The ‘Expensive’ European Cities That Are Actually Cheaper Than Your Hometown (If You Know Where to Look)

11 September 2025

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The 'Expensive' European Cities That Are Actually Cheaper Than Your Hometown (If You Know Where to Look)

Funny thing about travel—some cities get stamped with the “too expensive” label, and we accept it without question.

Yet when you actually spend time in them, you realize the reality is far different: streets filled with cafés where a hearty meal costs less than your takeout back home, apartments that don’t drain your savings, and nights out that feel indulgent without the guilt of overspending.

The truth is, Europe’s so-called pricey hotspots often hide the best value. Once you know where to look, you’ll see that the real luxury is living well without paying a fortune.

1. Lisbon, Portugal

Lisbon often gets branded as one of the “expensive” capitals of Europe, but once you’ve spent a few days here, you’ll quickly realize how incredibly affordable daily life can be compared to many hometowns. Eating out is one of Lisbon’s sweet spots—whether it’s a plate of grilled sardines at a small tasca or a multi-course seafood dinner by the river, the bill almost always leaves you pleasantly surprised. Even coffee and pastries, like the famous pastel de nata, rarely cost more than a few euros.

Housing and short-term stays are another reason Lisbon can feel more wallet-friendly. While the city has seen a rise in property prices, short-term rentals and boutique guesthouses often cost far less than hotels in other Western European capitals. Public transport is also both reliable and cheap—hop on a tram, metro, or even the ferry without draining your budget.

On top of affordability, Lisbon delivers that relaxed lifestyle people crave: ocean breezes, golden light, and walkable neighborhoods like Alfama or Bairro Alto. It’s the kind of place where you can slow down, stretch your money, and still feel like you’re living large.

Best Months to Visit: April–June, September–October
Average Cost of a Meal: €8–12 for a casual sit-down
Transportation: €1.50–€2 per tram/metro ride
Lifestyle Highlight: Affordable fresh seafood markets and riverside dining

2. Porto, Portugal

Porto, Lisbon’s northern sibling, has all the charm of a major European city but at an even gentler cost. Food and drink here are astoundingly affordable—you can get a glass of world-famous Port wine for less than what you’d pay for a regular coffee back home. Restaurants, particularly those tucked into narrow cobbled streets, serve up hearty dishes at prices that make dining out not just doable but tempting every single night.

When it comes to housing, Porto still beats Lisbon in terms of affordability. Short-term apartments in historic districts or along the Douro River often cost significantly less than similar accommodations in other European “tourist” cities. Even for long-term stays, locals and expats agree that Porto offers one of the best balances between cost and quality of life in Europe.

The city also has a refreshingly easygoing pace. Riverfront walks, tiled buildings, and boat rides on the Douro make Porto not only beautiful but also approachable. You spend less here and still feel like you’re soaking up an incredibly rich cultural experience.

Best Months to Visit: May–September
Average Cost of a Meal: €7–10 for local restaurants
Transportation: €1.20–€2 per metro/bus ride
Lifestyle Highlight: Port wine cellars and riverside cafés at bargain prices

3. Valencia, Spain

Valencia tends to get overshadowed by Barcelona and Madrid, but it’s a city where your budget stretches further without sacrificing that vibrant Spanish lifestyle. Eating here is almost a celebration of flavor and affordability—from tapas bars to beachfront paella spots, meals often cost half of what you’d spend in bigger cities. Plus, Valencia’s reputation as the birthplace of paella means you’re eating iconic food at local prices, not tourist markups.

Housing also remains one of Valencia’s biggest draws. While Barcelona struggles with skyrocketing rents, Valencia is more balanced and accessible, whether you’re looking for short stays or thinking long-term. The city is large enough to have all the amenities you want, but small enough that costs don’t spiral out of control.

The cherry on top is Valencia’s lifestyle. Miles of sandy beaches, a futuristic arts and sciences complex, and the winding Turia gardens make it easy to fill your days without spending much. Whether you’re exploring markets or just enjoying the city’s rhythm, Valencia proves that “expensive” is all about perspective.

Best Months to Visit: March (Las Fallas Festival), May–June, September
Average Cost of a Meal: €9–12 for a sit-down meal
Transportation: €1.50 per metro/bus ride
Lifestyle Highlight: Affordable beachfront living and paella culture

4. Barcelona, Spain

Barcelona is often accused of being one of Europe’s pricier destinations, but once you look past the tourist traps, it’s shockingly good value. The trick is knowing where locals eat and shop. You’ll find markets like Mercat de Sant Antoni, where fresh produce and tapas are much cheaper than the city’s polished restaurants near La Rambla. Cafés tucked into side streets offer coffees and pastries for a fraction of the “tourist zone” price.

Housing is trickier here, as Barcelona is popular with both tourists and expats, but if you explore neighborhoods beyond the Gothic Quarter or Barceloneta, monthly rentals can be much cheaper than what you’d expect in other big Western cities. Transport is another perk—an unlimited monthly MetroCard costs less than many people spend on gas in a single week back home.

Barcelona also delivers something priceless: the blend of beaches, Gaudí’s architecture, and vibrant nightlife. You could easily spend your days between the sea and the mountains, often without spending more than a few euros on transport or food.

Best Months to Visit: April–June, September–October
Average Cost of a Meal: €10–15 (outside tourist-heavy areas)
Transportation: €2.40 single ticket; €20–25 for a 10-ride card
Lifestyle Highlight: Affordable tapas culture and beach access

5. Madrid, Spain

Madrid is a city where first impressions can fool you—it looks like it should be expensive, but daily life proves otherwise. Food is the ultimate equalizer here. Tapas bars often serve free small plates with every drink, meaning a casual night out can fill you up for far less than dinner back home. Even sit-down meals at traditional restaurants are often cheaper than fast food chains in some hometowns.

Housing costs in Madrid are surprisingly manageable when compared with cities of similar size in Western Europe. Central apartments can be a little high, but step into surrounding neighborhoods like Lavapiés or Chamberí, and prices drop without sacrificing vibrancy. For long stays, Madrid’s affordability stands out in comparison to many European capitals.

Lifestyle-wise, Madrid thrives on energy. From late-night plazas to affordable cultural outings like museum visits or flamenco shows, the city makes you feel like you’re getting far more than you pay for. The combination of affordability and cultural depth makes it one of the best “expensive” cities that turns out to be budget-friendly.

Best Months to Visit: March–June, September–November
Average Cost of a Meal: €8–12 for traditional Spanish menus
Transportation: €1.50–€2 per metro/bus ride; €54 for an unlimited monthly card
Lifestyle Highlight: Free tapas with drinks and world-class museums at low prices

6. Prague, Czech Republic

Prague’s fairytale looks often make visitors assume it comes with fairytale prices, but the reality is refreshingly different. Eating out here can be incredibly cheap—hearty Czech meals with beer often cost less than a sandwich in some Western cities. Even in the Old Town, if you know where to look, you’ll find family-run restaurants serving traditional goulash or dumplings without the tourist markups.

Housing is another pleasant surprise. While Prague is popular with digital nomads, short-term rentals and long-term apartments are still affordable compared to Western Europe, especially outside the historic core. Transport is both efficient and low-cost, making it easy to zip between neighborhoods without breaking your budget.

What makes Prague stand out is its blend of affordability and atmosphere. Cobblestone streets, gothic spires, and vibrant café culture make daily life feel rich, even if you’re spending far less than you expected. It’s one of those rare places where affordability doesn’t mean compromise.

Best Months to Visit: April–June, September–October
Average Cost of a Meal: €6–10 for traditional dishes
Transportation: €1.20–€1.60 per ride; €22 monthly pass
Lifestyle Highlight: Beer is often cheaper than water

7. Budapest, Hungary

Budapest has a reputation for being beautiful but expensive, yet once you scratch the surface, you’ll see how budget-friendly it really is. Restaurants serving Hungarian staples like goulash, lángos, and paprikash offer filling meals at prices that rival fast food chains elsewhere. Plus, Budapest’s famous ruin bars are not just quirky—they’re some of the cheapest nightlife experiences in Europe.

Housing is another strong point. Even in the central districts near the Danube, short-term apartments are affordable, and long-term rentals can be surprisingly low compared to other capital cities. The public transport network—trams, buses, and the metro—makes it easy to live without relying on costly taxis or cars.

Beyond costs, Budapest delivers lifestyle perks that feel like luxuries: thermal baths, river views, and grand architecture. Spending an afternoon soaking in century-old spas costs far less than a standard massage session elsewhere, making wellness and relaxation accessible without the “luxury” price tag.

Best Months to Visit: May–June, September
Average Cost of a Meal: €6–9 for sit-down dining
Transportation: €1.20 single ticket; €25 monthly pass
Lifestyle Highlight: Affordable access to historic thermal baths

8. Kraków, Poland

Kraków is one of those cities where affordability meets charm at every corner. You’ll find cafés, bistros, and milk bars (bar mleczny) serving traditional Polish dishes like pierogi and soups at prices that make eating out daily entirely doable. Even upscale dining here costs a fraction of what it would in bigger European capitals.

Housing is another reason Kraków surprises newcomers. Apartments, even in the Old Town or near Wawel Castle, are much cheaper than equivalents in Western cities. For long-term stays, it’s one of the best value-for-money places in Europe without losing that urban buzz.

The city’s cultural depth also adds to the value. Medieval squares, jazz clubs, and nearby mountain getaways make it easy to fill your schedule without emptying your wallet. Kraków gives you that perfect balance: affordable yet full of life and history.

Best Months to Visit: May–June, September
Average Cost of a Meal: €5–8 for traditional Polish food
Transportation: €1 per bus/tram ride; €25 monthly pass
Lifestyle Highlight: Cheap but lively café and nightlife culture

9. Tallinn, Estonia

Tallinn has the fairy-tale old town vibes of a pricier Northern European capital, but its costs are surprisingly gentle if you know where to look. Food, especially outside the medieval core, is reasonably priced and full of local Nordic-Baltic flavor. From cozy cafés to casual seafood spots, dining out here feels indulgent without the sting.

Housing is where Tallinn shines even more. Compared to cities like Stockholm or Helsinki, apartment rentals are much cheaper, and short-term stays give far better value for money. Public transport is inexpensive, and in fact, it’s free for residents, which speaks volumes about how affordable daily living can be.

Lifestyle perks? A thriving digital-nomad scene, seaside views, and tech-forward infrastructure make Tallinn feel both historic and modern. You’re paying less but still getting the benefits of a European capital with a dynamic cultural and professional life.

Best Months to Visit: May–August
Average Cost of a Meal: €8–12 for casual dining
Transportation: €2 single ride; free for residents
Lifestyle Highlight: Historic old town charm meets modern digital-nomad community

10. Riga, Latvia

Riga often flies under the radar, yet it’s one of Europe’s most budget-friendly capitals. Dining out here feels almost too good to be true: local restaurants, hearty Eastern European dishes, and even trendy bistros all cost far less than you’d expect. Street food and market meals can be ridiculously cheap while still tasty and filling.

Housing is a major bonus—short-term apartments in the city center or near the river are much more affordable than Western Europe’s equivalents. For those staying longer, rental costs are still manageable, even in the historic districts filled with Art Nouveau architecture.

Riga also offers a surprisingly rich lifestyle. Vibrant nightlife, music festivals, and proximity to sandy Baltic beaches mean you’re living large on a modest budget. It’s a city that combines low living costs with high cultural returns.

Best Months to Visit: June–August (summer festivals)
Average Cost of a Meal: €6–10 in local spots
Transportation: €1.50 single ride; €20 monthly pass
Lifestyle Highlight: Affordable nightlife and quick beach escapes

11. Belgrade, Serbia

Belgrade doesn’t usually top people’s travel lists, but those who venture here quickly realize it’s a city that offers a big lifestyle at a small cost. Meals are generously portioned and surprisingly affordable—whether it’s Balkan grills, fresh pastries, or riverside cafés, you rarely leave a table feeling like you’ve overspent. Even nights out are refreshingly light on the wallet, with bars and clubs known for being both energetic and budget-friendly.

One of Belgrade’s secrets lies in housing. Short-term rentals and long-term apartments remain among the cheapest in Europe for a capital city, especially when compared with the amenities and vibrancy you get in return. Transport is also affordable and straightforward, with buses and trams making the city easy to navigate.

What truly sets Belgrade apart is its character. This is a city with grit, history, and a nightlife scene that feels larger than life. From riverside floating clubs to buzzing bohemian quarters, the experience feels premium even though the costs are far from it. Belgrade proves you don’t need to spend much to live richly.

Best Months to Visit: May–September
Average Cost of a Meal: €5–8 for hearty Balkan dishes
Transportation: €0.80 per bus/tram ride; €27 monthly pass
Lifestyle Highlight: Legendary nightlife at a fraction of big-city prices

12. Sofia, Bulgaria

Sofia is often overlooked, yet it’s one of Europe’s most budget-friendly capitals where affordability meets diversity. Dining here is a pleasant surprise—restaurants serve everything from traditional banitsa (pastry) to hearty stews at prices so low you’ll be tempted to eat out more often than cook. Even international food options are relatively inexpensive compared to Western European standards.

Housing is another standout. Whether you’re looking for a central apartment or something closer to the mountains, rents and short-term stays are remarkably affordable, often half or even a third of what you’d pay elsewhere in Europe. Public transport is also cheap and covers a wide network, which makes getting around the city stress-free and economical.

Lifestyle-wise, Sofia offers a rare combination: an urban city with easy access to nature. You can spend your mornings in historic squares and your afternoons hiking Vitosha Mountain just outside the city. This blend of culture and outdoor living, all at such low costs, makes Sofia a hidden gem for those who want more for less.