Sofia Rental Yield Guide 2026
How to calculate gross and net rental yields in Sofia, which districts deliver the best returns, what expenses reduce your income, and how to evaluate a specific property before you buy.
Gross vs Net Yield: What the Numbers Actually Mean
Gross rental yield is the simplest measure: annual rent divided by purchase price, expressed as a percentage. A €120,000 apartment renting at €700 per month generates €8,400 per year — a gross yield of 7.0%. It tells you nothing about what you actually keep.
Net yield is what matters for investment decisions. It subtracts the real operating costs:
- ·Property management fees: 8–12% of annual rent if outsourced to a local manager
- ·Maintenance reserve: approximately 1% of property value per year for repairs and upkeep
- ·Municipal property tax: approximately 0.15% of the declared assessed value annually
- ·Vacancy allowance: typically 4–6 weeks per year in the Sofia rental market
Across Sofia, gross yields range from 2.5% to 5.5% depending on district and unit type. Net yield is typically 1.5–2.0 percentage points below gross — the gap is determined by your specific cost structure, not a fixed rule.
District Yield Overview
Gross yield ranges based on tracked rental listings cross-referenced against active sale prices. Actual yields vary by unit size, condition, and furnishing level.
High-Yield Districts — 3.8–5.5% gross
Mladost 1–4 (4.5–5.5%), Lyulin (4.0–5.0%), Nadezhda (3.8–4.8%). Strong rental demand from metro-adjacent tenants and Business Park Sofia employees. Higher gross yield typically correlates with greater vacancy variability and slower capital appreciation than central districts.
Mladost district dataMid-Range Districts — 2.8–3.8% gross
Lozenets (3.0–3.8%), Vitosha (2.8–3.6%). Balanced profile: moderate gross yield with above-average tenant quality, lower vacancy, and stronger long-term appreciation momentum than outlying districts.
Lozenets district dataLower-Yield Premium Districts — 2.5–3.2% gross
Iztok (2.5–3.2%). Lower gross yield reflects the lowest vacancy risk and strongest exit liquidity in the Sofia market. For investors prioritising capital preservation over income, the net yield differential versus high-yield districts narrows significantly once vacancy costs are factored in.
Iztok district dataWhat Drives Rental Demand in Sofia
Based on 30,000+ tracked rental listings, four factors consistently differentiate high-absorption units from slow-movers in the Sofia market:
- ·Metro and bus access: Units within 500m of a metro station rent 15–25% faster than comparable units further away. The M2 and M3 lines serve the highest-demand rental corridors.
- ·Business district proximity: Business Park Sofia in Mladost, the ring-road employer cluster, and the central business zone generate the most consistent long-term rental demand from corporate tenants.
- ·University adjacency: SU, UNSS, and Technical University create short-term and student demand in Studentski Grad and adjacent districts — useful for higher turnover strategies, less so for long-term tenants.
- ·Furnished vs unfurnished: Furnished apartments command a 15–25% rent premium in Mladost and Lozenets where expat and corporate tenants are most active. The premium narrows in outlying districts where local tenants are the primary market.
Calculating Your Actual Return
A worked example for a €120,000 apartment in Mladost, 65 sqm:
Formula: (Annual Rent − Operating Costs) ÷ Purchase Price × 100. Your actual deductions depend on whether you self-manage, your maintenance history, and negotiated management fees.
Short-Term vs Long-Term Rental
Short-term rental (Airbnb and similar)
Gross income potential of 7–9% in central districts and Lozenets for well-managed units. The headline number shrinks significantly once real costs are applied:
- ·Platform fees: ~15% of revenue
- ·Cleaning: €40–60 per turnover
- ·Higher furnishing and linen replacement cost
- ·Seasonal vacancy: Sofia's off-season months typically see 30–40% lower occupancy
- ·Regulatory risk: Sofia authorities have been discussing Airbnb restrictions since 2025
Long-term rental (12-month contracts)
Lower gross yield but a more predictable income stream. Vacancy is concentrated at turnover (typically 2–4 weeks between tenants), management effort is lower, and the regulatory environment is stable. For first-time foreign investors managing remotely, long-term tenancy is the lower-risk starting point.
EuroYield's report calculates yield using long-term rental comps — the more conservative and reproducible baseline.
Tax on Rental Income for Foreign Owners
Non-residents without Bulgarian tax residency must either appoint a local tax representative or file directly with the National Revenue Agency. Most EU double-taxation treaties allow foreign owners to offset Bulgarian tax paid against their home-country tax liability.
The above is provided for general information only and does not constitute tax advice. Tax rules change and individual circumstances vary — consult a qualified Bulgarian tax advisor before making filing decisions.
Analysing Yield Before You Buy
The worked example above uses market-average assumptions. For a specific listing, the inputs that matter most — comparable rents in the same district and size range — require live data.
EuroYield's Gross vs Net Yield section (Section 7 of each report) draws on 30,000+ tracked Sofia rental listings to calculate yield for the specific property being analysed:
- ·Gross yield calculated from actual rental comps in the same neighbourhood and ±20% size range
- ·Net yield estimated after management, vacancy, maintenance, and tax deductions
- ·District benchmark comparison — where the listing sits relative to the neighbourhood average
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