Sunny holiday hotspot is 53 percent cheaper to live in than the UK, report says

With the cost of living continuing to rise in the UK and across the world, many Britons are searching the globe for a cheaper place to live.

New research by the property experts at Property Guides has revealed that three holiday hotspots for British tourists are the countries that are cheapest to live in for 2024.

Property Guides compiled the new Cost of Living Overseas Index by comparing the living costs across 13 countries to the cost of living in the UK. The 13 countries were: Spain, France, Italy, Portugal, Cyprus, Greece, Ireland, Germany, USA, Canada, Australia and New Zealand.

The report looked at everyday living expenses, as opposed to generic holiday expenditure, to determine what realistic outlays expats, holiday home owners or retirees could expect whilst living abroad.

A ‘basket’ of goods and services was assembled consisting of everyday staples such as a litre of milk and loaf of bread, with the addition of a few British favourites like teabags and a gin and tonic.

Also included in the list was the cost of setting up your new home, which includes decorating materials, a trip to IKEA and the cost of a cleaner.

Other costs considered were car rental prices, petrol costs, Netflix subscriptions and the price of cinema tickets

When it comes to energy, electricity is the most expensive in Cyprus, the USA and Canada, while it is significantly cheaper in Spain and Italy.

For essential shopping such as bread, butter, milk, apples, dog food, chocolate and laundry detergent, Spain is the cheapest compared to the other countries analysed.

The same basket of supermarket essentials cost 53 percent more in the UK than in Spain, with the UK being the fourth most expensive country on the list. Eye-wateringly, dog food, gin and dark chocolate or more than double the price in the UK compared to Spain.

However, paracetamol is available on the cheap in the UK – with a 16-pack available for just 39p – you could end up paying nine times that amount in Cyprus or Canada.

The research also found that Spain had the lowest cost of living compared to the other 13 countries analysed – the identical ‘basket’ of items that cost £1,996 in the UK, cost just £1,295 in Spain. That’s a staggering saving of £701.

Overall, here are the rankings from the least expensive to the most expensive country:

1. Spain
2. Italy
3. Portugal
4. Greece
5. Germany
6. Ireland
7. Canada
8. Cyprus
9. USA
10. France
11. UK
12. Australia
13. New Zealand

Christopher Nye, chief editor at Property Guides, said: “It seems harder and harder to make ends meet in the UK, and so more and more Britons are considering moving abroad for a more affordable, warmer and more exciting lifestyle.

“But if you’re moving abroad to save money, be careful. Because not everywhere is cheaper than the UK. To help people see whether they could realistically be enjoying a better standard of living abroad, The Cost of Living Overseas Index 2024 has the answers for 12 of the most popular countries for British people (and other nationals) to move to.

“But living abroad isn’t just about the price of potatoes. That’s why The Cost of Living Overseas Index covers a range of typical household expenses, from grocery essentials to health products, furniture to subscription services, travel and leisure. We’ve broken down the costs of actually living abroad – not just travelling for a holiday.”