Cost-of-living rankings

How these rankings are compiled

Each ranking is computed directly from Eurostat's comparative price-level data, the same harmonised methodology used to compare the cost of a standardised basket of goods and services across countries, with the EU-27 average set to 100. We do not blend editorial opinion or proprietary signals; the underlying figure for every country is visible on its profile page so you can verify it. Rankings recompute whenever the upstream Eurostat data refreshes.

Why a price-level index, not raw prices

Raw local prices are misleading across borders: exchange rates move, and consumption patterns differ. A comparative price-level index removes both problems by pricing the same basket everywhere and expressing it relative to the EU-27 average. An index of 120 means prices are roughly 20% above the EU norm; an index of 80 means about 20% below. That makes a country in Eastern Europe genuinely comparable to one in the Nordics, which raw euro figures never are.

Cheap to live in is not the same as best value

The cheapest countries on the overall list are often those with lower incomes, so a low price level does not automatically mean a high standard of living. The best-value ranking addresses this by dividing median net income by the local price level, a measure of how far a typical income actually stretches. Reading the cost rankings alongside the income and best-value rankings gives a far more honest picture than any single list.

Category rankings matter as much as the headline

A country's overall index can hide large category differences. Somewhere with cheap groceries and transport may still have expensive rent, which dominates most household budgets. That is why we publish category rankings, rent, groceries, transport, healthcare, utilities and dining, separately. If housing is your biggest concern, the rent ranking is more useful than the overall one; if you eat out often, the dining ranking matters more. Open any country profile to see all categories side by side.