Cost of Living in Europe: 5 Cities Compared
Thinking about moving to Europe, or negotiating a salary in a new city? Here's a practical, no-nonsense breakdown of what life actually costs in five major cities.
The real cost of living in Europe
Europe has some of the world's most desirable cities to live and work in — but the cost of living varies enormously from one country to the next. A comfortable salary in Lisbon might barely cover rent in Dublin. Understanding the numbers before you move is essential for making a financially sound decision.
This guide compares five cities that regularly appear on relocation shortlists for English-speaking professionals: Dublin, London, Berlin, Amsterdam, and Lisbon. For each city, we look at the three biggest cost drivers: income tax, rent, and general 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.