When considering the purchase of property abroad, the cost of living emerges as a pivotal factor for potential buyers. In recent years, this aspect has grown in significance, becoming as crucial as the number of sunny days a location offers. While tax rates have historically varied across countries, in 2023, disparities in inflation rates and energy costs are also becoming increasingly pronounced.
In preparing your budget, it’s essential not only to account for the property’s purchase price and ongoing maintenance but also to consider the broader picture of long-term living expenses in your chosen location.
Cost of living indices are comprehensive, typically incorporating the average costs of rent, utilities, internet services, basic groceries, and common leisure activities such as enjoying a pint of beer. Based on data from expatistan.com, a leading cost-of-living database, let’s delve into what makes five of the most economically favorable European countries attractive, especially to British expatriates seeking a change of scenery.
Note that the most expensive European countries to live in currently include Switzerland, Ireland, Denmark, Luxembourg, the Netherlands, Norway, and the UK. Interestingly, a significant number of expatriates in the more budget-friendly countries originate from these higher-cost areas.
1. Bulgaria
Bulgaria remains a prominent feature in our annual ‘Top Ten Places to Buy Abroad’ indexes, ranking as the 56th most expensive country in terms of living costs. It offers a diverse range of options for potential buyers – from seaside resorts and ski destinations to tranquil rural retreats and bustling city opportunities. All these are available at a lower price point compared to many Southern European locales. As an emerging market, Bulgaria presents significant growth potential. For instance, in areas like Veliko Tarnova, one can find charming rural homes for less than £20k, making it a haven for those seeking affordability without compromising on the quality of life.
2. Greece
Greece, stylish and in vogue, ranks as the 37th most affordable country. Despite its popularity, property prices here are generally higher than in Bulgaria. Over the past year, the average search budget for properties in Greece hovered just below £250k. This figure interestingly aligns with the requirements for obtaining a golden visa in Greece. The island of Crete stands out for its wide array of property choices that cater to various budget ranges. From quaint village homes to luxurious seaside villas, Greece offers a blend of traditional charm and modern luxury.
3. Spain
Just trailing behind Greece in terms of affordability, Spain remains a favorite amongst property searchers. Known for its low local taxes, affordable public transportation, and inexpensive local produce and wines, Spain offers a lifestyle that is both desirable and attainable. The typical investment for properties in Spain centers around £150k, with most interest directed towards the southern coastal regions and the Canary Islands. For a more tangible perspective, consider the experiences of individuals like Karl and Vicky, who have successfully navigated the property market on the Costa Blanca with a budget of around £83k.
4. Croatia
Croatia, slightly pricier than Spain, offers a unique blend of natural beauty and cultural richness. Its recent adoption of the euro has seen a slight increase in living costs. While not in our Top Ten index, Croatia is celebrated for its breathtaking 6,278 km coastline, numerous idyllic islands, and tourist-favored coastal cities. For those seeking a blend of Mediterranean charm and Balkan heritage, Croatia presents an intriguing option.
5. Portugal
Just a notch below Croatia in affordability, Portugal is widely considered a budget-friendly destination, particularly outside the more cosmopolitan areas like Lisbon. Favored for its low tax rates and relaxed lifestyle, Portugal is a top pick for British expats seeking a sunny retreat. However, the average budget for property searches here is around £340,000, reflecting the country’s rising popularity and the high quality of life it offers.
In summary, each of these countries presents unique opportunities and challenges for potential property buyers. While cost considerations are paramount, it’s also important to factor in lifestyle preferences, cultural differences, and long-term residency implications when making your decision.
