Interested in last year’s findings? Read the 2024 Working Abroad Index here.

After several years of steep increases, living costs across Europe are beginning to ease. The 2025 bunq Working Abroad Index shows that prices in European capitals are rising at a slower, more predictable pace. For remote workers and expats, this shift marks a welcome return to stability and a more sustainable outlook on life abroad.

The average monthly cost of living now stands at €1,644, only 3.6% higher than in 2024. This slowdown, compared to last year’s 5% jump, suggests that Europe’s cost of living may finally be finding its footing.

This year’s Index covers 27 European capitals and London, including data on rent, groceries, transport, utilities, and coworking spaces. The findings show an increasingly diverse picture across regions, with Western Europe cooling and Eastern Europe catching up fast.

Cost of Living Slows Across Europe

Across Europe, prices are showing signs of cooling. From rent to groceries, most categories recorded smaller, steadier increases. On average, costs rose by 3.6% compared to an 8.8% total jump since 2023. The pattern points to more predictable expenses and a more manageable landscape for long-term planning.

London remains the most expensive city at €3,216 per month, followed by Amsterdam (€2,679) and Dublin (€2,631). Even in these high-cost capitals, there are signs of relief. London’s overall costs fell slightly by 0.4%, driven by a 13.9% drop in utilities. Berlin also recorded a modest 0.6% decrease, now averaging €1,822 per month after years of steady increases.

In contrast, much of Eastern Europe continues to see prices rise faster than the EU average.

Affordable Capitals Stay Ahead

In Eastern Europe, Bucharest (€877), Sofia (€979), and Budapest (€1,026) remain among the most affordable cities for expats and digital nomads. Their relatively low prices still make them attractive options for freelancers, students, and early-career professionals.

However, these cities are no longer the hidden bargains they once were. Sofia saw the biggest yearly jump at +12.5%, followed by Budapest at +9%. Rising demand and growing international interest are slowly closing the gap between East and West. While life in the East remains cheaper, the difference is narrowing each year as more people choose to live and work there.

Mid-Priced Cities: The New Sweet Spot

If 2025 has a clear winner, it is the mid-range city. Capitals like Athens (€1,095), Zagreb (€1.213), and Vilnius (€1,151) strike a balance between affordability, comfort, and connectivity. Their costs stayed notably stable, with increases between 0.5% and 9.5%, all below the EU average.

Athens, in particular, stands out. Its combination of reasonable living costs, Mediterranean lifestyle, and accessible visa programs makes it a growing favourite among digital nomads who want stability rather than constant movement. The data shows a broader shift too: living abroad is becoming less about chasing the cheapest spot and more about building a sustainable lifestyle.

Coworking Spaces Get Cheaper and Busier

Amid the broader slowdown, coworking spaces are this year’s success story. Prices fell by an average of 11% across the EU, making flexible work setups more affordable than ever before.

Budapest (€118) remains one of the cheapest cities for a desk, while Madrid (€152), London (€167), and Zagreb (€173) now offer rates that would have been unthinkable a year ago. Paris and Dublin also saw coworking costs drop by nearly 25%.

For remote workers, that’s one less cost to worry about. As more flexible workspaces open and competition increases, coworking spaces are becoming less of a luxury.

From Rising Prices to a More Stable Future

The steep price hikes of 2024 are giving way to more measured changes. Madrid, which saw almost a 25% surge last year, now reports a small decrease. Helsinki (-2.2%), London (-0.3%), and Berlin (-0.6%) all reflect this trend toward moderation.

Western Europe is showing early signs of stabilisation, while Eastern capitals continue to inch upward. The divide between the two is narrowing, creating a more balanced European map where nomads and expats have greater flexibility in choosing where and how they live.

A More Sustainable Future for Nomads

For remote workers and expats, 2025’s numbers tell an encouraging story. After several years of rapid increases, the pace of price growth is finally easing. Predictable expenses, cheaper coworking options, and a wider range of mid-priced cities are helping to make life abroad more attainable and more sustainable than in years past.

The bunq Working Abroad Index 2025 shows that Europe’s cost of living is finding a new rhythm. Living costs across Europe are no longer defined by sharp swings but by steady adjustments. For anyone planning life across borders, this new rhythm offers a much-needed sense of control, and a clearer picture of what it truly costs to live and work abroad.