The Price of a
Comfortable Life

Whether it’s the promise of a better job, access to top-tier education, or simply a healthier place to raise a family, there are countless reasons why people choose to start over abroad. In 2022, over 5.1 million individuals moved to the EU from outside Europe which is a clear indication that the appeal of relocation is only growing. The EU’s Schengen Area, which spans 30 European countries with no internal border checks, makes it easier than ever for citizens to move freely in search of a better future.

Ultimately, one’s bank account may have the final say since living costs can swing wildly from one European capital to another. A salary that stretches comfortably in Bucharest might barely cover the basics in Copenhagen.

To shed light on these differences, the team at Tradingpedia analysed the basic monthly expenses in 37 European countries, focusing on their capital cities. We compared typical expenses for single people and families of four, including food, housing, transport, personal care, and entertainment.

Using this data, we estimated the monthly income needed to live comfortably in each location and how much could potentially be saved by making thoughtful lifestyle adjustments in Europe’s most iconic capitals.

The cheapest EU capitals

Ranked by basic monthly expenses

Among Europe’s capitals, Minsk emerges as the most budget-friendly, with average monthly expenses of just €517 for a single resident. Rent is especially low, with a 45 m² studio costing around €272, and basic groceries adding up to approximately €58. Sarajevo also offers low living costs, with total monthly expenses averaging €585, including €337 for housing and €89 for staple foods. In Chisinau, the capital of Moldova, the basic monthly expenses are €635, which exceeds the median wage of €610. The breakdown includes €407 for housing and €71 for budget food expenses, an example of how low costs don’t always equal affordability. Skopje provides a similarly modest lifestyle at €648 per month, though limited savings are possible. Podgorica, Montenegro’s capital, offers a better balance with total monthly costs of €753 and a median income of €904, with typical outlays including €440 for housing and €111 for low-cost kitchen needs.

The most expensive EU capitals

Ranked by basic monthly expenses

At the other end of the spectrum, life in some of Europe’s most prominent capitals comes at a steep cost. Reykjavik tops the list with average expenses reaching €2,939 per month, driven by €2,042 for housing and €260 for essential groceries. London follows closely with basic monthly expenses of €2,933, where a 45 m² studio alone averages €2,021 and staple food costs come to €133, alongside €193 for a monthly transport pass. In Amsterdam, the average basic monthly expenses are €2,620, alongside €173 on common food items. Bern is similarly pricey, with monthly expenses totaling €2,540, including €1,570 for housing and €322 for basic groceries. Dublin rounds out the list at €2,329 per month, consisting of €1,637 for housing and utilities and €152 for a low-cost food basket.

The most affordable EU capitals

Basic monthly costs as % of monthly income

Europe’s wealthiest country, Luxembourg, boasts the most affordable capital. The city of Luxembourg, with a population of just 128,494, is a sought-after destination for expats both from Europe and beyond. Residents there earn an average net salary of €5,590, more than enough to live comfortably in this small but prosperous city. For a single person living in one of the more affordable areas, monthly living expenses average €2,237, just 40% of the earned salary. Even with the median wage, it’s possible to save as much as €3,353 per month, without having to be overly cautious with the spending.

Switzerland may not be the first country that comes to mind when one thinks of affordable living, but it might come as a surprise that its capital, Bern, ranks second among European cities. With an average monthly net salary of €6,262, even the city’s high prices for entertainment and groceries don’t bother the average resident. Our estimates show that a single person living in the city center would spend around €2,540 per month, only 40.6% of their income. This leaves them with €3,722 to either save or spend freely, without having to cut back on leisure activities or shopping.

Brussels, the heart of European politics and culture, ranks third in affordability among European capitals. A single person living in the city can expect to spend around €1,376 per month, which represents 49.6% of the average monthly net salary of €2,773. Despite the relatively high basic monthly expenses, those earning the average wage still have €1,397 left over each month. This gives them the flexibility to spend on leisure, savings, or anything else they choose, making Brussels a city where, despite its political importance, there is still room for personal financial freedom.

Another country with a substantial basic monthly expenses to wage ratio is Finland. Those living and working in the country’s capital, Helsinki, can expect to earn on average €2,914 a month. For comparison, an average 45 m² (480 sq ft) furnished studio in the city costs roughly €829 a month. Adding up food, personal care, and entertainment expenses gives us an estimated amount of €1,459 monthly expenses (50.1% of the salary) to live comfortably in the city. Earning the median wage, you can easily save €1,455 out of every paycheck while living comfortably. This makes Helsinki a very popular destination for expats from around the world to live and work in.

Copenhagen, known as one of Europe’s most expensive cities, is a prime example of a destination that’s costly for tourists but relatively affordable for locals. It’s also home to some of the most expensive Michelin-starred meals in Europe. A dinner for two at an Italian restaurant, including appetizers, a main course, wine, and dessert, will cost around €116, the highest on our list of EU countries. For those working and living in the city, however, these expenses are manageable. With a median wage of €4,006, residents can comfortably cover their costs. For a single person, average monthly expenses amount to €2,191 (54.7% of the salary), leaving €1,815 at the end of the month to save or spend as they choose.

The least affordable EU capitals

Basic monthly expenses as % of monthly income

Poland’s capital, Warsaw, stands out as the least affordable city among European capitals. Despite an average monthly salary of €1,701, residents face high basic monthly expenses, totaling €2,167. This means the average those expenses exceed the monthly salary by 127.4% leaving individuals struggling to make ends meet. To cover the gap, citizens would need to find additional €466 each month, which is a significant burden given the already limited income. In such a financial environment, the possibility of saving is virtually non-existent, making Warsaw a challenging city for its residents when it comes to financial comfort and security.

Tirana, the capital of Albania, ranks among the least affordable cities in Europe due to its exceptionally low wages. With an average monthly salary of just €673, the typical living expenses amount to €818 (121.6% of the income). This means that a single person living alone would need to come up with an additional €145 each month just to cover basic costs. While families fare slightly better thanks to economies of scale, a household of four would still be left with only €42 after paying for essentials. These figures highlight the financial strain many residents face in trying to meet even modest living standards.

Athens, Greece, ranks as the third most unaffordable capital in Europe. With an average net salary of €1,017 and basic monthly expenses reaching €1,149 and exceeding the income by €132. Despite its Mediterranean charm and cultural appeal, life in Athens remains a financial struggle for many residents.

Portugal’s capital, Lisbon, follows closely, with basic monthly expenses of €1,364. Despite its growing popularity among digital nomads and expats, the city remains unaffordable for many locals. The average salary falls short by €141, making it difficult for residents to cover everyday expenses without dipping into savings or relying on additional income.

The average net salary in Chisinau, Moldova is the lowest on our list at just €610 per month. Basic living expenses, however, reach €635, which is 104.1% of the monthly income. This means a single person would fall short by €25 to cover their costs. Interestingly, a family of four fares slightly better, with an estimated €172 left after covering essential expenses, a rare case where family living proves more manageable than living alone.

Most and least affordable EU capital cities for families of four

Basic monthly expenses as % of monthly income (includes two monthly salaries)

Switzerland, Luxembourg, Finland, Norway, and Denmark are among the most family-friendly countries in Europe thanks to high wages and strong public services. In Luxembourg, a single salary of €5,590 can easily cover a family’s €3,562 monthly expenses. Bern offers similar comfort, with family costs of €4,258 and two salaries leaving a surplus of over €8,266. In Helsinki, two incomes cover €2,332 in expenses, leaving €3,495 to save. Oslo families spend around €3,163 monthly and can save €3,745 with two salaries. In Copenhagen, where costs reach €3,869, two incomes make life significantly more comfortable.

At the bottom of the affordability rankings are several capitals where even two incomes struggle to fully cover monthly costs. Warsaw ranks as the least affordable, with basic expenses for a family of four (€3,473) exceeding two average wages (€3,401), leaving households short by €71 each month. In Tirana, a single person earning the average salary is short €147, while a dual-income household is left with just €41. Athens and Lisbon also prove difficult for individuals, where families’ basic expenses represent 93.2% and 83.3% of their monthly income, respectively. Even in Chisinau, Europe’s lowest-paying capital, the average single salary falls short by €26, with basic expenses making up 104.3% of income, though two earners can still manage with a modest surplus of €172.

Capitals with the most affordable food

Expenses as % of monthly income

To compare food affordability across European capitals, we created a basic weekly grocery basket for one person, including staples like cheese, chicken, eggs, tomatoes, bread, fruit, milk, and soft drinks. In Luxembourg, monthly food costs average €171, just 3.1% of the €5,590 median wage, the lowest ratio in Europe. London follows, with groceries costing €133 per month, or 3.7% of a €3,617 salary. Amsterdam ranks third, with four such baskets at €173, making up 4.4% of the average wage. In Dublin, food expenses average €152 per month (4.5% of a €3,411 salary), while Copenhagen residents spend around €203, or 5.1% of their €4,006 income. Looking only at prices, the cheapest weekly basket is in London at just over €33, followed by Dublin at €38. In Amsterdam and Copenhagen, the same items cost about €43, while Luxembourg has the priciest basket at €51.

Capitals with the most affordable public transport

Expenses as % of monthly income

Public transportation is a daily necessity in most European capitals, especially in vibrant cities like London and Berlin. While travel costs can eat into monthly budgets in many places, that’s not the case everywhere. Take Luxembourg, for instance, where all buses, trams, and trains are completely free for both residents and tourists. The only exception is for those opting for first-class service, with monthly tickets starting at €36, just 0.6% of the city’s high median salary. Prague also stands out with a monthly transport pass costing just €21, or 1.2% of the average income. Even better, residents over 65 can ride all public transport for free. In Bern, public transport is an essential part of daily life, with nearly every neighborhood well connected by trains, trams, and buses. However, convenience comes at a cost, since monthly passes average €82, which is high by European standards, though still only 1.3% of the local median wage. Bucharest claims the lowest public transport fees in the EU, with unlimited monthly travel available for just €18. That’s just 1.5% of the city’s median income, making it a particularly affordable option for locals and tourists alike. Finally, in Madrid, where public transport is indispensable in the city, a monthly travel card costs €31, which amounts to 1.6% of the median wage.

Capitals with the most affordable entertainment

Expenses as % of monthly income

Like most things in Luxembourg, entertainment is quite affordable if you’re earning the city’s generous median wage. On average, the price for two cinema tickets is €25, while booking two good seats at a local theatre will cost you roughly €72. Monthly entertainment expenses average around €300, which is just 5.4% of the city’s median salary. Switzerland’s capital, Bern, has the highest entertainment costs among the European cities on this list. Residents spend an average of €483 per month on entertainment which might seem high, but it only represents 7.7% of the city’s substantial median wage. In Oslo, a cocktail at a local pub will set you back about €13, and going to the cinema with a friend costs around €27, fair prices for a European capital. In total, monthly entertainment expenses average €332, or 9.6% of the city’s average wage. In Brussels, renowned for its fine dining, a typical dinner for two ranges from €46 to €86, depending on the restaurant. Altogether, monthly entertainment spending in the Belgian capital comes to roughly €284 for a single person, or 10.2% of the standard monthly wage. Entertainment expenses in Paris average €319. Two cinema tickets cost around €24, and a pair of good seats at the theater are roughly priced at €116. Monthly gym passes in the city are among the cheapest in Europe, averaging just €29 per month. If you’re living in the city and earning the median salary, your monthly entertainment costs will be about 10.5% of your income.