Bulgaria is rapidly strengthening its position on the European investment map. Growing purchasing power of the population, economic stability, preparation for the euro transition, and record activity in the new construction market create conditions that attract investors from around the world.

Of particular interest is the data published by Global Property Guide: rental yields in Bulgaria reach almost 5%, which places the country among the top seven most profitable European markets for residential real estate investment.

5% Yield: Why Bulgaria Is at the Top?

Bulgaria ranked 7th among European countries with the highest rental yields. Several factors contribute to this:

• Low taxes. The rental income tax is only 10%, one of the lowest in the EU. For comparison: in Iceland the tax exceeds 30%, in Ireland — 20–25%.
• Affordable entry prices. Property prices in Bulgaria remain among the lowest in EU countries. Even with price growth over the last 5–7 years, the average price per square meter compares favorably to Italy, Spain, Greece, and Croatia.
• High rental demand. Tourism is recovering: tourist numbers are comparable to pre-crisis levels. In major cities, demand for long-term rentals is growing. Many buyers are foreigners (Germany, Israel, Poland, Romania, Scandinavia), which increases property liquidity.
• Economic stability. Bulgaria's transition to the euro from January 1, 2026 strengthens investor confidence. This reduces currency risks and makes the market more predictable.

Bulgaria's Position Compared to Other European Countries

According to the William Russell ranking, Bulgaria outperforms countries such as: Latvia, Ireland, Iceland

As well as some Central European countries where rental taxes are significantly higher.

Interestingly, most of the TOP-10 countries are from Eastern and Central Europe. The leader is Moldova, where yields are highest due to the popularity of short-term rentals in Chisinau.

Where to Buy Property in Bulgaria for Maximum Rental Yields

Bulgaria's rental market is heterogeneous. Different regions show different returns, demand, and seasonality. Below is an overview of the most promising locations.

Sunny Beach and Nessebar. Highest yields on short-term rentals: 6–8%. Advantages: long tourist season, high demand in summer especially from Europeans, low apartment costs compared to other resorts.

Varna. Stable yields of 5–6% (short-term + long-term rentals). Varna is the largest coastal city, an economic and educational center. Year-round demand: tourists, students, IT specialists, families with children.

Burgas. Yields of 4.5–6%. Burgas is developing dynamically and becoming an alternative to Varna. The city's advantage is the combination of resort and urban rentals.

Sofia. Yields of 4–5%, but the highest liquidity in the country. The capital leads in: number of new developments, income levels, demand for long-term rentals. Sofia is the best choice for investors seeking stability rather than seasonality.

Bansko. Yields of 5–7% on short-term rentals. The ski resort attracts: winter tourists, digital nomads, family travelers. Prices remain affordable, and demand for year-round rentals is growing.

Bulgaria is a country where real estate works as a stable investment tool.

A 5% yield is a realistic figure that can be increased with the right choice of location and property type. Bulgarian resorts offer maximum profit, major cities offer stability, and the capital offers long-term liquidity.

For investors in 2025-2026, Bulgaria is a market with great growth potential, moderate risks, and a low entry threshold.