Attention, expats: Hungary among the most affordable countries to live in Europe!
For many expats, international students, and digital nomads, the question of affordability is crucial when choosing a new home. A new Affordability Index 2025 compiled by the home loan comparison experts at Compare the Market AU highlights which countries give residents the best value for money when it comes to daily living, housing, and taxes.
Hungary scores well in Europe
Hungary ranks among the more affordable places to live in Europe, making it attractive for foreigners seeking lower everyday expenses while enjoying life in the heart of the continent. While the country does face rising housing costs compared to its neighbours, overall living expenses remain far below Western European standards.
According to the study, Hungary struggles with high property prices and mortgage rates, placing it in the same group as Portugal, Türkiye, and Iceland when it comes to expensive housing. However, groceries, public transport, and utility costs remain relatively manageable. For example, public transport in Budapest is still cheaper than in most Western capitals, and electricity prices are lower than in many EU countries, thanks in part to the government’s regulated utility system.
This balance means expats often find that their salaries stretch further in Hungary than in countries like the Netherlands, Switzerland, or Denmark: places that may offer higher wages but also significantly higher costs across every category of spending.
Eastern Europe leads the way
Neighbouring Romania tops Europe’s affordability ranking with a score of 70.18, combining low taxes (10%), moderate mortgage rates, and inexpensive daily living. Groceries cost around EUR 38 per week, and petrol prices remain among the lowest on the continent.
Bulgaria comes second with an index score of 65.99, thanks to low mortgage rates (2.77%), affordable groceries, and cheap energy. Both countries, like Hungary, are becoming increasingly popular among digital nomads, retirees, and families looking for a cost-effective lifestyle in Europe.
At the other end of the scale, Iceland ranks as Europe’s most expensive country, with skyrocketing grocery, leisure, housing, and fuel costs. Portugal and Switzerland also score poorly due to rising property prices and steep living expenses that outpace wage growth.
Global perspective
On a worldwide scale, Brazil leads the affordability ranking, with low transport and grocery costs balancing out modest incomes. Iceland again comes last, proving that even high salaries can’t compensate for extreme living costs.
Hungary may not be the absolute cheapest country in Europe, but it offers a rare mix: a relatively low cost of living paired with the cultural vibrancy of a Central European capital. For many expats, this combination makes it one of the most attractive places to relocate.
Read more material for expats in Hungary from us!
Read also:
- Who knew? Budapest makes top list of developing tech cities!
- Cost of living in Hungary 2025: Prices, salaries, and daily life
Being one if the poorest countries in Europe has its benefits, who would have thought?
Notice that the E.U. is demanding our government stop subsidizing the energy costs. That would drive up our gas and electric bills up 4-5 times at the very least. Because, why use taxpayers’ money to make citizens’ lives easier?! Who ever heard of that!?
If you have a western salary its still ok but its catching up very fast. If you have a hungarian slave salary, its on the verge of unlivable.