The Consumer Price Index, or Consumer Price Index, is an important statistical indicator that helps to measure inflation in EU countries. Eurostat has also calculated an annual index for Switzerland, Iceland, and Norway, which have not signed the agreement.
How Eurostat compiles the index
Eurostat calculates the index for each state separately: the purchasing power of citizens is divided by the current exchange rate. The index is then compared with the European average, which is taken as 100.
If the index is higher than 100, the cost of living in the country is expensive. If less, the country's prices are lower than the EU average.
Consumer price index in European countries
| Category | Highest prices in the EU | Lowest prices in the EU |
|---|---|---|
| Food |  Switzerlandindex 168.2 |  Romaniaindex 65.3 |
| Alcohol and tobacco |  Norwayindex 219.7 |  Bulgariaindex 60.8 |
| Clothing and shoes |  Germanyindex 130.9 | Bulgaria index 75,6 |
| Housing costs | Switzerland index 193.6 | Bulgaria index 37,8 |
| Furniture |  Luxembourgindex 129.4 | Bulgaria index 55,2 |
| Personal transport | Germany index 137.3 |  Polandindex 80,2 |
| Public transport costs | Norway index 166.3 | Bulgaria index 50,6 |
| Communication | Norway index 180,1 | Romania index 45,9 |
| Leisure and recreation expenditure | Switzerland index 151,9 |  Hungaryindex 61,3 |
| Restaurants and hotels | Switzerland index 169 | Bulgaria index 46,4 |
In 2020, the most expensive countries to live in were Switzerland, Norway, and Germany. Consumer prices in these states are on average 50-60% higher in various categories of goods and services. For example, alcohol and tobacco in Norway are twice as expensive as in the EU.
The index shows that the most affordable prices for living in Bulgaria and Romania: goods and services are 30-50% cheaper in all surveyed categories.
To see country-specific price indices for each category of goods and services, visit the Eurostat website.
What are the prices of goods and services in countries with investment programs
The six countries surveyed by Eurostat have investment programs in place. Malta also offers special merit citizenship to foreign investors.
When investors choose which country they want to become residents, they also ask about the cost of living. The Consumer Price Index gives a more complete picture of the cost of living in the country as a whole and separately by category.
Consumer price index in countries with investment programs
| Category | Highest prices in the EU | Lowest prices in the EU |
|---|---|---|
| Food | Switzerland index 168,2 |  Portugalindex 95,9 |
| Alcohol and tobacco | Switzerland index 132,5 |  Cyprusindex 90,2 |
| Clothing and shoes | Switzerland index 123,2 | Cyprus index 95,3 |
| Housing costs | Switzerland index 196,2 |  Maltaindex 59,9 |
| Furniture | Malta index 117,5 | Portugal index 95,7 |
| Personal transport | Portugal index 107,9 | Cyprus index 85,5 |
| Public transport costs | Switzerland index 140,7 |  Greeceindex 75,2 |
| Communication | Greece index 173 |  Austriaindex 100,8 |
| Leisure and recreation expenditure | Switzerland index 151,9 | Greece index 87 |
| Restaurants and hotels | Switzerland index 169 | Portugal index 73,1 |
The prices of consumer goods in the countries with investment programs are at or below the EU average, or 10-30% lower. For example, hotel accommodation in Portugal is more likely to be cheaper than in other countries. Prices for public transport tickets are lower in Greece, and the cost of maintaining a private car or motorbike is lower in Cyprus.
The lowest prices for rent, utilities, and home maintenance are found in Malta. Greece, on the other hand, has the highest communication costs: internet, mobile phones, home telephones, and postal services.
Looking at the table, Switzerland has the highest price index: the cost of seven categories of goods is significantly higher than the EU average.
The Swiss residence permit for financially independent persons is issued without the right to work in the country. The investor enters into an agreement with the cantonal administration and pays a lump sum tax of ₣ 450,000.
A residence permit in Austria for financially independent persons is issued according to quotas. The investor proves that he or she and his or her family have enough money to live in the territory.
A residence permit in Portugal is granted for an investment of €250,000 or more. The program offers eight options: buying real estate or securities, opening a deposit in a local bank, investing in a business, scientific activity, or the country's cultural heritage.
A residence permit in Malta is granted to an investor who:
- Buys or rents a home - from €300,000 or €10,000
- Pays the administrative fee of €40,000
- Pays the government fee of €28,000 or €58,000 and a contribution of €2,000 to a Maltese non-governmental organization
- Confirms that he has assets with a value of €500,000 or more
Malta also offers investors the possibility to obtain citizenship for Exceptional Services by Direct Investment. The investor first receives a residence permit and after a year or three years can apply for citizenship. Investors undergo stringent due diligence and meet the mandatory conditions of the Maltese citizenship law:
- Make a contribution to the country's economy - from €600,000
- Rent or buy real estate - from €16,000 or €700,000
- Make a charitable donation to any non-governmental organization in Malta - from €10,000
A permanent residence permit in Cyprus is granted by investment of €300,000 or more. The investor can choose from three options: buying real estate, shares in local companies, or units in investment funds.
A residence permit in Greece is granted by purchasing real estate or shares in local companies, opening a deposit in a Greek bank. The minimum investment is €250,000.
Immigrant Invest is a licensed agent who helps you obtain citizenship and residence permits in European countries. If you would like to obtain a residence permit or citizenship in a European Union country, seek advice from experts in investment programs.
