Bad news for expats living in Europe or planning on moving there – the cost of living across the continent has risen by 5% in a year. The sharpest increases have been in rent and utilities, with Ireland, Spain, and Italy seeing the largest hikes. London and Dublin are now the most expensive cities in Europe for expats, while cities in Eastern Europe remain relatively affordable.
Rent is getting higher in many cities in Western Europe
The EU Post-Electoral Survey 2024 conducted by the European Parliament showed that the leading concern for 42% of EU citizens is the rising cost of living, which is closely tied to the economic situation, their second concern. This survey was conducted only among EU citizens. However, this group includes expats from one European country living in another, as well as individuals from outside the EU who have been naturalized as EU citizens. Furthermore, it gives an indication of the shared struggles that expats living in the same place probably face.
Complementary data give more weight to these concerns. Statistics from Eurostats show that between 2010 and 2024, rent increased by 24% and house prices (for purchase) by 49%. Between the first quarter of 2023 and the first quarter of 2024, rent went up by 3% and house prices by 1.3%. However, the hike was higher in specific countries. Ireland, Spain, Italy, and Cyprus experienced the highest increase in the price of not only rent/housing but also basic utilities like water, electricity, and gas. The Spanish capital has registered the highest rise, with an increase in the cost of living of nearly 25% within a single year. Like other southern European countries, Spain is popular with digital nomads.
The Dutch neobank Bunq published a Working Abroad Index 2024 this November. It zooms in on specific cities where the problem of high cost of living is worse for expats. Here are the European cities where expats need to earn the most per month to be able to live in:
- London (UK): average cost of living of €3,227 ($3,409) per month;
- Dublin (Ireland): average cost of living of €2,633 ($2,778) per month;
- Amsterdam (Netherlands): average cost of living of €2,563 ($2,706) per month;
- Luxembourg City (Luxembourg): average cost of living of €2,298 ($2,426) per month;
- Copenhagen (Denmark): average cost of living of €2,176 ($2,298) per month.
Rent is the highest cost across all of these cities. In London, it can use up 50–70% of an expat's salary. Currently, the city authorities are trying to build 80,000 additional houses in the British capital to make the cost of housing drop by at least 1%. Dublin and Amsterdam also face a housing crisis. In the Irish capital, rent is nearly 50% higher than it was in 2019 before Covid. Amsterdam, meanwhile, still faces a severe housing shortage that drives up prices.
Public transport has fortunately not risen across most of Europe. On average, expats still spend around €60 (around $65) on public transport, which was the same in 2023. In London, however, expats would need around €200 ($210) just for transport. Food is expensive in Copenhagen and Luxembourg but is less so in the other three cities listed above. Instead, in Europe, Paris and Vienna top the list of cities with the most expensive groceries. For expats who work remotely and need to rent a coworking space, Luxembourg, Paris, and Rome are the most expensive places in Europe to rent coworking spaces. In these cities, expect to spend €300-400 ($315-420) per month on a coworking space, while elsewhere on the continent, even in London and Dublin, it will cost less than €300.
Cities in East Europe and the Baltics remain more affordable destinations
For expats who are looking to live in Europe on a budget of around €1,000 a month, the eastern and northeastern parts of the continent are the places to turn to. In some Eastern European and Baltic capitals, they can enjoy a nice life as a digital nomad or with a work contract while spending only around €900 a month. Here are some affordable cities listed by Bunq's report:
- Bucharest (Romania): average cost of living of €829 ($896) per month;
- Sofia (Bulgaria): average cost of living of €870 ($941) per month;
- Budapest (Hungary): average cost of living of €942 ($1,018) per month;
- Riga (Latvia): average cost of living of $1,004 ($1,094) per month;
- Athens (Greece): average cost of living of €1,104 ($1,191) per month.
Among these countries, Greece, Hungary, and Romania all offer digital nomad visas to expats. The other destinations have other visa options. In these cities, a coworking space can cost as little as €150 (around $160) a month. There have been many initiatives in Romania to welcome new expats and help them integrate, such as the Door to Romania program with a law firm to help expats make informed decisions and tailored Romanian language classes on the app Lingly.ai.
