Most Expensive and Cheapest Countries in Europe

Which are the most affordable countries in Europe? Which are the most expensive ones? In this post I am going to analyze such issues using a number of sources and items (see below) that can help solve this conundrum. We saw earlier which are the most expensive and cheapest cities in Europe. Today I am going to focus on each country as a whole. The main parameters used to list the countries in this ranking are GDP per capita, place in the UN Human Development Index, the Big Mac Index, the price of the shopping basket in each country compared to the European average, the price of 1 Kg of rice (as representative of staple food) and then, within each country, you can even check the most expensive and cheapest cities. As we all know, everything is relative (e.g., the market basket in a given country may be more expensive but taxes may be lower), but I think it can offer an overview of the current state of affairs.

While it is true that living standards tend to be lower in Eastern European countries, they are also generally cheaper, or more affordable, if you like, for tourists, expats or people teleworking online (such as freelance translators, copywriters, writers or graphic designers) for, say, western companies or agencies. Portugal, Latvia and Bulgaria feature among the cheapest countries regarding income tax for self-employed or freelancers.On the other hand, Scandinavian countries are considered to be expensive and have high taxes, but they also rank among the countries with the highest living standards not only in Europe, but in the whole world. They are undoubtedly an example of good governance for others to follow.

Today I won’t go into qualitative aspects, since many would argue —not without reason— that weather conditions, the nutritional quality of local food, the social fabric, the quality of social services, gender-equality policies, even the so-called Happiness Index… are key elements for a good quality of life. I fully share this view, but it is a different kettle of fish.

Below the list of the cheapest countries you can find a description of the main concepts and benchmarks I have used to draw up the ranking as well as the sources consulted.

Most expensive countries in Europe

Most expensive countries in Europe (starting with the most expensive one)

Switzerland

Population: 8,544,034

Currency: Swiss Franc

GDP per capita: 80,590 (GDP nominal per capita – current international dollar)

Place in the UNDP Human Development Index: 3

Big Mac Index: 6.59

Cost of the market basket: 163% of the European average

Price of rice (white, 1 kg): 2.52 USD

Most expensive cities in Switzerland: Zurich, Geneva, Basel, Lausanne and Bern

Cheapest cities in Switzerland:Neuchatel, Aarau and St. Gallen

Taxes in Switzerland

Since taxation is subject to changes, only an indicative level is given

Corporate tax: Average

Income tax: Low

VAT rate: low

Norway

Population: 5,312,343

Currency: Norwegian Krone

GDP per capita: 74,940 USD (GDP nominal per capita – current international dollar)

Place in the UNDP Human Development Index: 1

Big Mac Index: 5.51

Cost of the market basket: 137% of the European average

Price of rice (white, 1 kg): 2.98 USD

Most expensive cities in Norway:

Cheapest cities in Norway: Bodo and Kristiansand

Taxes in Norway

Since taxation is subject to changes, only an indicative level is given

Corporate tax: High

Income tax: High

VAT rate: High

Iceland

Grocery shopping prices in Iceland

Youtube channel: Iceland with a view

Population: 350,710

Currency: Icelandic Krona

GDP per capita: 70,332 (GDP nominal per capita – current international dollar)

Place in the UNDP Human Development Index: 16

Big Mac Index: ——

Cost of the market basket: 125% of the European average

Price of rice (white, 1 kg): 3.47 USD

Most expensive cities in Iceland: Reykjavik

Cheapest cities in Iceland: —

Taxes in Iceland

Since taxation is subject to changes, only an indicative level is given

Corporate tax: Average

Income tax: Average

VAT rate: High

Denmark

Population: 5,745,547

Currency: Danish Krone

GDP per capita: 56,444 (GDP nominal per capita – current international dollar)

Place in the UNDP Human Development Index: 4

Big Mac Index: 4.44

Cost of the market basket: 137% of the European average

Price of rice (white, 1 kg): 2.05 USD

Most expensive cities in Denmark: Silkeborg and Copenhaguen

Cheapest cities in Denmark: Horsens, Odense and Vejle

Taxes in Denmark

Since taxation is subject to changes, only an indicative level is given

Corporate tax: Average

Income tax: High

VAT rate: High

Luxembourg

Population: 602,000

Currency: Euro

GDP per capita: 105,803 (GDP nominal per capita – current international dollar)

Place in the UNDP Human Development Index: 19

Big Mac Index: —

Cost of the market basket: 119% of the European average

Price of rice (white, 1 kg): 2.05 USD

Puesto en el índice de desarrollo humano: 19

Most expensive cities in Luxembourg: Luxemburgo

Cheapest cities in Luxembourg : —-

Taxes in Luxembourg

Since taxation is subject to changes, only an indicative level is given

Corporate tax: Average

Income tax: High

VAT rate: Low

United Kingdom

Population: 66,040,229

Currency: Pound sterling

GDP per capita: 39,734 (GDP nominal per capita – current international dollar)

Place in the UNDP Human Development Index: 14

Big Mac Index: 3,94

Price of rice (white, 1 kg): 1.70 USD

Most expensive cities in the UK: London, Oxford, Portsmouth, Aberdeen and Bristol

Cheapest cities in the UK: Sheffield, Sunderland y Dundee

Cost of the market basket: 131% of the European average

Taxes in UK

Since taxation is subject to changes, only an indicative level is given

Corporate tax: Average

Income tax: High

VAT rate: Average

Finland

Population: 5,517,887

Currency: Euro

GDP per capita: 46,016 (GDP nominal per capita – current international dollar)

Place in the UNDP Human Development Index: 24

Big Mac Index: 5.06

Price of rice (white, 1 kg): 2.20 USD

Most expensive cities in Finland: Helsinki and Tampere

Cheapest cities in Finland: Lapeenranta, Kuopio

Cost of the market basket: 120% of the European average

Taxes in Finland

Since taxation is subject to changes, only an indicative level is given

Corporate tax: High

Income tax: Average

VAT rate: High

Belgium

Population: 11,469,204

Currency: Euro

GDP per capita: 43,582 (GDP nominal per capita – current international dollar)

Place in the UNDP Human Development Index: 21

Big Mac Index: 4.35

Price of rice (white, 1 kg): 1.74 USD

Most expensive cities in Belgium:Mons, Bruselas and Namur<

Cheapest cities in Belgium: Leuven and Liege

Cost of the market basket: 107% of the European average

Taxes in Belgium

Since taxation is subject to changes, only an indicative level is given

Corporate tax: High

Income tax: High

VAT rate: Average

Netherlands

Population: 17,254,086

Currency: Euro

GDP per capita: 48,345 (GDP nominal per capita – current international dollar)

Place in the UNDP Human Development Index: 5

Big Mac Index: 3.8

Price of rice (white, 1 kg): 1.62 USD

Most expensive cities in the Netherlands: Zwolle and Amsterdam

Cheapest cities in the Netherlands: Groningen and Enschede

Cost of the market basket: 109% of the European average

Taxes in the Netherlands (Holland)

Since taxation is subject to changes, only an indicative level is given

Corporate tax: High

Income tax: High

VAT rate: Low

France

Population: 67,297,000

Currency: Euro

GDP per capita: 39,869 (GDP nominal per capita – current international dollar)

Place in the UNDP Human Development Index: 22

Big Mac Index: 4.51

Price of rice (white, 1 kg): 1.90 USD

Most expensive cities in France: Perigueux, Paris, Lyon and Toulouse

Cheapest cities in France: Saint-Étienne, Montpellie, Marseilles and Perpignan

Cost of the market basket: 105% of the European average

Taxes in France

Since taxation is subject to changes, only an indicative level is given

Corporate tax: High

Income tax: High

VAT rate: Average

id=”Map_of_sovereign_states_in_Europe_by_2017_GDP_nominal_per_capita_based_on_USD_exchange_rate” class=”mw-headline”>GDP nominal per capita based on USD exchange rate

Cheapest countries in Europe

Cheapest countries in Europe (starting with the cheapest one):

Moldavia/ Moldova

Population: 3,564,000

Currency: Moldovan leu

GDP per capita: 2,279 (GDP nominal per capita – current international dollar)

Place in the UNDP Human Development Index: 107

Big Mac Index: 1.75

Price of rice (white, 1 kg): 0.95 USD

Most expensive cities in Moldavia: Tiraspol

Cheapest cities in Moldavia: Chișinău

Cost of the market basket: 40% of the European average

Ukraine

Population: 42,895,704

Currency: Hryvnia

GDP per capita: 2,582 (GDP nominal per capita – current international dollar)

Place in the UNDP Human Development Index: 81

Big Mac Index: 1.57

Price of rice (white, 1 kg): 0.99 USD

Most expensive cities in Ukraine: Kiev, Lutsk, Lviv, Kirovoghrad, Dnipro and Kharkiv

Cheapest cities in Ukraine: Simferopol and Zaporizhzhya

Cost of the market basket: 45% of the European average

Taxes in Ukraine

Since taxation is subject to changes, only an indicative level is given

Corporate tax: Low

Income tax: Low

VAT rate: Average

Macedonia

Population: 2,075,301

Currency: Macedonian Denar

GDP per capita: 5,474 (GDP nominal per capita – current international dollar)

Place in the UNDP Human Development Index: 81

Big Mac Index: 1.90

Price of rice (white, 1 kg): 1.26 USD

Most expensive cities in Macedonia: Veles

Cheapest cities in Macedonia: Prilep, Ohrib

Cost of the market basket: 48% of the European average

Taxes in Macedonia

Since taxation is subject to changes, only an indicative level is given

Corporate tax: Low

Income tax: Average

VAT rate: Low

Serbia

Population: 7,040,272

Currency: Serbian Dinar

GDP per capita: 5,899 (GDP nominal per capita – current international dollar)

Place in the UNDP Human Development Index: 66

Big Mac Index: 2.08

Price of rice (white, 1 kg): 1.08 USD

Most expensive cities in Serbia: Belgrade, Valjevo

Cheapest cities in Serbia: Zrenjanin, Nis

Cost of the market basket: 49% of the European average

Taxes in Serbia

Since taxation is subject to changes, only an indicative level is given

Corporate tax: Low

Income tax: High

VAT rate: Average

Albania

Population: 2,887,000

Currency: Albanian Lek

GDP per capita: 4,582 (GDP nominal per capita – current international dollar)

Place in the UNDP Human Development Index: 85

Big Mac Index: —–

Price of rice (white, 1 kg): 1.08 USD

Most expensive cities in Albania: Korçë

Cheapest cities in Albania:Tirana, Vlorë and Elbasam

Cost of the market basket: 47% of the European average

Taxes in Albania

Since taxation is subject to changes, only an indicative level is given

Corporate tax: Low

Income tax: Average

VAT rate: Average

Bosnia and herzegovina

Population: 3,750,000

Currency: Bosnia and Herzegovina convertible Mark

GDP per capita: 5,148 (GDP nominal per capita – current international dollar)

Place in the UNDP Human Development Index: 86

Big Mac Index: ——

Price of rice (white, 1 kg): 1.23 USD

Most expensive cities in Bosnia and Herzegovina: Zenica

Cheapest cities in Bosnia and Herzegovina: Bihac

Cost of the market basket: 51% of the European average

Taxes in Bosnia and herzegovina

Since taxation is subject to changes, only an indicative level is given

Corporate tax: Low

Income tax: Low

VAT rate: Low

Romania

Population: 19,622,000

Currency: Leu

GDP per capita: 12,523 (GDP nominal per capita – current international dollar)

Place in the UNDP Human Development Index: 5

Big Mac Index: —-

Price of rice (white, 1 kg): 1.04 USD

Most expensive cities in Romania: Focșani, Bucarest

Cheapest cities in Romania: Târgu Mureș

Cost of the market basket: 52% of the European average

Taxes in Romania

Since taxation is subject to changes, only an indicative level is given

Corporate tax: Low

Income tax: Average

VAT rate: Low

Bulgaria

Population: 7,050,034

Currency: Lev

GDP per capita: 8,064 (GDP nominal per capita – current international dollar)

Place in the UNDP Human Development Index: 59

Big Mac Index: 1,88

Price of rice (white, 1 kg): 1.22 USD

Most expensive cities in Bulgaria:Pleven

Cheapest cities in Bulgaria: Burgas

Cost of the market basket: 47% of the European average

Taxes in Bulgaria

Since taxation is subject to changes, only an indicative level is given

Corporate tax: Low

Income tax: Low

VAT rate: Average

Poland

Population: 38,433,600

Currency: Zloty

GDP per capita: 13,822 (GDP nominal per capita – current international dollar)

Place in the UNDP Human Development Index: 36

Big Mac Index: 2.42

Price of rice (white, 1 kg): 0.82 USD

Most expensive cities in Poland: Warsaw, Kraków and Bielsko-Biala

Cheapest cities in Poland:Rzeszów, Radom and Gorzów Wielkopolski

Cost of the market basket: 55% of the European average

Taxes in Poland

Since taxation is subject to changes, only an indicative level is given

Corporate tax: Average

Income tax: Average

VAT rate: High

Belarus

Population: 9,452,113

Currency: Belarusian Ruble

GDP per capita: 5,760 (GDP nominal per capita – current international dollar)

Place in the UNDP Human Development Index: 50

Big Mac Index: —–

Price of rice (white, 1 kg): 0.95 USD

Most expensive cities in Belarus: Minsk

Cheapest cities in Belarus: Maladzyechna

Cost of the market basket: —

Taxes in Belarus

Since taxation is subject to changes, only an indicative level is given

Corporate tax: Average

Income tax: Low

VAT rate: High

Montenegro

Population: 642,550

Currency: Euro

GDP per capita: 7,647 (GDP nominal per capita – current international dollar)

Place in the UNDP Human Development Index: 49

Big Mac Index: —-

Price of rice (white, 1 kg): 1.25 USD

Most expensive cities in Montenegro: Budva

Cheapest cities in Montenegro: Podgorica

Cost of the market basket: 55% of the European average

Taxes in Montenegro

Since taxation is subject to changes, only an indicative level is given

Corporate tax: Low

Income tax: Low

VAT rate: Low

Hungary

Population: 9,771,000

Currency: Forint

GDP per capita: 15,531 (GDP nominal per capita – current international dollar)

Place in the UNDP Human Development Index: 44

Big Mac Index: 2.71

Price of rice (white, 1 kg): 01.06 USD

Most expensive cities in Hungary : Budapest, Szombathely y Györ

Cheapest cities in Hungary: Kaposvár, Szolnok y Kecskemét

Cost of the market basket: 57% of the European average

Taxes in Hungary

Since taxation is subject to changes, only an indicative level is given

Corporate tax: Low

Income tax: Average

VAT rate: High

***

Top 10 European countries by GDP 2019

Germany United Kingdom France Italy Russia Spain Netherlands Switzerland Sweden Poland

Source: International Monetary Fund World Economic Outlook

Top 10 European countries by GDP per capita 2019

Luxembourg Ireland Norway Switzerland Netherlands Iceland Germany Denmark Sweden

Source: International Monetary Fund World Economic Outlook

Best European countries for self-employed workers or freelancers

Denmark

You can easily and swiftly register online as a self-employed worker. You don’t have to pay a monthly fee. Income tax ranges from 25% to 50% depending on the type of self-employed worker. Besides, you can benefit from one of the best welfare states in the world, which includes a wide range of social benefits and access to free education.

United Kingdom

If your income is less than £600 (7031€), you are free from the obligation to contribute. If you exceed this amount you pay a percentage depending on your profits. There is no such thing as a minimum capital to register a Limited Liability Company, in case you want to start up your own business.

Germany

Self-employed workers have to pay a compulsory health insurance. If your turnover is ≥ 1,700€ net per month, you must pay a 140€ monthly fee. Those who are under 30 years old and those who make less than 1,700€ don’t need to pay VAT. The downside is that if you want to start up your own company, it is not cheap (you need to pay 25,000€)

Portugal

In Portugal, self-employed workers don’t have to pay a monthly fee. They are not obliged to pay VAT either. It is one of the best countries to be a self-employed worker in Europe.

France

Even though you don’t pay anything during your first year as a self-worker, you are entitled to health care, pension contributions and temporary disability. After the first year, there is a scale stipulating how much a freelancer must pay depending on its income and work activity. There is no minimum capital required to register a Limited Liability Company.

👕 European Countries T-shirts 👕

Here is a collection of some t-shirts representing European countries. Some of them are amazing and some of them really fun! Click on the shirt or the description below for further details. This section will be regularly updated with new t-shirts.

👕 European Union EU T-shirts

👕 Europe and World map t-shirts

👕 Germany t-shirts

👕 France t-shirts

👕 UK t-shirts

👕 Italy t-shirt

👕 Spain t-shirt

👕 Russia t-shirt

👕 Poland t-shirt

👕 Sweden t-shirt

👕 Switzerland t-shirt

👕 Norway t-shirt

👕 Portugal t-shirt

👕 Iceland t-shirt

👕 Denmark t-shirt

👕 Luxembourg t-shirt

👕 Finland t-shirt

👕 Belgium t-shirt

👕 Netherlands t-shirt

👕 Greece t-shirts

👕 Ireland t-shirts

👕 Romania t-shirt

👕 Chech Republic t-shirt

👕 Slovakia t-shirt

👕 Croatia t-shirt

👕 Moldavia t-shirt

👕 Ukraine t-shirt

👕 Bulgaria t-shirt

👕 Belarus t-shirt

👕 Serbia t-shirt

👕 Albania t-shirt

👕 Montenegro t-shirt

👕 North Macedonia t-shirt

👕 Bosnia and Herzegovina t-shirt

👕 Austria t-shirt

👕 Hungary t-shirt

👕 Kosovo t-shirt

👕 Slovenia t-shirt

👕 Malta t-shirt

👕 Estonia t-shirt

👕 Latvia t-shirt

👕 Lithuania t-shirt

👕 Cyprus t-shirt

👕 Vatican city t-shirt

👕 Andorra t-shirt

👕 Isle of Man t-shirt

👕 San Marino

Explanation of the parameters used in this ranking



In red: most expensive countries In blue: cheapest countries

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GDP per capita is a measure that divides the country’s gross domestic product (its economic output) by its total population.



The Human Development Index (HDI) is a composite index of life expectancy, educational standards, and per capita income indicators, which are used to rank countries into four tiers of human development.

Big Mac Index: The Big Mac Index, published by The Economist magazine, althought not perfect, is useful to measure the purchasing power parity (PPP) between countries and currencies. It uses the price of the famous hamburger as a benchmark. It somehow replaces the shopping basket with the famous hamburger.



Market basket: In an economic sense, a market basket is a permanent set of goods and services that are bought and sold as staples in a functional economy. So it is is a fixed list of items, in given proportions, used specifically to track the progress of inflation in an economy.

I picked one kilo of white rice among all the products which are representative of the cost of living because it is a minimally-processed staple food, so there is no need for a large number of productive factors as, for instance, a car.

Sources: Eurostat, Forbes, The Economist, statista.com, preciosmundo.com, Expatistan, bigmacindex.org, Numbeo.com

See also:

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