What is the most affordable European capital in which to live?

Bucharest has been named the most affordable European capital city in which to live, according to a new study.

The study, by personal finance firm Finansvalp, evaluated the affordability of several cost of living parameters, including rent, utilities, and travel. Itgathered data from the cost-of-living website Numbeo in order to create an affordability index, which included every European capital city.

Each city was scored out of 100 based on eight factors, which included accommodation, utility, transport, and lifestyle costs.

Factors evaluated included the monthly cost of renting a one-bedroom apartment outside of the city centre, electricity and water bills, monthly mobile phone and broadband plans, fitness club fees, a travel pass, and the price of a meal out for two. These expenses were measured against the average monthly net salary for a person living in each city.

Bucharest tops the list

When considering these factors, the Romanian capital was found to be the most affordable European capital city to live in, scoring 59.69 out of 100.

The city’s residents take home €1,296.23 on average after tax and can expect to pay around 34% of their income on accommodation. The monthly cost of renting a one-bedroom apartment outside of the city centre was found to be €442.68 on average.

The second cheapest capital city in Europe is Chisinau, the capital of Moldova, which scored 56.40 out of 100. The study found that residents in the Moldovan capital earn, on average, €710.83 per month after tax and can expect to spend 51% of their income on accommodation, as well as €290.50 per month on household bills.

San Marino ranks third, with the Apennine Mountains city’s residents earning, on average, €4,100.77 after tax, while a one bedroom apartment costs €667.10 a month. Residents typically spend €129.11 on monthly utility bills, as well as €191.09 on recreational expenses.

In fourth place is the Lithuanian capital, Vilnius, with a score of 53.68 out of 100, while Vaduz, Liechtenstein, places fifth, scoring 53.19 out of 100.

Most expensive cities

The study also revealed the most expensive cities to live in, with London, England, proving to be the costliest for residents, scoring 41.04 out of 100. In second place is Monte Carlo, Monaco – renowned as a location for the rich and famous, while Dublin, Luxembourg and Bern, Switzerland also feature in the top five.

“Living in Europe’s capital cities can be a financial tightrope, requiring strategic budgeting and savvy decision-making to thrive in a cosmopolitan lifestyle,” commented Olle Pettersson, CEO of Finansvalp. “As such, understanding the financial landscapes of European capitals is crucial for individuals, which is why our data experts have analysed the living factors driving costs.

“We hope this will empower locals and emigrants alike to make informed choices about their finances and lifestyles in an increasingly interconnected world.”

The Most Affordable European Capital Cities to Live In

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