Cheapest Country to Live: Your Guide to Low‑Cost Living

Thinking about moving abroad but worried about money? You’re not alone. More people are hunting for places where rent, food, and transport won’t eat up their paycheck. Below we break down what makes a country cheap and list the best options for 2025.

What Makes a Country Cheap?

Cost of living comes down to a few key items: housing, groceries, transport, healthcare and taxes. If rent is under £300 a month, meals cost less than £3 a dish, and public transport runs on a few pounds weekly, the country is likely a budget winner. Exchange rates also matter – a strong pound can make foreign prices appear lower.

Beyond the numbers, local lifestyle influences how far your money goes. Countries with a strong market for street food, shared housing cultures, and free public services let you stretch each pound further.

Top Picks for 2025

Vietnam – Rent for a one‑bedroom apartment in Ho Chi Minh City averages £260. Street meals are around £1.50, and a monthly transport pass costs £5. Health insurance is affordable, and expat groups are thriving.

Portugal – The Algarve offers coastal living for about £400 a month for a modest flat. Grocery bills sit near £150 for a couple, and public buses run at £30 a month. English is widely spoken, easing the transition.

Mexico – In cities like Oaxaca, rent is roughly £280, while tacos and tortillas keep daily meals under £2. Local transport is cheap, and the cost of basic healthcare is low if you opt for private clinics.

Georgia – Tbilisi’s housing market offers rooms for £200, and fresh market produce drops below £1 per kilogram. The country’s low tax rates and friendly visa policies attract digital nomads.

Philippines – Manila’s outskirts have apartments for £250, and island life brings meals at £2‑£3. Internet is reliable in urban hubs, making remote work feasible.

When you compare these spots, remember that your lifestyle will affect the final tally. If you love dining out every night, your costs rise. If you cook at home and use shared transport, you’ll stay well within budget.

Here are a few quick tips to keep expenses low: join local Facebook groups for housing deals, shop at markets instead of supermarkets, and learn basic phrases to avoid tourist premiums. Many cities also have coworking spaces with day passes under £15, perfect for freelancers.

Before you move, calculate a realistic monthly budget using a spreadsheet. Include rent, utilities, food, transport, insurance, and a small buffer for entertainment. Compare that number to your current earnings to see if the move makes sense.

In short, the cheapest country to live isn’t a one‑size‑fits‑all answer. It depends on the balance between cost, quality of life, and how well you adapt to local customs. Pick a place that feels right, plan your finances, and you’ll enjoy a new chapter without breaking the bank.