Romania offers one of the most balanced cost-to-income ratios in Europe, according to experts at Compare the Market AU, who have compiled the Affordability Index 2025.
The index is a ranking of 44 countries that reveals the most and least affordable places to live, based on key work-life balance factors such as income and taxation, housing, utilities, transport, and cost of essential goods and leisure. In the end, countries are given an affordability score.
The top 10 countries are Brazil (71.27), Romania (70.18), Indonesia (68.78), India (67.40), South Korea (66.89), Bulgaria (65.99), Luxembourg (63.86), Canada (62.74), China (62.60), and Colombia (61.23).
Romania offers low housing, utility, and transport costs, making everyday life more affordable without sacrificing essentials, according to the ranking. As a result, it stands out for budget-conscious professionals and remote workers.
Indonesia and India excel in affordability for everyday living, topping the table for transport, utilities, and leisure costs, despite lower average incomes. South Korea offers a compelling mix of low housing and utility costs with excellent yet affordable transport infrastructure, making it a standout in East Asia.
Luxembourg and Canada may not seem like cost-effective destinations at first glance, but both countries benefit from higher average incomes that help offset living expenses.
With an impressive Affordability Index score of 71.27, Brazil takes the top spot as the best country for affordability in 2025. Despite a relatively low average income, it stands out thanks to affordable accommodation and transport costs, helping it outperform wealthier nations.
At the opposite end of the spectrum, Iceland ranks as the least affordable country, with a score of just 34.40. Residents face steep costs across nearly every spending category. Iceland also sits at the top for housing and utility costs, making daily life considerably more expensive relative to income.
Other high-cost countries include Portugal, Switzerland, Denmark, and the Netherlands.
(Photo source: Kotist | Dreamstime.com)
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