If you’re planning to travel, study, or relocate within the European Union (EU), one of the biggest factors to consider is cost of living. While Europe is often perceived as expensive, the truth is that costs vary dramatically between countries. Some nations are among the priciest in the world, while others are surprisingly affordable without compromising on quality of life.
A recent analysis by Visual Capitalist highlights which EU countries are the most expensive compared to the EU average, and which ones give you the best value for money. From food and housing to transportation and leisure, these differences can heavily influence your experience abroad.
So, which countries should you keep an eye on if you’re budget-conscious—and which ones demand deeper pockets? Let’s dive in.
Why Cost of Living in the EU Varies So Much
Before we get to the rankings, it helps to understand why prices differ so widely:
- Income levels: Higher wages often translate into higher costs for housing, dining, and services.
- Tourism demand: Countries with strong tourism appeal—like France and Italy—tend to charge more, especially in major cities.
- Economic structure: Nations with strong financial hubs (Luxembourg, Ireland) usually have higher consumer prices.
- Geography & imports: Northern countries often pay more due to higher logistics and import costs, while southern countries may be cheaper thanks to local agriculture and lower wages.
With that context, here are the 10 most expensive EU countries right now.
The 10 Most Expensive Countries in the EU
10. France (+7% higher than EU average)
France has long been a dream destination for travelers, but living there comes with a price. Everyday goods and services are about 7% higher than the EU average.
- Highlights: Paris is home to world-famous attractions like the Eiffel Tower, Louvre Museum, and Notre-Dame Cathedral. Beyond Paris, regions like Provence and the French Riviera offer breathtaking scenery.
- Cost tip: While dining in central Paris can drain your wallet, smaller towns and rural areas offer far more affordable living.
9. Germany (+10%)
Germany strikes a balance between affordability and high living standards, but prices still sit about 10% above the EU average.
- Highlights: Visit Berlin’s Brandenburg Gate, Neuschwanstein Castle in Bavaria, or the Black Forest.
- Cost tip: Big cities like Munich and Frankfurt are significantly pricier than smaller towns, so students and expats often choose mid-sized cities like Leipzig or Dresden.
8. Austria (+18%)
Austria is a paradise for history lovers and nature enthusiasts—but it comes at a cost. Prices here are 18% above the EU average.
- Highlights: Explore Schönbrunn Palace, Vienna’s opera houses, and the Alps.
- Cost tip: Public transport is affordable and reliable, which helps balance higher housing costs.
7. Belgium (+18%)
With its medieval cities and modern political hubs, Belgium is both charming and pricey. Costs are about 18% higher than average.
- Highlights: The Grand Place in Brussels, Gravensteen Castle in Ghent, and the world’s best chocolate and beer.
- Cost tip: Eating out is expensive, but local markets and budget-friendly cafés can save you money.
6. Sweden (+22%)
Sweden combines Scandinavian beauty with a high cost of living—22% higher than average.
- Highlights: Stockholm Old Town (Gamla Stan), the Vasa Museum, and stunning lakes and forests.
- Cost tip: Alcohol and dining are expensive due to high taxes. Many locals save by cooking at home.
5. Netherlands (+22%)
The Netherlands matches Sweden’s price level, sitting 22% above average.
- Highlights: Amsterdam’s canals, the Van Gogh Museum, and cycling through tulip fields.
- Cost tip: Accommodation is the biggest expense, especially in Amsterdam. Consider staying in nearby towns and commuting.
4. Finland (+28%)
Finland, known for its innovation and natural beauty, is 28% more expensive than the EU average.
- Highlights: The Sea Fortress Suomenlinna, Temppeliaukio “Rock” Church, and the chance to see the Northern Lights.
- Cost tip: Helsinki is pricey, but student discounts and subsidized public services help reduce costs.
3. Denmark (+43%)
Denmark is one of the priciest places to live in Europe, with costs 43% above average.
- Highlights: Tivoli Gardens, Christiansborg Palace, and Copenhagen’s colorful Nyhavn harbor.
- Cost tip: Denmark’s high taxes fund excellent public services, but expect to pay more for dining and housing.
2. Ireland (+45%)
Ireland comes in second place with prices 45% above the EU average.
- Highlights: The Cliffs of Moher, Kilmainham Gaol Museum, and of course, the Guinness Storehouse in Dublin.
- Cost tip: Housing shortages in Dublin drive prices sky-high. Smaller cities like Cork and Galway are relatively more affordable.
1. Luxembourg (+52%)
At the very top, Luxembourg is officially the most expensive country in the EU, with costs soaring 52% higher than the EU average.
- Highlights: The scenic Chemin de la Corniche, the Grand Ducal Palace, and the Notre-Dame Cathedral.
- Cost tip: As one of Europe’s wealthiest financial hubs, Luxembourg has high wages but equally high living expenses.
What About the Least Expensive EU Countries?
While the study mainly highlighted the top spenders, other EU nations are far more affordable. Countries in Eastern and Southern Europe—such as Bulgaria, Romania, Poland, and Hungary—tend to have significantly lower prices, often 30–40% below the EU average.
- Bulgaria: Known as one of the cheapest EU destinations, perfect for budget-conscious travelers and students.
- Romania: Offers a mix of modern cities like Bucharest and historic gems like Transylvania at low costs.
- Poland: Popular for students and digital nomads, with affordable housing and food.
- Hungary: Budapest, with its famous thermal baths and nightlife, offers great value compared to Western Europe.
Final Thoughts: How to Budget for the EU
When choosing where to travel, study, or move in Europe, understanding cost differences is crucial. Expensive doesn’t always mean “better”—sometimes, the most affordable countries provide rich cultural experiences without straining your finances.
If you’re planning a short trip, factor in not just accommodation but also daily expenses like dining, transport, and sightseeing. For long-term stays, research housing markets, job opportunities, and visa conditions before deciding.
Pro tip: Use budget calculators or expat forums to compare your lifestyle costs before making the move.
Key Takeaways
- Most expensive EU country: Luxembourg (+52% above average).
- Other high-cost nations: Ireland, Denmark, Finland, Netherlands, and Sweden.
- Affordable options: Bulgaria, Romania, Poland, and Hungary.
- Plan ahead: Costs vary widely even within countries—cities are pricier than rural areas.
By understanding these differences, you can make smarter choices for your European adventure—whether it’s a vacation, study abroad journey, or long-term relocation.
