In a world where the cost of living continues to rise in many developed countries, the appeal of finding more affordable places to live has never been greater. Whether you’re looking to retire, work remotely, or simply escape the high expenses of city life, there are countries where your dollar stretches much further. These countries offer lower housing costs, affordable healthcare, inexpensive groceries, and a generally lower cost of living. From vibrant cultures to stunning landscapes, these destinations provide a high quality of life without breaking the bank. In this article, we’ll explore some of the cheapest countries in the world to live in, highlighting what makes them both affordable and appealing for those seeking a more budget-friendly lifestyle.
Cheapest Countries in the World
In 2025, the world will continue to offer various opportunities for those seeking to live comfortably on a budget. Whether you’re planning to retire, work remotely, or simply seek an adventure in a more affordable part of the world, choosing the right country to live in can make a significant difference in your lifestyle. From affordable housing to lower living expenses, many countries offer a high quality of life without breaking the bank. Below are the most affordable countries to live in 2025, offering a mix of low living costs, vibrant cultures, and unique lifestyles.
1. Vietnam
Vietnam continues to be a top contender for budget-conscious travelers and expatriates. Cities like Hanoi and Ho Chi Minh City offer modern amenities at a fraction of the cost compared to major Western cities. Rent, food, and utilities are exceptionally affordable, while the local culture, beautiful landscapes, and delicious cuisine provide an enriching experience.
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Cost of Living: Rent for a one-bedroom apartment can be as low as $300 per month. Meals at local restaurants cost around $2–$5.
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Highlights: Vibrant culture, beautiful beaches, and historical landmarks.
2. Mexico
Mexico has long been a favorite among expats, especially in cities like Mérida, Guadalajara, and Puerto Vallarta. With its proximity to the United States, affordable healthcare, and rich cultural experiences, Mexico offers a great lifestyle at a fraction of the cost.
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Cost of Living: Rent can range from $300 to $600 per month in smaller towns, with groceries and dining out being very affordable. You can eat at local restaurants for around $5–$10 per meal.
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Highlights: Rich history, warm weather, and close proximity to the U.S.
3. Thailand
Thailand is another hotspot for those seeking a cheaper lifestyle without sacrificing quality. Popular destinations like Chiang Mai and Bangkok offer affordable rent, low food prices, and friendly locals. Thailand is known for its excellent healthcare system, which is very affordable for expats.
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Cost of Living: Rent in areas like Chiang Mai can start at around $250–$400 per month, with inexpensive street food costing as little as $1–$3 per meal.
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Highlights: Stunning beaches, rich culture, and vibrant nightlife.
4. Portugal
Portugal has become increasingly popular in recent years due to its affordable living costs and beautiful landscapes. Cities like Lisbon and Porto offer a mix of old-world charm and modern amenities, all at a relatively low price.
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Cost of Living: A one-bedroom apartment in Lisbon or Porto can be rented for around $600–$900 per month. Dining out can cost around $10–$20 per meal.
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Highlights: Beautiful coastlines, historic towns, and friendly locals.
5. Bulgaria
Bulgaria offers a very affordable lifestyle, with the capital Sofia being one of the cheapest capitals in Europe. The cost of living is low, with cheap groceries, rent, and transportation. Bulgaria is also known for its stunning natural landscapes, from mountains to Black Sea beaches.
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Cost of Living: Rent can be as low as $250 per month, and meals at restaurants typically cost $6–$10.
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Highlights: Picturesque landscapes, rich history, and low cost of living.
6. Indonesia
Indonesia, especially the island of Bali, is a favorite among digital nomads and expats seeking an affordable lifestyle. While Bali is popular, there are other regions in Indonesia, like Yogyakarta and Jakarta, where the cost of living is extremely low.
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Cost of Living: Rent can be as low as $200–$500 per month. Meals from local eateries are around $2–$5.
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Highlights: Tropical climate, beautiful beaches, and a vibrant culture.
7. Colombia
Colombia offers an affordable lifestyle, especially in cities like Medellín, which is known for its pleasant climate and beautiful landscapes. The country is rich in culture, and healthcare is very affordable, making it an attractive destination for those on a budget.
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Cost of Living: Rent in Medellín can range from $300–$600 per month, and meals in local restaurants can cost as little as $4–$7.
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Highlights: Great weather, friendly people, and stunning nature.
8. Nicaragua
Nicaragua is often overlooked as a destination for expats, but it offers some of the lowest living costs in Central America. The country boasts beautiful beaches, colonial architecture, and affordable healthcare.
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Cost of Living: Rent can be as low as $250–$500 per month, and eating at local restaurants costs around $4–$6.
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Highlights: Low cost of living, stunning nature, and vibrant local culture.
9. Ecuador
Ecuador offers an affordable cost of living in both the mountains and coastal regions. Cities like Cuenca and Quito provide a high quality of life with a very low price tag. The country’s healthcare system is also highly affordable, making it attractive to retirees.
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Cost of Living: Rent can start as low as $300–$500 per month, with meals at local restaurants priced around $3–$5.
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Highlights: Stunning landscapes, rich culture, and affordable healthcare.
10. Ukraine (Post-War Recovery)
Despite the ongoing conflict, Ukraine is gradually recovering and has always been known for its affordability. In cities like Lviv and Kyiv, living costs remain low. While caution is required due to the current situation, there may be opportunities for long-term residents in the recovery phases.
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Cost of Living: Rent in Kyiv or Lviv can start around $300–$600 per month. Meals can cost between $4–$10 per meal.
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Highlights: Rich culture, historical sites, and resilient locals.
11. Cambodia
Cambodia offers a very affordable lifestyle, especially in cities like Phnom Penh and Siem Reap. The country boasts cheap rent, inexpensive food, and a laid-back lifestyle that appeals to many expats.
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Cost of Living: Rent can be as low as $250 per month, and meals at local eateries cost around $2–$5.
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Highlights: Rich history, low living costs, and friendly expat communities.
Advantages of Living in the Cheapest Country
Living in one of the cheapest countries offers several advantages, particularly for those looking to stretch their finances further. Here are some of the key benefits:
1. Lower Cost of Living
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Affordable Housing: Rent and property prices tend to be much lower, allowing you to either live in larger spaces or save more money on accommodation.
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Cheaper Groceries and Daily Expenses: Everyday items like food, transportation, and utilities are significantly cheaper, reducing overall living expenses.
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Budget Flexibility: With lower living costs, you can allocate your budget for other experiences, like travel or leisure, or save more for future goals.
2. Increased Savings Potential
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With less money required for the basics, it becomes easier to save and invest, providing long-term financial stability and opportunities for growth.
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The cost-effective lifestyle can lead to a higher disposable income compared to living in more expensive regions.
3. Opportunities to Travel and Explore
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A cheaper country often means that you have more financial freedom to travel both within and outside the country.
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You can explore nearby regions without breaking the bank, experiencing new cultures, and broadening your horizons.
4. Better Quality of Life on a Budget
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The savings you make can allow you to live a more comfortable and fulfilling lifestyle. For instance, you might afford more leisure activities, healthcare, or even hire domestic help like a cleaner or a personal chef.
5. Financial Independence or Early Retirement
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Lower expenses mean you could reach financial independence or retire earlier than you would in a more expensive country.
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With less income needed to cover basic needs, working part-time or earning less might still be enough to sustain your lifestyle.
6. More Relaxed Lifestyle
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Lower stress levels due to financial stability, as everyday life becomes more manageable without the high pressure to earn a large income.
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Less competition and a slower pace of life often accompany cheaper living countries, leading to a more relaxed and less stressful lifestyle.
7. Potential for Entrepreneurship
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With lower startup costs, it’s easier and more affordable to start a business in these countries. You can focus on creative projects or new ventures without the burden of high overheads.
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If your business is successful, it could be scaled up quickly, thanks to the affordable labor and materials.
8. Strong Community and Local Connection
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In many of the cheapest countries, there is a sense of community, with locals often welcoming and helping newcomers.
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The slower pace of life can foster deeper personal relationships and a stronger connection with your surroundings.
9. Healthier Lifestyle
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Lower stress and financial worries can contribute to better mental and physical health.
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Affordable access to local, fresh food can promote healthier eating habits and improve overall well-being.
10. Cultural Exposure
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Moving to a country with a lower cost of living can give you the opportunity to immerse yourself in a new culture, learn new languages, and experience different traditions that may not be available in wealthier countries.
In short, living in a cheap country can lead to a more fulfilling, low-stress, and financially secure life, especially if you can maintain a good balance between work and leisure.
Conclusion
Living in a more affordable country can open up new possibilities for travel, relaxation, and career growth. In 2025, countries like Vietnam, Mexico, Thailand, and Portugal stand out for offering great value without compromising on lifestyle or amenities. When choosing your next affordable destination, it’s essential to consider factors like healthcare, safety, and quality of life, in addition to just the cost of living.
Exploring a new country with a lower cost of living can be an enriching experience that allows you to embrace a new culture and lifestyle, all while staying within your budget. Each of these destinations offers a unique blend of affordable living and exciting opportunities. Happy exploring!