| ★ TL;DR TL;DR: A cost of living calculator for UK expats compares cities against a London baseline. Eurostat 2025 comparative price levels show Portugal approximately 40% cheaper than the UK; the UAE approximately 20% cheaper on consumer prices but rents in Dubai can match London. Sydney and Toronto are broadly similar to London in total cost, with higher transport and food costs offset by lower utility costs. Rent is typically the largest variable; a 1-bedroom central apartment costs approximately EUR 1,100/month in Lisbon, AED 8,000/month (£1,720) in Dubai, AUD 2,800/month (£1,470) in Sydney, and CAD 2,500/month (£1,490) in Toronto. |
Last reviewed: 26 April 2026
A cost of living calculator expat tool compares the purchasing power of a UK salary or income in different cities around the world, giving UK expats a structured framework for budgeting before a move. The most authoritative international cost of living comparisons use purchasing power parity (PPP) data from Eurostat (for EU countries), the OECD, and national statistics offices; these correct for exchange rates and price level differences between countries and give a truer picture of real purchasing power than simple currency conversion. For specific city-level cost comparisons for Portugal, see our Portugal relocation guide; for Dubai, see our Dubai relocation guide. For Australia, see our Australia relocation guide.
Eurostat’s Comparative Price Levels (CPL) index, published annually at ec.europa.eu/eurostat, provides the most reliable EU vs UK price comparison. Eurostat’s 2024 CPL data (published 2025) shows Portugal’s overall price level at approximately 63% of the EU-27 average; the UK’s overall price level is approximately 108% of the EU-27 average (Eurostat table prc_ppp_ind). This implies Portugal is approximately 42% cheaper than the UK on a PPP-adjusted basket of goods and services. For non-EU destinations (UAE, Australia, Canada), the relevant comparison uses the OECD’s Prices and Purchasing Power dataset (OECD.Stat) and the IMF’s World Economic Outlook database of GDP deflators. Exchange rate fluctuations affect the nominal comparison for UK expats paid in GBP: a 10% fall in GBP/EUR reduces the purchasing power of a GBP salary in Portugal by 10% in nominal terms, even if PPP-adjusted costs are unchanged.
Lisbon and Portugal: cost of living vs London
Lisbon’s cost of living is substantially lower than London’s across most spending categories, making it one of the most cost-effective destinations for UK expats. Based on INE Portugal (ine.pt) and Eurostat 2024/25 data: a 1-bedroom central apartment in Lisbon costs approximately EUR 1,100-1,400 per month (£940-£1,200 at April 2026 GBP/EUR rates); the equivalent central London apartment costs approximately £2,200-£3,000 per month. Groceries in Lisbon cost approximately 30-40% less than London; a weekly shop for two at a standard Portuguese supermarket (Pingo Doce, Continente) runs approximately EUR 80-100 (£68-£85) versus approximately £120-£150 in London. Transport in Lisbon is significantly cheaper: a monthly Navegante Metropolitano pass (unlimited metro, bus, and tram within Lisbon) costs EUR 40 per month (£34); a London equivalent Zones 1-2 monthly Travelcard is approximately £160 per month. Eating out: a sit-down meal at a mid-range Lisbon restaurant for two costs approximately EUR 30-50 (£26-£43); a comparable London restaurant costs approximately £60-£100. Total monthly living costs for a single UK expat in Lisbon (rent, food, transport, utilities, health insurance) are approximately EUR 1,800-2,500 (£1,540-£2,140) per month.
Dubai: cost of living for UK expats
Dubai’s cost of living is lower than London for many spending categories, but higher for accommodation in sought-after areas, private school fees, and imported goods. Based on OECD PPP data and UAE Central Bank economic statistics: a 1-bedroom apartment in central Dubai (Downtown, Business Bay, JLT) costs approximately AED 7,000-12,000 per month (£1,500-£2,570 at April 2026 rates of approximately 4.67 AED/GBP); comparable London apartments cost £2,200-£3,500 per month. However, a 1-bedroom apartment in Dubai’s less central areas (Jumeirah Village Circle, International City, Silicon Oasis) costs AED 4,000-6,000 per month (£856-£1,284), making overall Dubai housing broadly comparable to or cheaper than London for those willing to commute. Dubai has no income tax; UK expats retain their full gross salary, which materially increases effective purchasing power compared to London. Food costs in Dubai’s supermarkets (Carrefour, Spinneys) are broadly comparable to London for international brands; local fruit, vegetables, and Middle Eastern staples are significantly cheaper. Healthcare costs are borne by employer-provided insurance for EP holders; private insurance without employer cover costs approximately AED 6,000-18,000 per year (£1,285-£3,854), adding meaningfully to the cost base for self-employed or non-employed UK expats.
Sydney: cost of living compared to London
Sydney’s cost of living is broadly comparable to London in total expenditure, with significant city-specific variations. The Australian Bureau of Statistics (ABS, abs.gov.au) publishes the Consumer Price Index for Sydney quarterly; Eurostat’s 2024 international comparison places Australia’s price level at approximately 95% of the UK’s (on PPP-adjusted terms). Sydney housing is expensive by global standards: a 1-bedroom central apartment costs approximately AUD 2,500-3,500 per month (£1,320-£1,840 at April 2026 rates of approximately 1.90 AUD/GBP). Sydney’s inner suburbs (Newtown, Surry Hills, Glebe) are slightly cheaper than the CBD. Groceries at Coles or Woolworths cost approximately 15-20% less than equivalent London shops. Transport in Sydney (Opal card, unlimited Metro/Bus for a monthly top-up) costs approximately AUD 60-90 per week (£32-£47) versus approximately £40-£55 for London Zones 1-2. Healthcare under Medicare is available to UK nationals under the Reciprocal Healthcare Agreement; there is no direct NHS comparison cost. Private health insurance (hospital and extras) costs approximately AUD 150-300 per month (£79-£158). Total monthly living costs in Sydney for a single UK expat (rent, food, transport, insurance) run approximately AUD 4,500-6,500 per month (£2,370-£3,420).
Toronto: cost of living for UK expats
Toronto’s cost of living is closely comparable to London, with higher housing and utility costs offset by lower food and transport prices in some categories. Statistics Canada (statcan.gc.ca) publishes Toronto’s Consumer Price Index monthly; the OECD’s Canada country profile places Canada’s overall price level at approximately 100% of the OECD average, similar to the UK’s approximately 105%. Toronto housing: a 1-bedroom central apartment costs approximately CAD 2,200-2,800 per month (£1,310-£1,670 at April 2026 rates of approximately 1.68 CAD/GBP); outer Toronto suburbs (Scarborough, Etobicoke) cost CAD 1,500-2,000 per month (£893-£1,190). Toronto’s transit (TTC, Metropass equivalent) costs approximately CAD 156 per month (£93); London Zones 1-2 Travelcard is approximately £160 per month. Groceries in Toronto are broadly comparable to London; alcohol and imported goods carry higher taxes (Ontario provincial liquor tax). Canada’s universal provincial healthcare (OHIP in Ontario) covers UK permanent residents after a 3-month wait; during the wait, private insurance costs approximately CAD 150-300 per month (£89-£179). Total monthly living costs for a single UK expat in Toronto (rent, food, transport, insurance) are approximately CAD 4,000-6,000 per month (£2,380-£3,570).
The impact of FX rates on expat cost of living
Exchange rate movements materially affect the cost of living experience for UK expats paid in GBP. The Bank of England’s published daily exchange rates (bankofengland.co.uk/statistics/exchange-rates) are the authoritative reference for GBP bilateral rates. At April 2026, the approximate rates are: GBP/EUR 1.17 (Lisbon cost base); GBP/AED 4.67 (Dubai); GBP/AUD 1.90 (Sydney); GBP/CAD 1.68 (Toronto). A 10% adverse movement in any of these rates -- for example, GBP/EUR falling from 1.17 to 1.05 -- increases the EUR-denominated cost of living in Lisbon by approximately 11% in GBP terms for a UK-paid expat, without any change in the local Portuguese price level. For UK expats on GBP-denominated salaries or pensions, FX risk is the most volatile component of their effective cost of living. Specialist FX providers (Wise, OFX, TorFX -- all FCA-authorised) offer monthly regular payment services at mid-market rates plus 0.25-0.75%, minimising the FX conversion cost compared to high-street bank FX spreads of 2-3%. For the full FX and banking strategy, see our UK expat banking guide.
| ✓ Editorial Sources Sources used in this guide This guide draws on primary-source material from Eurostat Comparative Price Levels (ec.europa.eu/eurostat, table prc_ppp_ind, 2024/25 data), the INE Portugal consumer price statistics (ine.pt), the OECD Better Life Index and Prices dataset (stats.oecd.org), Statistics Canada Consumer Price Index (statcan.gc.ca), and the Australian Bureau of Statistics CPI data (abs.gov.au) as of 26 April 2026. City-level cost estimates are based on national statistics office data; actual costs vary by neighbourhood, lifestyle, and family size. Readers should confirm current rates, thresholds and rules with the cited primary sources or a qualified adviser before making decisions. |
This article is for general information only and does not constitute tax, legal, financial or immigration advice. Rules and rates change; verify with the primary sources cited or consult a qualified adviser before acting.
FAQ
How much cheaper is Lisbon than London for a UK expat?
Eurostat’s 2024 Comparative Price Level data places Portugal approximately 42% cheaper than the UK on a PPP-adjusted basis. In practical terms: Lisbon rent runs approximately EUR 1,100-1,400 per month (versus £2,200-£3,000 for a London equivalent); groceries cost 30-40% less; transport costs EUR 40/month (versus £160/month in London). Total monthly living costs for a single expat in Lisbon are approximately EUR 1,800-2,500 per month (£1,540-£2,140).
Is Dubai cheaper or more expensive than London for UK expats?
Dubai has no income tax, which significantly increases take-home pay for UK expats who move from the UK’s 20-45% income tax. On consumer prices, Dubai is broadly comparable to London or slightly cheaper for food and transport. Rent varies widely: central Dubai areas cost AED 7,000-12,000/month (£1,500-£2,570), broadly similar to London; peripheral areas cost AED 4,000-6,000/month (£856-£1,284). Healthcare costs depend entirely on employer insurance arrangements.
Is Sydney more expensive than London?
Sydney is broadly comparable to London in total living costs. OECD data places Australia’s price level at approximately 95% of the UK’s on PPP terms. Central Sydney rent (AUD 2,500-3,500/month, approximately £1,320-£1,840) is lower than central London (£2,200-£3,500). Groceries are approximately 15-20% cheaper at Australian supermarkets. UK nationals access Medicare from day one under the reciprocal healthcare agreement, providing a significant cost advantage over private health insurance in Australia.
What are the main costs in Toronto for UK expats?
Toronto’s total living costs are broadly comparable to London. Rent for a central 1-bedroom apartment runs CAD 2,200-2,800/month (£1,310-£1,670); outer suburbs cost CAD 1,500-2,000/month. Transit costs CAD 156/month (£93). Groceries are broadly London-equivalent. Provincial healthcare (OHIP) is available to permanent residents after a 3-month wait; private insurance during the wait costs CAD 150-300/month. Total monthly costs are approximately CAD 4,000-6,000/month (£2,380-£3,570).
How do I account for FX risk when comparing cost of living?
FX risk affects UK expats paid in GBP: a 10% depreciation of GBP against EUR raises the effective GBP cost of living in Portugal by approximately 11%, with no change in local prices. The Bank of England publishes daily sterling reference rates at bankofengland.co.uk. Forward contracts from FCA-authorised FX providers (Wise FCA 900507, OFX FCA 517165, TorFX FCA 517266) lock in the exchange rate for up to 12 months, eliminating FX uncertainty for budgeted regular expenses.
What is the best source of authoritative cost of living data for expats?
For EU destinations: Eurostat’s Comparative Price Level index at ec.europa.eu/eurostat (table prc_ppp_ind) and national statistics offices (INE for Portugal, INE for Spain, INSEE for France). For Australia: ABS CPI data at abs.gov.au. For Canada: Statistics Canada CPI at statcan.gc.ca. For the UAE: OECD economic data and UAE National Bureau of Statistics (uaestatistics.gov.ae). These are official sources; city-specific figures should be cross-referenced with destination country statistics office local consumer price data.
Sources
- Eurostat -- Comparative Price Level index (prc_ppp_ind) (verified 26 April 2026)
- INE Portugal -- Consumer price statistics (verified 26 April 2026)
- OECD -- Prices and Purchasing Power dataset (verified 26 April 2026)
- Statistics Canada -- Consumer Price Index (Toronto) (verified 26 April 2026)
- ABS -- Consumer Price Index Australia (Sydney) (verified 26 April 2026)
