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Cost of Living Comparison: Is Moving to Europe Actually Cheaper Than the US?

Ghent, Belgium, Photographer: Sean Pavone / Shutterstock

You’ve probably already run some version of this calculation in your head. Maybe you looked up rent in Lisbon after seeing it mentioned in an article. Maybe a friend moved to Spain and their monthly expenses sounded implausible. Maybe you’re just tired — tired of the rent, the insurance premiums, the commute, the sense that no matter how much you earn, the math never quite works.

Whatever brought you here, you’re asking the right question. Is moving to Europe actually cheaper than staying in the US?

The short answer is: often yes, sometimes no, and always more complicated than a single headline can capture.

The longer answer — the one that will actually be useful to you — depends on where in Europe you’re considering, what your income looks like, whether you have children, and what kind of life you want to build. A single remote worker moving to Porto will have a radically different financial experience than a family of four moving to Munich. Both are “moving to Europe.” The costs are not remotely comparable.

This guide is built for people who want to get past the vague comparisons and into the actual numbers. We break down every major cost category — rent, healthcare, food, transport, taxes, and the hidden costs most expat content ignores — using 2026 data from Numbeo, Expatistan, official government sources, and the real experience of Americans who’ve made the move.

We’ll tell you which European countries are dramatically cheaper than the US (Portugal, Greece, Romania, Bulgaria). Which ones are comparable (Germany, France, the Netherlands). And which ones will cost you more than Manhattan (Switzerland, Norway, Denmark). We’ll walk through the tax picture honestly — including the part nobody mentions, which is that US citizens living abroad still file US taxes every year. And we’ll give you a clear framework for figuring out whether this makes sense for your specific situation.

By the end of this guide, you won’t need to wonder anymore. You’ll know.

In this article:

Why So Many Americans Are Asking ‘Is Europe Cheaper to Live In Than the US?’ Right Now

Overall Cost of Living Index: Europe vs USA — What the Data Actually Says

Cheapest Countries in Europe for Americans to Live — Ranked

Rent in Europe vs the US: How Much Will You Actually Pay?

Healthcare Costs in Europe vs USA: Is “Free” European Healthcare Actually Free for Expats?

Groceries and Eating Out: Is Food Cheaper in Europe Than in the US?

Transportation Costs: Car Dependency in the US vs Public Transit in Europe

Taxes and Salary: Will You Actually Take Home More Money Living in Europe?

What No One Tells You About Moving to Europe: Hidden Costs That Surprise Expats

Is It Cheaper to Live in Europe on a Remote Work Salary? (Digital Nomad Reality Check)

So Is Moving to Europe Actually Cheaper? The Honest Answer

Why So Many Americans Are Asking 'Is Europe Cheaper to Live In Than the US?' Right Now

Something shifted in the American psyche around 2022 and it has not shifted back. Housing costs have soared to generational highs. Health insurance premiums keep climbing faster than wages. Childcare in major US cities now rivals rent as a monthly expense. And a growing number of Americans — remote workers, retirees, freelancers, and families alike — have started asking a question their parents’ generation rarely did: what if we just left?

Google searches for ‘cost of living in Europe vs USA,’ ‘is it cheaper to live in Europe,’ and ‘moving to Europe from the US’ have hit record highs in the past three years. Forums like r/expats and r/digitalnomad are flooded with threads from Americans doing the math for the first time, often shocked by what they find.

But here’s the thing: the answer is genuinely complicated. Europe is not one country. It’s 44 nations with wildly different price levels, tax systems, healthcare structures, and visa requirements. Moving to Zurich will cost you more than New York. Moving to Lisbon could cost you 30–40% less than Atlanta.

This guide cuts through the noise. We break down every major cost category — rent, healthcare, food, transport, taxes — with real data from 2025 and 2026. By the end, you’ll have a clear, honest picture of where, when, and for whom moving to Europe actually makes financial sense.

Overall Cost of Living Index: Europe vs USA — What the Data Actually Says

The most widely cited dataset for international cost comparisons is Numbeo’s Global Cost of Living Index, which benchmarks countries against New York City (score of 100). According to their 2026 data, the United States ranks 19th globally with a score of 56.3 — already an expensive country by world standards.

But Europe spans an enormous range on that same index:

Nomad Atlas · 2026 Data
Cost of living index: Europe vs the US
New York City = 100 baseline. Lower score = cheaper than NYC.
Country
vs US average
Index
Cheaper than US
Roughly comparable
More expensive than US
Source: Numbeo Global Cost of Living Index 2026. NYC = 100 baseline. US average score: 56.3.

The takeaway is simple but important: if you’re comparing “Europe” to the US as a single entity, you’re asking the wrong question. The right question is which part of Europe, and what kind of life?

Figures are estimates based on publicly available data (Numbeo, Expatistan 2026) and are for illustrative purposes only. Actual costs vary by location, lifestyle, and individual circumstances. This is not financial, legal, or tax advice. Always consult a qualified professional before making any relocation decisions. Nomad Atlas accepts no liability for decisions made based on this content.

Photographer: maxbelchenko / Shutterstock

Cheapest Countries in Europe for Americans to Live — Ranked

For Americans seeking a genuine cost-of-living reduction, Southern and Eastern Europe are where the math works most clearly. Here are the standout destinations based on affordability, English accessibility, expat infrastructure, and visa availability for US citizens.

Portugal has consistently topped expat surveys for good reason. A single person can live comfortably in smaller cities like Braga or Setúbal on €1,200–€1,750 per month all-in. Couples outside Lisbon can manage on €2,500–€3,000. The D7 Passive Income Visa and D8 Digital Nomad Visa are well-established pathways for Americans, with income thresholds starting around €820 per month.

Greece offers some of the most affordable urban living in Western Europe. Athens runs noticeably cheaper than Lisbon on most metrics — a single person can live well on €1,000–€1,500 per month. The Greek Digital Nomad Visa allows stays of up to two years. Smaller islands and mainland towns drop costs further.

Spain has seen rental inflation in Madrid and Barcelona in recent years, but Valencia, Seville, and the interior remain very affordable. Monthly costs for a single person run €1,400–€2,200 depending on city and lifestyle. Spain’s Non-Lucrative Visa is a common entry point for Americans with passive income.

Hungary, Romania, and Bulgaria offer the most dramatic cost reductions — 50–60% cheaper than the US average. Budapest, Bucharest, and Sofia all have vibrant expat communities, strong internet infrastructure, and monthly budgets for a comfortable single life in the €800–€1,300 range.

Quick stat: A couple living in Porto, Portugal spends roughly the same per month as a single person renting a one-bedroom apartment in Austin, Texas — and gets significantly more for it.

Rent in Europe vs the US: How Much Will You Actually Pay?

Rent is the single biggest driver of cost-of-living differences between the US and Europe, and the gap is significant — widening the more expensive the American city you’re coming from.

Nomad Atlas · 2026 Data
Rent in Europe vs the US
Monthly rent for a 1-bedroom apartment. Toggle between city centre and outside centre.
City
Monthly rent
vs NYC
United States
Europe
—
avg US city
rent (1BR)
—
avg European
rent (1BR)
—
average
monthly saving
Source: Numbeo, Expatistan 2026. Ranges shown as midpoint averages. Prices in local currency converted at 1 USD ≈ 0.92 EUR (March 2026).

Figures are estimates based on publicly available data (Numbeo, Expatistan 2026) and are for illustrative purposes only. Actual costs vary by location, lifestyle, and individual circumstances. This is not financial, legal, or tax advice. Always consult a qualified professional before making any relocation decisions. Nomad Atlas accepts no liability for decisions made based on this content.

A few nuances worth knowing: European landlords in popular expat cities often require two to three months’ deposit upfront, plus a month’s rent in agency fees. Short-term furnished rentals through platforms like Uniplaces or local agencies cost more per month but eliminate the upfront commitment — useful for your first three to six months while you find a permanent place.

Also note that rental prices in Lisbon and Barcelona have risen sharply over the past five years due to expat and digital nomad demand. Emerging cities like Braga (Portugal), Plovdiv (Bulgaria), and Timișoara (Romania) offer much better value and are increasingly popular with savvy expats who’ve done their homework.

Healthcare Costs in Europe vs USA: Is "Free" European Healthcare Actually Free for Expats?

This is one of the most misunderstood areas of the Europe vs US comparison. Yes, most European countries have universal public healthcare — but as a newly arrived American resident, you won’t automatically have full access to it. At least not immediately, and not in every country.

Most European countries require either a period of legal residency, employment, or social security contributions before you can access the public system. As a new arrival on a passive income or digital nomad visa, you’ll typically need private health insurance — at least initially.

The good news: private health insurance in Europe is dramatically cheaper than in the US. Comprehensive expat health insurance in Portugal or Spain typically runs €60–€200 per month for a healthy adult, covering hospitalization, specialist visits, and prescriptions. Compare that to the US average of $500–$700 per month for a marketplace individual plan with a high deductible.

Nomad Atlas · 2026 Data
Healthcare costs: US vs Europe
Out-of-pocket and insurance costs for Americans. European figures reflect private expat insurance rates.
Cost type
United States
Europe (expat)
~10×
more expensive for monthly US premium
$4,800+
avg annual US premium saved by moving abroad
€15–20
Portuguese ER visit vs $2,200+ in the US
Sources: KFF Health Insurance Survey 2025, Numbeo, Expatistan. European figures are private expat insurance estimates. Public system access varies by residency status and country.

Figures are estimates based on publicly available data (Numbeo, Expatistan 2026) and are for illustrative purposes only. Actual costs vary by location, lifestyle, and individual circumstances. This is not financial, legal, or tax advice. Always consult a qualified professional before making any relocation decisions. Nomad Atlas accepts no liability for decisions made based on this content.

Over time, as you establish residency and contribute to the local system, you’ll gain access to public healthcare — which is genuinely excellent in countries like Portugal (ranked 4th globally by the WHO for healthcare access in 2024) and Spain. The long-term picture strongly favors Europe.

Perast, Montenegro, Photographer: givaga / Shutterstock

Groceries and Eating Out: Is Food Cheaper in Europe Than in the US?

Broadly yes — with some important caveats. Everyday staples, fresh produce, local meat, and especially alcohol are significantly cheaper in Southern and Eastern Europe. But branded products and imported American goods often cost more.

A month’s worth of groceries for one person in Portugal averages €200–€300, covering a full, healthy diet. The equivalent basket in a US city typically runs $450–$600. The savings are most pronounced on fresh vegetables, fish, eggs, and local dairy — all substantially cheaper in Mediterranean Europe.

Where Europe surprises Americans: branded cereals, cleaning products, and familiar US snack brands are often 20–40% more expensive because they’re imported or niche. Adapting your shopping habits to local equivalents closes this gap entirely.

On the dining-out front, Southern Europe genuinely shines. A three-course lunch menu at a local Portuguese restaurant costs €8–€12, including a drink. Street food and market lunches come in at €3–€5. A restaurant dinner for two with wine: €25–€50 — a fraction of a comparable US meal.

A bottle of decent local wine at a Portuguese supermarket runs €4–€6. The same wine in the US costs €12–€18. Domestic beer in a Portuguese bar: €1.50–€2.50. These numbers add up over a month in ways that quietly reshape your savings rate.

Transportation Costs: Car Dependency in the US vs Public Transit in Europe

This is one of the most underappreciated cost differences between American and European life — and one that compounds massively over time.

In the United States, roughly 45% of Americans live in areas with no meaningful public transit access. Car ownership isn’t optional in most of the country — it’s a survival requirement. The average American spends approximately $10,000–$12,000 per year on vehicle ownership when you factor in car payments, insurance, fuel, maintenance, and parking.

In Europe’s transit-rich cities — Lisbon, Madrid, Athens, Budapest, Vienna — a monthly transit pass costs €30–€60. Trains, metros, trams, and buses are frequent, reliable, and connect most of the places you’d want to go. Many expats in these cities find they don’t need a car at all.

The annual savings of ditching a car in a European city can easily exceed $10,000 — enough to offset any rent premium you might pay compared to a cheaper US city. It’s one of the most powerful levers in the Europe vs US financial comparison, and it almost never appears in headline cost-of-living numbers.

One caveat: if you’re planning to live in rural France, rural Spain, or the Portuguese Alentejo, you’ll likely still need a car. The transit savings apply to urban and semi-urban European life. Research your specific destination before assuming you can go car-free.

Taxes and Salary: Will You Actually Take Home More Money Living in Europe?

This is where the comparison gets genuinely nuanced — and where most takes get it wrong by oversimplifying in either direction.

On paper, income tax rates in most European countries are higher than in the US. A Portuguese resident earning €60,000 pays a marginal rate of around 37%. A German resident at the same income faces a combined rate of approximately 35–40%. These numbers look alarming compared to US federal rates.

But here’s what’s included in those European taxes that Americans pay for separately — and expensively: universal or near-universal healthcare, comprehensive public pension systems, heavily subsidized or free university education, generous parental leave (often 16–52 weeks paid), and robust unemployment protection. When you add up what an American family spends on health insurance, childcare, and college savings on top of their taxes, the total burden often rivals or exceeds what a comparable European family pays. The mechanisms differ. The math is closer than it appears.

Several European countries also offer preferential tax regimes for new residents that dramatically improve the picture for Americans:

Portugal’s NHR programme (now evolved into IFICI) offers reduced flat rates on certain foreign income for the first 10 years of residency. Spain’s Beckham Law allows qualifying new residents to pay a flat 24% rate on Spanish-source income for up to six years. Italy’s flat-tax regime allows new residents to pay a flat €100,000 per year on all foreign income regardless of amount — highly attractive for high earners. Greece offers a 50% income tax exemption for qualifying workers relocating for employment purposes.

The US tax wrinkle: US citizens living abroad are required to file a US federal tax return every year regardless of where they live — one of only two countries in the world that taxes on citizenship rather than residency. However, most Americans abroad avoid double taxation through the Foreign Earned Income Exclusion (which excluded up to ~$126,500 of foreign earned income in 2024) or the Foreign Tax Credit. For most expats earning a moderate income, the result is minimal or zero US tax owed. But the filing obligation is real, and working with a US expat tax specialist is strongly recommended.

Pro tip: Never make a move abroad based on general tax information. Tax outcomes are highly individual — they depend on your income type, visa status, residency duration, and the specific treaty between the US and your destination country. Budget €300–€800 per year for a qualified US expat tax advisor. It pays for itself many times over.

Kandersteg, Switzerland, Photographer: Sean Pavone / Shutterstock

What No One Tells You About Moving to Europe: Hidden Costs That Surprise Expats

Every comparison article focuses on monthly rent and grocery costs. Fewer talk about the one-time and ongoing costs that catch first-time expats off guard.

One-time relocation costs include shipping your belongings ($2,000–$8,000 depending on volume — many expats sell most possessions and start fresh), visa application fees (€90–€600+ depending on visa type and country), legal and immigration assistance (€800–€3,000, highly recommended for residency permit applications), and the first-month setup costs of deposits, agency fees, and buying household items you didn’t ship.

Ongoing costs Americans consistently underestimate include US expat tax filing (€300–€800 per year with a specialist), translation and apostille services for documents (€200–€500 per year), international wire transfer fees (use Wise or Revolut to minimize these), language classes if you want genuine integration (€50–€200 per month), and flights home for visits ($600–$1,800 per round trip depending on season and where in Europe you’re based).

The international school question deserves its own callout. If you have school-age children, this is the single biggest wild card in your budget. Public schools in European countries are free and often excellent — but instruction is in the local language. Many expat families, especially those planning a two to three year stay rather than a permanent move, opt for international schools. Fees vary widely: €6,000–€25,000 per child per year is typical, with flagship IB schools in major cities at the higher end. This can single-handedly eliminate the cost savings of moving abroad if not planned for carefully.

Is It Cheaper to Live in Europe on a Remote Work Salary? (Digital Nomad Reality Check)

This is the scenario that drives most of the “is Europe cheaper” searches — and for good reason. If you’re earning a US salary in dollars while spending in euros, the math can be extraordinary.

The real advantage isn’t just the exchange rate — it’s the price level. A $5,000 per month remote salary in Austin, after rent, healthcare, car, and food, might leave you with $500–$800 in monthly savings. The same $5,000 income in Lisbon, where you don’t need a car, pay €80 per month for health insurance, and spend €900 on a nice apartment, could leave you with $1,500–$2,500 in monthly savings.

Nomad Atlas · Interactive Calculator
Remote salary: Austin, TX vs Lisbon, Portugal
Drag the slider to see how your monthly income plays out in both cities — same job, completely different financial picture.
Monthly income (USD)
$5,000
🇺🇸
Austin, TX
United States
Total spend—
Monthly savings—
🇵🇹
Lisbon, Portugal
Europe
Total spend—
Monthly savings—
Monthly savings comparison
Expenses are estimates based on Numbeo 2026 data. Austin figures in USD; Lisbon in EUR converted at 1 USD ≈ 0.92 EUR. Individual costs will vary.

Operating as a remote worker in Europe isn’t just a lifestyle choice — it requires the right visa. Simply working on a tourist visa (the Schengen 90-day allowance) is technically illegal in most European countries, and enforcement has increased significantly in destinations like Lisbon and Barcelona. Several countries now offer purpose-built digital nomad visas:

  • Portugal D8: requires ~€3,480/month income. Valid 1–2 years, renewable.
  • Spain: requires ~€2,334/month income. Valid up to 5 years.
  • Greece: requires €3,500/month income. Valid 2 years, renewable.
  • Croatia: requires ~$2,900/month income. Valid 1 year.
  • Germany Freelancer Visa: no income minimum, but requires clients outside Germany and relevant professional qualifications.

Figures are estimates based on publicly available data (Numbeo, Expatistan 2026) and are for illustrative purposes only. Actual costs vary by location, lifestyle, and individual circumstances. This is not financial, legal, or tax advice. Always consult a qualified professional before making any relocation decisions. Nomad Atlas accepts no liability for decisions made based on this content.

Signagi, Georgia, Photographer: Pikoso.kz / Shutterstock

So Is Moving to Europe Actually Cheaper? The Honest Answer

After all that data, here’s a straight answer: it depends on three things — where in Europe, what your income source is, and what your lifestyle looks like.

Europe is almost certainly cheaper if you are…

  • Earning a US remote income ($4,000+ per month) in USD while spending in euros or local currencies
  • Moving to Southern or Eastern Europe — Portugal, Spain, Greece, Hungary, Romania, Bulgaria
  • Living without a car in a walkable, transit-connected city
  • A couple or single person without school-age children, or willing to use local public schools
  • Comfortable adapting your shopping and lifestyle habits to local norms


Europe may not be cheaper if you are…

  • Moving to Scandinavia, Switzerland, or the Netherlands — these countries are more expensive than most of the US
  • Earning a local European salary rather than a remote US income (European wages in most fields are lower than US equivalents)
  • Planning to send multiple children to international schools (€15,000–€50,000+ per year combined)
  • Maintaining a fully American lifestyle — imported products, frequent transatlantic flights, US streaming subscriptions in currency conversion
  • A high earner in a no-income-tax US state like Florida or Texas who benefits from that structure


For the median American earning $60,000–$100,000 remotely and willing to build a life genuinely adapted to their new home, Southern or Eastern Europe can realistically cut monthly expenses by 30–50% while meaningfully improving quality of life — particularly around healthcare access, leisure time, and daily stress. The financial case is strongest when you approach it with realistic expectations and personalized numbers, not continental averages.

This guide was produced by the Nomad Cloud research team using data from Numbeo (2026 Cost of Living Index), Expatistan, official government sources for visa requirements and income thresholds. All costs are approximate and subject to change. Exchange rate used: 1 USD ≈ 0.92 EUR (March 2026). This is not financial or legal advice — consult qualified professionals for decisions specific to your situation.