How does the geographic arbitrage calculator work?
The calculator uses Eurostat Price Level Indices (PLI) to compare living costs across 38 European countries. Enter your monthly net income — it stays fixed for all countries. The calculator scales your home country's living costs using PLI data and shows how much of your income remains as a disposable balance in each country.
Where does the data come from?
Price levels come from Eurostat's official Purchasing Power Parities dataset (prc_ppp_ind), updated annually. Default living costs are country-specific estimates scaled by Eurostat Price Level Index data.
What is geographic arbitrage?
Geographic arbitrage means earning income in a higher-cost economy while living in a lower-cost one. Remote workers who keep their salary but relocate to a cheaper country can significantly increase their purchasing power and monthly disposable income.
Why does some country show a negative balance?
A negative balance means the estimated living costs in that country exceed your entered net income. This does not necessarily mean living there is impossible — actual costs depend on lifestyle, city location, and personal choices. The calculator's cost estimates are based on average Eurostat data.
What does the Price Level Index mean?
The Price Level Index (PLI) measures how expensive a country is compared to the EU average (EU27 = 100). A PLI of 80 means prices are 20% below the EU average; 120 means 20% above. The calculator uses these indices to scale your living costs proportionally.
Which EU countries are cheapest to live in?
Based on Eurostat data, Poland, Lithuania, and Latvia consistently rank among the lowest price level countries, followed by Portugal. These countries offer significantly lower price levels than the EU average, meaning a fixed income goes considerably further there.
What does entering costs by category add?
When you enter your current spending by category (housing, food, transport, etc.), each of the top-5 country cards shows how much you would save or spend more in each specific category compared to your current country. This helps identify exactly what makes one country cheaper than another.
What living costs are included in the comparison?
The calculator uses Eurostat Price Level Indices for 6 categories: overall household consumption, food and beverages, housing and utilities, transport, recreation and culture, and restaurants and hotels. You can see the category breakdown in both the best-vs-current comparison table and the top-5 country cards.