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Categorization of guest house and hotel in Bulgaria
Categorization of guest house and family hotel in Bulgaria
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Elan Consulting, a leading accounting and consulting company, provides expert services and consultations in the field of categorization of guest houses and hotels in Bulgaria. Our clients often turn to us with questions such as “How is the categorization of a guest house of an individual carried out?” and “What documents are needed for the categorization of a guest house?”. Our team is ready to help not only in Sofia, but also in Burgas, Pomorie, Karnobat, Sunny Beach, Aytos, Nessebar, Sozopol, Primorsko and the whole of Bulgaria. We provide detailed information about the requirements and conditions under the Tourism Ordinance and Law, which is important for anyone who wants to increase their profit from a guest house.

We are often asked about the “hotel categorization check” procedure and what are the “2 star hotel categorization requirements”, these questions cover the need to understand the regulations and legal frameworks. Also, topics such as “registration of a guest house in RZI” and “renewal of categorization of an establishment” are common among our clients. They are looking for clear and precise answers to questions such as “What documents are needed to renew categorization?” and “How do I submit an application for categorization of an establishment or accommodation?”.

Other frequently asked questions include “establishment categorization rates,” “4-star hotel categorization ordinance,” and “5-star hotel categorization requirements.” Customers are also interested in specific aspects such as “which objects are not subject to categorization” and how tourism law affects the categorization process.

Our experts are here to help you navigate the complex categorization procedures and provide full assistance in preparing the required documentation and complying with all regulatory requirements. Whether you are in the process of initial registration or renewing the categorization of your establishment or hotel, Elan Consulting is your reliable partner in ensuring a successful and legitimate business.

What does the term “categorization” of accommodation mean within the meaning of Bulgarian legislation?

The term “categorization” of accommodation within the meaning of Bulgarian legislation means the process of determining the category of objects that offer accommodation services. This process is regulated by the Tourism Act and relevant regulations. The purpose of the categorization is to ensure compliance with minimum requirements for the quality of the services offered and the conditions in the accommodation, ensuring comfort and safety for tourists.

According to Art. 121, para. 1 of the Tourism Act, accommodation is divided into three classes: class “A”, class “B” and class “B”. Classes “A” and “B” are categorized into categories from one to five stars, each category reflecting the level of amenities and the quality of services provided to tourists. For example, hotels are categorized by categories corresponding to the number of stars, taking into account various criteria, including construction, furnishings, equipment, service and services offered.

The categorization is carried out on the basis of compliance with the minimum mandatory requirements defined in the regulation under Art. 121, para. 5 of the Tourism Act. These requirements cover various aspects of the site, including architectural features, equipment, service and personnel qualifications. The categorization is carried out by the Minister of Tourism or by the mayor of the municipality, depending on the category and type of accommodation.

Which properties are categorised and which are not?

Places of accommodation that are subject to categorization and those that are not subject to such categorization are clearly defined in the Tourism Act and the relevant regulations. According to Art. 119, para. 1 of the Tourism Act, accommodation establishments and adjacent catering and entertainment establishments, independent catering and entertainment establishments, tourist lodges, tourist training centres and tourist dormitories are subject to categorisation or registration under this Act, regardless of the type of their ownership and the manner of their management. The same applies to catering and entertainment establishments located on pontoons or on vessels anchored near the shore.

Catering and entertainment establishments located in educational and medical institutions, as well as in departments and enterprises intended for use only by their employees and for which there is no free access for external visitors are not subject to categorization (Art. 120, item no. 1). Also, fast food establishments with a capacity of up to 12 seats or separate parts of commercial establishments with up to 12 seats are not subject to categorization (Art. 120, item no. 2). In addition, parts of rooms or courtyards of categorized guest houses, guest rooms and hostels, where home-cooked food is offered only to guests registered in the register of accommodated tourists of the respective site, are also not subject to categorization (Art. 120, item no. 3). Hunting bases under the Hunting and Game Conservation Act, including hunting residence, hunting lodge, hunting lodge and hunting shelter, are also not subject to categorization (Art. 120, item 1). 4).

The categorization of accommodation is carried out into three classes: class “A”, class “B” and class “B” (Art. 121, para. 1). Accommodation places of class “A” and class “B”, as well as catering and entertainment establishments, are categorized into categories “one star”, “two stars”, “three stars”, “four stars” or “five stars” (art. 121, para. 2). The characteristics of these places and the requirements for them are set out in detail in the ordinance under Art. 121, para. 5 of the Tourism Act - The Ordinance on the requirements for the categorized accommodation and catering and entertainment establishments, the procedure for determining the category, as well as the conditions and procedure for registering guest rooms and guest apartments.

Tourist huts, tourist training centers and tourist dormitories are categorized into categories “one edelweiss”, “two edelweiss” and “three edelweiss” (art. 122, para. 1), and their characteristics and requirements are regulated by an ordinance of the Minister of Tourism (art. 122, para. 4). In addition, catering and entertainment establishments adjacent to tourist huts may be assigned a category different from that of the hut, but the difference may not exceed “one edelweiss” (art. 122, para. 3).

When is a categorization required for a guest house?

Categorization for a guest house is mandatory when conducting hotel business, which involves offering accommodation services to tourists for a fee. According to Art. 119, para. 1 of the Tourism Act, accommodation establishments and adjacent catering and entertainment establishments, regardless of the type of their ownership and the manner of their management, are subject to categorization or registration under this Act. Art. 120 indicates which objects are not subject to categorization, and guest houses are not among the exceptions.

According to Art. 123, para. 1, item 2 of the Tourism Act, guest houses fall into class “B” of accommodations, which requires them to be categorized. Additionally, Art. 121, para. 5 specifies that the requirements for the categorized accommodations and the procedure for determining their category are determined by an ordinance adopted by the Council of Ministers.

In cases where the person carrying out hotel activities is not a merchant within the meaning of the Commercial Law, but offers guest rooms or guest apartments, they are subject to registration, and not to categorization, if they are part of the dwelling occupied by him in a residential building (art. 119, para. 2). However, if these accommodations are offered online, including through electronic platforms, they must be categorized or registered (art. 119, para. 3).

Therefore, categorization for a guest house is required whenever accommodation is offered to tourists for a fee, except in cases where guest rooms or apartments are registered as part of the owner-occupied dwelling. The Tourism Law clearly defines the procedures and requirements for this categorization, which ensures that all tourist sites meet the necessary standards and offer quality services to their guests

What is the procedure for categorizing a guest house?

The procedure for categorizing a guest house in Bulgaria is clearly regulated in the Law on Tourism and. First, a person wishing to carry out hotel activities in a guest house must submit an application-declaration to the mayor of the municipality in which the object is located. This requirement is regulated in Art. 129, para. 1 of the Tourism Act.

The application must include the name of the site, address, capacity, as well as other individualizing data. Also, documents proving the right to use the property, as well as a certificate of commissioning of the object, if required, are attached to the application (Art. 130, para. 2). In the event that the object is not the property of the applicant, a lease agreement or other document certifying the right of use is also applied.

After the application is submitted, an expert commission conducts an on-site inspection to determine whether the site meets the minimum requirements for the relevant category. The conditions of accommodation, hygienic conditions, equipment and other characteristics of the object are checked, in accordance with the requirements of the ordinance (Art. 130, para. 6). In case of compliance of the site with the requirements, a report of findings is drawn up and a temporary certificate for an open categorization procedure is issued.

Within three months of the issuance of the provisional certificate, the mayor of the municipality or the Minister of Tourism (depending on the category) issues a final certificate of categorization. The certificate contains information about the category of the object, which can be “one star”, “two stars” or “three stars” for guest houses (art. 127, para. 1). The category plate must be placed in a prominent place on the site.

Objects that meet the requirements for categorization as a guest house include low-rise residential buildings that have a maximum of 10 accommodation rooms and provide accommodation services for a fee (Art. 120, para. 1). The requirements for these facilities cover minimum standards of hygiene, safety, amenities and services that are offered to guests.

What is the difference between the three categories - one, two or three stars for a guest house, and do they give any advantage?

The difference between the one, two and three star categories for guest houses within the meaning of the Bulgarian legislation is in the requirements for amenities, services and equipment that the property must offer. These requirements are clearly defined in the Tourism Act and the Ordinance under Art. 121, Para. 5 of the Tourism Act.

For guest houses with the “one star” category, the minimum requirements include compliance with sanitary and hygienic standards, provision of heating for year-round use, daily cleaning of rooms and sanitary facilities, as well as providing information about local tourist attractions. In addition, rooms should have basic furniture and equipment, such as beds with a mattress, thick curtains or blinds, and basic sanitary facilities.

Guest houses with a “two star” category must meet the same requirements as those with one star, but with added amenities and services. This includes the presence of a kitchen with equipment such as a stove, refrigerator and kitchen cabinets, as well as a dining area with a table and chairs. Also, two-star guest houses should provide the opportunity to watch TV, listen to the radio, use an iron with an ironing board on request and a common first-aid kit.

For guest houses with the category “three stars”, the requirements include all the amenities and services provided for one and two stars, with additional conditions added. These establishments must have a microwave and toaster in the kitchen, a vending machine for water and drinks in the lobby or kitchen area, as well as a water machine or vending machine for drinks and packaged foods. In addition, the availability of individual keys for each room, a maintained and dewormed yard, and the possibility of independent use of the dining room and living room are required.

The advantages of the higher category are associated with attracting more customers who are looking for a higher level of comfort and service. A higher category can also increase the confidence of tourists and improve the reputation of the site. Thus, guest houses of a higher category can stand out in the market and achieve better financial results.

The requirements for each category are set out in Art. 121, para. 1 and para. 2 of the Tourism Act and the relevant regulation

What are the necessary documents for categorization of a guest house in Bulgaria?

The necessary documents for the categorization of a guest house are described in detail in the Law on Tourism and in the Ordinance on the requirements for categorized accommodation and catering and entertainment establishments, the procedure for determining the category, as well as the conditions and procedure for registering guest rooms and guest apartments. In order to start the categorization procedure, the person who will carry out hotel activities in a guest house must submit an application-declaration to the mayor of the municipality in which the object is located (Art. 129, para. 1). The application must contain the following data:

  1. Name of the object, address and capacity, as well as EIC/BULSTAT or personal identification number of the person carrying out the activity (Art. 130, para. 2).
  2. Document for the use of the property, which certifies the right to use the object, if it is not owned by the applicant. If the document for use is subject to registration, the act, volume and year of registration are indicated, as well as the registry office in which it is registered (Art. 130, para. 2, item 2, para. 1).
  3. Certificate of commissioning of the site, where applicable (Art. 130, para. 2, para. 2).
  4. Explicit power of attorneywhen the application-declaration is submitted by a proxy (Art. 130, para. 2, item. 3).

After submitting the application, an expert commission conducts an on-site inspection to establish whether the site meets the minimum requirements for the relevant category. The conditions of accommodation, hygienic conditions, equipment and other characteristics of the site are checked (Art. 130, para. 6). If the object meets the requirements, a temporary certificate of an open categorization procedure is issued.

Within three months after the issuance of the provisional certificate, the mayor of the municipality issues a final certificate of categorization. The certificate contains information about the category of the object, which can be “one star”, “two stars” or “three stars” for guest houses (art. 127, para. 1).

How is the categorization of a family hotel carried out and which objects are classified as family hotels?

The categorization of a family hotel in Bulgaria is carried out according to the provisions of the Tourism Act and the relevant regulation. According to Art. 123, para. 3 of the Tourism Act, family hotels are objects of class “B” and can be categorized with one, two or three stars.

The family hotel is a building in architectural style corresponding to the appearance of the settlement and/or tied to its history, with a capacity of 5 to 20 rooms for accommodation of tourists. These establishments are managed by hosts or hired staff who provide personal service to the guests, and include at least one catering and entertainment establishment (art. 23 of the Tourism Act).

The categorization procedure begins with the submission of an application-declaration to the mayor of the municipality in which the object is located (Art. 129, para. 1). The application must contain information about the name of the object, its address and capacity, as well as EIC/BULSTAT or TIN of the person carrying out the activity (Art. 130, para. 2).

The following documents are attached to the application:

  1. Document for the use of the propertyif the object is not owned by the applicant (Art. 130, para. 2, item. 1).
  2. Certificate of commissioning of the site, where applicable (Art. 130, para. 2, para. 2).
  3. Explicit power of attorneyif the application is submitted by a proxy (Art. 130, para. 2, item. 3).

After submitting the application, an expert commission conducts an on-site inspection to establish whether the object meets the minimum requirements for the relevant category (Art. 130, para. 6). In case of compliance of the object with the requirements, a temporary certificate is issued for an open categorization procedure (Art. 33, para. 2).

Within three months after the issuance of the temporary certificate, the mayor of the municipality issues a final certificate of categorization, which contains information about the category of the object (art. 34, para. 1).

Family hotels with the “one star” category must meet basic requirements for hygiene, safety and amenities, providing daily cleaning of rooms and common areas, basic equipment and furniture, and information about local tourist attractions. Hotels with a “two star” category should offer additional amenities such as kitchen and dining area, TV and other services. For the “three star” category, additional amenities and services such as air conditioning, more equipment in the rooms and a higher level of service are required.

How to make a guest house? Our accounting services for guest houses and family hotels in Bulgaria

The accounting of a guest house or family hotel is critically important for successful management and compliance with legal requirements. Elan Consulting, as a firm with extensive experience in categorizing tourist sites, offers advantages that can significantly improve the efficiency and legal compliance of your tourism business. Our experience and expertise in this area allow us to provide specialized accounting services tailored to the specific needs of the tourism sector.

Firstly, our experience in categorising tourist sites ensures that all financial transactions are processed in accordance with current legal requirements. We understand in detail the regulations related to tourist sites, including the tax breaks and obligations that may apply. This allows us to minimize the risk of errors and penalties associated with non-compliance with the legislation.

Secondly, accounting by a company with experience in the tourism sector, such as Elan Consulting, ensures accuracy and precision in the management of financial documents. We are familiar with all specific reporting requirements and can ensure that your financial statements are correct and timely. This is especially important for making informed management decisions and for maintaining the good financial health of your business.

Third, our experience allows us to offer strategic advice and consulting that can help optimize costs and increase revenue. For example, we can advise you on best practices in pricing, cost management and investment in site improvements that can increase its competitiveness and attractiveness for tourists.

Fourth, Elan Consulting offers comprehensive services, which include not only accounting, but also consulting on legal and regulatory issues related to the categorization and management of tourist sites. This means you get comprehensive support from a single source, making it easier to manage your business and reduce the administrative burden.

Finally, our commitment to high-quality service and an individual approach to each client means that you will receive customized solutions tailored to your specific needs and goals. We understand that every tourist site is unique and we strive to offer the best possible solutions for your success.

By choosing Elan Consulting for the accounting of your guest house or family hotel, you invest in professionalism, expertise and reliability that will help your business thrive in accordance with legal requirements and industry best practices.

Tax and accounting services in Burgas, Bulgaria and current prices for 2024
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Frequently Asked Questions

What are the main advantages of the categorization of a guest house?

The categorization of a guest house offers numerous advantages for both owners and customers. First of all, categorization ensures that the object meets certain quality and safety standards, which are regulated by law. This increases customer confidence and can increase the number of bookings. In addition, categorization provides a competitive advantage, as sites with an official category are more visible and preferred by travel platforms and agencies. For owners, this also means clarity and predictability in the management of the site, since all requirements and standards are precisely defined. In the long run, categorization can lead to better financial results by increasing customer satisfaction and enhancing the reputation of the facility.

What are the minimum requirements for a guest house with a one star category?

The minimum requirements for a guest house with a one-star category include compliance with basic sanitary and hygienic standards and the provision of the necessary amenities for guests. Rooms should be furnished with basic furniture, including beds with a mattress, a wardrobe or other place to store clothes, and a bedside table. Each room should have windows or other means of natural lighting and ventilation. Sanitary facilities must be equipped with a sink, toilet and shower, and hygiene must be maintained at a high level. In addition, the guest house must provide daily cleaning of rooms and common areas, as well as information about local tourist attractions and services.

What is the role of the local municipality in the process of categorization of a guest house?

The local municipality plays a key role in the process of categorizing a guest house. The procedure begins with the submission of an application-declaration to the mayor of the municipality where the object is located. The municipal administration has the task of carrying out an on-site inspection through an expert commission that assesses whether the object meets the minimum requirements for the requested category. If all requirements are met, the municipality issues a temporary certificate for an open categorization procedure. Within three months after the issuance of the provisional certificate, the mayor of the municipality issues the final certificate of categorization. This certificate contains information about the category of the object and is important for the legal functioning of the guest house. The local municipality also monitors compliance with standards and requirements during the operation of the site.

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