Bulgaria holds the lowest position in the European Union regarding restaurant and accommodation prices in 2025, according to Eurostat data verified by "the media". With the EU average set at 100, Bulgaria's index stands at 55.7. This statistic offers a different perspective on the September disputes concerning high bills in Bulgarian establishments and their comparisons to prices in Vienna and Dublin. The index reflects the average relative price level for the entire country, combining accommodation services with dining establishments. This does not mean that every establishment in Bulgaria is cheaper than every one in Western Europe.
Price levels vary significantly among European countries when using the EU=100 index. Bulgaria is at 55.7, Romania at 59.4, Portugal at 73.6, Poland at 80.5, Spain at 85.4, and Greece at 86.1. Italy stands at 110.8, Austria at 116.8, Ireland at 118.1, while Denmark reaches the highest level at 142. Bulgaria is in the lowest position in the EU, with prices approximately 44.3% below the Union average. However, the indicator does not account for differences in population income, nor does it directly reflect the price of a specific meal.
To correctly understand the data, Eurostat's methodology is key, which calculates indices through purchasing power parities, comparing a wide range of services and goods across Europe. The institution itself emphasizes that the indicators are not adjusted for wage levels or people's incomes. Consequently, a service may appear cheap compared to average European values while simultaneously being a heavy burden on the budget of someone with a Bulgarian income.
The discussion on the topic reignited following statements made by Deputy Prime Minister Atanas Pekanov on September 6. In a media interview, he stated that prices in parts of the service sector are excessively high, citing examples of bills in Sofia restaurants that approach those in Vienna. Pekanov linked the situation to the competitiveness of Bulgarian tourism and expressed disagreement with the return to a 9% VAT for the restaurant sector. A day later, the industry organizations BAZ and SZB challenged his position, insisting that such comparisons must take into account taxes, energy, rents, wages, and supplies.
Minister of Agriculture and Food Plamen Abrovski also joined the debate, sharing a personal anecdote during a conversation with BNT. He recounted a lunch for four people consisting of soup and fish in Varna that cost him 250 euros, whereas a similar lunch in central Dublin was 150 euros. The example illustrates a specific customer experience; on its own, it cannot serve as a national statistical comparison, as information regarding the category of the venues, the quantities ordered, and other bill components is missing.
There is another important aspect to the dispute: the difference between Eurostat's relative levels for 2025 and the price movement measured by the NSI in 2026. In August, the "Restaurant and Hotel Services" group increased by 8.3% on an annual basis according to the Harmonised Index of Consumer Prices (HICP), with a 1.1% increase compared to July. On the national index, the annual increase for the same group is 9.6%. This shows that Bulgaria can simultaneously be cheap relative to the EU average while experiencing rapid price increases compared to its own levels from the previous year.
Another factor highlighted by restaurateurs is the tax burden. Since the beginning of 2025, restaurant and catering services in Bulgaria have once again been taxed at the standard 20% VAT rate, while hotel accommodation remains at 9%. In other countries, regimes vary: starting July 1, 2026, Germany will apply 7% VAT on restaurant food (excluding drinks), and Ireland will reduce the rate for restaurants and catering to 9% from July 1. The German experience is telling—following the reduction of VAT from 19% to 7% at the start of 2026, an analysis of over 180,000 dishes, cited by the media in September, found that prices were not reduced for most of them. This proves that while the tax rate is important for business, a lower VAT does not automatically lead to a lower bill for the customer.
Institutional oversight of the situation provides a broader view than individual cases. The CPA (Commission for Consumer Protection) reported 14,535 inspections during the one-year period of mandatory dual pricing (August 2025 – August 2026), a figure that includes various online and physical commercial outlets, not just restaurants. During a joint operation by the CPA and the NRA in February 2026, 146 establishments (restaurants, cafes, patisseries) were inspected, resulting in 34 violations, including incorrect currency conversion, unclear prices and weights, categorization issues, and cases of price hikes requiring further analysis.
As of August 9, the CPA expanded the scope of its monitoring for economically unjustified price increases to include restaurants, pizzerias, cafes, and hotel services. Between August 9 and August 31, the commission analyzed 56,270 price points across 77 merchants in various sectors and requested supporting documentation for identified increases. These actions do not prove unjustified price hikes across the entire industry, nor do they guarantee an absence of such cases, but they demonstrate how institutions verify every specific increase by analyzing cost prices and expenses, rather than relying on individual receipts.