What is the cheapest country to live in? 2025 cost of living guide
There’s no single answer to "What is the cheapest country to live in?" If you’re looking for the absolute lowest numbers on paper, you’ll find countries like Pakistan, Libya, and Afghanistan at the top of some lists. But if you’re thinking about actually moving there-staying safe, getting healthcare, finding reliable internet, or just being able to buy groceries without a war zone outside your door-those places aren’t options. The real question isn’t just about price. It’s about what you get for that price.
The numbers don’t tell the whole story
Numbeo’s 2025 index shows Pakistan and Libya with cost-of-living scores of 11.3 out of 100 (where 100 = New York City). That sounds incredible. But those scores don’t include things like whether your water is safe to drink, if your phone works outside the capital, or if you can open a bank account without a local sponsor. In places like these, the low cost comes with high risk. Most expats, retirees, and digital nomads avoid them for good reason. The real winners aren’t the cheapest. They’re the ones that give you the most for your money without turning your life upside down. That’s where Southeast Asia, parts of Latin America, and Eastern Europe come in.Top affordable countries in 2025
Vietnam keeps showing up at the top of almost every list. A one-bedroom apartment in Hanoi or Da Nang runs $400-$500. A street-side pho bowl? $1.50. A motorbike taxi across town? $1.20. Internet? Fast and cheap. Healthcare? Private clinics in Ho Chi Minh City charge 70% less than U.S. prices. The catch? Getting a long-term visa now requires proof of $28,000 in annual income. And rents have jumped 8.2% in major cities over the last year. Still, for many, it’s worth it. Colombia is the favorite for families and remote workers who want infrastructure. Medellín, in particular, offers a full expat ecosystem: co-working spaces, English-speaking doctors, international schools, and a vibrant social scene. A couple can live comfortably on $1,500 a month-rent, food, utilities, even occasional dinners out. Local coffee costs $1. Gym memberships? $25. The downside? You’re required to pay 12% of your income into Colombia’s public healthcare system, even if you don’t use it. And while the country is safer than it was 15 years ago, some neighborhoods still require caution. Indonesia, especially outside Bali, is a quiet winner. In Yogyakarta or Malang, you can rent a private house with a garden for $350 a month. Groceries are cheap. Local food is delicious and costs less than $2 a meal. But Bali? That’s changed. A tourist tax introduced in January 2025 adds $15-$30 per person per month to long-term stays. Plus, utilities and transport in tourist zones have spiked. If you want affordability in Indonesia, go inland. Malaysia is one of the few countries that balances modern living with low costs. Kuala Lumpur has high-speed internet, reliable public transport, and hospitals that meet Western standards-all at a fraction of U.S. or European prices. Rent for a nice one-bedroom in a central area? Around $550. A meal at a local eatery? $1.80. And Malaysia’s long-term visa options are among the easiest in Asia. No $28,000 income requirement. Just proof of savings and a clean record. Bosnia-Herzegovina is Europe’s best-kept secret. In Sarajevo or Banja Luka, you can rent a two-bedroom apartment for $400. A coffee? $0.80. A bus ticket? $0.50. The country isn’t in the EU, but it’s stable, safe, and surprisingly connected. English is spoken in tourist areas, and healthcare is affordable. It’s not tropical. Winters are cold. But if you’re looking for low-cost European living without the tourist crowds of Croatia or Slovenia, Bosnia is the pick.What about Latin America?
Argentina and Brazil look incredibly cheap right now-but don’t be fooled. Argentina’s peso has collapsed. Everything from rent to groceries costs half what it did in 2023. But the government is planning to unify exchange rates by mid-2025. That means prices will jump. If you’re thinking of moving there, do it now. But don’t expect it to last. Brazil is similarly cheap for dollar or euro earners. A two-bedroom apartment in Belo Horizonte? $300. A full-time maid? $150 a month. But the government is preparing to reinstate a reciprocal visa fee for Americans and Canadians. That fee could add $160 to your relocation costs. If you’re waiting for the perfect moment, it might be slipping away.
Europe’s budget options
Bulgaria is the cheapest EU country. A one-bedroom in Plovdiv or Varna? $450. Utilities? $80. Healthcare? Accessible and low-cost. The downside? Fewer English speakers outside cities. The upside? You’re in the EU, so your visa is easier to get. Romania is similar, with Bucharest offering a surprisingly active expat scene. North Macedonia and Albania are emerging as next-wave options. Albania’s coast offers Mediterranean weather, low rents, and a growing number of remote workers. It’s not as polished as Greece or Croatia-but it’s far cheaper.Hidden costs you won’t see on lists
Many blogs list rent and food prices but leave out the real headaches:- Visa fees: Thailand’s new 10-year visa requires $80,000 in savings. Vietnam’s digital nomad visa needs $28,000 annual income. These aren’t small barriers.
- Language: Only 23% of Vietnamese speak English. In rural areas, you’ll need a translator for simple tasks like buying medicine or fixing your internet.
- Utilities: In Bali, people think rent is cheap-until they get a $200 electricity bill because their villa runs AC 24/7.
- Healthcare: In Colombia, you pay 12% of your income into the system whether you use it or not. In Vietnam, private clinics require cash upfront.
- Taxes: Some countries tax foreign income. Others don’t. Some require you to become a tax resident after 183 days. Know the rules before you move.
Who’s moving where-and why
A January 2025 Expat Insider survey found that 68% of people in Vietnam chose it for affordability. In Colombia, only 52% did. Why? Because Colombians aren’t just looking for cheap. They’re looking for stability. Schools. Doctors. Reliable power. Vietnam wins on price. Colombia wins on quality of life. Digital nomads are flocking to places with good co-working spaces and fast internet. Thailand leads with 98% 4G coverage and average speeds of 86 Mbps. Vietnam is close behind. Bosnia? Slower, but improving. If you work online, don’t ignore internet speed. It’s not a luxury-it’s your job.
The future of affordability
The number of digital nomads has hit 35 million globally. That’s driving up prices. Vietnam’s rent is rising. Bali’s taxes are climbing. Thailand is raising visa fees. The golden age of ultra-cheap living in Southeast Asia is ending. But new options are opening up. Bosnia is growing fast. Albania is quietly becoming a hotspot. North Macedonia is attracting remote workers with low taxes and simple residency rules. These places won’t make headlines-but they might be your best bet for long-term affordability.What should you do?
Don’t just chase the lowest number. Ask yourself:- Do I need reliable healthcare?
- Can I handle language barriers every day?
- Do I need a visa I can actually get?
- Will I be lonely?
- Can I work from here?
What is the cheapest country to live in for retirees?
For retirees, Colombia and Malaysia are top picks. Colombia offers affordable private healthcare, a strong expat community, and low-cost living in cities like Medellín and Cartagena. Malaysia provides excellent healthcare, English-friendly services, and a long-term retirement visa (MM2H) with flexible income requirements. Vietnam is cheaper but has fewer English-speaking doctors and more bureaucratic hurdles for older expats.
Is it cheaper to live in Thailand or Vietnam?
Vietnam is slightly cheaper overall. A single person can live on $628/month in Vietnam versus $650 in Thailand. Rent is lower in Vietnam, and street food is more affordable. But Thailand has better English services, more expat-friendly healthcare, and easier visa options for long-term stays. Vietnam’s visa rules are tightening, while Thailand offers a 10-year retirement visa for those who qualify.
Can I live on $1,000 a month abroad?
Yes-but only in certain places and with strict budgeting. Vietnam, Indonesia (outside Bali), Bosnia, and rural Colombia are possible. You’ll need to avoid imported goods, eat local food, skip Western-style cafes, and live outside tourist zones. Internet and utilities are usually affordable, but visa fees, healthcare, and occasional travel can push you over $1,000. It’s doable, but not comfortable if you want any luxuries.
Are there any cheap countries in Europe?
Yes. Bulgaria is the cheapest EU country, with rent under $500 in mid-sized cities. Romania, Bosnia-Herzegovina, North Macedonia, and Albania are also affordable. Albania offers Mediterranean weather and low rents near the coast. Bosnia has low prices and a stable environment. All are outside the Eurozone, so currency exchange works in your favor if you’re paid in dollars or euros.
Why is Argentina so cheap right now?
Argentina’s peso has lost over 90% of its value since 2023. This makes everything from rent to meals 50-70% cheaper for people earning in dollars or euros. But this isn’t sustainable. The government plans to unify exchange rates by mid-2025, which will cause prices to jump. What looks like a bargain now could disappear in months. Move quickly if you’re planning to go-but don’t assume it will last.
Final thoughts
The cheapest country to live in isn’t a static answer. It changes based on your needs, your income, your tolerance for bureaucracy, and your willingness to adapt. Pakistan might be cheaper than Vietnam-but you won’t find a reliable internet connection, a pharmacy that stocks your meds, or a community of people who speak your language. The best deals aren’t the ones with the lowest numbers. They’re the ones that let you live well, without constant stress. That’s why Vietnam, Colombia, Malaysia, and Bosnia keep coming up in real conversations-not just in rankings. They’re not perfect. But they’re practical. And in the end, that’s what matters most.
About Author
Popular Posts
