Bugged is set in present-day Britain, albeit in a parallel dimension of our own world.

The four main characters share a house in Surbiton, London, UK:

The main rooms of the house are the lounge, kitchen, hallway, the four bedrooms, the stairs, the bathroom and the cellar.

Karl's psychiatrist's study:

Every show begins with Karl reclining on his psychiatrist's couch, recounting his latest mishap, be it with his housemates ('those larvae'), sibblings ('all 2 million of them') or his ever-worsening love life ('and as you know, when I get upset I vomit...').

Other random locations will be used in each show, from the hidden rainforests within the sofa, to a televangelist's studio in Croydon, the world of the Bugs is certainly not limited.  In the pilot episode we visit a French colony on Mars...