Cheapest Countries in Southern Europe (2026)

Why the leaders rank here for cost of living

The leaders here tend to keep daily costs lower relative to Western Europe while still offering coastal or med-adjacent lifestyles people actually want to live in year-round.

1. #1
   Portugal8.5

   Portugal still undercuts much of Western Europe on groceries and services, especially outside Lisbon and Porto cores.

2. #2
   Spain7.8

   Spain pairs broad services with mid-tier costs for Southern Europe, with inland and secondary cities usually cheaper than coastal hotspots.

3. #3
   Greece7.4

   Greece can look affordable on national averages, though island tourism towns and Athens districts can spike housing fast.

4. #4
   Italy7.2

   Italy sits mid-pack: the south and smaller cities often feel cheaper than northern industrial hubs and tourist centers.

5. #5
   Cyprus7.0

   Cyprus offers a compact island cost profile that can undercut northern Europe, while imported goods and coastal rent still need a buffer.