Happy man looking at his mobile in one of the cheapest countries in the world

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 countries 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 USACost of Living vs Germany
Pakistan130%37%
Tunisia231%39%
Sri Lanka332%39%
Kyrgyzstan434%42%
Egypt534%42%
India635%44%
Turkey735%44%
Algeria836%44%
Nepal936%45%
Azerbaijan1036%45%
North Macedonia1137%46%
Colombia1237%46%
Moldova1439%48%
Mongolia1539%49%
Bangladesh1639%49%
Paraguay1740%49%
Bolivia1840%49%
Cameroon2040%49%
Indonesia2140%50%
Cheapest Countries to Live -Where Can I Live Cost of Living Index

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
1Romania3343%53%
2Bulgaria3744%55%
3Poland4146%56%
4Hungary4848%60%
5Lithuania6456%69%
6Latvia6756%70%
7Slovakia7058%72%
8Czechia7158%72%
9Croatia7459%73%
10Greece7761%76%
Cheapest European Union (EU) Countries – Where Can I Live Cost of Living Index

10 Cheapest Places to Live in Asia

#Countries WCIL RANK Cost of Living vs USA Cost of Living vs Germany
1Pakistan130%37%
2Sri Lanka332%39%
3Kyrgyzstan434%42%
4India635%44%
5Nepal936%45%
6Azerbaijan1036%45%
7Mongolia1539%49%
8Bangladesh1639%49%
9Indonesia2140%50%
10Kazakhstan2542%52%
Cheapest Asian Countries – Where Can I Live Cost of Living Index

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
1Colombia1237%46%
2Paraguay1740%49%
3Bolivia1840%49%
4Brazil5149%61%
5Peru5249%61%
Cheapest South American Countries – Where Can I Live Cost of Living Index

5 Most Affordable Countries in Central America

#Countries WCIL RANK Cost of Living vs USA Cost of Living vs Germany
1Nicaragua3443%54%
2Mexico4547%59%
3Honduras5049%61%
4El Salvador5450%63%
5Costa Rica6355%69%
Cheapest Central American Countries – Where Can I Live Cost of Living Index

5 Cheapest places to live in Africa

#Countries WCIL RANK Cost of Living vs USA Cost of Living vs Germany
1Tunisia231%39%
2Egypt534%42%
3Algeria836%44%
4Cameroon2040%49%
5Uganda2441%51%
Cheapest African Countries – Where Can I Live Cost of Living Index

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
1Turkey735%44%
2Indonesia2140%50%
3Malaysia2842%52%
4Philippines2942%52%
5Nicaragua3443%54%
6Bulgaria3744%55%
7Poland4146%56%
8Georgia4246%57%
9Thailand4447%58%
10Mexico4547%59%
11Vietnam4648%59%
12Hungary4848%60%
13Brazil5149%61%
14Argentina5752%64%
15Mauritius6254%67%
16Costa Rica6355%69%
17Lithuania6456%69%
18Latvia6756%70%
19Slovakia7058%72%
20Czech Republic7158%72%
Cheapest Expat Favorite Countries – Where Can I Live Cost of Living Index
Lady laughing in the sunshine.

The Cheapest English-Speaking Countries

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

#Countries WCIL RANK Cost of Living vs USA Cost of Living vs Germany
1South Africa4748%60%
2Guyana6957%71%
3Croatia7459%73%
4Portugal7862%77%
5Belize7962%77%
6Jamaica8163%78%
7Trinidad and Tobago8769%86%
8Malta9376%94%
9Belgium9580%99%
10Germany9681%100%
Cheapest English Speaking Countries – Where Can I Live Cost of Living Index

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
1Malaysia342842%52%
2Romania433343%53%
3Serbia463644%54%
4Bulgaria423744%55%
5Montenegro484347%58%
6Vietnam504648%59%
7Argentina445752%64%
Cheapest and Safest Countries to Live
A happy man in a road in Portugal, one of the cheapest places to live in Europe.

Where Can Live Index Methodology

Data Sources + weighting (total 44 points)

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.

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.

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 are 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
1Bermuda122168%209%
2Switzerland121129%160%
3Hong Kong120124%153%
4Singapore119120%149%
5Iceland118112%139%
6Bahamas117112%139%
7Israel116109%136%
8Norway115106%131%
9Luxembourg114102%127%
10United States113100%124%
Most Expensive Countries – Where Can I Live Cost of Living Index

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.

#CountryWCIL Cheapest Index Rank Cost of Living vs USA Cost of Living vs Germany
1The Gambia230%38%
2Swaziland533%41%
3Mali835%43%
4Mauritania935%44%
5Burundi1336%45%
6Burkina Faso1637%46%
7Togo1938%47%
8Tajikistan2038%47%
9Benin2139%48%
10Comoros2439%49%
11Lesotho2539%49%
12Guinea-Bissau3240%49%
13Madagascar3340%49%
14Liberia3741%51%
15Cape Verde3942%52%
16Sierra Leone4542%52%
17Malawi5344%54%
18Haiti5644%55%
19Burma5745%55%
20Chad6347%58%
21Guinea6648%59%
22Niger6748%59%
23Suriname6848%59%
24Laos7249%60%
25Sudan8051%63%
26Equatorial Guinea8352%64%
27Djibouti8452%64%
28Zambia8753%65%
29Bhutan8853%66%
30Montserrat9254%67%
31Gabon9355%69%
32São Tomé and Príncipe10057%70%
33Mozambique10257%71%
34Democratic Republic of Congo10458%72%
35St. Vincent and the Grenadines10558%72%
36Dominican Republic10658%72%
37Central African Republic11462%76%
38Republic of Congo12266%82%
39Grenada12467%83%
40Dominica12568%84%
41Antigua and Barbuda13073%90%
42Seychelles14285%105%
43St. Lucia14385%105%
44Angola14891%113%
45Aruba14991%113%
Countries Excluded because of “Very Low” Data Certainty – Where Can I Live Cost of Living Index

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

Countries WCIL RANKCost of Living vs USA Cost of Living vs GermanyData Confidence
Pakistan130%37%Low
The Gambia230%38%Very Low
Tunisia331%39%Low
Sri Lanka432%39%Low
Swaziland533%41%Very Low
Kyrgyzstan634%42%Low
Egypt734%42%Low
Mali835%43%Very Low
Mauritania935%44%Very Low
India1035%44%High
Turkey1135%44%Very High
Algeria1236%44%Low
Burundi1336%45%Very Low
Nepal1436%45%Low
Azerbaijan1536%45%Low
Burkina Faso1637%46%Very Low
North Macedonia1737%46%High
Colombia1837%46%High
Togo1938%47%Very Low
Tajikistan2038%47%Very Low
Benin2139%48%Very Low
Ukraine2239%48%Medium
Moldova2339%48%Low
Comoros2439%49%Very Low
Lesotho2539%49%Very Low
Mongolia2639%49%Low
Bangladesh2739%49%Low
Paraguay2840%49%Low
Bolivia2940%49%Medium
Belarus3040%49%Low
Cameroon3140%49%Low
Guinea-Bissau3240%49%Very Low
Madagascar3340%49%Very Low
Indonesia3440%50%High
Bosnia and Herzegovina3540%50%High
Albania3641%51%High
Liberia3741%51%Very Low
Uganda3841%51%Medium
Cape Verde3942%52%Very Low
Kazakhstan4042%52%Low
Tanzania4142%52%Medium
Botswana4242%52%Low
Malaysia4342%52%Medium
Philippines4442%52%Medium
Sierra Leone4542%52%Very Low
Rwanda4643%53%Low
Iraq4743%53%Low
Morocco4843%53%Low
Romania4943%53%High
Nicaragua5043%54%Low
Iran5144%54%Low
Serbia5244%54%High
Malawi5344%54%Very Low
Bulgaria5444%55%High
Ghana5544%55%Low
Haiti5644%55%Very Low
Burma5745%55%Very Low
Namibia5845%56%Low
Kenya5945%56%Medium
Poland6046%56%Very High
Georgia6146%57%Low
Montenegro6247%58%High
Chad6347%58%Very Low
Thailand6447%58%Low
Mexico6547%59%High
Guinea6648%59%Very Low
Niger6748%59%Very Low
Suriname6848%59%Very Low
Vietnam6948%59%Medium
South Africa7048%60%High
Hungary7148%60%Very High
Laos7249%60%Very Low
Ivory Coast7349%61%Medium
Honduras7449%61%Low
Brazil7549%61%High
Peru7649%61%Medium
Armenia7750%62%Low
El Salvador7850%63%Medium
Ethiopia7951%63%Low
Sudan8051%63%Very Low
Ecuador8151%63%Medium
Argentina8252%64%Low
Equatorial Guinea8352%64%Very Low
Djibouti8452%64%Very Low
Cambodia8552%64%Medium
Fiji8652%65%Medium
Zambia8753%65%Very Low
Bhutan8853%66%Very Low
Zimbabwe8953%66%Low
Senegal9054%67%Low
Mauritius9154%67%Medium
Montserrat9254%67%Very Low
Gabon9355%69%Very Low
Costa Rica9455%69%High
Lithuania9556%69%Very High
Russia9656%69%High
Jordan9756%69%Low
Latvia9856%70%Very High
Chile9956%70%High
São Tomé and Príncipe10057%70%Very Low
Guyana10157%71%Medium
Mozambique10257%71%Very Low
Slovakia10358%72%Very High
DR Congo10458%72%Very Low
St. Vincent and the Grenadines10558%72%Very Low
Dominican Republic10658%72%Very Low
Czechia10758%72%Very High
Brunei10858%72%Low
China10959%73%High
Croatia11059%73%High
Panama11160%74%Medium
Taiwan11260%75%Low
Greece11361%76%Very High
Central African Republic11462%76%Very Low
Portugal11562%77%Very High
Belize11662%77%Low
Estonia11762%77%Very High
Jamaica11863%78%Low
Saudi Arabia11963%78%Medium
Slovenia12064%79%Very High
Nigeria12164%79%Low
Republic of Congo12266%82%Very Low
Oman12367%83%Low
Grenada12467%83%Very Low
Dominica12568%84%Very Low
Spain12668%84%Very High
Trinidad and Tobago12769%86%Low
South Korea12870%86%High
Cyprus12971%88%High
Antigua and Barbuda13073%90%Very Low
Italy13175%92%Very High
Uruguay13275%93%Medium
Bahrain13375%94%Medium
Malta13476%94%High
Kuwait13576%95%Low
Belgium13680%99%Very High
Germany13781%100%Very High
Maldives13881%100%Low
Japan13981%100%Very High
Austria14084%104%Very High
France14184%105%Very High
Seychelles14285%105%Very Low
St. Lucia14385%105%Very Low
Sweden14489%110%Very High
Finland14589%111%Very High
United Kingdom14689%111%Very High
Netherlands14790%112%Very High
Angola14891%113%Very Low
Aruba14991%113%Very Low
New Zealand15093%115%High
Canada15194%116%High
United Arab Emirates15295%118%Medium
Ireland15398%121%Very High
Barbados15498%121%Medium
Denmark15598%122%Very High
Australia15698%122%High
Qatar15799%123%Medium
United States158100%124%Very High
Luxembourg159102%127%Very High
Norway160106%131%Very High
Israel161109%136%High
Bahamas162112%139%Medium
Iceland163112%139%Very High
Singapore164120%149%Medium
Hong Kong165124%153%Low
Switzerland166129%160%Very High
Bermuda167168%209%Low
Full Where Can I Live Cost of Living Index – Including ‘Very Low’ Data Quality Countries.

3 Comments

  1. I’m 53 live in Canada and would like to retire soon . I have about a million dollars in savings. I’d like to live out the rest of my life by traveling. Say 6 months in 1 place then move on etc etc.

  2. Kindly assist with an update on relocation with a family of two children,father and mother. Good education,health care and low cost of living with a good job either volunteering etc.

  3. Good day to you. Kindly assist with an update on relocating to Thailand with father, mother and two children likewise getting a suitable job in area of volunteering as a social worker and teaching English.

    Your support and response will be well appreciated.

    Thank you.

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