The Illegal Foreigner Tax: Bigger than you think.

Thursday, August 30th, 2007 at 4:52 pm


At least not if you think the price is too high.

This article today points out (surprise surprise) than foreigners are paying up to six times as much for the same medical treatment at seaside resorts, despite a law enacted two years ago mandating fairness, and banning any type of “foreigner tax”.

While I understand things have changed, and this dubious practice is no longer ubiquitous throughout the country, this article doesn’t explain the half of it. The worst thing is, that most people or institutions who still engage in this behavior do so with impunity, despite whatever circumstances exist.

The first I experienced this was upon arriving at a small hotel in Plovdiv which Boyana had booked a room in for the two of us. That is, booked online with a receipt of payment for the advertised price. While we were checking in, she noticed my accent and promptly informed us that the price of the room was now 40lv higher! Though infuriated, we payed on this occasion because we were well outside the center with lots of luggage, no car, and no other reservation.

Even more recently, I was attempting to enter a small icon museum which was a part of the Rila Monestary. On the front door were two signs, one in Bulgarian: Entry Fee: 1 Lv and a sign in English: Entry Fee 5 Lv… and it wasn’t just for the unwitting tourist who cannot read or speak Bulgarian. I was told the price was 5 for non Bulgarians was 5 Lv and if I wished to see the museum, I would pay that price.

Now we find it is necessary to go through a process where Boyana calls every hotel first, receives and honest price quote, and then double checks that they do not tax foreigners so there will be no surprises, and roughly 30% of hotels and guest houses are still upfront on the phone about the fact that foreigners are required to pay more, and having a Bulgarian ID card doesn’t help.

With one exception: I had an earache I needed treated just 3 weeks ago, and was reassured “Don’t worry, as long as you have you’re Litchna (ID) card, you’ll pay the standard fee. This was a private medical clinic in Sofia, so why should anyone be charged more than the standard fee for treatment? I can’t answer that, but I paid the standard fee and got my antibiotics.

5 Responses to “The Illegal Foreigner Tax: Bigger than you think.”

  1. Global Voices Online » Bulgaria: "Foreigner Tax" Says:

    […] Balkan Yankee writes on the ways in which the so-called “foreigner tax” is applied in Bulgaria. Share […]

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  3. Jordan Says:

    Its interesting to hear how this all plays out in a “developing” country where the foreigner tax is actually illegal.

    Across Southeast Asia, this practice is not only legal and tolerated by most who visit, but actually encouraged by the government. For example, the state-mandated entry fee for all Thai National Parks is 40b (about $1) for Thai citizens but 400b ($10) for all others. Locals often take advantage of the fact that very few foreigners can read the thai alphabet (and numerals) to post double pricing schemes.

    I for one don’t get too bent out of shape for being made to pay more as a foreigner in most cases, because even though I do live in Thailand I am not a Thai citizen or even an official resident. The double pricing scheme is there to allow the average Thai citizen to take advantage of what the tourist cash has afforded his country. In many cases, if everyone was paying the local rates for everything around here, the tourist industry would be a different beast altogether.

    NOW whether or not that is a good thing is a different discussion…

    I do get angry, however, when I am obviously overcharged for everyday things like food, taxi fares, etc by people on a purely subjective basis! But then sometimes its a fine line between that and the haggling that everyone is expected to engage in.

  4. Chris Says:

    Consumer Protection Agency- In Bulgaria, a slight threat of filing a complaint with the group usually mends the situation of the ‘Foreigner Tax’. At least in my and a friend of mines experiences with Bulgarian hotels that try to up-charge you at the last minute. Interestingly enough, I have experienced this not only with hotels (in Sofia) but cabbies and cafes too (Plovdiv); even when Bulgarian citizens are part of the group.

    Jordan mentioned an interesting facet in the Thai government, allowing and encouraging state mandated taxes for foreigners…I wonder how much (if anything) will change now that BG is part of the EU…

  5. Joel Froese Says:

    I’ll have to side with Jordan on this; in fact, I wrote a long letter to the editor of the Sofia Echo about this last year entitled In defense of price discrimination

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