Cheapest Countries to Live in Europe 2025: Where Your Money Goes Further

One of the most compelling arguments for UK nationals considering a move to Europe is the dramatic difference in cost of living between London and many European cities. While wages in Eastern and Southern Europe are generally lower than in the UK, the purchasing power of a remote-working income or a private pension can stretch considerably further in many EU countries than in the UK. For retirees, remote workers, and those with location-independent income, choosing an affordable European base is one of the most effective ways to improve quality of life without increasing earnings.

This guide compares living costs across European countries in 2025, with particular focus on what UK nationals can expect to pay for housing, food, transport, and healthcare. Use our EU cost of living comparison tool for a detailed breakdown of expenses in specific European cities.

Eastern Europe: the lowest costs in the EU

Countries in Central and Eastern Europe consistently offer the lowest costs of living within the EU. Bulgaria and Romania have the lowest price levels in the EU according to Eurostat data, with overall consumer prices approximately 40% to 50% below the EU average. Hungary, Poland, Czech Republic, and Slovakia follow with prices roughly 30% to 40% below the EU average. For a UK expat or remote worker earning UK or northern European wages, these countries offer extraordinary value.

A good quality one-bedroom apartment in Sofia (Bulgaria) or Bucharest (Romania) can be rented for €300 to €600 per month in city-centre locations. The same property in Warsaw or Prague costs €700 to €1,200. Restaurant meals in Eastern Europe are typically 40% to 60% cheaper than Western European equivalents, and local transport is inexpensive. However, some imported goods, international travel, and online services cost broadly the same as elsewhere, so the savings are most pronounced on locally produced goods and services.

Portugal: affordable Western Europe with English widely spoken

Portugal has emerged as one of the most popular destinations for UK expats and remote workers precisely because it offers Western European infrastructure, EU membership, relatively mild climate, and cost levels that are meaningfully lower than France, Germany, or the Netherlands. Lisbon and Porto have seen significant rent increases over the past five years due to tourism and international migration, but outside the major cities and tourist coastal zones, Portugal remains considerably more affordable than most of Western Europe.

A one-bedroom apartment in Lisbon's city centre costs approximately €1,200 to €1,800 per month to rent in 2025, up substantially from five years ago but still well below London equivalent costs. In secondary cities like Coimbra, Braga, or Setúbal, rents of €700 to €1,000 for a similar property are common. Dining out is inexpensive by Western European standards, with a meal for two at a mid-range restaurant typically costing €30 to €50. Healthcare through the national health system is free for residents, though quality and waiting times vary and many expats use supplemental private health insurance at relatively low cost.

Spain: strong regional variation

Spain shows dramatic cost variation between regions and cities. Madrid and Barcelona are the most expensive cities, approaching southern French or northern Italian price levels for accommodation. The Spanish interior, smaller cities, and rural areas are considerably cheaper. Cities like Valencia, Seville, Malaga, and Alicante offer a Mediterranean climate and good urban infrastructure at costs 20% to 40% below Madrid. The Canary Islands, despite being a popular tourist destination, also have relatively affordable living costs for residents on long-term stay.

Spain's healthcare system is ranked among the best in Europe, and residents (including EU citizens and those with valid residence permits) have access to the public healthcare system. Food, utilities, and transport are generally cheaper than in northern Europe. The main cost pressure in popular expat destinations is housing, which has become more expensive in coastal and city locations due to competition from digital nomads, tourism, and domestic demand.

Greece and Italy: lifestyle value for budget-conscious expats

Greece is one of the more affordable EU countries for expats who want a Mediterranean lifestyle. Mainland Greek cities and many Greek islands have very affordable rents by European standards, though popular tourist islands can be significantly more expensive during high season. Athens offers a sophisticated urban experience with restaurants, cultural life, and good transport links at costs substantially below comparable Western European capitals. The Greek healthcare system has challenges but private healthcare is inexpensive by UK standards.

Italy shows enormous internal variation. Northern cities like Milan are expensive by European standards. Southern Italy, Sicily, Sardinia, and many smaller towns throughout the country offer very affordable living. Italy has actively promoted "1 euro house" schemes in depopulating rural villages to attract people who are willing to renovate, though the practical costs of renovation often make these more symbolic than financially attractive. Still, the principle of finding affordable quality living in beautiful Italian settings is achievable with realistic expectations.

What UK expats need to plan for

Cost of living comparisons need to account for costs that UK residents do not face but European residents do, or vice versa. UK nationals moving to EU countries post-Brexit need to budget for residence permit fees, potential visa application costs, and in some countries health insurance that is not automatically covered by the state system without contributions. Private health insurance costs vary dramatically, from very affordable in Eastern Europe to significant monthly premiums in Germany or Switzerland.

Tax obligations in your new country also affect the effective financial benefit of lower living costs. Countries with lower costs of living sometimes have higher effective tax rates for residents with foreign-source income, particularly for retirees and those with UK pension income. Our EU income tax comparison covers the tax rates that apply once you are resident in different EU countries, while our currency converter helps you track exchange rates that affect the real value of UK income when converted to euros for living expenses.