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Cost Comparison - Home Or Away?

It is widely known that Bulgaria has the lowest cost of living among all other E.U states.  It is also common knowledge to most that the United Kingdom is one of the most expensive E.U countries to reside in. So armed with this knowledge, we take a look at just what the real savings are for those who are considering a permanent relocation from the U.K to Bulgaria.

This is the revelation of a recent study based on average working class British families with 2 children and how their budgets would differ if living in Bulgaria.

Meet the Family

The average British family have 2 children; they live in a 3-bedroomed semi-detached or terraced house and have a pet cat or dog. Their transport consists of a medium sized family car.

The combined motoring and household bills will typically include Road tax, fuel, motor insurance, M.O.T and servicing etc. Utility Bills-water, gas, electricity, land line phone, internet, home insurance, council tax, and of course food and drink etc.The shopping bill is calculated on a non smoking family and moderate drinkers.

Mortgage payments are not included here due to the wide differences between home owners.

Most of the above payments will relate to both countries although for many, the gas bill will be replaced by a yearly firewood bill, mainly for heating (in Bulgaria).

The family, whilst living in the U.K can sustain themselves on a basic standard of living for just £8400 per year. As stated previously this figure does not include either a mortgage or a property rental payment.

For the same family residing in Bulgaria, their home will be a traditional Bulgarian 3 bedroom detached house. Here they can comfortably live on just £5300 per year if the house was purchased without a mortgage.

Making the Decision

These figures may be disappointing to some as the gap is not as wide as many would have imagined. It is however an inspiring thought for struggling mortgage payers who just manage to get by and have very little to show after a hard and stressful job.
Our advice is to think carefully about your finances and decide what you plan to do in terms of earning a wage. With Bulgaria having the lowest paid salaries in Europe, it is the choice for many expats to start their own business and receive the benefits of a better salary and an income tax of rate of only 10%.