Sofia Municipality Proposes Significant Increases to Tourist Taxes

The Municipality of Sofia has announced plans for a significant increase in the city's nightly tourist tax, a move aimed at generating additional revenue for tourism development and infrastructure maintenance. Under the proposed structure, the tax will be tiered based on the official star rating of the accommodation. For instance, the rate for 5-star hotels is slated to rise from BGN 1.20 to BGN 3.00 per night, while 4-star properties will see an increase from BGN 1.00 to BGN 2.50.

This policy shift reflects a broader trend across European cities seeking to balance the economic benefits of tourism with the rising costs of managing urban infrastructure and public services. Sofia’s tourism authorities have emphasized that the revenue generated will be managed with greater transparency to ensure it directly supports the city's tourism appeal. The proposal is currently moving through municipal channels, with officials engaging in consultations with local hoteliers to finalize the implementation strategy.

All international and domestic travellers staying in commercial accommodation within Sofia are affected. The impact is tiered, meaning guests staying in higher-rated luxury hotels will face the most significant increases in their nightly accommodation costs.

Makutet anticipates that while these tax hikes are relatively modest in absolute terms, they may trigger pushback from the local hospitality sector concerned about price sensitivity. We forecast that Sofia will likely use the increased revenue to bolster its marketing efforts in Western Europe, attempting to position the city as a premium cultural destination rather than just a budget-friendly stopover.