When it comes to selecting a foreign job, one of the most important aspects that we all look forward to learning more about is the Cost of Living (COL).
So, let's have a look at the COL of countries across Europe with Numbeo.
But, wait. What do these numbers even mean? Well, it is simply a comparison of the COL of each country with that of New York City (NYC), USA, which is given a value of 100 as the baseline. In other words, an index of 120 means that that particular country's COL is 20% higher than that of NYC.
It is also important to know the difference between various types of indices here, which can be simply explained as follows:
- Cost of Living Index (Excluding Rent): Indicates the relative prices of consumer goods like food and other groceries, restaurants, transport, utilities, etc., but excluding accommodation rental expenses.
- Rent Index: Indicates the cost of renting a place to live.
- Cost of Living Plus Rent Index: Indicates the COL including rent, i.e., a combination of the above two indices.
- Groceries Index: Indicates the cost of grocery prices.
- Restaurants Index: Indicates the price of food and beverages in restaurants and bars.
- Local Purchasing Power Index: Indicates the relative purchasing power of an individual based on the average net salary.
So, let's consider the index No. 03 above, i.e., Cost of Living Plus Rent Index, to get an overall idea of the all-inclusive COL in a particular country.
It comes as no surprise at all to see Switzerland ranking No. 01 in this index, i.e., having the highest cost of living in Europe.
However, some of the best countries in Europe have mid-range COL values according to this index, meaning that you could afford to have a decent life with an average salary. Let us consider an interval of +10 and -10 from the average value, i.e., 51.1, which includes the following well-known economies in Europe:
- Ireland
- Norway
- Luxembourg
- Denmark
- Netherlands
- United Kingdom
- Austria
- Germany
- France
- Finland
- Sweden
- Belgium
