Top 5 cheapest countries in Europe

Cost of living is one of the biggest factors to consider when moving abroad, and finding a location that matches your budget and lifestyle requirements can take some time.

To help you in the hunt for your dream destination, we’re exploring Eurostat’s ranking of the cheapest European countries for expats in more detail to discover the reasons why they offer such a good quality of living.

1. Turkey

At the top of the list of cheapest is Turkey, known for its ancient historical landmarks, stunning natural wonders and diverse cuisine.

The country has looked to attract foreign nationals to its shores in recent years, such as with the launch of its digital nomad visa back in April 2024. Valid holders are exempt from tax on foreign income if they live here for under a year, making Turkey an appealing prospect from a financial standpoint.

Two of the major cities in Turkey, Ankara and Istanbul, are amongst the cheapest to live in the world according to Mercer’s Cost of Living Index.¹ Istanbul acts as the country’s main economic hub with lots of jobs on offer for expats, where they can make the most of working abroad opportunities and a good standard of living.

Rental prices are also on the cheaper side, with Deutsch Bank reporting that a one-bedroom apartment in Istanbul’s city centre costs €868.² Though this has increased a lot in the past five years, they found that it’s still significantly less than London, which has the highest rental prices in the continent at €2,732 monthly.

Does the digital nomad lifestyle appeal to you? If so, check out our blog for some guidance on starting this journey.

2. North Macedonia

North Macedonia is another European country that provides expats with low everyday living costs.

One reason behind this country’s ranking as a cheap location is its public transportation system. A weekly bus ticket in the capital Skopje costs around €8-€10, acting as the main form of transit in North Macedonia. International bus travel is fairly inexpensive too, with a journey between Skopje and Bulgaria costing just €25 on average.

North Macedonia has generous financial incentives on offer that contribute towards its reputation for a low cost of living. For example, individuals can benefit from favourable personal income tax rates of only 10%, while investors operating certain regions are eligible for exemptions from customs duties, VAT, and personal income tax.

The price for everyday goods and services is a key factor in why North Macedonia is considered a cheap country to live in. The European Commission found that it was the cheapest place in the continent for food and non-alcoholic beverages, allowing expats to have a good quality of life without stretching their budgets.³

3. Bulgaria

Next up on the list is Bulgaria, where expats can benefit from favourable tax rates and a lower cost of everyday living than other countries in Europe.

The cost of housing helps to explains why Bulgaria is considered a less expensive location for expats. EURES found that Bulgaria has the lowest rental amounts for a one-bedroom apartments in Europe at €550 monthly, compared to the most expensive country, Switzerland, at €2,543.⁴

If you choose to live in Bulgaria, you can also experience budget-friendly transportation, with trams, buses, metro and trains the most common forms of travel. Intercity travel between the country’s towns and cities is also fairly inexpensive, meaning you can explore Bulgaria’s beauty at a reasonable price.

Medical care in Bulgaria is widely accessible and keeps costs low for expats, who are eligible for state healthcare if they are residents and registered with the National Health Insurance Fund (NHIF). Many types of medical treatment are free at the point of delivery, and contributions towards the costs of medical care are minimal.

4. Romania

Romania also ranks as one of the cheapest places to live in Europe and has plenty of job opportunities for expats, including in software development, engineering and manufacturing.

Like other countries on this Index, Romania has sought to appeal to foreign nationals and businesses with favourable financial incentives. This includes exemptions from tax on foreign income for digital nomads and substantial contributions towards business expenses for those investing in the research & development sector.

The cost of goods and services in Romania is much lower than In other EU countries, with EURES finding that monthly living costs for individuals are around €600 monthly, a huge €500 less than in Norway. Much of the food in Romania is produced locally too, like dairy products, fruits and vegetables, with EURES reporting that the grocery spend here is the least expensive across the EU.

5. Montenegro

Montenegro has become a popular destination for both travellers and expats in recent years, but still retains its ranking as one of the cheapest locations in the continent.

Individuals and families have become drawn to Montenegro because of its attractive visa schemes, launching a digital nomad visa in May 2023 which is valid for up to 4 years. This could appeal to many expats because of the exemption from tax on foreign income, which they can benefit from alongside the country’s low cost of living.

There’s other financial incentives on offer if you work in Montenegro, with personal income tax rates 9-15%. To encourage investment in the country and boost its economy, the government also introduced favourable tax credits for businesses who invest in underdeveloped regions, though some industries are not eligible for this.

Property prices have gone up in major cities like Podgorica, Kotor and Budva as a result of the country’s increased popularity with expats, but remain inexpensive compared to other European countries.