Cost Of Living In Estonia For Expats

Published on and written by Cyril Jarnias

Estonia, this small Baltic country nestled along the Baltic Sea, is attracting more and more expatriates drawn by its quality of life, economic dynamism, and advanced digital environment. But what is the real cost of living in this country? Let’s dive into the details to give you a comprehensive overview of the expenses to expect for a successful relocation to Estonia.

Daily Life in Estonia: Pleasantly Surprising Prices

Let’s start with good news: the cost of living in Estonia is generally lower than in many Western European countries. According to recent data, the cost of living in Estonia is about 14.5% lower than in France. This difference is noticeable in many aspects of daily life, from grocery shopping to leisure activities.

Take Tallinn, Estonia’s dynamic and picturesque capital, as an example. An expatriate will find significantly more affordable prices here than in other European capitals. Here are some concrete examples to give you an idea:

  • A meal at an inexpensive restaurant: about €15
  • A local beer (50 cl) in a bar: €5
  • A coffee on a terrace: €3
  • A public transport ticket: €2
  • A 500g loaf of bread: €1.19

These prices, although variable depending on the establishment and neighborhood, well illustrate Estonia’s attractive cost of living. For those who enjoy outings and culture, know that a movie ticket costs on average €8, which is about 33% less than in France.

Good to know:

Prices in Estonia are generally lower than in Western Europe, but some imported products can be more expensive. It is therefore wise to prioritize local products to optimize your budget.

Housing in Estonia: Rents That Expatriates Dream Of

Housing often represents the most significant expense for an expatriate. Here again, Estonia holds pleasant surprises. Although prices have risen in recent years, especially in Tallinn, they remain competitive compared to other European capitals.

In Tallinn, expect on average:

  • €728 per month for a one-bedroom apartment in the city center
  • €534 per month for a similar apartment in the suburbs
  • €1,287 per month for a three-bedroom apartment in the city center
  • €877 per month for a three-bedroom apartment in the suburbs

These prices are respectively 6% and 10% lower than in France for equivalent housing. For families, the option of a spacious apartment in the suburbs can be particularly interesting, with rents 22% lower than those in France.

It is important to note that prices can vary considerably depending on the neighborhood and city. Smaller cities like Tartu or Pärnu generally offer even more affordable rents.

Good to know:

The Estonian real estate market is dynamic and relatively open to foreigners. It is possible to buy property as an expatriate, which can be an interesting long-term option.

Energy and Transportation: Costs Not to Overlook

Estonia stands out for its relatively low energy costs compared to other European countries. The price per kWh of gas in Estonia is €0.0691, which is nearly 40% cheaper than in France. This difference can represent substantial savings in the long term, especially during the harsh winters the country experiences.

Regarding transportation, Estonia stands out with an efficient and affordable public transport network. In Tallinn, a monthly pass costs about €30, which is 52% cheaper than in France. For those who prefer to travel by car, the price of gasoline is slightly below the French average, with a liter of unleaded gasoline at about €1.66.

A unique aspect of Estonia is its free public transport system for residents of Tallinn. This initiative, implemented in 2013, allows registered residents of the capital to travel for free on the city’s buses, trams, and trolleybuses, which can represent considerable savings for expatriates.

Good to know:

Estonia is renowned for its fast and widely accessible internet network. Many public spaces offer free Wi-Fi connection, which can reduce mobile data expenses.

Health and Education: Quality Services at Lower Cost

The Estonian healthcare system is renowned for its quality and accessibility. Expatriates who work and pay taxes in Estonia generally benefit from national health coverage. Medical consultations are affordable, with a co-payment of about €5 for a visit to a general practitioner.

Regarding education, Estonia offers a free and high-quality public education system. For expatriates who prefer international education, there are several international schools, mainly in Tallinn, with tuition fees ranging between €6,000 and €15,000 per year.

A major advantage of Estonia is its advanced digital education system. The country is a pioneer in integrating technology into teaching, which can be a considerable advantage for expatriate children.

Good to know:

Estonia offers free Estonian language courses for newcomers, which can facilitate integration and potentially reduce costs associated with language learning.

Overall Budget: How Much to Plan for a Comfortable Life in Estonia?

Taking all these elements into account, what budget should be planned to live comfortably in Estonia? Here is a monthly estimate for different expatriate profiles:

  • For a single person living in Tallinn: about €1,000 – €1,200 (excluding rent)
  • For a couple: about €1,800 – €2,000 (excluding rent)
  • For a family of four: about €2,500 – €3,000 (excluding rent)

These estimates include regular expenses such as food, transportation, leisure, and energy bills. Adding rent, the total budget for a single person in Tallinn would amount to about €1,700 – €2,000 per month, which remains lower than the cost of living in many major European cities.

It is important to note that these figures can vary considerably depending on lifestyle, place of residence, and individual consumption habits. Furthermore, the average salary in Estonia (about €1,554 net per month) is lower than in France, which should be taken into account when calculating real purchasing power.

Good to know:

Estonia offers an attractive tax environment for entrepreneurs and self-employed workers, with a simplified taxation system and competitive tax rates.

Estonia: A Wise Choice for Budget-Conscious Expatriates

In conclusion, Estonia offers excellent value for money for expatriates. With an overall cost of living lower than in many Western European countries, a high quality of life, and an environment conducive to innovation, the country positions itself as an attractive destination for expatriates.

The advantages are not limited to the financial aspect. Estonia is also recognized for its preserved nature, rich culture, and forward-thinking approach to digital technology. The country offers an interesting balance between modernity and tradition, between dynamic urban life and proximity to nature.

For expatriates seeking an enriching life experience without breaking the bank, Estonia represents a serious option to consider. Whether you are a young professional looking for opportunities in the tech sector, a family searching for a pleasant living environment, or a retiree eager to discover a new culture, Estonia has much to offer.

However, as with any relocation, it is crucial to research thoroughly and prepare your project in advance. The cultural, linguistic, and administrative specificities of the country can present challenges, but they are also part of the exciting adventure that is expatriation.

Good to know:

Estonia is renowned for its e-residency policy, which allows entrepreneurs worldwide to create and manage an online business in Estonia, thus benefiting from the country’s advanced digital environment.

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About the author
Cyril Jarnias

Cyril Jarnias is an independent expert in international wealth management with over 20 years of experience. As an expatriate himself, he is dedicated to helping individuals and business leaders build, protect, and pass on their wealth with complete peace of mind.

On his website, cyriljarnias.com, he shares his expertise on international real estate, offshore company formation, and expatriation.

Thanks to his expertise, he offers sound advice to optimize his clients' wealth management. Cyril Jarnias is also recognized for his appearances in many prestigious media outlets such as BFM Business, les Français de l’étranger, Le Figaro, Les Echos, and Mieux vivre votre argent, where he shares his knowledge and know-how in wealth management.

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