Cost of living comparison
Cost of living by city: what Bangkok, Dubai, Lisbon and 1,300 others really cost — after tax
"Bangkok is so cheap!" — true, for a flat white (€1.50) and a one-bedroom flat ($800/month). Not true for: international school fees ($14,000/year), private doctor, flights home and the tax Germany continues to charge on your pension. Comparing cities only by coffee prices or raw Numbeo data leads to wrong decisions. This article explains which cost items actually matter, how the dont-tax.me profile system works and why "disposable income after tax and costs" is the only number that matters for a location decision.
Last updated 9 September 2026 · Reading time approx. 9 minutes
Why conventional cost-of-living comparisons mislead
Numbeo, Expatistan, Mercer, ECA International: all collect cost-of-living data. All share the same blind spot: they ignore taxes. Someone taking home €5,000 a month in Munich needs about €9,000 gross (at a 45 % effective rate). In Paphos with 5 % tax (non-dom pension flat rate) the same net requires barely more than €5,300 gross. Cost-of-living rankings systematically fail to capture this.
Second problem: "rent" is not a uniform category. A retired couple needs a two-bedroom flat. A family with two school-age children needs four bedrooms plus school fees. A home-working entrepreneur needs fast internet. Comparisons need to be weighted by household type.
Third problem: exchange rates and inflation. Cities priced in dollars, euros, baht and dirhams produce distorted pictures when simply converted. dont-tax.me reports living costs in USD (the global benchmark for purchasing-power comparisons) and shows tax and savings in the entered home currency, with an explicit note on the currency approximation.
The seven cost blocks that count
- 1. Housing: rent for 1-bed (single/expat) and 4-bed (family). Purchase price for a 150 m² reference property. Utilities (electricity, water, internet) separately.
- 2. Healthcare: average private health insurance for adults (monthly), for children, healthcare system quality (from "ok" to "very good"), doctor-visit cost. Within the EU: S1 entitlement where applicable.
- 3. Education: international school (annual fee), local private school, public school (free/tax-funded). For families with school-age children, the second largest item.
- 4. Daily life: restaurant meal (budget and mid-range), coffee, beer, supermarket prices (milk, bread, rice, eggs). For calibrating the general price level.
- 5. Infrastructure: internet speed (Mbps), coworking cost (monthly). Relevant for business owners and remote workers.
- 6. Transport: public transport, taxi/rideshare, car ownership — in many non-European cities no car needed, in others essential.
- 7. Tax on your income: the block others omit. Decisive for disposable income — and dependent on income type, status and home country.
Three profiles: single, expat couple, family
dont-tax.me shows three household profiles for every city:
Single: one person, one home, no children. Represents freelancers, single retirees, investors without family.
Expat: typically a couple without children or with very young children (no school fees yet). 1–2 bedroom rent, two people.
Family: married couple with two school-age children, 4-bedroom flat, two international school fees, health insurance for four.
These are reference values — every household is individual. In the city comparison, a slider adjusts costs; the savings and projection recalculate instantly.
Cheapest cities worldwide — with all costs included
When taxes, health insurance and (where relevant) school fees are added, the ranking shifts:
Tax based on a single profile with €60,000 income from Germany; cost of living approximated for a one-person household in US dollars.
| Tbilisi | Da Nang | Medellín | Chiang Mai | Kuala Lumpur | Buenos Aires | Patras | Valencia | Sofia | |
|---|---|---|---|---|---|---|---|---|---|
| Cost of living single / mo | $1,153 | $728 | $1,508 | $694 | $912 | $1,549 | $1,066 | $2,105 | $1,450 |
| Tax on expat income €60k | 21.000 € | 30.000 € | 32.400 € | 9.000 € | 27.000 € | 30.000 € | 35.400 € | 37.200 € | 15.000 € |
| Healthcare | good | very good | very good | very good | good | good | good | very good | good |
| Avg temp | 13 °C | 26 °C | 22 °C | 26 °C | 27 °C | 17 °C | 12 °C | 13 °C | 11 °C |
Healthcare rating and average temperature from the explorer dataset, live from the city profile.
What stands out: Tbilisi and Da Nang are cheapest on raw living costs but have limited healthcare. Kuala Lumpur is slightly more expensive but has excellent private hospitals and good international schools. Patras (Greece) combines EU, S1 health cover, the 7 % retiree regime and moderate costs — often underestimated.
Europe: where is it affordable and still comfortable?
Within Europe, the health insurance question is simple for EU citizens: S1 for retirees drawing a home pension, or access to the local system via free movement. This makes Europe more attractive than cheaper non-EU alternatives for anyone with health concerns.
| Sofia | Valencia | Patras | Faro (Algarve) | Paphos | Tallinn | Ljubljana | |
|---|---|---|---|---|---|---|---|
| 1-bed rent / mo | 725 € | 1.316 € | 457 € | 959 € | 1.031 € | 762 € | 1.033 € |
| 4-bed rent / mo | 1.400 € | 2.100 € | 700 € | 1.600 € | 2.000 € | 1.400 € | 1.900 € |
| Healthcare | good | very good | good | ok | good | good | good |
| Note | Cheapest EU city; 10 % flat tax | Best value in Spain | 7 % retiree regime; S1 | S1; NHR gone, but quality of life | GESY + non-dom; 60-day residency | Digital-friendly; 22 % flat | Hidden alternative; moderate tax |
Asia: the cost advantage is real — with caveats
Asia offers the cheapest living costs outside Latin America — but with three caveats that matter for many European expats:
Health insurance outside the EU: no S1. International cover for a couple over 60 costs €500–1,500 a month. This substantially reduces the cost advantage.
Flight time home: 12–16 hours with a connection. Three round trips a year for family visits or medical appointments: €4,000–8,000 for a family.
Cultural and language adjustment: relevant for long stays, especially for retirees.
| Chiang Mai | Bangkok | Kuala Lumpur | Da Nang | Penang | Bali (Canggu) | |
|---|---|---|---|---|---|---|
| Cost of living single / mo | $694 | $1,003 | $912 | $728 | $652 | $1,932 |
| Int. school / yr | $14,839 | $16,709 | $12,649 | $15,001 | $10,773 | $10,944 |
| Healthcare | very good | very good | good | very good | very good | ok |
| Private insurance couple (65) / mo | 60 € | 60 € | 80 € | 40 € | 80 € | 40 € |
Private insurance approximated as double the monthly adult rate from the city profile; premiums at age 65 typically run above the average tariff.
Bangkok and Kuala Lumpur have the best private hospitals in Asia outside Singapore. KL is often the best combination of low costs, excellent medical care and an English-speaking environment for retirees with a reasonable income.
Middle East: Dubai and Abu Dhabi on full costs
Dubai is more expensive than its reputation suggests — and cheaper than its image. A single working from home with a modest lifestyle: €2,500–3,500 a month is realistic. A family with two children in a decent international school and a solid four-bedroom flat: €7,000–12,000 a month before tax.
| Dubai | Abu Dhabi | Sharjah | |
|---|---|---|---|
| 1-bed rent / mo | 2.204 € | 1.809 € | 751 € |
| 4-bed rent / mo | 4.200 € | 3.600 € | 1.700 € |
| International school / child / yr | $17,943 | $15,356 | $8,750 |
| Private health insurance couple / mo | 200 € | 200 € | 200 € |
| Healthcare quality | good | good | good |
| Internet speed | 250 Mbps | 240 Mbps | 11 Mbps |
Sharjah (the emirate next to Dubai, 30 minutes' drive) is the cheaper alternative: rents significantly lower, schools similar quality, no alcohol (Islamic), different infrastructure. Many expat families live in Sharjah and commute to Dubai.
Americas: Latin America's hidden potential
Latin America offers surprisingly good options for retirees and business owners — territorial taxation (foreign income locally exempt), affordable costs and, in some countries, excellent private hospitals.
| Panama City | Medellín | Montevideo | Playa del Carmen | Buenos Aires | Asunción | |
|---|---|---|---|---|---|---|
| Cost of living couple / mo | $2,088 | $975 | $1,735 | $1,742 | $1,023 | $1,254 |
| Territorial tax | Yes | No (worldwide) | Election (11 yrs) | No (worldwide) | Worldwide | Yes |
| Healthcare | good | very good | good | very good | good | good |
| Safety | ok | ok | ok | ok | poor | ok |
| Retirement visa | Pensionado from $1,000/mo | Pensionado from $900/mo | Rentista | Residencia Temporal | Pensionado | Easy residency |
Panama City is the only city in this table combining territorial tax + good healthcare + attractive retirement visa + dollarised economy (no currency risk for euro earners) + affordable costs.
How to compare cities in the explorer
Step 1: Set profile (single, expat, family) and enter income + home country. Without this the tax figures are empty.
Step 2: Set hard filters: safety ≥ "good", healthcare ≥ "ok" (or "good" if that's your minimum), climate (Mediterranean/temperate for retirees with European comfort expectations).
Step 3: Sort by "Disposable income" or "Highest savings". The list now shows where you keep the most after tax and costs.
Step 4: Take 2–4 cities into the direct comparison. Adjust the cost slider (if you live leaner or more extravagantly). Check the 10-year projection and break-even.
Step 5: Open the city profile, go through the tabs (cost of living, visa & residency, healthcare, safety, lifestyle). Check live weather and climate data.
Slider for your own costs
The default living-cost figure is an expat-household average. Those who live more frugally (local supermarkets, no car) or more lavishly (penthouse, club membership) adjust the slider. The savings and projection recalculate instantly.
The explorer ranks 1,300 cities by exactly this logic. → Compare now
How dont-tax.me works
Filter
1,300+ cities by tax burden, cost of living, safety, climate, visa access, internet speed and 200+ more data points.
Personalize
Enter your income, status (retiree, business owner, investor, family) and current country. The calculator applies each country's tax regime.
Decide
Exact savings per city, break-even after relocation costs, 10-year projection. Compare cities side by side with one click.
1,300+ cities · 190+ countries · 200+ data points · Regularly updated
dont-tax.me is a data and comparison tool, not tax or legal advice. All figures are estimates based on public sources.
Frequently asked questions
From cost surveys (including Numbeo, local surveys) with price ranges (min–max), supplemented by rental and property databases, insurance prices and school fee surveys. Exchange rates update daily. Tax rules are manually updated on known legislative changes.
Living costs are compared globally in USD (purchasing-power benchmark). Tax and savings are shown in the entered home currency.
Rent and daily prices are updated quarterly. Tax rules are updated on known changes (legislation, budget laws); at the complexity of 190+ countries there can be lags. For tax decisions always verify the current position with an adviser.
Yes, with the slider in city compare. If you know your target flat in Bangkok costs $1,200/month, enter that instead of the default.
Purchase prices per city (150 m² reference property) are in the city profile. The main comparison uses rent; buyers use the purchase price as a reference.