Expats face rising costs across Europe, with London and Dublin topping the list

• bunq, the second largest neobank in Europe, reveals a 5% increase in living costs for expats across European capitals

• London and Dublin continue to top the list as the most expensive cities for digital nomads, while Bucharest remains the most affordable European capital despite a 3.2% rise in overall living costs 

• Madrid (+24.9%) and Amsterdam (+17.7%) have experienced the sharpest price hikes. Meanwhile, Prague saw the biggest drop, with a 11.7% decline, yet it still remains one of the most expensive cities in Eastern Europe.

London, November 6, 2024 – As the digital nomad lifestyle continues to surge, bunq’s latest research highlights rising costs for expats across Europe. In its new study, bunq compared the costs for rent, groceries, public transport, utilities, and coworking spaces across all European capitals. With the number of digital nomads projected to reach 40 million globally by the end of 2024, the borderless workforce now faces higher living costs, averaging €1,586 per month – a 5% increase from last year.

London and Dublin remain Europe’s most expensive capitals for expats, with London’s monthly living costs averaging €3,227 (+7.1%) and Dublin following at €2,634 (+1.6%). While these cities saw slower rises compared to others, the overall divide between Western and Eastern Europe is widening, with, for instance, Prague seeing a 11.7% drop in living costs.

On the other end of the spectrum, Bucharest remains the most affordable European capital, with living costs at €829 per month, up 3.2% since last year. For digital nomads seeking sunny destinations, Athens (€1,104) and Zagreb (€1,108) also remain attractive options, with increases of 5.9% and 0.5%, respectively.

Rent: London and Dublin still on top, but Madrid registers the highest increase

Despite slower growth this year, rent prices in London and Dublin remain high, with digital nomads in London needing to budget an average of €2,255 per month (+6.1%), while Dublin’s sits at €1,862 (+2.5%). However, other cities saw even steeper increases. Madrid’s rent prices skyrocketed, with a 33% increase, and Amsterdam followed closely with a 18.7% rise. Turning to Eastern Europe, Prague saw rents drop by 7.6%, yet it remains one of the pricier cities in the region at €881 per month. Expats looking for more affordable options should look at Bucharest and Riga for their next adventure, being the cheapest on the list at €442 and €417 respectively.

Essential costs on the rise in Western Europe

Digital nomads have to budget more carefully when it comes to groceries as well, with costs rising across Europe by 2.5%. London has seen a +7.8% rise in average monthly costs, but figures amongst the lowest rankings for Western European cities, well beyond the €425 needed in a pricey Paris. Meanwhile, Dublin has bucked the trend, seeing a decrease of -3.4%. Looking at Eastern Europe, Warsaw remains the best city for budget-conscious grocery shoppers, where expats spend only €205 per month.

Public transport prices are also getting steeper, with a 12.1% average increase in costs across Europe. London’s seen the biggest surge – transport costs have jumped a whopping 54.2%, making it the most expensive city to get around, at €279 per month. While transport costs in Dublin have held steady, it's still among the top three most expensive cities. In contrast, Bucharest gives digital nomads another reason to be kept on their list as it stands out with a -43.1% decrease, making it the most affordable capital for getting around.

Utilities, internet, and mobile costs in London have dropped by 8.5% this year, now averaging €385 per month, followed by Dublin at €337. While prices in Western Europe have seen the highest increases, with the exception of Valletta recording a 39.9% decrease, Eastern Europe makes for an attractive option for digital nomads on a budget. Prague recorded the largest drop in this category, down 18.9%, but Sofia stands out as the cheapest Eastern European capital at €163 per month.

Bianca Zwart, Chief of Staff at bunq: “Living a borderless lifestyle is more than just picking your next destination – it's about understanding the costs that come with it. Our research provides a clear view of expenses across Europe's international hotspots, helping expats make informed decisions that align with their goals and lifestyle, so they can truly live life on their own terms, wherever they choose to call home.”

About the research

For the study, the average costs for rent, food (monthly shopping) and utilities (electricity, heating, cooling, water, waste, mobile internet and home internet) from the Numbeo database were determined for the years 2023 and 2024. In total, the prices for 27 EU capital cities and London were taken into account. For rental prices, one-bedroom apartments in and outside the city centre were considered, and the average was calculated. Electricity and other utility costs are based on the costs for an 85m2 apartment. For the costs of workspaces, the average prices for co-working spaces/office space were determined. The cheapest offers for co-working spaces and private offices were checked on the Regus and SpaceWorks websites, and the average was then calculated. No offers could be found for six cities.

The costs for public transportation come from the official websites of the respective transportation companies – any discounts and special rates were not taken into account. For Germany, the 49-euro ticket was chosen instead of the BVG monthly ticket. The fare zones are all in the vicinity of the city. The costs for mobile internet include calls and 10 GB, the speed for internet is at least 60 megabits per second, and there is unlimited data.