Browsing Posts in Cheap Europe Travel

living in Portugal

I’ve sung the praises of traveling for cheap in Portugal before after being impressed by how reasonably priced it was when I visited last year. But what does it cost to actually live there as an expat? Here’s an excerpt from A Better Life for Half the Price with the scoop from some people who have made the move.

When Susan Korthase and her husband were looking to move abroad from Milwaukee, Wisconsin, they had already lived abroad and moved 17 times. They started diving into the options and considered all the usual “retire abroad” suspects. They decided to go traveling around and check out different options, but they started in Europe, with plans to begin on the Atlantic coast and make their way east.

“The first place we started with was Portugal, but we went to the Algarve and really disliked it quite a bit. We went to Lisbon, and that was better, but at the very end of our two-week trip we got on a train and went to Cascais and said, “Wow, this is it!” We had planned to move on and check out other places, but we never did. We just stayed. We rented out our condo back home and eventually took a trip back to get new visas, but we have been here since January of 2011.”

Unless you’re loaded, it’s hard to imagine moving to Western Europe unless you’re working for a big company that’s posting you there on a job transfer.

Portugal is the odd man out though. Even before the recent economic debt crisis, it was a country that was drastically less expensive to travel in than its other euro-using counterparts. Since the crisis started, prices have flatlined for anything not imported.

Reasonable Housing Costs

With the economic crisis in Europe still hitting Portugal hard, it’s a buyer’s market for real estate and a renter’s market for apartments—at least outside the university towns. Many Portuguese people will tell you that €750/$1,000 is a pretty common amount for locals to live on. Sure, several family members will generally pool resources in one home, but still, if you move here as a couple that can bring in $3,000 a month, you’re going to be considered very well-off by local standards.

Julie Dawn Fox had been teaching English as a second language for 12 years, mostly for the British Council. After living in Spain, Tanzania, and Venezuela, she was getting tired of the transient lifestyle and wanted to settle down somewhere in Europe. “I missed the boat on buying a house in the UK; had an opportunity when I was younger but passed on it to go traveling instead,” she says. “While I was gone, prices skyrocketed and there was no way I could afford it. I looked at Portugal and the prices were much more affordable. I knew I could buy a house there on my own. I got a job teaching, but then I met my husband (also English) there. We only pay a couple hundred euros a month for his place. The drawback of that is we need two cars. We’re about 35 kilometers from Coimbra city where we work. We spend €200-250 a month on petrol. It’s usually more than our mortgage”

Julie and her husband regularly put €1,200 a month (around $1,620) from their teachers’ salaries into a joint account and that covers all their expenses. “If you aren’t extravagant, you can live well on a decent wage. Occasionally there’s enough left over for eating out and a bit of travel. We could probably could do it on €1,000 a month if we had to.” They are living in a modest three-bedroom house, but the low mortgage cost definitely helps. “This house would probably be 700 – 800 pounds a month in the UK,” she estimates. “We wouldn’t be able to afford it.”

Gail Aguiar has plenty of places to compare with her new home in northern Portugal. She was born in the Philippines but moved as a toddler with her family to Canada. “I grew up in several regions of Canada, where she spent time in Saskatchewan, Winnipeg, Vancouver, Toronto, and Banff. In between there was time in Australia, the UK, and the semi-rural northeastern U.S. This is it, though,” she says. “I have no plans to move anywhere else unless my Portuguese husband suddenly decides he wants to try expat life for himself, in which case I would join him.”

Alentejo region

Gail lives about 10 miles from the center of Porto and while her husband already owned a place, she says rental for a two-bedroom apartment like she’s in starts at around 400 euros per month ($540). In the center of Porto prices would be similar, but the apartment might be older and smaller.

Prices are similar in Lisbon, where a one-bedroom flat in a prime area can be found for under $600 a month and if you’re willing to expand your zone of possibilities, you could get more space or a lower price.

Buying a place is very reasonable by European standards throughout the country. “In Coimbra, for a reasonable apartment you would pay 150,000 to 200,000 euros for a nice two- or three-bedroom place. In rural areas, it’s easy to find a place that size for 100,000 euros or less,” says Julie. “There are lots of repossessions and bank sales going on right now. Banks sometimes offer 100 percent mortgages on these so you don’t need a big down payment, but restrictions are rather strict. When I was looking into it, they wanted an additional guarantor for the mortgage. They also wanted us to buy life insurance that would cover the amount in case something happened to us.”

Alicia and her husband paid cash for their home from a sale in England and had enough left over for a fixer-upper project on top. They live near the Silver Coast in Central Portugal, half an hour from the ocean and an hour from Lisbon and the airport. “We have a pool and an olive grove, and gorgeous views. We also bought an incredibly cheap village house in Castelo Branco which is a stunning area,” she says. “We get to experience real village life and the neighbors are very friendly. We are renovating the house and its slow going as we don’t live there now but we plan to rent it out for holidays.

Property prices are incredibly low,” she adds. “For the price of a tiny terrace or flat in, for example, The Midlands area of the UK you can get a lovely three-bedroom house with a garden near the coast or a two-bedroom flat a stop or two away from the center of Lisbon. We viewed a three-bedroom flat with a view of the sea for €35,000 just a ten-minute drive away from the city of Lisbon and only a 5 minute walk to the metro.

They don’t have rent or a mortgage since they own the house outright, but Alicia says, “You can get something decent from about €350 a month in Central Portugal and on the Silver Coast.” For their five-bedroom house near Lisbon they pay €890 per annum in property taxes. For the two-bedroom house in the countryside it’s only €100.

Living in Lisbon

Foreigners can own real estate outright in Portugal, but closing costs can be high: figure on 7-8 percent.

Author Alicia Sunday grew up in the Leicestershire countryside in England, moved to London for fifteen years, then to Cambridgeshire for twelve years. “We were attracted to the warmer weather in Portugal and being able to lose the mortgage and buy something with the equity from the house yet have more space and land,” she says. “We also liked the fact we could still afford to be less than an hour away from a fabulous capital city. Since coming here we have also discovered that expats are being encouraged here by lower taxes via the non-habitual residency scheme.

Good Infrastructure, Drinkable Water

This being Western Europe, infrastructure is good as well. “You can usually get broadband or Wi-Fi anywhere so if you can work on the internet then Portugal is a great place to be,” says Alicia. “You can realistically ‘live the dream’ here, be working on your laptop under a palm tree and then a quick dip in the pool in a property that can cost a lot less than 100,000 euros.”

You can drink the water, crime is low, and infrastructure is very good. The World Economic Forum ranks countries by how developed its infrastructure is and Portugal comes in at a very high #14, easing out Japan at #15 and just behind Canada at #13. (The UK, USA, and Australia aren’t in the top-20.)

There’s another place where Portugal is at the top of the list: liberal drug laws. Holland may get all the attention, but Portugal quietly dropped penalties for purchase and possession of any drug and has stuck with it. Despite the conservatives’ fears, crime hasn’t gone up and cities haven’t turned squalid. What’s defined as enough for “personal use?” That would be a 10-day supply. If you want to cut your costs while living in a liberal country with real democracy and no harsh winters, here’s your spot.

This is a good country for families, with a safe climate and good schooling options, at least in the cities. “The main reason why we decided I would move to Portugal was because we want to raise children here,” says Gail. “Portugal is much more child-friendly than Canada.”

Lisbon tram

Transportation Costs

The cost of getting around in Portugal has a lot to do with whether you’re driving a car on the highways or not.

Gail says in Porto a monthly public transit pass for their (outer) zone is €36, with individual trips as needed into the city being €1.50 each. One subway, bus, or tram ride in Lisbon ranges from €1.40 to €2.85, but an all-day unlimited pass is €6 and a whole month is the same as in Porto: €36.

A taxi in Lisbon for two people is officially €2.25 to start, then €1.60 per km. This can vary a lot across the country though. When I was in Evora it was €3.25 to go two blocks, but only €0.80 per km after that.

Bus routes in rural zones are not very frequent, but between the larger towns and cities it’s a different story. The 1.5 hour bus ride from Lisbon to Evora is €12.50 one-way. A 2.5 hour bus ride (Lisbon-Western Algarve towns for example) will run around €20 one-way, while the three-hour one between Lisbon and Porto is €24 to €42 depending on how luxurious it is.

What can really kill your budget in a hurry here though are the tolls on the expressways. “The highway tolls can really have a big impact on the cost of your trip,” says Julie. “Below Lisbon to Algarve, there’s a short stretch of road that’s 20 euros, for example. But it saves loads of time, so people pay it if they can afford it. The good thing is, the motorways are pretty empty when you’re on them because of the high cost.”

“Motorway tolls are a definite minus,” agrees Alicia. “They are far too expensive and thus not well used.”

You need to check the routes you don’t know in advance because you don’t stop at a booth and pay: you get charged automatically via a sticker on your windshield. You could return from a jaunt around the country to find a hefty bill on your account.

Portugal countryside

Health Care

The World Health Organization ranks the effectiveness of care in Portugal at number 12 in the world, well ahead of the United States, England, and Canada. Portugal also has the 10th-highest life expectancy for women in the world, at 84. Pregnant women get 120 days of paid leave at full salary and you won’t get stuck with a hefty bill if an ambulance picks you up at the scene of an accident.

Julie and her husband both have health care through her employer, but says if you’re on the national health scheme, you pay €5 to see the doctor and €10 for emergency care. You pay out of pocket for lab tests and x-rays, but then you can charge them back to insurance and get reimbursed 60 to 80 percent.

In general terms, you will be treated like a local in terms of the health care system. Some costs are free, while others require a token payment. Dental costs are mostly covered by taxes, plus children, pregnant women and pensioners have the right to receive dental care for free.

To choose your own doctor or hospital outside the national health care system, various insurance schemes are available at a reasonable cost. Is Lisbon the care is excellent and if you ask around you’ll easily be able to find an English-speaking doctor. This also applies to tourist zones like the Algarve and larger cities such as Porto. In smaller towns you may just have a local clinic, which is fine for basic problems, but then you’ll likely want to travel to a larger city for surgery or serious tests.

 Visas for Living in Portugal

“For EU residents, the visa situation is quite straightforward,” says Julie. “The most important thing is to be able to prove income, to show that you can support yourself. You need to have ample documentation to show them. Assuming that’s in order, you go to the foreigners service desk and soon you’ll have a residency permit for five years, which you can then renew.”

Evora AlentejoFor those without a local spouse or EU citizenship, it can be much tougher. “Almost all the articles you read about moving to Portugal talk about Brits or other Europeans,” says Susan Korthase. She and her husband spent around $400 in fees to get their residency visa, then another $3,600 for attorney fees. Each time they renew, they have to do it all again, though this last time they got two years instead of one. “There are a set of steps, with very explicit requirements,” she says. “Then you have to overcome the language barrier, which is where the attorney comes in. You quickly forget how painful it was when it’s done, but it was. Start to finish first time was about six months. If we had tried to do it without an attorney it would have taken longer and they treat you differently. You have to accept that bureaucracy will be a lot more complicated than you’re probably used to and people in the offices will be asking for things they don’t really need.” Next year they’ll be at the five-year mark though and can then apply for a five-year residency permit. At that point the big renewal bill they face each year from the attorney will go away.

For new arrivals, it turns out the prevailing assumption that you can only get a three-month visa is not true. Susan and her husband applied for six months at the embassy in Washington, D.C. before they left and after showing the means to support themselves, it was granted easily. In theory anyway, you could return to the USA for a bit and then do it again if you still didn’t have residency sorted out.

Susan writes about living in Portugal for ExpatExchange.com and also does consulting for people considering a move to her adopted country. “I’ve been able to help a few dozen people who are considering Portugal but can’t find a path through the confusing, capacious, and contradictory information about the process, costs, resources, and difficulties. Some of them cross Portugal off the list, opting for a Costa Rica or Belize. But for those of us who seek a first-world, high-culture experience, Portugal is among the most accessible.”

Alicia sums it all up like this: “The health care is good. Foreign investment is going into the area. School fees are reasonable. People are generally friendly and helpful. The scenery is stunning and there is so much beautiful coastline it’s easy to live near the sea and have spectacular views. To know that within half an hour of where we live is the opportunity to go surfing, swimming, sailing, etc. is just wonderful.”

 

This article is a shortened excerpt from A Better Life for Half the Price. For more in-depth information on Portugal and other countries where you can drastically cut your living expenses, get a copy of the book or sign up for an insiders membership program

Bulgaria travel

I’ve had two conversations in two weeks about how great Bulgaria is, with other people who have visited. One was a fellow travel writer who has had serious trouble getting editors to take a story about the place. It’s not trendy, not a hotspot, not a place where luxury hotel chains are scampering to open new properties. But that makes it a great place for budget travelers who appreciate a great value.

I wrote some blogs posts and this article on Bulgaria that won me a few awards after I was there a few years ago. The country is in my World’s Cheapest Destinations book and it’s also featured in the new one, A Better Life for Half the Price. I’m obviously a fan and it’s a place I definitely want to get back to for a longer period. It’s not the bleak, ex-communist wasteland people probably expect to see, if they expect anything at all.

traveling Bulgaria

Last time I was traveling as a guest of Odysseia-in adventure tour company and I would use them again on my own dime when I go back with the wife or whole family. They have great connections and knowledge for the full country and can enable you to get around that whole language barrier thing, which can be serious in the countryside.

Plovdiv street

Because you really do need to get into the countryside to see what makes Bulgaria so great. Sure, Sofia is pleasant enough, but most backpackers go there by default, even though it’s not that great of a city. You’re better off spending the city time in Plovdiv (pictured above) or the great Veliko Tarnovo (pictured below). The latter is one of those places that should be mobbed with tourists, but thankfully isn’t. It’s right on the main train line between Istanbul and Bucharest, so it’s a great place to start or end.

Veliko Tarnovo

You can do hut to hut hikes here like you would in Switzerland, but for 1/5 the cost. The green mountains are surprisingly well preserved and you get stunning scenery along the way. Round a bend and you may end up an a monastery a few hundred years old, then a small village where you’re sure to get a great meal.

hiking bulgaria

That Perceptive Travel story I linked to earlier was as much about the food as it was about the countryside because one of the greatest draws here is what you sit down and eat each meal. The meals are often organic, slow food, made from scratch. That’s not because they’re being trendy though. It’s just the way they cook. If something is in season, it will be on your plate. If you’re there in winter, you’ll be getting stews, pickled vegetables, and aged cheese. And always great bread, great beer, and great wine. I’m salivating just thinking about it.

If you go an love it so much you’re thinking of putting down some roots, it’s not going to cost you much. Check out these home auction prices.

vacation rental

Sure beats a cheap motel

The first time I went to Salt Lake City for the Outdoor Retailer market convention, I was in a crappy Econolodge motel with stained carpets, intermittent Wi-Fi, barely working heat, lukewarm hot water, and a lumpy bed.

This time I stayed in a pristine room with a heavenly mattress, in a craftsman bungalow house in a quiet location. The Wi-Fi and hot water worked flawlessly and I had a table I could work at.

The interesting thing is, the latter was cheaper.

There are plenty of times a hotel is the best bet for where you’re going and the good ones can be excellent spots to roll into to get some work done or be right in the center of the action. If rates are at their peak though and there are not many empty rooms, you can really pay a premium. That’s how I ended up in someone’s spare bedroom in Salt Lake City two weeks ago: when a big convention comes to that city like the one I was attending, even the crappiest places like Motel 6 and Super 8 will raise their rates to $150, $200 or more per night.

I used AirBnB for that crash pad (with some lovely hosts) and got a beach rental place through them the month before in Puerto Escondido. We paid less than we would have for a very basic hotel, but had two bedrooms and a pool to ourselves.

They’re not the only game around though and when you’re looking outside of the United States, there’s often another dominant player or two you should pull up as well. In some Mexican towns, for instance, you’ll find more listings on the traditional sites like VacationRentals.com. When we still owned our beach house in the Yucatan state, you could rent it for $250 per week through there.

If you’re headed to Europe, HouseTrip has more than 300,000 places to choose from and is active almost anywhere you would want to go. They can save you some big bucks when you’re in an expensive European capital, or just give you some more space and a kitchen if you want to keep your expenses low and have more room to spread out. Unlike some of those rotten chain hotels, the owners aren’t going to charge you to use the internet signal.

Athens rental

Kitchen of a 47 euros per night European apartment for 4

I pulled up their Athens listings because the Travel Bloggers Exchange Europe–where I’m going to be a speaker—is happening there in October. I checked out what’s available for four people and there are some terrific values. Plenty of apartments are under 100 euros a night and there are quite a few that are half that. If you get a larger place for more people the cost per person would be getting a real apartment for less than a hostel dorm bed.

I like hotels a lot and my job has me reviewing a lot of them. When I’m with my family though, it gets old when all of us are sleeping in the same room, sharing the same bathroom. Renting two connected rooms can be inexpensive in some countries, but often not. When we went from a cramped Bangkok hotel room to an apartment we rented on one trip, the price was about the same but we had three times as much space.

How about you? Where have you found terrific vacation rental deals?

cost of living in Hungary

Hungary is not super cheap in every way, but the destination is a good value for people who want to live a good life for less in Europe. Anyone moving to Budapest from a similarly sized city in Europe, North America, or Australia can easily cut their expenses in half. And the rest of the country costs less.

Estimates of how many expatriates live here range from 30,000 to 50,000 and there are enough in Budapest to support a business newspaper in English. So you won’t be all alone if you choose to move here.

Gary Lukatch was earning around $60,000 gross in New Mexico working in the financial industry, after having lived in a lot of other states before that. “When I moved to Budapest and began teaching English, my monthly net earnings after one year were around $600 per month, increasing to around $1,500 per month after, say, five years,” he says. “In short, I took a huge pay cut, but was 1000% happier.”

After teaching English in Budapest for eight years, he is retired, living a much better life than he could elsewhere on what he has to spend. “The cost of monthly house payments or rental, plus car costs alone, would be more than my monthly income, which is around $2,100 net,” he explains. “Here in Budapest, my monthly flat rental, plus utilities, averages around $400, right in the middle of town.” He says public transportation is excellent, so he doesn’t need a car. “I eat out several times a week and I still have enough money to travel wherever and whenever I want; I have now been to 53 countries, with at least five more trips scheduled this year.”

Australians Karen and Neil D. came to Budapest because her husband got a job offer in his industry and they thought it would be a great adventure. They had already lived in Poland and the Czech Republic though, so they and the four kids didn’t have to make a huge adjustment going to Hungary. “Hungary has been the cheapest of the three,” Karen says. They’ve watched the city get easier and easier as the years have gone by, partly through them adjusting but also because the level of English fluency locally has gotten steadily better.

Hungary joined the EU in 2004, but the country still uses the forint, which is a volatile currency. Prices quoted here are based on 220 to the dollar, but I’ve seen it as low as 198 and as high as 250. So check the current rate before cursing my name when you read this because prices have changed.

Eger

Eger, Hungary

The countryside of Hungary is very cheap, but few expats live in the rural areas unless they’re in the wine industry. Most choose to live in Budapest, around Lake Balaton, or in one of the smaller cities like Eger or Pecs.

Hungary got hit hard in the European economic crisis like many other nations on the continent, but has recovered faster. The official unemployment rate was 8% in mid-2014, which looks downright glorious compared to Italy, Spain, Greece, or Portugal. In many ways, this feels like a nation on the rise and the young are displaying something not seen much in the past couple hundred years of Hungary’s history: optimism.

Housing Costs in Hungary

housing costs BudapestThe residents of Hungary give their rent costs in hundreds, not thousands, and you won’t find many single people or couples paying more than $500 a month, even in the capital. When you get into smaller towns, you can get a large house for that. When I was last in Budapest, I asked several locals I talked to what they were paying per month for an apartment and the answers came in between $150 and $300. In the southern wine region I visited on my first trip a few years earlier, there were houses with a nice garden going for the same. I met an expat from New Zealand working for a winery by Lake Balaton. He was paying $210 a month for his two-bedroom apartment with a lake-view balcony.

The site Numbeo.com uses New York City for a price basis and compares costs of living around the world to that, using 100 as the NYC average. For rent prices, Hungary comes up a 10 and Budapest is 12. This will vary greatly by location, of course, but on average you can expect to pay 1/8 to 1/10 of what you would in your current situation if you’re living in New York.

Gary pays a shade under $300 for his apartment in District 5, one of the most desirable and central areas of the city. (If you’ve come to Hungary as a tourist, you’ve been there to see the sites.)

If you decide to buy something eventually, which you can do freely as a foreigner, “a typical apartment in Budapest will cost between 90,000 and 130,000 euros for 100 square meters.” Karen says. It’s a buyers market right now for a very bad reason: a lot of Hungarians took out loans to buy property in the pre-EU days and did it in Swiss Francs because that was a stable currency. Now they owe far more than what the property is worth because of the Swiss Franc’s rise. “So there’s a mass selling of properties because of exchange rate changes,” Karen says. Combined with the high unemployment so prevalent in much of Europe now, there are far more sellers than buyers.

Health Care Costs

In this country the medical care is good, the dental care is great. With the rise of cross-border medical treatment happening in many places in the world, Hungary has jumped on the trend with both feet. Many Europeans come here to have dental work done or to receive good medical care at a discount. I was actually having some dental problems while in this part of the world two years ago and started asking around for prices to get a new crown. I ended up not getting it done because of timing, but prices I was quoted ranged from $250 to $350 all-in. (In the United States, this can easily top $1,000.)

Getting a cleaning and check-up at the dentist is around $30, getting a set of x-rays about that much again.

The one time Gary had to have serious medical work done, the total bill was about 1/10 the price of what it would have been in the USA.

Budapest market

Food & Drink

you can normally have a very fine cloth-napkin dinner with wine for $15. If you eat at more humble places, a soup will be a dollar or two and main dishes range from $3 to $7.

When you shop in the market, prices are at the low end for Europe. You can get rolls for 10-25 cents each or a huge baguette for a dollar or less. Get 100 grams (around 1/5 of a pound) of good cheese for a dollar, 100 grams of good local sausage for $2, and a jar of pickled veggies for another dollar or so.

For a buck or less, you can generally buy 100 grams of any of these things in the market: raisins, peanuts, sunflower seeds, banana chips, or dried apricots. Or you can get a kilo of seasonal fruit or peppers, cabbage, potatoes, radishes, or carrots. I saw a big bunch of white asparagus for about a dollar when I was there. How much do you pay for that in your local Whole Foods?

“We probably spend $80-$100 a week on groceries, not including wine,” says Karen. “In Australia we could spend $300 or $400 a week easily.”

Hungarian wineHungarian wine should be known around the world, but the Soviet occupation days seriously hurt its reputation and the recovery will be a long one. So for now it’s one of the best quality-to-price values in the world. In many countries, expats complain about the difficulty of getting decent wine for a decent price, so if that’s a big priority, put Hungary on your list. (Along with Argentina and tropical duty-free Panama). You can find a decent table wine bottle in a store for $2, something quite good for $4 to $8. If you spend over $10 you might end up with something from a “winemaker of the year” who has adorned Hungarian magazine covers.

This once being part of the Austro-Hungarian Empire, you can get a killer coffee and pastry here just as you can in Vienna—but for literally 1/4 the price. After you do a double-take at your low bill in a wine bar, finish with a coffee and dessert for another nice surprise.

Transportation Costs

Getting around Hungary is relatively cheap by bus or train when you want to get out of town. Figure on $10-$12 for a trip of two hours, or $30 to go as far as you can possibly go within Hungary. Seniors and young children travel free. The longest ride on the suburban railway out of Budapest (30 kms) is just $2.50.

Hungary travel by train

Budapest has a metro and while it’s no real bargain on a ride-by-ride basis (around $1.55), a monthly pass that also works for the trams and buses is a good value at less than $50. If you’re of retirement age, you might squeak by for free.

Apart from the ride from the airport, taxis in Hungary are a bargain. In general you can get around the center of Budapest in a cab for $3 to $7. It’s around $2 to start and $1.25 for each kilometer, so it’s hard to spend $10 anywhere unless it’s a long haul. Like much of Europe, this country is set up well for those on a bicycle and some expatriates use a bike as their main means of transport. In Budapest there are lots of dedicated bike lanes and in the countryside there’s not nearly such an abundance of cars as you see in the capital.

Frequent promotions on the train system and Eurolines bus make international travel from here a bargain. If you plan ahead you can get to Vietnna for less than $20 or to beach locations of Greece, Bulgaria, or Croatia for around $60.

Other Costs

If you pay your own utilities they can vary greatly by the season. His utilities vary widely, from $30 to $200 a month. “My place is not the best insulated in town, so I pay more in the winter for heat. In the summer, it’s very low.” Internet is $15 to $30 depending on speed and if you want a great connection, you can usually get it in the cities. The lowest-priced speed is generally 5 mbps, which is fine for a lot of people.

The land of Liszt and Bartok has an abundance of cultural performances going on at all times, from high-brow opera in the capital to an annual festival of wine songs in the south each year. Performances that aren’t free are very cheap by European standards. “The theater is amazing here,” says Karen. “The cost of going to a ballet or opera can nearly bankrupt you in Australia. Here it’s for everyone. Tickets usually start at $5. If you buy really great seats on a weekend for a popular show it might cost you all of $25.”

Budapest coffee pastry

Visas in Hungary

Hungary is part of the Schengen Agreement covering much of the European Union, which means you can’t just stick around here on a tourist visa. You get three months upon entering the zone, but after that you have to leave the whole Schengen area for three months before returning. No problem if you’re only coming for the summer. Terrible if you want to settle down for longer.

To get residency without being tied to a specific employer, you generally have to show you’re doing work a local can’t do, like teaching English, or you have to show that you’re self-supported by income from abroad. You can see a sample of costs and documents needed at this site, which also warns you that requirements may change at any time: http://washington.kormany.hu/entry-for-long-stay

A work visa is good for a year and renewable. Expect to endure a lot of bureaucracy and if you don’t have a college diploma, it’s going to be even tougher. You will have to apply in your own country and will then have 30 days after entering Hungary to get the local paperwork sorted out.

Most people who want to stick around either get a work permit connected to a specific job and company, or a residence permit that’s not tied to one employer. “Americans can only get residency for two years,” says Gary, “then they have to renew.” He’s now looking into permanent residency though, which you can apply for after being in the country for three years. This costs money for a lawyer and requires a lot of additional paperwork. Most of the items need to be translated into Hungarian as well, plus you have to show proof of health insurance or buy into the Hungarian health care plan..

Do you have Hungarian blood? If so, you could be on the fast track to residency. If you have ancestral roots in the country, you can get real citizenship without giving up your original one, making you one of those enviable people with two passports. You have to speak Hungarian, but you can take intensive language courses while you’re living there and collecting paperwork. This is a back door into the EU, which would give you the ability to live elsewhere too.

Hungarian

I wouldn’t count on it…

Downsides

The political winds are blowing strongly to the right as I put this book together, with overt racism, anti-Semitism, and discrimination against minorities all rearing their ugly heads on a regular basis.

Hungarian is an especially tough language to crack, but you’ll often need at least some basics when you get outside the capital.

This is an excerpt from the upcoming book A Better Life for Half the Price, about cutting your expenses in half by moving abroad. Sign up here for updates on cheap living abroad.

cheapest places to travel

$15 in London, $1 in India

Where are the cheapest places to travel in the world? And how does City A compare to City B? How well does perception match reality?

World's Cheapest DestinationsEvery few years I put out a new edition of the book you see to the right and if you’re about to embark on a year-long trip around the world, it’s the best $9 (e-book) or $16 (paperback) you’ll invest in your journey. It’ll give you rundowns on the best bangs for your buck around the world, as well as a quick overview of why you’d go there. It has real prices on what an average person can expect to spend as a backpacker or mid-range traveler in the cheapest places to travel that are worth visiting.

Beyond that though, if you just want to compare Vienna to Prague, or Chiang Mai to Hanoi, there are a couple of other good resources out there I use as a gut check now and then when working on articles or for media interviews.

Numbeo for Wisdom of the Crowd

The first is called Numbeo.com and it’s a crowdsourced platform where people input costs so the system can come up with averages. It’s not perfect of course since it’s dependent on volunteers to take time out to enter data, but close enough for ballpark numbers. They’ve had nearly 145,000 people put info in as I write this.

What I really like about it is it puts things in a ratio perspective, using New York City as 100. You find out, for instance, that renting an apartment in Nicaragua is a 10 on that scale of 100. So if you live in Manhattan and move to Managua, you’ll probably be able to get a place that would cost your $5,000 a month in New York for $500. On the other hand, you definitely do not want to move to Norway or Switzerland unless you’re getting a transfer and a huge raise:many of their cities are above 150 on the scale. Here’s a rundown from most expensive to cheapest.

This site is to compare living expenses though, so while it’s good to see what you’re in for if you want a better life for half the price, the data is mostly populated by expatriates and residents upper-crust enough to enter info in English. So you get some odd skewed results from people trying to live a first-world life in a country that may not have a huge selection of imported items for reasonable prices. Thus the outliers that look expensive but really aren’t for most people, like Caracas, Venezuela. Go to the other end and 24 of the 25 cheapest cities are in India and after that you start getting into some of the other places featured in my book. like Nepal, Indonesia, and Bolivia.

Take it all with a dose of skepticism though. No way in hell that Puerto Vallarta and Durban are cheaper than Cuenca and Plovdiv. It’s good for getting a general sense though of apartment prices, food prices, and what a taxi will cost you. To give you an idea, here’s the rundown on Medellin, Colombia.

Cheapest Places for Backpacker Travelers

While Numbeo wants to know what a lot of things cost, the PriceOfTravel.com site is aimed at backpackers trying to find the best deal. So here’s the basket of goods and services they used to compare A to B on their backpacker index:

A dorm bed at a good and cheap hostel
3 budget meals
2 public transportation rides
1 paid cultural attraction
3 cheap beers (as an “entertainment fund”)

There are inherent flaws in this one too of course, like the beer cost not mattering if you don’t drink and the “hostel” part being pretty meaningless in a country where most everyone gets a private hotel/guesthouse room since it’s so cheap. Some places you walk everywhere and never need public transportation, others may require expensive taxi rides to get anywhere you really want to go.

Pokhara Nepal

The very cheapest backpacker destination?

Again though, as a basic guide it’s pretty good, with 14 of their 15 cheapest being places I cover in my book. Sri Lanka is borderline cheap from what I’m hearing, but if I haven’t been there, so I could be wrong. Here’s their list, with a daily budget amount.

Pokhara, Nepal – US$14.32
Hanoi, Vietnam – $15.88
Chiang Mai, Thailand – $17.66
Goa, India – $18.25
Ho Chi Minh City, Vietnam – $18.27
Kathmandu, Nepal – $18.46
Vientiane, Laos – $21.38
Delhi, India – $21.38
Luang Prabang, Laos – $21.71
Bangkok, Thailand – $21.78
Phnom Penh, Cambodia – $21.95
La Paz, Bolivia – $22.24
Quito, Ecuador – $22.30
Hoi An, Vietnam – $23.26
Colombo, Sri Lanka – $23.87

There’s a clear focus on cities, as you can see. There are far cheaper places than Delhi in India and far less expensive destinations than Quito in Ecuador, but hey, they’ll be a happy surprise when you get there.

When you click on an individual city, what you get is excellent: not just detailed price ranges, but also weather patterns, attraction prices, and a quick overview. Here’s the one from Budapest.

Like I said at the beginning, my book only features 21 countries and you’ll likely explore destinations that are your wish list that aren’t so cheap. But using these two sites, you can figure out that Australia is going to cost you far more than Canada, that London is more than double the price of Istanbul or Seoul.



cheap living abroad