Portugal is the cheapest (and best) country in the world to live in

With the start of the new year, there are those who plan to change their lives completely. By evaluating the cost and quality of life in the countries of the world, Forbes concluded that Portugal is the cheapest country in the world to live - and also the best - especially for North American citizens. The climate, security, low cost of living and ease of obtaining residence visas are factors that explain Portugal's first place on the list of the ten cheapest countries to live. Besides our country, there are four other European States in this ranking.

This list of countries was disclosed by International Living, which publishes every year the Annual Global Retirement Index, gathering the best places for retirees at a global level. To evaluate the cheapest countries with the best quality of life, this index takes into account the cost of living, climate, ease of obtaining visas, access to housing, health and leisure activities, for example.

It is precisely because it assesses a number of factors so comprehensive that this list of the cheapest countries to live is not only for retirees, but also for those seeking a better and more affordable life, highlights Forbes. And also for those looking for a refuge to live to escape the hectic routine, violence or even social, political and economic crises they witness in their home countries.

"When there is the possibility of cutting the cost of living by half (...) many doors open to have a better life. If you don't need to work so much or for so long, you can afford to spend your days the way you want and with the people you love most (...) And settle in a country where every day is a new adventure, "shared the executive editor of International Living, Jennifer Stevens, quoted by the magazine.

This is the full list of the 10 cheapest (and best) countries to live in, according to analysis by International Living:

1. Portugal; 
2. Mexico; 
3. Panama;
4. Ecuador; 
5. Costa Rica;
6. Spain; 
7. Greece; 
8. France
9. Italy;
10. Thailand. 

What is it like to live in Southern European countries?

This list is, above all, a guide for US citizens who plan to change their lives in 2023 and find a cheaper place to live, where the quality of life is also guaranteed. And since the dollar is higher than the euro today (1 dollar is worth 0.95 euros at the current exchange rate), there are five European countries that make it onto this list: Portugal, Spain, Greece, France and Italy. Let's explore the reasons that put the southern European countries on this list.

Portugal: this is how you live in the cheapest country of all

In the 2023 ranking, Portugal was elected the country that combines the best cost and quality of life. That is, it is the best country to live in and also the cheapest. One of the reasons for this position on the list is precisely the strength of the American dollar against the euro, which makes the cost of living in Portugal even lower than in the USA - even if it is rising due to high inflation.

"The daily cost of living is low compared to the United States of America - a couple can comfortably cover expenses (including house rent and everything else) for around $2,800 a month [about €2,649]," says Jennifer Stevens. "A single person could live well on about $2,000 a month [€1,892], all-inclusive (and even less in rural areas)," she further highlights.

In addition, the same publication points out that the ease of obtaining a residence visa in Portugal makes staying in the country in the long term "relatively easy". It should be remembered that Portugal has a new law for foreigners and a regime for non-habitual residents that has attracted more and more foreign families to live in the country.

As far as house prices are concerned, the executive editor of International Living warned that living in "big cities like Lisbon and Porto will cost more and in smaller cities less". She also highlighted the Algarve cities of Lagos, Vilamoura and Tavira, given their history, landscapes, beaches and traditions.

Spain: Relaxed lifestyle attracts foreigners

"The year-round sunny climate, a welcoming culture, an incredibly relaxed lifestyle and a relatively low cost of living." This is how Sally Pederson, International Living correspondent, explains the reasons why Spain is considered the sixth cheapest country to live in for foreigners.

Although the cost of living in Spain has increased in the past year given the high inflation being experienced, living in the country is still cheaper than in the US. But a lot depends on location. Those who choose to live in a small, quiet town could spend around $1,900 a month (about €1,797). "In the sunny regions of Valencia and Andalusia, you can even get a one-bedroom flat for €700 a month," Sally Pederson exemplifies. "The freshness and low food prices are other factors that explain the affordable cost of living in Spain," she further highlights.

"Spain offers a wonderful variety of climates and scenery," continues the correspondent, highlighting the country's Mediterranean coast where there are 300 to 320 days of sunshine a year. In addition, there are also green regions similar to Oregon (the northwest coast of the USA) and for those who like snow, there are the Pyrenees mountains.

Italy: the country to lead a "full life

Italy is "unique" for those seeking a "full life" and the right dose of adventure and pleasure, highlights International Living correspondent Chip Stites. And the cost of living is "surprisingly low" for a country that is so protective of its economy and heritage.

A middle-class Italian lives on less than half of what an American of the same class does, says Chip Stites. Property prices can reach $20,000 (about €18,919) in the south of the country. And a couple can expect to spend $1,829 a month (about €1,730), including house rent and other expenses.

From the sunny beaches of southern Italy, Sicily and Sardinia, to the snowy mountainous areas. Italy is full of breathtaking scenery and has a range of climates for varied tastes, including beach, mountains and countryside. "There are enough climatic zones, types of food, wines and customs to satisfy even the most demanding retiree," he adds.