Tourist tax in Sofia is on the rise. What else is changing?

The municipality of Sofia plans to increase the tourist tax, which has not been changed for years and is one of the lowest in Central and Eastern Europe. This was announced during a press conference by Nikola Barbutov, deputy mayor for European policies, international activities and tourism, and Anton Penev, director of the Municipal Enterprise "Tourism".

The fee, which is planned to be increased next year, is paid by tourist accommodation users in Sofia, and its amount varies depending on the category of the respective property (from 0.10 to 1.5 euros according to the current regulation).

There will also be an increase in the patent tax, which is paid once a year by tourism industry establishments.

Focus on tourism

Nikola Barbutov explained that a number of meetings were held with the tourism industry reps in Sofia during the municipal election campaign last year. It was then that the mayor-to-be Vasil Terziev expressed his intention to generate greater funding for tourism, and to position the city as an event destination.

Making all of the above possible means updating the tourist tax, so that the municipal enterprise "Tourism" will have the necessary means for promoting the destination, noted the deputy mayor.

What changes are in store?

At the moment, the tax for overnight visitors to Sofia is from 0.20 euros for class B properties to 0.60 euros for the most luxurious hotels. From 2022, the tax is also charged for overnight stays in short-term rental apartments and guest rooms (e.g. Airbnb). By law, the tax levied can be between 0.10 and 1.5 euros, and the decision on the exact amount is determined by the Municipal Council," said Plamena Terziradeva, a municipal councilor (PP-DB-SS), clarifying that the tourist tax has not been changed since 2011

According to the proposed changes, which before coming into force must be approved by the Sofia Municipal Council, the tax will be amended as follows:

• For a five-star hotel, the fee from €0.60 will become €1.5;
• For four-star hotels, the tax is expected to increase from €0.50 to €1.25;
• For one-star hotels and apartments with one star, the tax is expected to increase from €0.20 to €0.50;
• In two-star accommodations, the increase will be from €0.30 to €0.75.
• For three-star hotels, an increase from €0.40 to €1 is planned.

This fee is paid by the tourists, although the final taxpayers to the municipality will be the hoteliers.

As a result of the changes, the expected additional income for 2025, if there is no change in overnight stays, will be 1.7 million euros. In the case of an expected increase in overnight stays by 10%, the increase in revenue will be up to about 2 million euros," explained Terziradeva.

She added that the patent tax, which is paid once a year by the tourism establishments, will also be increased tenfold - from 12.5 euros to 125 euros. Terziradeva recalled that in 2020 this tax was reduced to a minimum because of the COVID pandemic.

The situation is now back to normal, and revenues are increasing," the municipal councilor emphasized.

She added that over the past three years, there has been an increase of 42% per year in overnight stays in hotels and tourist flats.

Rebranding Municipal Enterprise "Tourism"

During the press conference, it was announced that a rebranding of the municipal enterprise "Tourism" is in the offing. The latter will be renamed to Visit Sofia.

Municipal enterprise "Tourism" is known to very few people and is unrecognizable as a brand."

With these words, Anton Penev, director of ME "Tourism", justified the change.

He also announced that the additional revenue that is expected to flow into the enterprise would be used to create information centers, public toilets, and tourism infrastructure, and advertise Sofia as a destination for events and conferences.

Translated by Tzvetozar Vincent Iolov