Top 12 Cheapest Countries to Live: Lowest Cost of Living Worldwide

As the cost of living continues to rise globally, many people are exploring more affordable places to live in, whether for retirement, remote work, or long-term relocation.

From Southeast Asia to Europe and Latin America, there are still plenty of cheap places to live in the world without sacrificing quality of life or stepping away from the safest countries.

This guide explores the least expensive countries to live in, with cost-of-living breakdowns, tips from locals on how to live comfortably with little resources and what makes each country attractive.

• What makes a country cheap to live in?
• Top 12 Most Affordable Countries to Live In
• Frequently Asked Questions

What makes a country cheap to live in?

When we talk about the cheapest countries in the world, we’re referring to the total cost of living which includes:

• Housing costs
• Food costs
• Utilities
• Internet connectivity
• Transportation
• Healthcare systems

We’ve also taken into consideration factors like quality of life, and which are the safest countries alongside being affordable.

This is because countries like Pakistan and Nigeria, for example, are technically two of the most affordable countries to live comfortably in. However, if you look at the Global Peace Index, they rank 140th and 147th respectively out of a total of 163 countries due to political instability and overall low societal safety.

Top 12 Cheapest Countries to Live In

1. Vietnam

Vietnam is one of the most affordable countries in Asia for expats. Rent, local food, and transportation are exceptionally inexpensive, even in major cities like Hanoi.

Street food and fresh produce from local markets keep grocery bills low, while coastal cities like Da Nang offer a laid-back lifestyle, modern amenities, and a growing digital nomad community.

With solid internet infrastructure, rich cultural experiences and breathtaking landscapes, Vietnam combines low living costs with high daily living satisfaction.

Money-saving tips for Vietnam:

• Eat local: Street food like pho, banh mi, and com tam is both delicious and much cheaper than Western restaurants.
• Use motorbike taxis: Services like GrabBike are much cheaper alternatives than traditional taxis or owning and using a car.
• Shop at wet markets: They provide fresher produce at cheaper prices than supermarkets.
• Live outside tourist zones: Areas like District 7 in Ho Chi Minh City or non-central areas in Hanoi are cheaper.

2. Dominica

Dominica is one of the cheapest Caribbean islands to live on. Rent, local produce, and public transport are relatively inexpensive, particularly outside the capital, Roseau. The island’s natural abundance means fresh food is readily available at low prices.

Many foreigners are taking advantage of the Dominica Citizenship by Investment program to enjoy the relaxed pace of life, low crime rates, and community-oriented culture.

Though healthcare and infrastructure are modest, the cost savings and peaceful lifestyle make Dominica a hidden gem for budget-conscious island living.

Money-saving tips for Dominica:

• Buy local produce: Opt for local fruits, vegetables, and fish because imported goods can be expensive.
• Use minibus taxis: They’re significantly cheaper than private cabs.
• Rainwater collection: Locals tend to use water storage tanks to cut down on bills, especially in rural areas.
• Cook at home: Due to import taxes on ingredients, it’s much more inexpensive to cook dinner at home. Leave the dining out for special occasions.

3. Turkey

The cost of living in Turkey is quite exceptional, especially in inland cities like Antalya, Izmir, and Ankara. Rent and groceries are budget-friendly, and public transportation is efficient and affordable.

Street markets provide fresh, inexpensive produce, while mobile and internet services are among the cheapest in Europe.

With a mix of modern infrastructure, rich history, and access to both the Mediterranean and the Aegean, Turkey is ideal for foreigners seeking affordability without sacrificing lifestyle.

Money-saving tips for Turkey:

• Shop at weekly bazaars: Fresh fruits, vegetables, and household items are much cheaper than in supermarkets.
• Use Dolmuş (shared taxis): Cost-efficient for short intercity trips.
• Buy SIM cards with local plans: Data and calls are cheap via providers like Turkcell or Vodafone.
• Get a Turkey residence permit: Turkey introduced a 2% tourist tax on accommodation so having such a permit can reduce your monthly costs.

4. Portugal

Portugal remains one of the cheapest European countries to live in. Cities like Porto and Coimbra offer lower rent and daily expenses than more expensive cities and other countries in the EU, while groceries and utilities are moderately priced.

Public transport is reliable and cheap, and English is widely spoken in urban areas. The country’s warm climate, safety, accessible healthcare and the popular Portugal Golden Visa make it a popular destination for remote workers, retirees and investors alike.

If you’re looking to retire in Portugal, we did an in-depth cost of living comparison as part of our Global Intelligence Unit’s retirement guide for US citizens. Our research found that consumer prices are a shocking 98.9% higher in a city like New York than in Lisbon, without rent. If rent is included, those prices rise sharply by 130.1% more!

Money-saving tips for Portugal:

• Live in smaller towns: Braga, Évora, or Coimbra are good options if you want to save on rent.
• Use the train/subway pass (passe mensal): Especially in cities if you want unlimited travel.
• Buy groceries at Lidl or Pingo Doce: These supermarkets are widely considered to be the most affordable and offer the best discounts.
• Eat at tascas: These are traditional local restaurants that serve hearty, affordable meals.

5. Philippines

For those seeking one of the best English-speaking countries to live in when it comes to affordability. Rent, groceries, and public transportation are all low-cost, particularly outside of Metro Manila.

Island destinations like Dumaguete and Davao offer high-quality healthcare options, expat communities, and relaxed coastal living. With hundreds of accessible islands, it’s a great budget-friendly option for tropical living.

Money-saving tips for Philippines:

• Use local jeepneys and tricycles: Extremely cheap public transport.
• Avoid imported products: Stick with Filipino brands and ingredients.
• Live like a local: Choose unfurnished or local apartments instead of expat-focused high-rises.
• Cook your own meals: Eating out daily, especially in malls, adds up fast.

6. Serbia

Serbia is one of Europe’s hidden gems for low-cost living. Rent, groceries, and utilities are inexpensive even in the capital, Belgrade, while smaller cities like Niš or Novi Sad offer even greater value.

Public transport is cheap and reliable, and eating out is very affordable. With its café culture, growing digital infrastructure, and low barriers for long stays, Serbia appeals to freelancers and foreigners seeking an off-the-radar European base.

Money-saving tips for Serbia:

• Shop at pijacas: Such markets offer fresh and inexpensive local produce.
• Get local mobile and/or internet bundles: Prepaid packages are cheap and efficient.
• Eat at local kafanas: Daily menus offer meals for under $5.
• Rent in suburbs or smaller towns: For lower housing costs choose Niš or Novi Sad.

7. Thailand

Thailand offers excellent value for money, especially in cities like Chiang Mai, where rent, street food, and services are remarkably affordable. Public transport is inexpensive and widespread, and high-speed internet is readily available in urban areas.

While Bangkok and Phuket are pricier, smaller towns and inland regions provide a high quality of life at a fraction of the cost.

Warm weather, friendly locals, and strong healthcare options make Thailand a long-time favorite among foreigners.

Money-saving tips for Thailand:

• Eat at street food stalls: Meals for $1–$2 are common and hygienic.
• Use public transport (BTS, MRT, songthaews): Cheaper to take than taxis.
• Stay in low-rise Thai apartments: Avoid the more modern condos with amenities.
• Buy groceries at local wet markets: Western-style supermarkets tend to be more costly.

8. Mexico

Mexico is one of the most affordable countries in the Americas, especially in inland cities like Mérida, Oaxaca, and San Cristóbal de las Casas.

Rent and groceries are low, and public transport is both accessible and cheap. Street food keeps dining costs down, while healthcare is high-quality and inexpensive.

With vibrant culture, diverse climates, and relatively easy visa pathways, Mexico is a top pick for digital nomads and retirees alike.

Money-saving tips for Mexico:

• Use colectivos (shared vans): You can do intercity travel at a fraction of the cost of a bus.
• Shop at mercados: Ideal for getting fresh produce and meat.
• Avoid tourist zones for housing: Look for the neighborhoods where locals live.
• Use public healthcare (IMSS or Seguro Popular): if you’re not eligible, there are also plenty of low-cost private clinics with good overseas-trained doctors.

9. Costa Rica

Costa Rica, located in the lush Central America, offers a relatively affordable lifestyle, particularly in smaller towns like Grecia or Atenas.

Rent and fresh produce from local markets are modestly priced, though imported goods can be costly. Public transport is reliable and cheap, and healthcare is accessible to residents.

With a high quality of life, stunning biodiversity, and friendly locals, Costa Rica attracts eco-conscious expats looking for balance and value.

Money-saving tips for Costa Rica:

• Eat at sodas (local eateries): Inexpensive meals that include drink, rice, meat, and salad.
• Live outside major expat zones: Escazú or Tamarindo are good options for better rent prices.
• Take the bus: Reliable and very affordable compared to taxis or renting a car.
• Buy from ferias (weekly farmers’ markets): These not only offer the best prices but also freshness.

10. Grenada

Grenada balances a tropical lifestyle with modest cost of living by Caribbean standards.

Rent and groceries are lower than in many neighboring islands, especially if you buy local produce and cook at home. Public minibuses keep transportation costs low.

English is the official language, and attractive programs such as the Grenada Citizenship by Investment make it an appealing option for retirees or remote workers seeking a quieter Caribbean experience.

Money-saving tips for Grenada:

• Cook local dishes at home: Buying fresh fish, breadfruit, or callaloo is cheaper than Western foods.
• Use minibuses: Avoid taxis for daily commutes as they tend to be more expensive.
• Buy second-hand appliances and furniture: Expat groups and local sellers are best for this.
• Avoid imported alcohol: Local rum is cheap and of a high quality.

11. Paraguay

Paraguay is not only one of the cheapest countries but also one of the safest South American countries, with low rent, grocery prices, and utilities, particularly in cities like Asunción and Encarnación.

Public transport is cheap and widespread, and fresh food is available year-round at low prices. It even ranks in the top 10 least expensive countries worldwide according to the Numbeo Cost of Living Index.

With an easy permanent residency process and very little bureaucratic red tape, Paraguay is a top choice for those seeking a no-frills, low-cost lifestyle in a stable and welcoming environment.

Money-saving tips for Paraguay:

• Live in Asunción suburbs or smaller towns: Places like Encarnación are known for lower rent.
• Use colectivos (public buses): They offer easy access to cheap transportation.
• Shop in local tiendas and street markets: Groceries are much cheaper there than in chain stores.
• Consider prepaid utilities and mobile plans: This helps control monthly expenses.

12. Mauritius

Mauritius offers relatively affordable living compared to other tropical islands. Rent and local produce are reasonable, especially outside high-end coastal areas.

Public buses are inexpensive and cover most of the island. With political stability, good healthcare, and widespread English and French usage, Mauritius is an attractive base for expats looking for quality living in the Indian Ocean.

Money-saving tips for Mauritius:

• Shop at open-air markets (bazars): The one in Port Louis is especially great for buying produce.
• Use public buses: These are widespread and very inexpensive.
• Choose local brands: Especially for household items and groceries.
• Live inland: Avoiding beach areas and look for places in areas like Quatre Bornes or Curepipe to secure lower rent.

Frequently Asked Questions

Where can I live cheaply and safely?

Safe and affordable countries include Portugal, Costa Rica, Slovenia, and Malaysia, offering political stability, low crime rates, and a moderate cost of living.

What are the cheapest countries to retire in?

Retirement-friendly countries with affordable costs include Mexico, Ecuador, Panama, the Philippines, and Portugal, many of which offer retiree visa programs.

What is the cheapest English-speaking country to live in?

India and Philippines are the cheapest English-speaking countries to live in, both offering affordable costs and widespread English usage.

What is the cheapest country to live in Europe?

Bulgaria is often considered the cheapest European country to live in, followed by Romania, Albania, and North Macedonia.

What is the cheapest country to live in Asia?

Vietnam is one of the cheapest countries in Asia, offering low rent, cheap street food, and a growing expat network.

What are the cheapest countries to live in with a good quality of life?

Portugal, Mexico, and Thailand offer a balance of affordability and quality of life, including good weather, healthcare, and safety.

Where can Americans live cheaply abroad?

Popular affordable destinations for Americans include Mexico, Vietnam, Portugal, and Ecuador, offering affordable costs and easy residency options.

Which country has the cheapest rent?

Pakistan and India have some of the world’s cheapest rent prices, especially outside major metropolitan areas.

What countries allow cheap retirement with a residency visa?

Panama, Ecuador, Mexico, and Portugal offer low-cost retirement options and accessible retirement visas for foreigners.