The Cost of Living Overseas Index 2024

Fed up with the increasing cost of living in the UK? Had enough of the rising costs of, well, everything? 

Have you ever stopped to wonder whether moving to live in another country could save you a bit of money? Not only that, but you could also enjoy its culture while appreciating warmer weather, all while saving a pretty penny.

Discover how to live more affordably when you move abroad. Download your free guide now!

If relocating is something that’s crossed your mind, especially in recent years when international buyers have felt the impact of rising inflation and the cost of living crisis, it could pay off to get a little more informed about your options.

So, is it cheaper to live abroad in 2024?

The Cost of Living Overseas Index looks at prices across 13 countries and compares UK prices with those in Spain, France, Italy, Portugal, Cyprus, Greece, Ireland, Germany, USA, Canada, Australia and New Zealand. Property Guides compiled the data in December 2023, so the costs are accurate and you know exactly what it’d cost to live abroad, not just visit.  

The cost of living abroad, not booking a holiday

Unlike other reports primarily centred on travel or holiday expenditures, our report delves deeper into everyday living expenses. We aim to provide a realistic perspective on the day-to-day outlays an expat, holiday home owner or retiree may encounter when settling into a new home abroad

Our “basket of goods” includes everyday staples like a litre of milk and a loaf of bread, but adds a few British favourites like the all-important teabags and a bottle of gin. 

We’ve also compared the cost of actually setting up your new home, including decorating materials such as paint and the cost of IKEA bookcases, as well as the cost of a cleaner to keep your home clean and tidy. We’ve even looked into the cost of a week’s car hire (and a tank of petrol to go in it).

Many prospective property buyers are looking for a more laid-back and relaxed lifestyle, so we’ve also checked the prices of popular leisure items and activities – from Netflix subscription costs to the price of cinema tickets… we’ve even looked at the cost of Mario Kart! And because some things are just weirdly expensive abroad, such as paracetamol in Canada or laundry powder in Greece, we’ve analysed those items too! 

For a more in-depth look at a particular country’s cost of living performance, please head to the following pages:

• France
• Spain
• Italy
• Cyprus
• Greece
• Ireland
• Portugal

To understand how to keep in control of your costs when moving abroad, and see insider tips on how to live better on less money in the sun, Download your free guide now!

The home

Once you’ve made the move to your dream overseas property, you’ll want to make it your own. So, we’ve looked at the average price of buying standard furniture and electrical appliances, paint to decorate your new home and even the price of hiring a domestic cleaner to keep your property as good as the day you bought it.

Here’s an overview of our findings:

• Electricals – like a standard 55” Samsung TV and an Amazon Alexa Echo Dot – are the cheapest to buy in Italy and the most expensive in Australia.  
• Decorating supplies are 95% more expensive in New Zealand, compared to the average price across the board.
• Hiring a domestic cleaner costs the most in the USA. A two-hour house clean in the USA costs the equivalent of around £76, compared to £30 in the UK, £17 in Italy and only £13 in Greece.
• The price of the same standard IKEA Billy bookcase can vary by as much as £53 from country to country! In the UK, the furniture staple costs £55, whereas in New Zealand it costs the equivalent of £95. 

Off the back of the energy crisis and hike in energy bills across the UK, we also decided to look at the price of electricity across Europe. Surprisingly, whilst we’ve certainly not got it cheap in the UK, electricity is still more expensive in Cyprus, the USA and Canada, whilst it’s significantly cheaper in Spain and Italy. To work this out, we took the standard price per kilowatt-hour in each country and multiplied it by 100 to give a rough representative cost to heat and power a flat or small house for one week. 

Groceries

When it comes to cupboard and fridge staples like bread, butter, milk, apples, dog food, chocolate and laundry detergent, shopping in Spain in 2024 is far cheaper than in any other country we looked at. To fill your basket with the 17 basic items we analysed, you should expect to pay around £52.23.

It probably comes as no surprise that the UK is almost 53% more expensive. When it comes to the average supermarket shop, it’s the fourth most expensive country on our list. Most notably dog food, gin and dark chocolate are more than double the price in the UK compared to Spain. It turns out that the UK does have the cheapest lettuce prices but we’re sure you’ll agree none of us are too bothered about a salad… 

 

Healthcare

It’s so important that you’re aware of the cost of looking after your health when you move abroad. In this case, we’ve looked at the price of a pack of paracetamol, the price of sanitary products, the cost of nappies and the cost of a basic checkup at the dentist.

Looking after your dental health and visiting the dentist costs the most in the USA at £47 on average, whilst it’s the cheapest in Germany at around £17. 

Interestingly, the UK is the place that charges the lowest amount for a pack of paracetamol, you can pick up a pack of 16 x 500 mg paracetamol pills for as little as 39p here, but expect to pay as much as £3.39 for a similar product in Cyprus, or even £3.49 in Canada!

 

Travel

The cost of fuel in the UK has been on the rise since the pandemic, but this has been felt across Europe too. Our research found that the USA had the lowest fuel prices out of the 12 countries surveyed**. To fill your tank with 50 litres of unleaded petrol in the USA, expect to pay £37.88, whereas you’d be shelling out £46.50 in Australia and £59.06 in Spain. In comparison, the same amount is around £77 in the UK. 

We also looked at the cost of hiring a car, and the price of a return train ticket if you were travelling to another town around an hour away. Overall, New Zealand is the most expensive in terms of travel, closely followed by Australia and then the UK. Travel costs are the lowest in Italy and Greece.

Leisure

For whatever reason it is that you’re looking to move abroad, the price of socialising and having fun will always need to be factored in. 

If you’re looking for a cheap pint, then Portugal is the place for you. A half-pint of beer in a Portuguese bar costs the equivalent of around £1.72, compared to £2.39 in the UK. It’s a similar story for coffee buffs too – in Italy and Portugal, you can expect to find a medium cappuccino in a local independent coffee shop for around £1-1.50. In the UK, the same coffee will cost you around 260% more! 

For those who enjoy fine dining, treating yourself to a meal out costs the most in Germany. A three-course meal in a mid-range restaurant will set you back about £38. It’s cheapest to dine out in Spain, where you can get the equivalent for about £15. 

Bookworms will probably want to steer clear of France, where paperbacks cost around £21 on average. Your home library will be cheaper to build in Greece, where books are around £9.45 by comparison.

Conclusion

We found Spain to have the lowest cost of living compared to the other countries analysed. To put that into context for UK buyers, the same ‘basket of goods’ that cost £1,996 in the UK cost just £1295 in Spain – that’s a huge saving of £701*! 

Overall ranking (vs. UK prices*)

1. Spain (1,295 – £701 cheaper than the UK)
2. Italy (£1,451 – £553 cheaper than the UK)
3. Portugal (£1,486 – £510 cheaper than the UK)
4. Greece (£1,490 – £506 cheaper than the UK)
5. Germany (£1,694 – £288 cheaper than the UK)
6. Ireland (£1,714 – £281 cheaper than the UK)
7. Canada (£1,781 – £215 cheaper than the UK)
8. Cyprus (£1,809 – £187 cheaper than the UK)
9. USA (£1,829 –£167 cheaper than the UK)
10. France (£1,851 – £145 cheaper than the UK)

Two countries in our survey came out more expensive than the UK. They were: 

1. Australia (£2,162 – £166 more than the UK)
2. New Zealand (£2,307 – £310 more than the UK) 

For those considering emigrating to the European countries closest to the UK, the results bode well, with Spain being revealed as the most affordable country to live in, closely followed by Italy, Portugal, Greece and Germany, making up the five of the most affordable countries for the cost of living. 

The prices for everyday items have increased worldwide due to the cost of living crisis but this was heavily felt in France, where homeowners felt the bite, especially in early 2023 when inflation was over 7%. The current inflation rate for the euro area is 2.9% and is expected to decline in 2024. 

Methodology

All prices were recorded in December 2023. It’s worth noting we have considered tax where appropriate, in the USA and Canada. 

To ensure like-for-like measures, researchers abroad were given strict criteria on the kind of shops to use, your regular supermarket, per se.

Please note: 

• Petrol prices are for a tankful (50 litres) of unleaded, as of 10th December. 
• Car hire was a small car, booked at a regional airport or city for one week, 11-15 December 2023.
• The train fare was based on a distance equivalent to London to Brighton return, off-peak, booked on the day.
• The TV was a 50” Samsung QLED, 4K HDR.
• Electricity is per kilowatt hour, for 100 hours, which is roughly the cost of a flat or small house for one week.

*: rounded up to the nearest pound

**: correct at the time of publication

If you would like any more information or details on the research, please contact us at [email protected] or call us on 020 7898 0549.

 

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