10 countries where cost of living has dropped in 2025: new global havens for expatriates, retirees, and digital nomads

As the world continues to navigate post-pandemic economic shifts, 2025 has brought a new wave of opportunities for those seeking affordable living without sacrificing quality, comfort, or adventure. The global cost of living has fluctuated due to changing inflation rates, stronger regional currencies, and evolving government policies. Yet, in certain countries, living expenses have not only stabilized but dropped considerably, offering renewed promise for expatriates, retirees, and digital nomads alike.

This global trend has been highlighted by the 2025 InterNations Expat Insider Survey, which noted a significant improvement in the affordability index for several emerging economies across Asia, Latin America, and the Middle East. These nations combine lower housing costs, affordable healthcare, inexpensive food, and growing digital infrastructure—making them ideal destinations for those eager to live more for less.

Here are ten countries where the cost of living has notably declined in 2025, creating new opportunities for individuals seeking both financial and lifestyle advantages abroad.

1. Vietnam

Vietnam continues to top the charts as one of the most affordable destinations for expatriates and remote workers in 2025. The country’s balance of cost-effectiveness, safety, and cultural richness keeps it among the top choices in Southeast Asia.

According to the 2025 InterNations Expat Insider Survey, a staggering 89% of expatriates expressed satisfaction with their cost of living, while 87% confirmed that their disposable income allows for a comfortable, even leisurely lifestyle.

Vietnam’s cities such as Da Nang, Hanoi, and Ho Chi Minh City have evolved into global hubs for remote workers. Housing, food, and transportation remain remarkably inexpensive compared to Western nations. A one-bedroom apartment in a prime location averages under $400 per month, while local meals rarely exceed $3.

What further enhances Vietnam’s appeal is its modern digital infrastructure, growing expatriate communities, and a highly social lifestyle enriched by local cuisine, festivals, and scenic landscapes—from lush rice terraces to bustling urban centers.

2. Colombia

In 2025, Colombia has climbed to the second spot in the global affordability rankings, rising from fifth place the previous year. Once considered a hidden gem, the country has become a prominent choice for expatriates looking for balance between cost, culture, and comfort.

The InterNations survey revealed that 81% of expatriates are satisfied with their financial situation in Colombia, highlighting the country’s strong purchasing power despite inflationary trends elsewhere in the world.

Cities such as Medellín, Bogotá, and Cartagena stand out for their vibrant communities, temperate climate, and low daily living costs. A single person can comfortably live on $800–$1,000 per month, including rent, groceries, and entertainment. Medellín, in particular, is now recognized as a leading hub for digital nomads, offering reliable internet, affordable coworking spaces, and friendly visa policies.

Colombia’s improving safety ratings and increasing foreign investment in tourism and tech sectors have further enhanced its reputation as a cost-efficient yet cosmopolitan destination.

3. Mexico

According to Human Resources Online’s 2025 affordability report, Mexico holds its place as one of the least expensive countries for expatriates. Its affordability, combined with warm weather, rich cuisine, and a strong expatriate infrastructure, continues to make it an irresistible option for long-term residents and retirees.

Monthly expenses in cities like Guadalajara and Mérida remain low, with rent, utilities, and transportation well below the global average. Mexico City, while more cosmopolitan, still offers affordable entertainment, healthcare, and local produce markets.

Expats appreciate the low cost of essentials—utility bills average around $50 monthly, gym memberships are under $20, and public transport is inexpensive yet efficient. Beyond affordability, Mexico offers deep cultural roots, an expanding healthcare system, and access to beaches, mountains, and historical sites.

Its digital nomad visa, launched in recent years, continues to attract freelancers and entrepreneurs seeking both freedom and financial ease.

4. Thailand

Thailand remains a mainstay for expatriates and digital nomads seeking a tropical paradise at a fraction of Western costs. Despite global inflationary pressures, Thailand’s living expenses have stayed remarkably low in 2025, making it possible for individuals and couples to live comfortably on a modest budget.

A monthly expenditure of around $1,000–$1,500 covers accommodation, food, utilities, and leisure in popular cities such as Chiang Mai, Bangkok, or Phuket. Street food remains cheap yet delicious, healthcare is of high international standard, and the lifestyle offers a unique blend of traditional and modern experiences.

Thailand’s ease of living, visa-friendly policies, and strong expat community continue to position it as a global retirement and remote work haven. The country’s stable economy and investment in digital infrastructure have also helped sustain affordable living standards for foreign residents.

5. Bali, Indonesia

Bali continues to be one of Asia’s most beloved destinations for digital nomads, entrepreneurs, and creative professionals. Despite an increase in tourism post-pandemic, the cost of living has fallen slightly in 2025, thanks to favorable currency shifts and new local housing options.

For a couple, a monthly budget of around $1,500 is sufficient to cover rent, food, transportation, and recreational activities. Smaller towns such as Ubud and Canggu remain hotspots for foreign professionals who prefer an affordable yet scenic lifestyle.

The island’s charm lies not only in its affordability but also in its sense of community, natural beauty, and wellness-oriented culture. Coworking hubs, yoga retreats, and eco-villages are thriving, making Bali a leading example of sustainable expatriate living.

6. Nepal

For those seeking adventure and affordability, Nepal offers one of the lowest costs of living in Asia. Despite modest average salaries, the country provides incredibly economical daily expenses.

Basic food and transportation costs are minimal—street food averages under $2, and monthly rent for apartments in Kathmandu remains below $300. For retirees and digital nomads alike, Nepal provides a quiet, scenic setting with access to mountain treks, cultural experiences, and a low-pressure lifestyle.

Although infrastructure can vary between urban and rural areas, Nepal’s cost-efficiency continues to attract eco-tourists and long-term travelers who prioritize nature, simplicity, and cultural immersion.

7. Pakistan

In 2025, Pakistan remains among the most affordable countries in the world, combining low living costs with an expanding urban economy. Major cities like Lahore, Karachi, and Islamabad offer a surprisingly comfortable standard of living at a fraction of Western costs.

Rent, food, and public transportation are notably inexpensive—monthly expenses for an individual can remain under $600, including accommodation and utilities. Local produce, dining, and intercity travel remain highly cost-effective.

Pakistan’s diverse cultural landscape, rich history, and growing tourism industry are drawing more expatriates and digital travelers each year. The government’s focus on improving digital infrastructure and introducing remote work visas could position Pakistan as an emerging destination for remote professionals.

Moreover, cities like Islamabad have gained international attention for their cleanliness, safety, and scenic views of the Margalla Hills, offering an unexpected blend of affordability and natural beauty.

8. Bangladesh

Bangladesh’s affordability continues to make it an appealing choice for expatriates seeking simplicity and low-cost living. In 2025, the cost of essentials such as housing, transportation, and food remains among the lowest in South Asia.

Rural and mid-sized urban areas offer particularly low expenses, allowing individuals to live comfortably on as little as $400–$500 per month. Even in Dhaka, living costs are moderate compared to regional capitals.

Bangladesh’s economic resilience, coupled with growing foreign investment, has stabilized inflation rates, ensuring affordability without significant sacrifices in quality of life. For expatriates seeking an immersive cultural experience and friendly communities, Bangladesh remains a quiet yet rewarding choice.

9. Tunisia

In North Africa, Tunisia has emerged as a cost-effective Mediterranean destination, offering a combination of affordability, history, and comfort. 2025 has seen further declines in housing and utility costs, allowing expatriates to enjoy a European lifestyle at a fraction of the cost.

The capital city, Tunis, offers one-bedroom apartments for under $350 per month, and daily expenses like groceries and transport remain low. With its pleasant Mediterranean climate, stunning coastal towns, and accessible healthcare, Tunisia has become an attractive retirement destination for Europeans and North Africans alike.

The country’s economic policies have successfully curbed inflation, improving affordability while maintaining infrastructure quality. For expatriates looking to blend beachside relaxation with cultural exploration, Tunisia offers one of the best cost-to-lifestyle ratios on the continent.

10. Oman

Among the Gulf Cooperation Council (GCC) countries, Oman stands out in 2025 as the most affordable destination for both expatriates and retirees. Known for its stunning natural beauty, stability, and hospitality, Oman combines the luxuries of Gulf living with a surprisingly low cost of daily life.

Housing costs have decreased due to government initiatives to diversify the housing market, while utilities and transportation remain cheaper compared to neighboring states such as the UAE or Qatar. A single expatriate can comfortably live in Muscat on a budget of $1,200–$1,500 per month.

Oman’s balance of tradition and modernity, coupled with strong safety standards and a welcoming local culture, makes it a top choice for those seeking both affordability and elegance. The country’s digital transformation policies have also attracted remote professionals and tech workers looking for a peaceful, well-connected environment.

A global shift toward affordable living

The year 2025 has seen an important shift in how people choose where to live, work, and retire. As remote work becomes normalized, more individuals are prioritizing cost of living, lifestyle quality, and cultural richness over traditional urban job hubs.

From Southeast Asia to North Africa and South America, these ten countries represent a growing global trend toward affordable, accessible living. Each destination offers unique advantages—be it Vietnam’s community-driven spirit, Colombia’s cultural energy, or Oman’s serene landscapes.

The decline in living costs across these nations is not merely economic—it’s transformative. It’s creating a world where people can redefine success, choosing locations that align with personal happiness, sustainability, and freedom rather than financial strain.

For expatriates, retirees, and digital nomads in 2025, this is a year of opportunity: to explore the world, live comfortably, and thrive where affordability meets adventure.