European Countries with the Lowest Cost of Living in 2025

Europe is a diverse continent, offering a blend of rich history, vibrant cultures, and breathtaking landscapes. For many, living in Europe is a dream come true. However, the cost of living can vary significantly from one country to another. In 2025, several European countries stand out for their affordable living costs, making them attractive destinations for expats, retirees, and digital nomads.

Why Consider the Cost of Living?

When choosing a new place to live, the cost of living is a crucial factor. It determines how much money you need to maintain a certain lifestyle. Key elements include housing, food, transportation, healthcare, and entertainment. An affordable cost of living can mean more disposable income for travel, hobbies, and savings.

Top European Countries with Low Living Costs in 2025

1. Portugal 🇵🇹

Portugal remains a favorite for those seeking affordable living in Europe. Known for its stunning coastlines, mild climate, and friendly locals, Portugal offers a low cost of living, especially in smaller cities and rural areas. Lisbon and Porto are more expensive but still cheaper than many Western European capitals.
Cost of Living Index: Approximately 50-60 (depending on the city)
Housing: Renting a one-bedroom apartment in Lisbon costs around €800, while in smaller towns, it can be as low as €400.
Food: Dining out is affordable, with meals costing between €8-€15.

2. Bulgaria 🇧🇬

Bulgaria is increasingly popular among expats and retirees for its low cost of living and beautiful landscapes. The country is rich in history and culture, offering a unique experience at an affordable price.
Cost of Living Index: Approximately 40-50
Housing: In Sofia, a one-bedroom apartment rents for about €450, while in smaller towns, it can be under €200.
Food: Local markets provide fresh produce at low prices, and dining out costs between €5-€10.

3. Romania 🇷🇴

Romania offers a mix of medieval history and natural beauty. It’s an affordable destination with a growing expat community.
Cost of Living Index: Approximately 35-45
Housing: Bucharest is the most expensive, with rent for a one-bedroom apartment around €400. Smaller cities offer even lower prices.
Food: Romanian cuisine is delicious and affordable, with meals in restaurants costing between €6-€12.

4. Hungary 🇭🇺

Hungary, particularly Budapest, is known for its vibrant culture and historical charm. The cost of living is moderate, making it a popular choice for those looking for affordability and quality of life.
Cost of Living Index: Approximately 45-55
Housing: A one-bedroom apartment in Budapest costs about €500, while in smaller towns, it’s around €300.
Food: Dining out is affordable, with meals costing between €5-€15.

5. Poland 🇵🇱

Poland is a rapidly growing economy with a rich cultural heritage. It offers a lower cost of living than many Western counterparts.
Cost of Living Index: Approximately 40-50
Housing: In Warsaw, rent for a one-bedroom apartment is around €600, while in smaller cities, it can be as low as €300.
Food: Restaurants offer great value, with meals costing between €5-€10.

Factors Influencing Cost of Living in Europe

Several factors can affect the cost of living in European countries:

• Currency Exchange Rates: Fluctuations can impact the real cost of living for expats.
• Local Economy: Economic stability and growth influence prices.
• Government Policies: Taxes, subsidies, and regulations can affect living costs.
• Tourism: Popular tourist destinations might have higher living costs.

Conclusion

Choosing the right European country to live in 2025 depends on your lifestyle preferences and financial situation. Countries like Portugal, Bulgaria, and Romania offer a low cost of living without compromising on quality of life. Whether you are looking to retire, work remotely, or start a new adventure, these countries provide affordable options with plenty of opportunities to explore and enjoy.