By: Nick Callos
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Money hacks and cost-saving strategies, such as using a cash envelope system and taking public transportation, can save you a good deal of money over time. But if you work remotely, which 30% of employees do, you have an even more powerful option to save money and accelerate your path to retirement.
It’s called geoarbitrage.
Geoarbitrage is the act of living in a place with a lower cost of living while working for a company located somewhere with a higher cost of living. Think of it like this: You work remotely for a finance company in New York City while living by a beach in Portugal. You get the Big Apple salary with a Portugal cost of living.
You could save so much more money, right?
By leveraging the geoarbitrage strategy, you can boost savings, which you can then invest for retirement and long-term goals. You could even semi-retire much sooner than you ever thought.
With remote work now common, the geographic arbitrage opportunity is available to tens of millions, if not more, in the USA and around the world. If the idea interests you, you may be wondering which destination is best.
How about Europe?
From the epic history and dazzling art to the stunning natural beauty and culinary diversity, Europe offers amazing experiences and adventures. The continent intrigues at every turn, whether you’re skiing in the Alps, viewing art in Florence, cycling around Amsterdam, or having a cup of coffee in Vienna.
In our geoarbitrage guide, we discuss all you need to know about geographic arbitrage, from selecting a destination to leasing a home in your new city. In this article, we’ll help you with choosing a destination in Europe.
Continue to learn about the best geoarbitrage destinations in Europe.
Why You Should Choose Europe for Geoarbitrage
While some cities in Europe are among the most expensive in the world, many of the continent’s great cities and towns have a lower cost of living while still offering a high quality of life. Such destinations also boast great entertainment and cultural activities. There’s an incredible diversity of options too. Whether you love nature or pubs, you’ll find your home here.
- Read our guide on the Best Digital Nomad Cities.
Just consider the potential of geoarbitrage in Europe: You could work for a business in London, making a big-city wage. But you could live in Budapest, enjoying the city’s historical sites, art scene, shopping, cafes and more. Your rent in Budapest would be one-third to one-fourth of what it was in London. Think of how much money you’d save.
Indeed, the financial opportunity is tremendous.
Now, let’s highlight the best geoarbitrage cities in Europe. See which destinations interest you, and start planning your move!
Barcelona, Spain
Average Rent
- City Center: $1,563 (1-Bedroom) up to $2,309 (3-Bedroom)
- Outside City Center: $1,055 (1-Bedroom) up to $1,603 (3-Bedroom)
Consider This Cost of Living Comparison:
According to Numbeo data, consumer prices, including rent, are 92% higher in San Francisco than in Barcelona. Making $80,000 annually in Barcelona will yield you a similar standard of living as making $153,600 annually in San Francisco.
Why It’s Among the Best Geoarbitrage Cities in Europe:
An enchanting seaside city, Barcelona is the cosmopolitan capital of Spain’s Catalonia region. The city features historic architecture, mesmerizing art, boundless culture, and a dining and nightlife scene that rivals anywhere else on earth. Plus, with great infrastructure, healthcare, and education, it’s easy to see why Barcelona consistently ranks among the best cities in the world to live in.
Athens, Greece
Photo by Despina Galani on Unsplash
Average Rent
- City Center: $661 (1-Bedroom) up to $1,198 (3-Bedroom)
- Outside City Center: $577 (1-Bedroom) up to $1,022 (3-Bedroom)
Consider This Cost of Living Comparison:
Cost of living is 117% higher in Boston than in Athens (Numbeo data). Making $80,000 annually in Athens will provide a similar lifestyle to making $173,600 annually in Boston.
Why It’s Among the Best Geoarbitrage Cities in Europe:
Welcome to the Cradle of Western Civilization! Athens has a storied past, which can be experienced at sites such as the Acropolis. A master of reinvention, the city today oozes creativity, urban grit, architectural wonder, and powerful reminders of its history. It’s a place unlike any other, with lots of unique neighborhoods you’ll love calling home. Overall, Athens’ cultural vibrancy and modern amenities make it one of the best geoarbitrage cities in Europe.
Lisbon, Portugal
Average Rent
- City Center: $1,563 (1-Bedroom) up to $2,954 (3-Bedroom)
- Outside City Center: $1,090 (1-Bedroom) up to $1,841 (3-Bedroom)
Consider This Cost of Living Comparison:
The cost of living is 78% higher in Singapore than in Lisbon, according to Numbeo data. Making $80,000 annually in Lisbon will offer a comparable standard of living as earning $142,400 annually in Singapore.
Why It’s Among the Best Geoarbitrage Cities in Europe:
From the cobbled alleyways to the white-domed cathedrals to the awe-inspiring coastal panoramas, Lisbon charms from end to end. Deserving of its spot on the best digital nomad cities list, Lisbon has a dynamic tech scene, enjoyable cafe culture, great cuisine, buzzing nightlife, and seven cinematic hillsides—everything a remote worker could ever want.
Warsaw, Poland
Image by jacqueline macou from Pixabay
Average Rent
- City Center: $1,119 (1-Bedroom) up to $1,962 (3-Bedroom)
- Outside City Center: $865 (1-Bedroom) up to $1,433 (3-Bedroom)
Consider This Cost of Living Comparison:
The cost of living is 96% higher in Los Angeles than in Warsaw, according to Numbeo data. Making $80,000 annually in Warsaw will yield you a similar standard of living as making $156,800 annually in Los Angeles.
Why It’s Among the Best Geoarbitrage Cities in Europe:
Warsaw has reemerged as a popular destination, thanks to the city’s resilience, exuberance for life, and respect for culture and history. Warsaw has embraced modernity, while still remaining true to its identity. The city will win you over quickly, whether you begin by touring around the Royal Castle or hanging out at a milk bar. Add in excellent public transportation and solid healthcare, and it’s easy to understand that Warsaw is a top choice for digital nomads, remote employees, and freelancers.
Split, Croatia
Average Rent
- City Center: $829 (1-Bedroom) up to $1,364 (3-Bedroom)
- Outside City Center: $570 (1-Bedroom) up to $950 (3-Bedroom)
Consider This Cost of Living Comparison:
The cost of living is 92% higher in Sydney than in Split, according to Numbeo data. Making $80,000 USD annually in Split will yield you a similar standard of living as making $153,600 annually in Sydney.
Why It’s Among the Best Geoarbitrage Cities in Europe:
Split offers the perfect blend of tradition and modernity, alongside postcard-worthy vistas and unspoiled nature. From Diocletian’s Palace to Krka National Park to the beaches, Split has it all at your fingertips. The city provides all the amenities you need too, from modern apartments to solid transportation and healthcare.
Finding the Best Geoarbitrage City in Europe
This list of the best geoarbitrage cities in Europe covers affordable cities with a high quality of life. It’s not a full list, as there are plenty more great places to call home across the continent.
When selecting a destination, consider your preferences for culture, climate, entertainment, activities, politics and more. Also, carefully calculate your budget and make certain you’re financially prepared. Also, get your digital nomad or remote work visa approved before going.
The perfect geoarbitrage city will differ for everyone, and this article is meant to get you started. For more inspiration, and to start planning your move, read our other geographic arbitrage resources:
- The Ultimate Guide to Geoarbitrage
- Using Geographic Arbitrage to Beat Inflation
- Digital Nomad Work Visas
About the Author
Nick Callos has always had a passion for reading, writing, and discovering the new and unknown. Originally from Cincinnati, Ohio, Nick holds a Bachelor’s Degree in English from Boston College. He currently splits his time between his hometown, Chengdu, China, and the open road. A full-time travel writer, Nick hopes his work can inspire others to explore the world more deeply and enjoy the digital nomad lifestyle.
Featured image by Eryk Piotr Munk on Unsplash
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