How Consumer Prices Have Changed In Europe Over The Last 10 Years
Eurostat surveys prices of goods and services in EU countries on a monthly basis. The survey reports are published on the service’s website. On average, prices in the region have risen by 15% over the last 10 years and by 2% at the end of 2020. Here’s a look at how different the prices of living in European countries will be in 2020.
Author and editor of articles about investment citizenship and residency
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
Switzerland
index 168.2
Romania
index 65.3
Alcohol and tobacco
Norway
index 219.7
Bulgaria
index 60.8
Clothing and shoes
Germany
index 130.9
Bulgaria
index 75,6
Housing costs
Switzerland
index 193.6
Bulgaria
index 37,8
Furniture
Luxembourg
index 129.4
Bulgaria
index 55,2
Personal transport
Germany
index 137.3
Poland
index 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
Hungary
index 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.
Living in Bulgaria is much cheaper than in Europe. The country has a comfortable climate, beautiful nature and friendly people
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
Portugal
index 95,9
Alcohol and tobacco
Switzerland
index 132,5
Cyprus
index 90,2
Clothing and shoes
Switzerland
index 123,2
Cyprus
index 95,3
Housing costs
Switzerland
index 196,2
Malta
index 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
Greece
index 75,2
Communication
Greece
index 173
Austria
index 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.
Switzerland is one of the most expensive countries in the world. It attracts wealthy people with a stable economy, security, high level of medicine and quality education.
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.
