Best Affordable Cities in Europe for Americans in 2026: Cost of Living, Salaries, and Visa Options

The number of Americans relocating to Europe has grown steadily over the past several years, and 2026 is shaping up to be the biggest year yet. Between the expansion of remote work, a growing appetite for walkable cities with public transit, and the appeal of universal healthcare systems, Europe has become a serious contender for Americans looking to stretch their dollars while upgrading their daily quality of life.

But Europe is not a monolith. The cost of living in Zurich bears almost no resemblance to the cost of living in Sofia. Visa regulations vary wildly from one country to the next, and internet speeds that are perfectly fine for video calls in Tallinn might frustrate you in parts of southern Italy. Choosing the right city requires balancing your budget, your work needs, and the kind of lifestyle you want to build.

This guide breaks down 14 of the most affordable and livable cities in Europe for Americans in 2026. For each one, you will find cost-of-living index scores, monthly budget estimates, visa accessibility details, internet speeds, and honest assessments of the pros and cons. At the end, a comparison table ranks them all so you can make a side-by-side decision.

Why Americans Are Moving to Europe

Three forces are converging to make European relocation more attractive than ever for Americans.

Remote work is now permanent for millions. What started as a pandemic experiment has become a structural feature of the labor market. Major employers across tech, finance, consulting, and media now offer fully distributed positions. If your paycheck is not tied to a specific U.S. office, your geography is flexible, and a U.S. salary spent in a lower-cost European city can go remarkably far.

Quality of life is tangible and measurable. Shorter commutes, walkable neighborhoods, fresh food markets, generous vacation cultures, and robust public transit systems are not abstractions. They directly affect your day-to-day experience. Many Americans who have made the move report lower stress, more free time, and better physical health within the first year.

Healthcare access changes the financial equation. Even for Americans with employer-sponsored insurance, the out-of-pocket costs, deductibles, and coverage gaps in the U.S. system create ongoing financial anxiety. In most European countries, residents gain access to public healthcare systems or affordable private insurance plans that cost a fraction of comparable U.S. coverage.

How We Selected These Cities

Every city in this guide was evaluated across four dimensions:

• Cost of Living Index (COLI): We use Numbeo's composite index, which benchmarks cities against New York City (NYC = 100). A COLI of 40 means a city is roughly 60% cheaper than New York.
• Quality of life: Safety, walkability, cultural richness, access to nature, food quality, and overall livability.
• Visa accessibility: Whether the country offers a digital nomad visa, freelancer visa, or other pathways that allow Americans to live and work legally.
• Internet reliability: Median download speeds sufficient for video conferencing, cloud-based work, and general remote productivity.

All budget estimates assume a single person renting a one-bedroom apartment in or near the city center, eating a mix of home-cooked meals and restaurant dining, using public transit, and maintaining a moderate social lifestyle.

City Profiles

Eastern Europe

Budapest remains one of the strongest overall-value propositions in Europe. Rent in the city center stays well below Western European levels, while the quality of dining, nightlife, and culture rivals cities twice its cost. Hungary's White Card digital nomad visa allows non-EU remote workers to stay for up to one year with proof of employment or freelance income above a set threshold. The city's fiber-optic internet infrastructure is excellent, and coworking spaces are plentiful across districts V, VII, and IX.

Prague sits at the crossroads of Europe, making it ideal for weekend trips to Vienna, Berlin, or Krakow. The Zivno trade license system lets freelancers and self-employed workers establish legal residency, though the paperwork requires some navigation. Prague's tech scene has matured considerably, with a growing number of startups and established companies operating from the city. Cost of living has crept upward over the past few years, but it still undercuts most Western European capitals by a wide margin.

Krakow offers some of the lowest living costs on this list while maintaining a genuinely vibrant cultural scene. The Kazimierz district has become a hub for digital nomads and young professionals, packed with cafes, restaurants, and coworking spaces. Poland does not yet have a dedicated digital nomad visa, but Americans can use the national D visa pathway for freelancers or self-employed individuals. The Tatra Mountains are just two hours south, offering skiing in winter and hiking in summer.

Bucharest is the budget champion of this list, and it is not just cheap for the sake of being cheap. Romania has invested heavily in fiber internet infrastructure, giving Bucharest some of the fastest average speeds in all of Europe. The city introduced a digital nomad visa in 2023, making it straightforward for remote workers to establish legal residency. The Old Town area has undergone a renaissance of restaurants, bars, and cultural venues, and the cost of dining out remains astonishingly low by any Western standard.

Sofia flies under the radar compared to its neighbors, but it rewards those who give it a chance. The backdrop of Vitosha Mountain means you can be skiing or hiking within 30 minutes of the city center. Bulgaria's digital nomad visa, launched in 2024, allows stays of up to one year for remote workers earning above a minimum income threshold. The tech scene is growing, with several international companies opening offices in the city, and the cost of everyday life is among the lowest in the EU.

Tallinn is the gold standard for digital infrastructure. Estonia was one of the first countries in the world to offer a digital nomad visa and its e-Residency program allows entrepreneurs to register an EU-based business entirely online. Nearly every government service is available digitally, which means less bureaucracy than almost anywhere else in Europe. The medieval old town is beautiful, and the startup community punches well above the city's population weight. The trade-off is winter: from November through February, daylight is limited and temperatures drop sharply.

Southern Europe

Lisbon has been the poster child for European digital nomad relocation, and for good reason. The combination of climate, culture, food, safety, and English proficiency is hard to match. Portugal offers both the D7 passive income visa and a dedicated digital nomad visa, giving Americans multiple pathways to legal residency. The downside is that Lisbon's popularity has pushed rents considerably higher, particularly in neighborhoods like Principe Real, Chiado, and Alfama. If budget is a primary concern, consider neighborhoods further from the center or look at Porto instead.

Porto provides much of what makes Lisbon attractive at a meaningfully lower price point. Rents in the center run roughly 20% less, and dining costs are lower as well. The Ribeira district along the Douro River is a UNESCO World Heritage Site, and the city's food culture is deeply rewarding. The same Portuguese visa options apply, and the expat community, while smaller than Lisbon's, is growing rapidly. Porto tends to attract people who prefer a slightly quieter, more authentic pace of life.

Valencia consistently ranks among the most livable cities in Spain, combining Mediterranean beach life with a cost of living significantly below Madrid or Barcelona. Spain launched its digital nomad visa (Ley de Startups) which allows remote workers employed by non-Spanish companies to live and work legally for up to five years with favorable tax treatment. The City of Arts and Sciences complex is one of the most striking architectural ensembles in Europe. The central market, Mercado Central, is among the largest fresh food markets on the continent.

Barcelona is the premium option on this list, and it is included because even at its higher price point, it remains substantially cheaper than comparable U.S. cities like San Francisco or New York. The creative and tech communities are deeply established, English is widely spoken in professional settings, and the cultural offerings are extraordinary. The same Spanish digital nomad visa applies. If you can afford the higher rent, Barcelona delivers a lifestyle that few cities in the world can match. Just be prepared for a competitive rental market, especially in popular neighborhoods like Eixample and Gracia.

Athens offers an intoxicating blend of ancient history and modern urban energy at a price point that undercuts most Southern European capitals. Greece's digital nomad visa allows remote workers to stay for up to two years, with income taxed at a reduced rate for qualifying applicants. The Koukaki and Pangrati neighborhoods have become popular with expats seeking authentic Athenian life away from the tourist core around Plaka. The catch is internet infrastructure, which, while improving, still falls behind the speeds you will find in the Baltics or Romania.

Thessaloniki is the culinary capital of Greece and a city with a distinctly youthful, energetic character thanks to its large student population. It offers most of what makes Athens appealing, including coastal Mediterranean living, rich history, and the same Greek digital nomad visa, at a noticeably lower cost. The waterfront promenade is one of the finest urban walks in Europe, and the dining scene, from traditional tavernas to modern gastronomy, is exceptional. If you do not need the size and international connectivity of Athens, Thessaloniki is a compelling alternative.

Split's old town is literally built within and around the walls of Diocletian's Roman palace, creating one of the most unique urban environments in Europe. Croatia was among the early adopters of the digital nomad visa, and the program allows stays of up to one year with tax-exempt status on foreign-source income. Since joining the Schengen Area and adopting the euro in 2023, logistics have become much simpler. The Adriatic coast is spectacular, but be aware that Split has a strong seasonal rhythm: summer brings crowds and higher prices, while winter is quieter and more local in character.

Western Europe

Ljubljana is one of the smallest capitals in Europe, but that compact size is part of its charm. The car-free city center, anchored by the Ljubljanica River and overlooked by a hilltop castle, is one of the most pleasant urban environments on the continent. Slovenia introduced a digital nomad residence permit in 2024, and the country's location puts you within a few hours of Venice, Vienna, Zagreb, and the Julian Alps. English proficiency is high, the food and wine scenes are excellent, and the quality of daily life is consistently rated among the best in Central Europe.

Comparison Table: Ranking by Overall Value

This table ranks all 14 cities by a composite score considering cost of living, visa accessibility, internet quality, and lifestyle factors.

Ratings reflect a composite of affordability, visa ease, internet quality, lifestyle, and overall expat-friendliness. Barcelona ranks lower on value despite its high lifestyle score because of its significantly higher cost.

U.S. Tax Obligations When Living Abroad

Before you start packing, there is one reality that every American living abroad must face: the United States taxes its citizens on worldwide income, regardless of where they live. Moving to Budapest or Lisbon does not remove your obligation to file (and potentially pay) U.S. federal taxes. Here is what you need to know.

Foreign Earned Income Exclusion (FEIE)

The FEIE allows qualifying Americans abroad to exclude a significant portion of their foreign-earned income from U.S. taxation. For the 2026 tax year, the exclusion amount is expected to be approximately $130,000. To qualify, you must meet either the Bona Fide Residence Test (establishing genuine residency in a foreign country for a full tax year) or the Physical Presence Test (being physically present in a foreign country for at least 330 full days within a 12-month period). This exclusion applies to earned income only, such as salary and freelance income. It does not cover investment income, rental income, or Social Security benefits.

Foreign Tax Credits

If you pay income taxes to your country of residence, you can generally claim a Foreign Tax Credit on your U.S. return to offset double taxation. This is particularly relevant in countries with higher income tax rates, such as Portugal or Spain, where you might pay more in local taxes than you would owe to the IRS. You cannot combine the FEIE and the Foreign Tax Credit on the same income, so you will want to model both options to determine which saves you more.

Tax Treaties

The United States has bilateral tax treaties with most European countries that can affect how specific types of income are taxed. These treaties may reduce withholding rates on dividends, interest, and royalties, and they establish tiebreaker rules for determining tax residency. The specifics vary by country, so consult with a tax professional who specializes in expatriate taxation. Notable treaties exist with Portugal, Spain, Hungary, the Czech Republic, Poland, Greece, Estonia, Romania, Bulgaria, Croatia, and Slovenia.

Important: This article provides general information about U.S. tax obligations abroad. Tax situations vary by individual circumstance. Consult a qualified tax professional before making any decisions based on this information.

Making Your Decision

There is no single best city for every American moving to Europe. The right choice depends on your personal priorities. If raw affordability is the top concern, Bucharest, Sofia, and Krakow deliver the most spending power per dollar. If you want the smoothest visa process and the best digital infrastructure, Tallinn and Lisbon lead the way. If lifestyle, climate, and cultural richness matter most, Valencia, Athens, and Ljubljana offer deeply rewarding daily experiences.

Whatever city you are considering, run the numbers before you commit. Factor in rent, groceries, healthcare, transportation, taxes (both local and U.S.), visa costs, and flights back home. The gap between a U.S. salary and European cost of living can be enormous, but only if you understand the full financial picture.