Merriam-Webster says cost-effective means “producing good results without costing a lot of money.” Thus, we would define cost-effective countries are relatively inexpensive to live in but provide excellent living conditions.
In this post, we discuss options in a quest to find the most cost-effective countries to live in 2024. We’re not exactly searching for the cheapest country to live in, although it is certainly possible for the cheapest country in the world to also be a cost-effective option, maybe even a place you wish you could stay in permanently through a second citizenship program.
Defining Cost-Effectiveness
Cost-effectiveness does not equate to a low cost of living. The latter is just a factor that determines the former.
A cost-effective country offers a good quality of life at a lower cost. You want a place where a certain amount of dollars can provide you with a lifestyle worth twice, triple, or multiple times that in your own country.
Remember that social media influencer who moved to a five-star all-inclusive resort in Antalya, Turkey because he found that 28 days there would not only cost him less than staying at home in Manchester, United Kingdom but also provide him with a better lifestyle? For less money than he would have spent on bills, rent, and council tax, he enjoyed free meals, free drinks, unlimited pool use, a beautiful beach, and five-star hotel accommodation with housekeeping.
That’s what cost-effectiveness is all about. In this blog post, we will look at cheap countries to visit or live in that can also provide a good lifestyle.
Top 3 Most Cost-Effective Countries
We use The Annual Global Retirement Index 2024 rankings as our basis for choosing the top 3 countries on this list. International Living used seven categories for rating and ranking countries. These are:
- Cost of living
- Housing
- Visas /benefits
- Affinity rating
- Development/governance
- Climate
- Healthcare
Countries are scored across these categories, and their average becomes their retirement index rating. The countries with the highest index scores are International Living’s best places to retire and our most cost-effective countries to live in for 2024. As a bonus, several of these countries have a low cost of living and are great budget-friendly countries to visit and relocate to.
1. Costa Rica
Costa Rica is a beautiful Central American country. It’s a tropical country with various microclimates, so you can choose where to live based on which microclimate suits you best. It has beautiful waterfalls and beaches and a thriving biodiversity; it’s actually known as one of the world’s best fishing destinations. It’s likely to remain lush and green, too, as a significant portion of its territory is designated as protected wildlife refuges and national parks.
The country also has an excellent healthcare system, and a government focused on maintaining high standards for healthcare and education. It may not be the cheapest country in Central America to live in, but your money is likely to give you greater value here than in another country.
2. Portugal
Portugal is an excellent place to live in, scoring higher than Costa Rica in the cost of living (79 to Costa Rica’s 76), development/governance (93 vs 82), and healthcare (92 vs 89). The country’s healthcare system is particularly remarkable, one of the highest ranked in the world according to the World Health Organization (WHO).
Portugal has a temperate climate year-round, provides a wide range of recreation, beautiful views, and excellent-quality public infrastructure. The country also offers various options, including the coast and the hills. Overall, you can enjoy a slower, less hectic, and high-quality lifestyle in Portugal for a lower cost than you will pay to maintain the same lifestyle in your home country.
3. Mexico
Mexico is the cheapest country to live in among these three cost-effective countries. International Living gives it a cost of living score of 84, higher than Portugal’s 79 and Costa Rica’s 76.
Despite its relatively low cost of living, Mexico offers great amenities, facilities, and infrastructure, particularly in the popular tourist destinations. It can be a good strategy to move to the outskirts of these in-demand destinations so you can be close to everything you need to maintain the quality of life to which you’re accustomed, even as you enjoy more peace, quiet and cost savings.
3 Second-Citizenship Countries to Consider
The above countries may be the most cost-effective countries to live in 2024, but there are other cost-effective options that also provide an easy and straightforward path to citizenship. These citizenship-for-investment countries will give you dual citizenship and a second passport that you can use to gain access to some of the world’s best travel destinations, including the budget-friendly countries to visit on your bucket list.
The countries below can be particularly cost-effective because of their tax benefits. Living here will diminish the tax burden on your income, which means your income can stretch further and buy you more of the finer things in life.
1. Antigua and Barbuda
In Antigua and Barbuda, you won’t pay taxes on income, capital gains, and inheritance. It may not be the cheapest country in the world to live in, but its tropical climate, high-end amenities and facilities, and thriving expatriate communities make it an excellent, cost-effective place to relocate. Make it a base for your travels, as an Antigua and Barbuda passport gives you visa-free access to more than 150 countries.
The best part is that you can become a citizen of this stunning Caribbean country with a government contribution to the National Development Fund of $230,000 for a family of four, a donation to the University of the West Indies Fund of $260,000 for a family of six, a real estate purchase (at least $300,000), or a business investment ($400,000). Citizenship by investment applications are also processed quickly, with decisions typically handed down within three months.
2. St. Kitts and Nevis
St. Kitts and Nevis is another Caribbean country with a well-established citizenship by investment program. If you live there, you won’t get taxed on income, interest, dividends, and royalties.
The country has championship golf courses, private beach clubs, yacht marinas, and high-end resort communities with world-class dining options and other recreational facilities. A St. Kitts and Nevis passport will let you travel visa-free to over 130 countries – and you don’t even have to visit after your application for citizenship is granted.
There are two paths to citizenship by investment. You can donate at least $250,000 to the government or buy real estate worth $325,000 or greater. There’s fast-track processing available if you want a decision on your citizenship by investment application within a few months.
3. Dominica
Dominica is another Caribbean country that is both lovely and cost-effective. Citizens through investments are not required to live in the country, and non-residents are not taxed. A Dominica passport gives you visa-free travel access to more than 143 countries, including the Schengen zone in Europe.
Dominica has minimal restrictions on the dependents you can include in your citizenship application. You can include dependent, unmarried children up to 30 years of age, parents, and grandparents in your application.
You have two investment-for-citizenship options: a government donation of at least $200,000 or a real estate purchase of at least $200,000.
The Most Cost-Effective Countries to Live in 2024
Costa Rica, Portugal, and Mexico are the top three most cost-effective countries in 2024. However, if you’re interested in a second passport, traveling the world, and exclusive resort-style living, consider Antigua and Barbuda, St. Kitts and Nevis, and Dominica.
Citizens International is an authorized representative of various second-passport initiatives, including the top Caribbean citizenship by investment programs.
Contact us to learn more and inquire about your second passport options.
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