In 2026, more and more people are choosing to live abroad not only for travel, but also for long-term residence or freelancing. But where can you live cheaply, without spending a lot on housing, food, and transportation? Our ranking includes the current countries with the lowest cost of living, as well as practical tips on how to reduce monthly expenses and enjoy comfort without overpaying

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Are you planning to change your place of residence or just want to know where in the world you can live cheaply in 2026? With prices rising in many countries, it's important to choose a place where your monthly expenses for basic needs (housing, food, transportation, healthcare) remain affordable. Our ranking of the best and cheapest countries to live in in 2026 will help you navigate the cost of living and make a smart choice if you are considering relocation, remote work, or a long-term stay abroad.

We have compared popular destinations by average costs, convenience of living, availability of services, and quality of life in general.

In our previous article, we ranked the most expensive countries in the world in 2026.

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Top 5 cheapest country to live in 

The cost of living is the money needed to maintain a certain level of comfort. The figure includes costs for food, housing, taxes and medical care. Some countries have an extremely low cost of living, making them desirable destinations for expats, retirees and others looking to cut costs. The top five cheapest countries in 2025 include:

5th place – Thailand

Thailand is one of the top rated countries for the cheapest living, with an average cost of around $600–900 per month. This is almost three times cheaper than living in an average European city, such as Paris or Munich, where the cost can reach $2,500 or more. Rent in Thailand ranges from $200 to $400 per month, making it affordable even for budget travelers. Food is very cheap here, thanks to a wide selection of street food, where a dish costs $1–3, which is significantly lower than average prices in Western Europe or the United States. At the same time, the cost of transportation within the city is $0.5–2 per trip, which is one of the lowest in the world.

Globally, Thailand remains a competitive option for those who want to combine a moderate cost of living with access to modern infrastructure.

4th place – Portugal

Portugal is one of the most affordable countries in Western Europe, with an average cost of living of $1,200–1,500 per month. In comparison, in Paris or London, renting a one-bedroom apartment costs between $1,200 and $2,000, making Portugal a more affordable option for living on the continent. The cost of food – $8–12 for lunch in a cafe – is also lower than in many Western European countries.

Transportation in Portugal is affordable – a trip costs around $1.5–2, which is 40–50% cheaper than in many European capitals. Overall, Portugal offers an attractive balance between comfort, safety and accessibility, which explains its popularity among expats from all over the world.

3rd place – Mexico

Mexico in 2025 continues to hold the position of a country with a moderate cost of living – $800–1,000 per month. This is about half the average cost of living in major US cities such as New York or Los Angeles. With rent starting at $300 and a meal cost of $3-5 per meal in a restaurant, Mexico is an attractive destination for those looking for budget-friendly living without sacrificing comfort.

By comparison, transportation costs in Mexico ($0.5-1 per trip) are significantly lower than in Canada or Australia, where travel costs an average of $3-4.

2nd place – Vietnam

Vietnam is one of the most affordable countries in Southeast Asia with an average cost of living of $500-700 per month. This is significantly lower than in neighboring countries such as Malaysia or Thailand, where the cost of living typically starts at $700. Rent costs – $200-350 per month – make Vietnam extremely attractive for those looking to cut their expenses.

Food, which costs between $1 and $3 per serving, is among the cheapest in the world, and transportation, at $0.15–0.50 per trip, is many times cheaper than in most Western countries. Overall, Vietnam offers the best value for money for budget travelers.

1st place – Indonesia

Indonesia, with an average cost of living of around $340 per month, is expected to be the cheapest country to live in in 2025. This is almost three times cheaper than the global average, including major cities. Jakarta is 60% cheaper than London, making it one of the most affordable capital cities in the world.

A meal for two at a restaurant costs less than $20, while imported wine costs around $25 per bottle – significantly more expensive than local products. Transportation in the city is very affordable – a trip on public transport costs about $0.25, a monthly pass costs $12, and a taxi starts at $1. Indonesia is ideal for those who want to live on a budget, especially outside the major metropolises.

According to Numbeo and other resources, the average cost of living in the world in 2025 varies from $400 in the cheapest countries to over $3,000 in the most expensive cities in the world (e.g. New York, Tokyo, Zurich). The difference between the cheapest and most expensive countries is 7-10 times, which makes choosing a country with a low cost of living strategically advantageous for those who want to save money or live more comfortably on less money.

Where in the world are the countries with lowest taxes?

In 2025, the attractiveness of countries with low or zero taxes remains very high for individuals and businesses seeking a favorable financial environment. Tax havens and low-tax jurisdictions continue to attract investors, entrepreneurs, and remote workers. Below is an updated overview of some of the leading countries known for their minimal tax burden.

Cayman Islands

In addition to the zero rate of income tax, the Cayman Islands also has no business tax. This attractive tax system has allowed investors and international companies to significantly increase their wealth while protecting it.

Key advantages:

- Zero tax on income, capital gains, wealth, gifts or estates

- A stable government with a well-regulated and safe banking system

- Compliance with international banking standards

- Permanent residence can be obtained by purchasing real estate and obtaining a minimum income

United Arab Emirates

The UAE continues to offer a tax-free environment for personal income, capital gains and wealth. Corporate tax was recently introduced but remains low at 9%, supporting a business-friendly climate. The UAE remains a top choice for expats due to its high quality of life and world-class infrastructure.

Key advantages:

- Zero personal income tax and no capital gains, inheritance or gift taxes.

- Corporate income tax, fixed at a competitive 9%.

- Golden Visa program provides long-term residency options for investors, entrepreneurs, talented professionals and outstanding students.

Andorra

The micro-state of Andorra, located between Spain and France in the Pyrenees Mountains, is one of the best low-tax jurisdictions in Western Europe. Residents who earn less than 40,000 euros are exempt from income tax. The business tax rate is only 10%. Regarding additional taxation, Andorra is one of the countries with the lowest VAT (4.5%).

Despite its location in the heart of Western Europe, Andorra has numerous double taxation agreements with neighboring countries to maintain a favorable tax environment.

Key advantages:

- Low tax rate on incomes of individuals and profits of companies.

- A high tax-free threshold of 40,000 euros for personal income.

- Life in a safe country.

Bermuda

Bermuda continues to be a favorite tax haven in the Atlantic, with no personal income tax and only payroll taxes for employers. High average salaries and investment opportunities make Bermuda attractive to wealthy individuals seeking tax optimization.

Key advantages:

- No personal income tax; low taxes on wages.

- High standard of living with competitive salaries.

- Affordable living through qualified investment.

Bahrain

Bahrain remains one of the best tax-free countries in Asia. There is no corporate tax in the country for companies working in the oil and gas industry. Corporate tax is still under discussion.

Key advantages:

- Zero tax on income, capital gains, wealth, gifts or estates.

- There is no corporate tax.

- The possibility of obtaining a residence permit for investment.

Which countries with the highest salary?

Low taxes and cost of living are important mainly to expats who plan to continue working or doing business in their home country after moving. If you are considering moving abroad to start your career, the average salary level is important for you. Which countries are the leaders of the rating?

5th place – Denmark

Average annual salary: $55,000

Denmark is among the five countries with the highest per capita income in the world. It also has one of the most developed labor markets in the world, with high demand for workers in the business, science, food, legal and construction sectors.

4th place - USA

Average annual salary: $56,000

Although the American dream may be increasingly difficult to achieve, people from all over the world continue to move to the US in hopes of pursuing a career. With the headquarters of many of the world's leading companies, including Google and Amazon, there is a constant demand among job seekers, especially in the fields of technology, healthcare and finance. Meanwhile, the U.S. Bureau of Labor Statistics projects that the U.S. economy will add 8.3 million jobs by 2031.

3rd place - Norway

Average annual salary: $57,000

According to the World Bank and the International Monetary Fund, Norway has the highest average salary in Scandinavia and the fourth highest per capita income in the world. It is also one of the best countries to live in, according to the United Nations Human Development Report. Meanwhile, remote workers should also consider moving here for work, as the country offers an excellent remote work visa program.

2nd place – Switzerland

Average annual salary: $66,000

Switzerland is famous for its high salaries, but the cost of living is also high in the country. Monthly expenses for a single person are on average 1,451.90 Swiss francs ($1,559.48), renting a one-room apartment outside the city center will cost you about 1,257.71 Swiss francs ($1,350.36) per month.

1st place - Luxembourg

Average annual salary: $70,000

Luxembourg is the country with the highest per capita income, with doctors, dentists, data specialists and high-level executives earning six-figure salaries. On average, people working in Luxembourg earn between €2,564 and €8,093 ($2,797-$8,828) per month. Meanwhile, this city-state ranks among the most livable cities in the world due to its high standard of living.

Are you planning to migrate or need advice?

If you are considering obtaining a second citizenship, applying for visas, or planning to move to another country, the specialists at Visit World are ready to provide professional support. Our migration lawyers have up-to-date information on visa regimes, citizenship programs, and the specifics of migration legislation in different countries.

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Reminder! Which countries became the richest in the world in 2026 and how did the global ranking change over the year? New economic indicators show who was able to increase their GDP and who lost ground due to inflation and slowing growth. The ranking of the richest countries in the world in 2026 and the main changes of the year can be found at the link.

Products from Visit World for a comfortable trip:

Travel guide for 200 countries;

Legal advice from a local specialist on visa and migration issues;

Travel insurance around the world (please select the country of interest and citizenship to receive services);

Medical insurance all over the world.

We monitor the accuracy and relevance of our information, so if you notice any errors or inconsistencies, please contact our hotline.