Cost of Living in Europe by Country: 2026 Ranking
Updated 4 June 2026
A ranking of major European cities by real cost of living. On a €70,000 gross salary, Lisbon leaves you with €2,100/month, Berlin €1,692, London €1,067, Amsterdam €975, Dublin €600. Use the calculator below to run the numbers for your salary.
Cost of living in Europe by country — 2026 ranking
The table below ranks five major European countries by monthly disposable income on a €70,000 gross salary, after income tax, rent (1-bedroom city centre), and estimated living costs. Lower tax and lower rent compound — Portugal wins on both fronts; Ireland loses on both.
| Rank | City | Country | Avg rent | Eff. tax | Net /mo | Leftover /mo |
|---|---|---|---|---|---|---|
| 1 | Lisbon | Portugal | €1,400 | ~28% | €4,200 | €2,100 |
| 2 | Berlin | Germany | €1,200 | ~35% | €3,792 | €1,692 |
| 3 | London | United Kingdom | €1,900 | ~32% | €3,967 | €1,067 |
| 4 | Amsterdam | Netherlands | €1,800 | ~37% | €3,675 | €975 |
| 5 | Dublin | Ireland | €2,000 | ~40% | €3,500 | €600 |
Figures are 2024–2025 averages. Rent = 1-bedroom city centre. Tax rates are simplified effective rates. "Leftover" = net income minus rent and estimated living costs.
Why the ranking looks like this
Cost of living in Europe varies enormously from one country to the next. A comfortable salary in Lisbon might barely cover rent in Dublin. The ranking above compares five cities that regularly appear on relocation shortlists for English-speaking professionals — Dublin, London, Berlin, Amsterdam, and Lisbon — across the three biggest cost drivers: income tax, rent, and day-to-day living expenses.
Rent: the biggest variable
Rent is typically the largest single expense for anyone moving to a new city. In 2024–2025, average monthly rent for a 1-bedroom apartment in the city centre ranges from around €1,200 in Berlin to over €2,000 in Dublin. London and Amsterdam sit in the middle, while Lisbon — though rising fast — remains the most affordable of the five.
It's worth noting that rent varies significantly within cities. Living 20–30 minutes from the centre can cut your rent by 20–40% in most of these cities, making location within the city almost as important as the city itself.
Income tax: how much do you actually take home?
Tax systems in Europe are complex, but for a rough comparison, effective tax rates for middle-to-high earners range from around 28% in Portugal to 40% in Ireland. The UK and Germany sit in the mid-30s, while the Netherlands is slightly higher — though the 30% ruling for expats can significantly reduce the burden in Amsterdam for qualifying workers.
Day-to-day living costs
Beyond rent and tax, monthly living costs — groceries, transport, utilities, dining out, and leisure — also vary by city. Lisbon and Berlin are the most affordable for everyday spending. Dublin and London are the most expensive. Amsterdam falls in between. These differences add up to hundreds of euros per month over time.
Which European city is best for your salary?
Based on the combination of tax rates, rent, and living costs, Lisbon and Berlin consistently come out as the best value cities for professionals earning €50,000–€80,000 per year. Dublin and London, despite high gross salaries, often leave workers with surprisingly little at the end of the month. Use the calculator above to run the numbers for your specific salary and see exactly where you would stand in each city.
Frequently asked questions
What is the cheapest major city to live in Western Europe?
Among major European capitals popular with expats and remote workers, Berlin and Lisbon are consistently the most affordable. Berlin has the lowest rents of the five cities covered here, while Lisbon has the lowest income tax rate at around 28% effective for middle earners. Both cities offer significantly better value than Dublin or London for professionals on typical salaries.
How much does it cost to rent a 1-bedroom apartment in major European cities?
As of 2024–2025, monthly rent for a 1-bedroom apartment in the city centre ranges from approximately €1,200 in Berlin to over €2,000 in Dublin. London averages around €1,900, Amsterdam around €1,800, and Lisbon around €1,400. These are city-centre averages — renting outside the centre can reduce costs by 20–40% in most of these cities.
Which European country has the lowest income tax for professionals?
Portugal has the lowest effective income tax rate of the five countries covered here, at roughly 28% for middle earners. Ireland has the highest, at around 40%, due to its 40% marginal rate applying from a relatively low income threshold. The Netherlands can be significantly reduced by the 30% ruling for qualifying international workers, but the base rate without it is among the highest.
How much salary do you need to live comfortably in Europe?
In Lisbon or Berlin, €40,000–€50,000 gross typically provides enough to cover city-centre rent and living costs with some monthly surplus for savings. In Dublin or London, €60,000–€70,000 gross is a more common threshold for genuine financial comfort when renting in the city centre. Amsterdam falls roughly in between at around €55,000–€65,000.