In recent months, we have received numerous inquiries and provided various services related to the conditions and procedures for registering a “Bed and Breakfast or Guest Apartment.”
Bed and Breakfasts and guest apartments are regulated by the Tourism Act. To register them, an application must be submitted to the mayor of the municipality or an authorized person, depending on the location of the property. Owners can choose to register either as individuals or through a company. Despite not engaging in hotelier activities in a commercial sense, the law does not provide a simplified registration process for such properties.
Hotelier activities and registration
To engage in hotelier activities in rooms or guest houses, they must be part of your inhabited residence in a residential building (Article 113, para. 2 of the Tourism Act). For a residence to be considered inhabited by you, it must simultaneously meet three requirements:
- you must conduct hotelier activities in it
- you must reside there, and
- it must be your current address according to address registration.
Centralized information system
Since you are involved in hotelier activities, you are required to maintain a registry under Article 116 of the Tourism Act, using the centralized information system maintained by the Minister of Tourism.
Categorization procedure
The categorization procedure is regulated by the Regulation on Categorization (RC). The municipal expert commission determines the category of the accommodation facility by conducting on-site inspections through an expert working group. The procedure includes issuing a temporary certificate and a categorization certificate valid for a period of 5 years.
Taxation
For accommodation services, a reduced regime applies under the Value Added Tax Act (VATA) with a tax rate of 9%. It is important to note that this rate applies only to accommodation, while the sale of drinks and food in establishments within guest houses is subject to a 20% VAT. In addition to VAT, a local tourist tax is levied under the Local Taxes and Fees Act (LTFA). This tax is determined by the municipal council and varies between 0.20 BGN and 3.00 BGN per night, depending on the location and category of the accommodation. It must be paid by the 15th day of the month following the month in which the overnight stays were provided.
Personal data and GDPR
As the administrator of personal data, you must comply with the requirements of the Personal Data Protection Act and GDPR. It is mandatory to prepare a privacy policy outlining the processing purposes and ensuring transparency.
With the assistance of our team, you can easily and quickly navigate the registration and categorization process for your bed and breakfast or guest apartment. Do not hesitate to contact us for additional information and consultations. Legal and successful operation of your property is the key to satisfied guests and a thriving business.