With summer behind us, households across Europe are turning their attention to the colder months ahead, a season that often brings higher energy bills and added school-related expenses. With this in mind, I am reaching out to share a comprehensive report, which examines the basic living costs in different European capitals and compares them against local wages.
To uncover which capitals offer the most comfortable standard of living with the least financial strain relative to monthly income, the team at Tradingpedia compared data from 37 European capitals, taking into account everyday expenses and average monthly salaries. The report provides a comprehensive breakdown of essential expenses, including housing, food, transportation, personal care, and entertainment, to offer a clear picture of affordability across the continent. The complete dataset behind the report is also available on Google Drive via this link.
Known for being expensive, Luxembourg and Bern are Europe’s most affordable capital cities, according to the price and income comparison. In Luxembourg, basic expenses consume 40.03% of the average monthly income, while in Bern, residents need to set aside 40.57% of their salary for food, housing, and transport. In contrast, residents of Warsaw and Tirana face the heaviest financial burdens, with living expenses exceeding average monthly earnings by more than 20%.
These are the 10 most affordable European capitals based on basic expenses as a percentage of the average monthly wage:
- Luxembourg – Luxembourg ranks as the most affordable European capital. A single person spends about €2,238 per month on essentials like rent, food, and transportation, which accounts for just 40.03% of the city’s median wage of €5,590.
- Bern – Although Bern is among Europe’s most expensive capitals, it ranks second in terms of affordability. Monthly living costs average €2,541, but this represents only 40.57% of Bern’s median salary, which is also the highest among European capitals at €6,262 per month.
- Brussels– Brussels ranks third with costs amounting to just 49.68% of the average monthly wage. A single person spends around €1,377 per month, while the median income stands at €2,773.
- Helsinki – The Finnish capital city ranks 4th with monthly expenses (€2,914) consuming 50.08% of the average salary earned in the city, €1,459 per month.
- Copenhagen – Ranking 5th on the list is Copenhagen, where the basic monthly expenses (€2,191) eat roughly 54.70% of the average salary in the city, €4,006 per month.
- Vienna – The Austrian capital ranks 6th in terms of costs-to-income ratio, with expenses (€2,642) accounting for 58.87% of the average monthly wage of €1,555.
- Oslo – The city ranks 7th despite its high overall cost of living. Expenses here were estimated at around €2,044 per person per month, which represents 59.18% of the average monthly salary, €3,454.
- Berlin – Berlin ranks 8th on the ranking with basic expenses coming up to €1,738 or around 60.09% of the average wage in the city, €2,892/month.
- Sofia – Despite earning the lowest salary in the EU, Bulgaria and its capital city of Sofia rank 9th on the affordability ranking. Here, basic expenses are just €813 per month on average and make up 61.91% of the local monthly salary (€1,314).
- Stockholm – Sweden’s capital, Stockholm, ranks 10th with the basic costs for food, shelter, and transport (€1,942) consuming 61.97% of the monthly wage residents earn on average, €3,134.
