Which Country Has the Lowest Cost of Living? Countries With Low Cost of Living in the World (2026 Guide)

Cost of living isn’t just an abstract statistic—it’s the real-world difference between living paycheck to paycheck and being able to save, travel, invest, or build a life with peace of mind. When people ask “Which country has the lowest cost of living?”, they’re really asking where their money goes the furthest, where groceries, rent, transport, healthcare, and utilities are most affordable, and where everyday expenses allow a comfortable life on modest income. Fortunately, multiple global sources show consistent patterns: countries in South Asia, Africa, and parts of Central Asia dominate global rankings of low cost of living, driven by low prices for food, basic goods, local services, and housing—often at a fraction of what similar expenses cost in Western Europe or North America.

Beyond raw numbers, understanding low cost of living requires perspective: low daily expenses are often accompanied by different economic conditions, wages, and social services than high-cost countries. But for people on fixed incomes—retirees, students, remote workers, or nomads—the savings can be enormous. For example, in countries like Pakistan, Sri Lanka, India, or Nepal, a modest monthly budget that might barely cover rent in a large Western city can provide not just basic shelter but a comfortable lifestyle with local amenities, markets, and social life. This article breaks down cost of living data country by country, explains the drivers behind affordable living, and compares the very cheapest places on earth, giving you both numbers and context.

1. South Asia: A Region With Some of the Lowest Living Costs Anywhere

When global cost of living indexes are compiled—whether through Numbeo, Wisevoter, or LivingCost.org—South Asian countries consistently appear among the most affordable places to live. Pakistan frequently tops global rankings with the lowest cost of living index in many datasets, with everyday expenses calculated at extremely modest levels relative to world averages. Income levels are low, yes, but prices for basic items like staple foods, local transportation, and housing are some of the lowest measured anywhere.

Next in line are nations like Sri Lanka and Nepal, both of which show cost of living figures far below the global midpoint, often around one-quarter to one-third of costs in Western economies. What makes these countries especially notable is that not just rent or groceries, but services, labour-intensive needs (like domestic help), and transportation remain affordable. Local markets carry fresh produce at prices that would be considered a bargain almost anywhere else.

India, one of the world’s most populous countries, also ranks among the cheapest places to live. Its vast size and regional variation mean that costs differ greatly across cities, but even in relatively affordable urban centres like Kolkata or Jaipur, everyday expenses for rent, meals, utilities, and transport remain very low compared with Western standards. For example, a typical monthly living cost in India is often reported as roughly one-fourth of comparable Western figures.

What South Asian countries share is not just low nominal costs but a lifestyle in which local goods and services are priced for a local economic context. That means items that are expensive in wealthier nations—like imported goods, branded products, or high-end technology—will still carry premium prices, but everyday necessities are priced far lower, making these countries consistently appear at the top of global affordability rankings.

Finally, while each country has its own social and economic conditions that shape quality of life beyond cost alone, many of these South Asian nations also boast rich cultural traditions, cuisine, and community life—which adds value to low cost of living in a way that goes beyond pure numbers.

2. Africa’s Most Affordable Countries: Low Prices, Cultural Depth, and Diverse Options

Africa is a huge continent with enormous diversity, but multiple cost-of-living rankings show that several African countries are among the cheapest places to live globally. Countries like Algeria and Tunisia often appear in the “top low cost” group, with monthly living expenses well below those in Europe or North America. In Algeria, for instance, a combination of low rent, inexpensive food markets, and affordable local services keep everyday costs low, making it one of the most affordable African nations.

Other nations like Libya and Egypt similarly show very low cost of living indexes, with costs for basic goods, housing, and transportation significantly cheaper than global averages. In Libya, everyday pricing for goods like bread, local produce, and travel is so low that cost-of-living indexes place it near the very bottom in world comparisons—though this affordability exists alongside specific economic and political challenges.

The Gambia, in West Africa, also frequently appears among Africa’s most affordable countries. While the scale of modern infrastructure and access to global services may vary from larger economies, Gambia’s cost structure offers an attractive option for people seeking a low-cost coastal lifestyle with access to local markets and community life.

It’s worth noting that for many African nations, the cost of living advantage reflects broader economic conditions including lower wages and localized production for basic goods rather than a uniform international standard of comfort. Cheap housing and food markets are real, but access to some services (like high-end healthcare or imported goods) may carry higher relative prices. Still, for many people balancing tight budgets or seeking an affordable retirement, these nations present compelling choices.

For prospective expats, retirees, or long-term travelers, understanding the broader economic context of these countries—beyond simple price tags—is essential to evaluating affordability alongside quality of life and services.

3. Central & Southeast Asia: Extremely Affordable Living With Cultural Variety

Beyond South Asia and Africa, Central and Southeast Asia also includes nations consistently ranked as low cost of living destinations. Nepal, for example, appears near the top of many lists of cheapest countries, with cost indexes that reflect inexpensive housing, local travel, and food expenses—often totaling a fraction of what similar items cost in wealthier countries.

Further east, countries like Vietnam and Indonesia have become well-known for their affordability, particularly among digital nomads, retirees, and long-stay travelers. In many Vietnamese cities, basic costs including rent, food, and transport come in well below global averages, with some estimates suggesting overall monthly expenses for a modest lifestyle can be half or less compared with Western expenses.

Indonesia—and particularly areas outside the most expensive urban centres—often features even lower costs for everyday living. Many digital nomads and expats choose cities such as Yogyakarta or regional islands where rent, local food, transportation, and basic services are very inexpensive, creating a lifestyle that can feel surprisingly comfortable on limited budgets.

These Southeast Asian nations combine affordable essentials with rich cultural experiences, scenic landscapes, and dynamic local markets. Southeast Asian affordability tends to be driven by relatively low wage structures and locally produced goods, meaning prices for rice, local transport, street food, and traditional services are very low, but imported goods or premium services may carry higher, sometimes Western-like pricing.

Taken together, Central and Southeast Asia provide some of the most affordable international living options on the planet, with a wide range of climates, languages, and lifestyles that suit both adventurous travelers and long-term relocators.

4. Other Low-Cost Countries Around the World: Eastern Europe and Beyond

While South Asia, Africa, and Southeast Asia dominate lowest cost of living lists, other regions also offer surprisingly affordable options. Parts of Eastern Europe, for example, provide low prices relative to Western Europe while still retaining many hallmarks of European infrastructure and services.

Countries like Ukraine often rank among Europe’s most affordable, with monthly costs for basic living significantly lower than in neighboring Western European nations. Even if other socioeconomic factors are volatile, daily expenses for housing, food, and transportation can be comparatively low.

Other nations in Central Asia—such as Kyrgyzstan, Tajikistan, and Uzbekistan—often appear on global lists of affordable countries. These nations benefit from low local prices for housing and food, though again wages and services vary widely relative to developed economies.

Some South American countries also make lists of affordable places to live, depending on exchange rates and local pricing dynamics. Though not always the very cheapest, countries like Colombia, Bolivia, and Paraguay are often cited on broader affordability rankings, especially for expats seeking cost-effective living with a decent quality of life—bearing in mind that local factors such as safety and infrastructure should also be considered.

These additional regions expand the landscape of affordability and often attract people from Western nations seeking lower expenses without entirely leaving familiar cultural or climatic settings behind.

5. How Cost of Living Is Measured and What It Really Means

Comparing cost of living across countries isn’t as simple as looking at one monthly number; global indexes like Numbeo or aggregated data from sources like Wisevoter combine multiple factors—housing, food, transport, utilities, healthcare, and local purchasing power—to create a holistic picture of affordability in each place. These indexes often use a baseline (like New York City = 100) to indicate relative cost levels, so a score of 11–25 in a country means everyday expenses can be about 10–25% of what they would be in a high-cost city.

For example, although Pakistan often appears at or near the very lowest end of global cost of living indexes, this reflects a combination of low prices for essentials and local production of many goods—not simply a nominal price tag divorced from context. Similarly, other countries with low cost of living indexes may also have lower average wages, meaning local purchasing power and income must be balanced with the price data when evaluating affordability.

Another measurement consideration is region within a country. Cities like capital regions or tourist hubs may have significantly higher living costs than rural or secondary cities; for instance, living in Karachi might differ from living in smaller Pakistani cities, just as Indonesian metropoles differ from provincial towns.

Finally, cost of living is deeply tied to quality of life factors, such as access to healthcare, infrastructure, safety, and social services—elements that often vary widely even within low-cost countries. A place may be inexpensive but lack certain services that higher-cost countries provide by default; understanding both expenses and these broader living conditions is key to choosing the right destination.

Comparison Tables (Featured Snippet-Ready)

Top Countries With Lowest Cost of Living (Global Index)

Typical Monthly Expenses Compared (Illustrative)

(These illustrative ranges draw on global index patterns — validate local markets for precise budgeting.)

Wrap-Up: Choosing an Affordable Country to Live In

If your priority is cost of living, then looking at global data makes one pattern clear: South Asia (Pakistan, Sri Lanka, Nepal, India), parts of Africa (Algeria, Egypt, The Gambia), and some Southeast and Central Asian nations (Vietnam, Indonesia, Bangladesh) consistently top the rankings for lowest everyday expenses.

However, low cost of living is only one piece of the puzzle. As you consider relocating—or even just traveling long-term—factors like safety, healthcare infrastructure, visa options, and quality of life are equally important alongside affordability. Balancing low prices with reliable services and personal priorities gives you not just a cheap place to live, but a place that truly feels like home.