Bulgaria attracts expats with the lower cost of living compared to the rest of Europe. On the other hand, Bulgaria is no stranger to price inflation, political instability and growing wealth gap between the rich and the poor, much like the rest of Europe.
There are external as well as internal factors to blame for the growing financial pressures on consumers in the country. The war in Ukraine, lack of competition in some sectors, slow and bureaucratic public administration to name a few.
In the rest of the article, we look at each bill item and compare Bulgaria to the UK. Bulgaria comes out cheaper every single time, but there is a catch. By the end of this you will find out that there is very little good value for money in the public services sector. In Bulgaria cheap is not cheerful.
Water bills -67%
Water supply in Bulgaria is the news story of the day circulating all media channels. There are several big cities and many villages suffering from water shortages every summer. The 7th biggest city in Bulgaria, Pleven, has a water ban affecting nearing 100,000 residents.
A major drawback with the water supply is down to the high percentage (between 70%-80%) of water being lost or stolen. This is a result of years of neglect from national and local authorities and lack of planning for the future.
An average annual consumption of 117 cubic meters of water will cost you 235 EUR in Bulgaria compared to 721 EUR in the United Kingdom. The average price in Bulgaria is 2.01 euro per cubic meter vs 6.16 in the UK, or 67% cheaper.
The reason, most rural areas in Bulgaria lack public sewage systems. Most of the water utility companies are state-owned, under the umbrella of the Bulgarian Water and Sewerage Holding . The lack of investment in system upgrades and repairs lead to these water shortages only being made worse by the absence of rain.
Energy bills -38%
Individuals and households pay predetermined fixed price per KW of energy. The Bulgarian Energy regulator (KEVR) agrees a price once every year, valid from the 1st of July until the 30th of June of the following year. This price is subsidized price by the Bulgarian state, compensating the suppliers of electricity for the difference between the higher market price and the lower consumer price.
There are three main electricity suppliers, each covering a part of the country. There is no possibility of choosing or switching between suppliers. Each household can only be supplied by one of the three. The lack of competition leads to lack of investment in the network as well as poor customer service.
The annual gas and electricity bills in Bulgaria will set you back 1,368 euro. Same gas and electricity cost 2,210 euro in the UK. The gas bills are very similar in the two countries. The difference comes mainly from the subsidized electricity in Bulgaria. UK electricity bills are nearly 2.8 times higher than Bulgaria. All in all, you will be saving 38% in energy cost.
Council tax -92%
Local property tax and rubbish collection fees are due every year. Your local municipality sets the rate once a year. It considers the size and taxable value of the property and adjacent land.
There is a striking difference between waste management in the UK, where collection is segregated into separate containers for paper/cardboard, food waste and mixed recycling. Plastic, paper and glass recycling in Bulgaria is limited to only the main towns and cities. While majority of the villages have one bin for all waste types.
The numbers speak for themselves. Bulgaria council tax is 203 euro per annum compared to 2,594 euro in the UK. Bulgaria is 92% cheaper than the UK.
This main source of income for town halls and municipalities is not sufficient for proper maintenance of public infrastructure. Bulgarian villages suffer from poor road conditions. Parks and public buildings are deteriorating at a fast pace.
Car tax -43%
Car tax in Bulgaria is within the remit of the local municipality. The rate varies according to the car spec, power, age etc. An older, more powerful car would cost you more compared to a newer one with smaller engine capacity.
Annual car tax in Bulgaria is circa 133 euro on average. Same tax is 233 euro in the UK, or a 100 euro more expensive than Bulgaria.
Broadband, Phone and TV -50%
The Telecommunication industry in Bulgaria is lacking competition. The result, very little to choose from in terms of tariffs and high monthly fees and charges compared even to the UK. An average mobile minutes & data contract in Bulgaria will cost you 153 euro per annum compared to only 72 euro in the UK.
On the other hand, Brits must pay TV license to watch BBC media channels while the Bulgaria national TV channels are free to watch. All in all the three services combined add up to 301 euro per annum, about 50% cheaper than equivalent in the UK ( circa 596 euro).
Stamp Duty
Finally, the tax on the purchase of a property in Bulgaria is only 3% on the agreed selling price. The equivalent stamp duty in the UK is 5%. The contrast between the two countries is even bigger when you consider the average selling price of a property.
The average property price in Bulgaria (in the countryside) is 44,000 euro. The tax on that is 1,322 euro. Average property price for the UK is 358,000 euro and stamp duty of 17,925.
All in all, moving to Bulgaria from the UK will help you save 65% on your annual bills or a whopping 4,114 euro a year.
You already settled in Bulgaria but need help with the various utility suppliers and bill, find out more about bill bundling with Move2Bulgaria.
