Cost of Living Index by Country 2026: Where Your Money Goes Furthest Worldwide

Country-level cost of living indices are one of the most searched financial topics for expats, but most published indices rely on crowdsourced data with no verifiable methodology. Our index takes a different approach: we calculate the average monthly budget across every city we cover in each country, using only official government statistics for prices and tax rates.

The index works on a relative scale. The most affordable country in our data receives a base score of 100. Every other country is scored proportionally. A score of 200 means average living costs are twice as high as the cheapest country. This makes it straightforward to compare countries at a glance.

Keep in mind that country averages mask enormous internal variation. Germany, for instance, spans from relatively affordable cities like Hamburg to expensive Munich. A country index tells you the general price level, but our city and neighborhood calculators are where the actionable detail lives.

Key patterns in 2026: Southern European countries continue to offer the best value for money in the EU. Northern European countries rank higher on the index but compensate with higher median salaries. The UK sits in the middle, heavily influenced by London pulling the average upward.