Cost of living in Europe

Is living in Europe expensive? A guide from Spacest.com

Europe is an extraordinarily diverse continent, with very different cultures, economies and lifestyles. But what is the real cost of living in Europe? The answer depends on several factors, including the country and city where you choose to live.

Some nations, such as Switzerland and Norway, are known for their high cost of living, while others, such as Portugal and Bulgaria, offer a more economical experience without sacrificing quality.

If you are thinking of moving to Europe, this guide will provide you with a detailed overview of the main costs, helping you choose the destination best suited to your financial needs.

Let’s find out everything there is to know together!

Factors influencing the cost of living in Europe  

The cost of living in Europe is influenced by numerous factors, including:  

• Strength of the local economy: Countries with strong economies, such as Germany and Switzerland, tend to have a higher cost of living. However, they also offer higher salaries and better public services;
• Taxation and fiscal policies: some countries impose higher taxes on income and consumption, which directly affects the purchasing power of residents;
• Value of local currency: If you earn in euros, living in an Eastern European country with a weaker currency can be advantageous. In contrast, life in countries with strong currencies (such as the Swiss franc) is more expensive;
• Cost of rent and the real estate market: In many cities, the cost of housing is the main expense. Capitals and more touristy cities tend to have higher rents.

Comparison between the cost of living in Western and Eastern Europe

Una delle principali differenze nel costo della vita in Europa riguarda la divisione tra Europa occidentale e orientale.

Parameter	Western Europe (e.g. France, Germany, United Kingdom	Eastern Europe (e.g. Poland, Hungary, Bulgaria)
Rentals	High, especially in the capitals	Lower, even in city centres
Food and restaurants	Quality food but expensive	Much more accessible prices
Public transport	Efficient but expensive	Cheap and widespread
Healthcare and education	Variable costs, often high	More accessible, with valid public systems
Average salaries	Higher, but often absorbed by the cost of living	Lower, but sufficient for the local cost of living

If you are looking for a cheaper life without sacrificing quality, Eastern Europe can offer excellent opportunities with low costs.

The cost of rent in Europe  

Rent is one of the most significant expenses for those living in Europe. Prices vary greatly depending on the city and the demand of the real estate market.  

The cheapest cities to rent  

If you’re looking for low-cost accommodation, consider cities like:  

• Athens, Greece: rents starting from €400 per month for a two-room apartment.
• Krakow, Poland: cheap apartments with rents around €500 per month.
• Prague, Czech Republic: an affordable capital with average rents of €600 for a two-room apartment.
• Lisbon, Portugal: the Portuguese capital has prices which, although rising, are still lower than other European capitals.  

The most expensive cities to rent  

The most expensive cities to rent are usually the large metropolises:  

• London, United Kingdom: A studio flat can cost over €2,200 per month.
• Paris, France: Average rents exceed €1,800 for a small apartment.
• Zurich, Switzerland: Rental prices are among the highest in Europe, with a two-room apartment costing around €2,500 a month.
• Milan, Italy: a room in the central areas of the city can cost up to 800-900 euros per month.  

If you want to save money, consider the option of sharing an apartment or looking for accommodation in the suburbs.

The cost of food in Europe  

Eating well in Europe can be cheap or extremely expensive depending on the city you live in and your eating habits.  

The European cities with the cheapest food are Lisbon (a meal in a cheap restaurant costs around €10); Athens (delicious street food like souvlaki for around €3) and Budapest, Hungary, where eating out is very affordable, with full meals for €8-10.  

The European cities with the most expensive food, however, are Zurich, where a cheap lunch can cost at least €20, Oslo (even fast food can be very expensive), Stockholm (supermarkets have high prices compared to the European average) and Milan which, despite being in Italy and spending less than in other metropolises, a restaurant dinner can cost up to 40-50 euros per person.  

One of the best ways to save money is to shop at local markets and cook at home.

The cost of transportation in Europe  

Public transport is another aspect to consider in the cost of living in Europe.  

If you’re looking for convenient transportation, these cities are ideal: Prague, Czech Republic (a monthly pass costs just €22) and Warsaw, Poland, where public transportation is efficient and cheap.  

On the contrary, in some cities traveling costs a lot such as London, United Kingdom, where a monthly pass starts from €180 and Copenhagen, Denmark (very high prices even for single journeys).  

Many Europeans save money by cycling, such as Amsterdam, or by purchasing long-term subscriptions.

Focus: comparison between the cost of living in Europe and the United States  

Compare the cost of living between Europe and the USA It’s complex, but some key aspects stand out:  

• Rent: often cheaper, except in cities like London or Paris; cities like New York and San Francisco are very expensive, much more than London or Paris;
• Healthcare: often free or subsidized in Europe; very expensive without private insurance in the US;
• Public transport: very developed and cheap in Europe; in the less widespread States, we often depend on the car;
• Cheaper food and groceries in local European markets; in the USA supermarkets can be more expensive but well stocked.

Overall, life in Europe can be more convenient, especially for those who benefit from public healthcare and efficient transportation.

The best relationship between salaries and cost of living  

Some countries offer a great balance between wages and daily expenses:  

• Germany: high salaries and a relatively low cost of living;
• Austria: reasonable rents and high quality of life;
• Netherlands: good salaries and affordable costs, especially outside Amsterdam.  

How to optimize your budget in Europe  

Here are some tips for reducing expenses:  

✔️ Learn the local language, it will help you get better jobs.  

✔️ Use public transport: you will save money compared to a private car.  

✔️ Shop at local markets: better quality and lower prices.  

✔️ Share accommodation: reduce rental costs.  

Conclusion: is it worth living in Europe?  

Living in Europe can be expensive or cheap, depending on where you choose to settle. If you want a comfortable life with low costs, countries like Poland, Portugal and Hungary are great options.

However, if you want to live in cities like London or Zurich, be prepared for a higher cost of living. Whatever your choice, Europe offers unique experiences and an exceptional quality of life.