Lodz is one of the most cost-effective cities in Europe to live in

Many people are still experiencing the financial effects of the pandemic in their cities, with inflation rates and the cost of living rising in many countries. With searches for ‘where is the most cost-effective place to live’¹ rising +100 percent over the past 12 months, it’s clear that many people are looking to relocate for a better quality of life.

To find the most cost-effective cities, new research from Compare the Market AU analysed factors such as income tax rate, inflation rates, average income and cost of living costs to create an index. The research shows:

• Bucharest in Romania ranks first with the lowest income tax at 10 percent
• Madrid and Napoli rank 2nd and 3rd
• Lódz in Poland ranks 5th with one of the highest inflation rates, but the average groceries shop costs as little as €17.71 on average

The top 10 most cost-effective cities in Europe were revealed as:

Commenting on the research, Stephen Zeller, General Manager of Money at Compare the Market said: “Over the past few years following the pandemic as inflation rates and income tax in many countries have risen, many people have felt the financial effects. On the back of this, many are looking to relocate to cities which are more cost-effective for a better quality of life.”

“Though the grass may seem greener on the other side, make sure that before moving you consider factors such as interest rates, and ensure that you are prepared to meet financial obligations should you plan to take out a home loan. Comparing options can help you with choosing an option that is appropriate for you and your circumstances.”