Cheapest Countries to Live In Index | Where Can I Live

What are the cheapest countries to live in? We’ve gathered data from six sources to give you the most accurate picture possible. We’ll also share the cheapest places to live in Europe, Asia, and the Americas. Plus, our selection of the cheapest counties that Expats love & low cost-of-living English-speaking countries.

You can learn how to move to many of these countries using the Where Can I Live country explorer.

Note: We’ve excluded any country where our data evaluation is “very low” based on available data. Explore our methodology, plus which countries we excluded and the full ranking in the Appendices below.

Top 20 Cheapest Countries to Live In – Where Can I Live Index

Countries	WCIL RANK	Cost of Living vs USA	Cost of Living vs Germany
Pakistan	1	30%	37%
Tunisia	2	31%	39%
Sri Lanka	3	32%	39%
Kyrgyzstan	4	34%	42%
Egypt	5	34%	42%
India	6	35%	44%
Turkey	7	35%	44%
Algeria	8	36%	44%
Nepal	9	36%	45%
Azerbaijan	10	36%	45%
North Macedonia	11	37%	46%
Colombia	12	37%	46%
Moldova	14	39%	48%
Mongolia	15	39%	49%
Bangladesh	16	39%	49%
Paraguay	17	40%	49%
Bolivia	18	40%	49%
Cameroon	20	40%	49%
Indonesia	21	40%	50%

Note: Ukraine ranked 12th & Belarus 14th in our original ranking, but we have not included them in this version of the Index. The war in Ukraine means that even recent data is unreliable.

10 Cheapest Countries to live in Europe > European Union (EU) Members

#	Countries	WCIL RANK	Cost of Living vs USA	Cost of Living vs Germany
1	Romania	33	43%	53%
2	Bulgaria	37	44%	55%
3	Poland	41	46%	56%
4	Hungary	48	48%	60%
5	Lithuania	64	56%	69%
6	Latvia	67	56%	70%
7	Slovakia	70	58%	72%
8	Czechia	71	58%	72%
9	Croatia	74	59%	73%
10	Greece	77	61%	76%

10 Cheapest Places to Live in Asia

#	Countries	WCIL RANK	Cost of Living vs USA	Cost of Living vs Germany
1	Pakistan	1	30%	37%
2	Sri Lanka	3	32%	39%
3	Kyrgyzstan	4	34%	42%
4	India	6	35%	44%
5	Nepal	9	36%	45%
6	Azerbaijan	10	36%	45%
7	Mongolia	15	39%	49%
8	Bangladesh	16	39%	49%
9	Indonesia	21	40%	50%
10	Kazakhstan	25	42%	52%

Note: Belarus ranked 8th in our original ranking, but we have not included it in this version of the Index. The war in Ukraine means that even recent data is unreliable.

5 Lowest Cost-of-living Countries in South America

#	Countries	WCIL RANK	Cost of Living vs USA	Cost of Living vs Germany
1	Colombia	12	37%	46%
2	Paraguay	17	40%	49%
3	Bolivia	18	40%	49%
4	Brazil	51	49%	61%
5	Peru	52	49%	61%

5 Most Affordable Countries in Central America

#	Countries	WCIL RANK	Cost of Living vs USA	Cost of Living vs Germany
1	Nicaragua	34	43%	54%
2	Mexico	45	47%	59%
3	Honduras	50	49%	61%
4	El Salvador	54	50%	63%
5	Costa Rica	63	55%	69%

5 Cheapest places to live in Africa

#	Countries	WCIL RANK	Cost of Living vs USA	Cost of Living vs Germany
1	Tunisia	2	31%	39%
2	Egypt	5	34%	42%
3	Algeria	8	36%	44%
4	Cameroon	20	40%	49%
5	Uganda	24	41%	51%

Countries with Low Cost-of-Living and High Quality of Life > The Most Affordable Countries for Expats to live

Not all low-cost-of-living nations are great Expat destinations. The experts at Where Can I Live used Expat volumes to pick the 20 most affordable Expat hotspots. All have significant Expat populations, and many rank on lists of the best places to live for Expats.

#	Countries	WCIL RANK	Cost of Living vs USA	Cost of Living vs Germany
1	Turkey	7	35%	44%
2	Indonesia	21	40%	50%
3	Malaysia	28	42%	52%
4	Philippines	29	42%	52%
5	Nicaragua	34	43%	54%
6	Bulgaria	37	44%	55%
7	Poland	41	46%	56%
8	Georgia	42	46%	57%
9	Thailand	44	47%	58%
10	Mexico	45	47%	59%
11	Vietnam	46	48%	59%
12	Hungary	48	48%	60%
13	Brazil	51	49%	61%
14	Argentina	57	52%	64%
15	Mauritius	62	54%	67%
16	Costa Rica	63	55%	69%
17	Lithuania	64	56%	69%
18	Latvia	67	56%	70%
19	Slovakia	70	58%	72%
20	Czech Republic	71	58%	72%

The Cheapest English-Speaking Countries

What are the lowest cost-of-living countries with high English proficiency? The countries on this list are either:

• Classified as native English-speaking by the UK Government
• Very High English Proficiency on the Education First 2021 Index

#	Countries	WCIL RANK	Cost of Living vs USA	Cost of Living vs Germany
1	South Africa	47	48%	60%
2	Guyana	69	57%	71%
3	Croatia	74	59%	73%
4	Portugal	78	62%	77%
5	Belize	79	62%	77%
6	Jamaica	81	63%	78%
7	Trinidad and Tobago	87	69%	86%
8	Malta	93	76%	94%
9	Belgium	95	80%	99%
10	Germany	96	81%	100%

7 Cheapest and Safest Places to Live in the World

We used the Where Can I Live Safest Countries to Live Index for this list. To qualify, countries must be in the Top 50 Safest countries and the Top 60 Cheapest Countries. Here are the results, ranked by cost of living with their Where Can I Live Safest Countries to Live score.

#	Country	WCIL Safest Index Rank	WCIL Cheapest Index Rank	Cost of Living vs USA	Cost of Living vs Germany
1	Malaysia	34	28	42%	52%
2	Romania	43	33	43%	53%
3	Serbia	46	36	44%	54%
4	Bulgaria	42	37	44%	55%
5	Montenegro	48	43	47%	58%
6	Vietnam	50	46	48%	59%
7	Argentina	44	57	52%	64%

Where Can Live Index Methodology

Data Sources + weighting (total 44 points)

• 10 points: Organization for Economic Development and Co-operation OECD Price Level Indices (PLI) 2021
• 10 points: European Union (EU) Comparative Price Levels (CPL) 2021
• 8 points: Numbeo Cost of Living + Rent Index by country
• 6 points: Expatistan Cost of Living
• 5 points: Living Cost – Cost of Living Report
• 5 points: US State Department Per Diem Rates – data from December 2022
• 5 points: World Bank International Comparison Program (ICP) 2017

Note: Thanks to Fredrick Vega for assistance with the statistical and data design.

Data Types

1) Comparative research

Intergovernmental bodies collect these figures using professional economic researchers. The methodology and data collection are checked and peer-reviewed. This data is the most valuable, so we assign the most weight to it.

We use three sets of this data.

• OECD PLI – Organization for Economic Development and Co-operation OECD Price Level Indices (PLI) 2021
• EU CPL – European Union (EU) Comparative Price Levels (CPL) 2021
• World Bank ICP – World Bank International Comparison Program (ICP) 2017 (lower weighting as the data is five years old)

2) Crowd-sourced cost-of-living surveys

Websites ask Expats living in countries to self-report prices of various items. These figures are collected to give an average cost for a basket of goods and services. These figures range in reliability.

We use three sets of this data.

• Numbeo – Numbeo Cost of Living + Rent Index by country
• Expatistan – Expatistan Cost of Living
• Living Cost – Living Cost – Cost of Living Report

3) Per Diem Rates

Companies and governments pay a daily rate for employees who travel to another country. The daily rate is designed to cover accommodation, transport, and sustenance. We use the US State Department figures.

US State Department – US State Department Per Diem Rates – data from December 2022

Methodology

1. Data from all data sources were standardized to Germany. We used Germany because it has equitable results from all six data sources.
2. A standardized score was created with all available data for each country.
3. We ranked the reliability of each country’s score:
   • Very High: Weighting of more than 35.
   • High: Weighting of 35 or less.
   • Medium: Weighting of 25 or less.
   • Low: Weighting of 20 or less.
   • Very Low: Weighting of 10 or less.
4. We used the available weighted scores to give each country a standardized cost-of-living score.

Please see all 167 nations with their reliability and ranking below.

What are the limitations of the data?

We believe our list of the most affordable places to live is the most accurate available. However, it does have some limitations. Here’re the issues that you should consider when using this data.

• The source of your money. If you live in Argentina and your income is a US dollar pension, you don’t need much to live a great lifestyle. However, if you are paid locally in pesos, you may find it harder to make ends meet.
• The cost of living varies across any country. Renting a 100m2 apartment in a fancy suburb in New York will cost considerably more than the same size apartment in rural Alabama.
• Expat lifestyle costs may vary considerably from the local population. Expats may pay extra for healthcare, travel, taxation, and support services.
• Your choices impact your cost of living. Do you eat in restaurants or cook your food at home? Do you buy local or imported goods? Do you use public or private healthcare services? Do you have domestic help, or do you do it yourself? Are your holidays 5-star or camping?
• All available data is out-of-date when it is published. So, we can’t reflect rapid economic shifts. An example may be the 2022 energy price jumps due to Russia’s invasion of Ukraine.
• We don’t have all the data sets for all countries, so the certainty of our index varies.

How to find YOUR lowest-cost-of-living country

Our experience is that it is possible to get an accurate idea of the amount you’ll need to budget in a new country. The bad news? It takes some work.

When we moved to Spain, we took these nine steps in this order.

1. We looked at real estate websites to give us a rough idea of rental costs in some towns we were considering.
2. We checked out the cost of a normal weekly grocery shop using a supermarket online shopping service.
3. We searched for the price of a liter of gasoline/petrol.
4. We joined an Expat Facebook group for our target area. We asked for rough ideas of prices for utilities. We asked about electricity, gas, water, internet, and mobile phones.
5. We asked the same group for other costs they didn’t originally include in their budget. This helped to identify any locally specific items you don’t know about (hello Garraf tunnel tolls).
6. We looked at the price of the type of car we planned to buy.
7. We met online with a fantastic Spanish Tax Lawyer.
8. We got quotes from three potential schools.
9. We got quotes from Spanish Private Health insurance companies.

We used these figures to draft a monthly budget for our future life in Spain. Although not perfect, it was pretty accurate.

What is Geoarbitrage, and how does it work?

Geoarbitrage (or geographic arbitrage) is a fancy term for moving to make your money go further. The idea is broader than just looking at cutting your expenses or the cheapest countries to live in.

Geoarbitrage looks at your entire financial situation, not just tax and rent. Once you have a holistic picture, you can start making decisions to improve your quality of life.

Here’s a simple example. Let’s say you’re a European Union citizen. Which would make more financial sense?

Scenario A

• Live in Switzerland (the highest cost-of-living in Europe)
• Pay tax in Belgium (60.2% top marginal rate)
• Earn a Bulgarian income (the lowest in Europe)

Scenario B

• Live in Romania (the lowest cost-of-living in Europe)
• Pay tax in Estonia (21.3% top marginal rate)
• Earn a Luxembourg income (the highest in Europe)

All this being equal, scenario B will mean you are financially much better off. This example is overly simplistic, but it helps to demonstrate the idea.

Geoarbitrage can take other factors into account.

Geoarbitrage using exchange rates

Drawing a pension in Euros or dollars and spending it in Thai Baht or Argentinian Peso will boost your income. Your money will go much further. But, if those exchange rates shift, then moving to a new country may make sense.

Geoarbitrage for taxation

Registering your income in a low-taxation country means you keep as much as possible. Countries like Portugal and Panama have excellent plans for non-citizen residents to minimize tax rates.

Geoarbitrage for healthcare

A move may be the answer if you are concerned about healthcare costs or need expensive care. Argentina offers a 12-month health visa. You could live in a city in Argentina while you receive world-class medical attention at a fraction of the price you’d pay elsewhere.

Moving to a country with a fully public healthcare system means you’ll never have to pay another cent towards living a healthy life.

Geoarbitrage for family

Would free childcare improve your family budget? Will a year’s paid parental leave support your decision to have kids? How about free schooling and university for your kids? These are on offer in many countries.

Geographic arbitrage is not for everyone. The calculations can be complex, and you’ll change many things in your life. But, with a successful geoarbitrage strategy, your financial position can improve dramatically. You should cover considerations like visas, work permits, taxation law and treaties, and more.

What About the Most Expensive Places to live in the World?

Here’s the other end of our Index – the Top 10 most expensive places to live.

#	Country	WCIL Cheapest Index Rank	Cost of Living vs USA	Cost of Living vs Germany
1	Bermuda	122	168%	209%
2	Switzerland	121	129%	160%
3	Hong Kong	120	124%	153%
4	Singapore	119	120%	149%
5	Iceland	118	112%	139%
6	Bahamas	117	112%	139%
7	Israel	116	109%	136%
8	Norway	115	106%	131%
9	Luxembourg	114	102%	127%
10	United States	113	100%	124%

Is the USA cheap or expensive?

Our Index ranks the United States of America as the 10th most expensive country to live in. The average cost-of-living in the USA is 1.24 times the cost-of-living in Germany.

Is the cheapest country the best to live in?

We don’t think so. We know that choosing your next home abroad is one of the most important decisions you’ll ever make. To help you, check out the Best Countries to Live in for the other things we consider vital. Finding the cheapest countries to live in shouldn’t be the end of your research, but the beginning.

Appendix 1 – Countries Excluded because of “Very Low” Data Certainty

Note: These countries are listed in order of affordability based on available data.

#	Country	WCIL Cheapest Index Rank	Cost of Living vs USA	Cost of Living vs Germany
1	The Gambia	2	30%	38%
2	Swaziland	5	33%	41%
3	Mali	8	35%	43%
4	Mauritania	9	35%	44%
5	Burundi	13	36%	45%
6	Burkina Faso	16	37%	46%
7	Togo	19	38%	47%
8	Tajikistan	20	38%	47%
9	Benin	21	39%	48%
10	Comoros	24	39%	49%
11	Lesotho	25	39%	49%
12	Guinea-Bissau	32	40%	49%
13	Madagascar	33	40%	49%
14	Liberia	37	41%	51%
15	Cape Verde	39	42%	52%
16	Sierra Leone	45	42%	52%
17	Malawi	53	44%	54%
18	Haiti	56	44%	55%
19	Burma	57	45%	55%
20	Chad	63	47%	58%
21	Guinea	66	48%	59%
22	Niger	67	48%	59%
23	Suriname	68	48%	59%
24	Laos	72	49%	60%
25	Sudan	80	51%	63%
26	Equatorial Guinea	83	52%	64%
27	Djibouti	84	52%	64%
28	Zambia	87	53%	65%
29	Bhutan	88	53%	66%
30	Montserrat	92	54%	67%
31	Gabon	93	55%	69%
32	São Tomé and Príncipe	100	57%	70%
33	Mozambique	102	57%	71%
34	Democratic Republic of Congo	104	58%	72%
35	St. Vincent and the Grenadines	105	58%	72%
36	Dominican Republic	106	58%	72%
37	Central African Republic	114	62%	76%
38	Republic of Congo	122	66%	82%
39	Grenada	124	67%	83%
40	Dominica	125	68%	84%
41	Antigua and Barbuda	130	73%	90%
42	Seychelles	142	85%	105%
43	St. Lucia	143	85%	105%
44	Angola	148	91%	113%
45	Aruba	149	91%	113%

Appendix 2 – All Countries Ranked (Including “Very Low” Accuracy Data)

Countries	WCIL RANK	Cost of Living vs USA	Cost of Living vs Germany	Data Confidence
Pakistan	1	30%	37%	Low
The Gambia	2	30%	38%	Very Low
Tunisia	3	31%	39%	Low
Sri Lanka	4	32%	39%	Low
Swaziland	5	33%	41%	Very Low
Kyrgyzstan	6	34%	42%	Low
Egypt	7	34%	42%	Low
Mali	8	35%	43%	Very Low
Mauritania	9	35%	44%	Very Low
India	10	35%	44%	High
Turkey	11	35%	44%	Very High
Algeria	12	36%	44%	Low
Burundi	13	36%	45%	Very Low
Nepal	14	36%	45%	Low
Azerbaijan	15	36%	45%	Low
Burkina Faso	16	37%	46%	Very Low
North Macedonia	17	37%	46%	High
Colombia	18	37%	46%	High
Togo	19	38%	47%	Very Low
Tajikistan	20	38%	47%	Very Low
Benin	21	39%	48%	Very Low
Ukraine	22	39%	48%	Medium
Moldova	23	39%	48%	Low
Comoros	24	39%	49%	Very Low
Lesotho	25	39%	49%	Very Low
Mongolia	26	39%	49%	Low
Bangladesh	27	39%	49%	Low
Paraguay	28	40%	49%	Low
Bolivia	29	40%	49%	Medium
Belarus	30	40%	49%	Low
Cameroon	31	40%	49%	Low
Guinea-Bissau	32	40%	49%	Very Low
Madagascar	33	40%	49%	Very Low
Indonesia	34	40%	50%	High
Bosnia and Herzegovina	35	40%	50%	High
Albania	36	41%	51%	High
Liberia	37	41%	51%	Very Low
Uganda	38	41%	51%	Medium
Cape Verde	39	42%	52%	Very Low
Kazakhstan	40	42%	52%	Low
Tanzania	41	42%	52%	Medium
Botswana	42	42%	52%	Low
Malaysia	43	42%	52%	Medium
Philippines	44	42%	52%	Medium
Sierra Leone	45	42%	52%	Very Low
Rwanda	46	43%	53%	Low
Iraq	47	43%	53%	Low
Morocco	48	43%	53%	Low
Romania	49	43%	53%	High
Nicaragua	50	43%	54%	Low
Iran	51	44%	54%	Low
Serbia	52	44%	54%	High
Malawi	53	44%	54%	Very Low
Bulgaria	54	44%	55%	High
Ghana	55	44%	55%	Low
Haiti	56	44%	55%	Very Low
Burma	57	45%	55%	Very Low
Namibia	58	45%	56%	Low
Kenya	59	45%	56%	Medium
Poland	60	46%	56%	Very High
Georgia	61	46%	57%	Low
Montenegro	62	47%	58%	High
Chad	63	47%	58%	Very Low
Thailand	64	47%	58%	Low
Mexico	65	47%	59%	High
Guinea	66	48%	59%	Very Low
Niger	67	48%	59%	Very Low
Suriname	68	48%	59%	Very Low
Vietnam	69	48%	59%	Medium
South Africa	70	48%	60%	High
Hungary	71	48%	60%	Very High
Laos	72	49%	60%	Very Low
Ivory Coast	73	49%	61%	Medium
Honduras	74	49%	61%	Low
Brazil	75	49%	61%	High
Peru	76	49%	61%	Medium
Armenia	77	50%	62%	Low
El Salvador	78	50%	63%	Medium
Ethiopia	79	51%	63%	Low
Sudan	80	51%	63%	Very Low
Ecuador	81	51%	63%	Medium
Argentina	82	52%	64%	Low
Equatorial Guinea	83	52%	64%	Very Low
Djibouti	84	52%	64%	Very Low
Cambodia	85	52%	64%	Medium
Fiji	86	52%	65%	Medium
Zambia	87	53%	65%	Very Low
Bhutan	88	53%	66%	Very Low
Zimbabwe	89	53%	66%	Low
Senegal	90	54%	67%	Low
Mauritius	91	54%	67%	Medium
Montserrat	92	54%	67%	Very Low
Gabon	93	55%	69%	Very Low
Costa Rica	94	55%	69%	High
Lithuania	95	56%	69%	Very High
Russia	96	56%	69%	High
Jordan	97	56%	69%	Low
Latvia	98	56%	70%	Very High
Chile	99	56%	70%	High
São Tomé and Príncipe	100	57%	70%	Very Low
Guyana	101	57%	71%	Medium
Mozambique	102	57%	71%	Very Low
Slovakia	103	58%	72%	Very High
DR Congo	104	58%	72%	Very Low
St. Vincent and the Grenadines	105	58%	72%	Very Low
Dominican Republic	106	58%	72%	Very Low
Czechia	107	58%	72%	Very High
Brunei	108	58%	72%	Low
China	109	59%	73%	High
Croatia	110	59%	73%	High
Panama	111	60%	74%	Medium
Taiwan	112	60%	75%	Low
Greece	113	61%	76%	Very High
Central African Republic	114	62%	76%	Very Low
Portugal	115	62%	77%	Very High
Belize	116	62%	77%	Low
Estonia	117	62%	77%	Very High
Jamaica	118	63%	78%	Low
Saudi Arabia	119	63%	78%	Medium
Slovenia	120	64%	79%	Very High
Nigeria	121	64%	79%	Low
Republic of Congo	122	66%	82%	Very Low
Oman	123	67%	83%	Low
Grenada	124	67%	83%	Very Low
Dominica	125	68%	84%	Very Low
Spain	126	68%	84%	Very High
Trinidad and Tobago	127	69%	86%	Low
South Korea	128	70%	86%	High
Cyprus	129	71%	88%	High
Antigua and Barbuda	130	73%	90%	Very Low
Italy	131	75%	92%	Very High
Uruguay	132	75%	93%	Medium
Bahrain	133	75%	94%	Medium
Malta	134	76%	94%	High
Kuwait	135	76%	95%	Low
Belgium	136	80%	99%	Very High
Germany	137	81%	100%	Very High
Maldives	138	81%	100%	Low
Japan	139	81%	100%	Very High
Austria	140	84%	104%	Very High
France	141	84%	105%	Very High
Seychelles	142	85%	105%	Very Low
St. Lucia	143	85%	105%	Very Low
Sweden	144	89%	110%	Very High
Finland	145	89%	111%	Very High
United Kingdom	146	89%	111%	Very High
Netherlands	147	90%	112%	Very High
Angola	148	91%	113%	Very Low
Aruba	149	91%	113%	Very Low
New Zealand	150	93%	115%	High
Canada	151	94%	116%	High
United Arab Emirates	152	95%	118%	Medium
Ireland	153	98%	121%	Very High
Barbados	154	98%	121%	Medium
Denmark	155	98%	122%	Very High
Australia	156	98%	122%	High
Qatar	157	99%	123%	Medium
United States	158	100%	124%	Very High
Luxembourg	159	102%	127%	Very High
Norway	160	106%	131%	Very High
Israel	161	109%	136%	High
Bahamas	162	112%	139%	Medium
Iceland	163	112%	139%	Very High
Singapore	164	120%	149%	Medium
Hong Kong	165	124%	153%	Low
Switzerland	166	129%	160%	Very High
Bermuda	167	168%	209%	Low