improved infrastructure.
“Despite the increase, Sofia will still have the lowest tourist tax in the region,” noted municipal councilor Plamena Terziradeva from WCC-DB-Spasi Sofia. She stressed that Sofia’s affordability will continue to attract visitors even with the higher taxes in place.
While the proposal has been generally well received within the municipality, it will now need to pass through the Sofia Municipal Council for approval. If enacted, the changes are expected to come into force starting in 2024, setting the stage for a new era in Sofia’s tourism development.