If you’ve ever thought about starting a new life overseas, you’re not alone. More than three-quarters of Brits dream of retiring abroad, according to research from Wise. And if you’re on a fixed income, like a pension, moving to one of the cheapest countries to live in will be critical to making your money go further.
The cost of living, poor wage growth, turbulent house prices and high mortgage rates are just some of the many factors that prompt many to consider relocating abroad – you can add better weather and lower taxes to this list. But where do you start looking and is it even worth it?
We’ve looked at the latest Expat Insider 2024 survey by InterNations, which has ranked the cheapest countries to live in, including a range of top destinations like Thailand, Brazil and Mexico.
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Which are the cheapest countries to live in?
In the 2024 Insider survey, expats ranked the countries from one (very bad) to seven (very good) based on three different parameters – general cost of living, financial satisfaction, and comfortable living. Each of the countries has at least 50 respondents, and about 53 destinations made this threshold.
For the fourth time in a row, Vietnam has taken the crown as the cheapest country to live in. Colombia came second, followed by Indonesia, Panama, and the Philippines.
Of the top 10 countries, six are found in Asia, while the remaining four are in Latin America – making these two regions the most attractive for expats. Surprisingly, none of the European countries could make it to the top 10, however, Portugal and Spain were just outside the top 10, ranking 13th and 14th respectively.
Overall, here are the rankings from the cheapest to the most expensive country in the 2024 index:
| Rank | Country |
|---|---|
| 1 | Vietnam |
| 2 | Colombia |
| 3 | Indonesia |
| 4 | Panama |
| 5 | Philippines |
| 6 | India |
| 7 | Mexico |
| 8 | Thailand |
| 9 | Brazil |
| 10 | China |
| 11 | Malaysia |
| 12 | Oman |
| 13 | Portugal |
| 14 | Spain |
| 15 | South Korea |
Source: Expat Insider 2024 survey by InterNations
Not much has changed in the index – nine of the top ten countries were on the list last year. The only exception is Malaysia, which was edged out by Brazil, which jumped up to 9th place, from 17th, this year.
Other countries to consider include South Korea which rose from 37th place to an incredible 15th, thanks to the country showing signs of slowing inflation and increasing exports. Denmark is now 32nd on the list, up from 47, despite cost of living pressures and Hong Kong now ranks 28th, after placing at number 43 in 2023. The vast majority (84%) of expats who live in Hong Kong say they are happy with their disposable household income and increased spending power. One in five has an annual income of $100 (USD) or more.
Which countries are the most expensive to live in?
The most expensive country to live in is Canada, which ranked 53rd on the list. According to Forbes, the cost of living and mortgage rates remain extremely high for homeowners, despite the central bank cutting interest rates. Food and fuel prices are also high, though they're starting to see some improvement.
Not all Asian countries are cheap boltholes for expats. Singapore, for example, at 48th on the list is one of the most expensive cities in the world, with many struggling to manage their finances due to sky-high costs.
Four European countries are at the top of the most expensive list – UK, Finland, Norway and Ireland, while new entries include three Middle Eastern countries, namely Kuwait, Turkey and Bahrain. New Zealand is also in the mix as steep costs still pose a problem for affordable living.
Here is a rundown of the 10 most expensive countries from the survey.
| Rank | Country |
|---|---|
| 1 | Canada |
| 2 | Finland |
| 3 | United Kingdom |
| 4 | Ireland |
| 5 | Norway |
| 6 | Singapore |
| 7 | New Zealand |
| 8 | Bahrain |
| 9 | Turkey |
| 10 | Kuwait |
Source: Expat Insider 2024 survey by InterNations
Is the UK a cheap country to live in?
In a nutshell, no. Britain performed poorly on the Personal Finance Index, ranking 51st out of 53 countries. This was mainly due to the high cost of living, which over half of the participants felt negatively about, while 37% of expats were dissatisfied with their financial situation.
This came despite inflation falling from a 41-year high of 11% in 2022, as poorer incomes left a gaping hole in Brits’ spending powers. The research also found that 43% of expats felt that their disposable income was not enough to lead a comfortable life in the UK.
Should you retire abroad?
While relocating to a new sun-drenched country might seem desirable, as well as the cost of living there are some other things to consider if you’re moving there as a retiree.
One of the biggest factors that’ll affect your decision is what happens to your pension if you retire abroad, and if you’ll still receive the UK state pension. The good news is that you can still receive your personal pension no matter where you live, along with any annual pension increases. But you need to make sure that you arrange for your plan to be transferred overseas, and you need to transfer it to a “Qualifying Recognised Overseas Pension Scheme”.
Understanding taxes, both in your new country and the impact on your UK tax position, is also a key consideration when you’re planning a move overseas.
Read our guide on retiring abroad: what to consider, from tax to pensions, to find out more.
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