As the summer season is coming, property owners are faced with the question of how to use their apartment by the sea. One way is to use the property to accommodate tourists in the summer. However, you can find out how you can legally provide hotel services from the following lines.
Guest apartment or Guest rooms?
First of all, we should distinguish “guest apartment” from “guest rooms”. Both are tourist sites. Both are subject to registration under the Tourism Act in Bulgaria if you wish to use them as accommodation. “Guest Apartment” is a private apartment in a residential building, which is provided to tourists for accommodation. And “guest rooms” means up to 5 rooms, independent or in apartments, in one building, provided to tourists for accommodation.
Registration or Categorization
Categorization is a mandatory procedure for Class “A” and Class “B” accommodation places, and for most restaurants. Class “A” accommodation places are hotels, motels, apartment tourist complexes, tourist villages and villas. Class “B” accommodation places are family hotels, hostels, boarding houses, rest stations, guest houses, bungalows and campsites. All of them should be categorized with 1, 2, 3, 4 or 5 stars. Of course, there are many features of different accommodation places and the star rating for each one.
Guest apartments must be registered. They are not categorized. The registration of guest apartment is a slightly simpler procedure than the categorization, but it is also mandatory, since the accommodation of tourists in a such apartment is considered to be hotel services.
Should you have a registered company in Bulgaria or not?
The guest apartment can be registered by the owner or the lessee. For this purpose, the applicant does not necessarily need a registered company in Bulgaria. He can register the guest apartment as an individual.
Registration in Airbnb
The registration of guest apartment is carried out in the municipality where the property is located. Within 7 days, the municipality issues a registration certificate. The certificate is indefinite and gives the right to accommodate tourists in the apartment from the moment it has been issued. However, if there is a change in circumstances, such as a change in the capacity or the person operating the registered guest apartment, a new application must be submitted. If you no longer wish to carry out hotel services in the guest apartment, you must submit an application for deregistration again to the municipality where the apartment is located. The municipality revokes the issued certificate within three days.
It is important to know that you can register your apartment on Airbnb only if it has passed the mandatory registration described above. You must also make it possible to pay for the guest apartment electronically via the electronic platform.
What taxes do you owe?
Although you are not required to be a trader (sole trader, LLC, JSC, VCC), when you have a registered sea guest apartment, you owe taxes for carrying out this activity. It’s considered that you’re in the hotel business. About the taxes you owe, we can talk in person, long and wide. To do this, please contact us. We’ll be expecting you.
Disclaimer
This publication does not represent legal advice or consultation, but is for informational purposes only. The publication should not be used as a basis or motive for solving legal problems or taking legal actions. GMP Consult, as well as the author of this article, are not liable to users or third parties for any damages resulting from legal or factual actions based on the information published on this website.
