Published on and written by Cyril Jarnias
Setting up in Bangladesh, and especially in Dhaka, means entering one of the cheapest countries in the world… while facing one of the densest and most chaotic capitals on the planet. For an expat, the equation is puzzling: on one hand, an overall cost of living roughly 2.7 times lower than the global average; on the other, “expat” rents that can be two to three times higher than those paid by locals.
That’s the annual cost in Bangladeshi taka to educate a child in an international school in Dhaka.
One of the cheapest countries in the world
Bangladesh regularly ranks among the world’s cheapest countries. Several cost-of-living indices place it as the 2nd cheapest country in Asia and 3rd globally. The cost-of-living index is around 22.5–26.6 (base 100 for a major reference city like Prague), illustrating just how low prices remain.
On average, a single person can live in Bangladesh for about $422 per month, including housing.
To give you an idea, the cost of living, including housing, is estimated to be:
– about 76.7% lower than in the United States,
– about 72.6% lower than in Canada,
– nearly 70% lower than in Malaysia,
– with rents alone over 90% lower than those in the United States.
In other words, for an expat earning in a strong currency (euro, dollar, pound), the country offers a very comfortable purchasing power, provided you navigate the housing, healthcare, and education markets carefully.
Dhaka, a cheap but increasingly expensive capital
Dhaka, with its roughly 16.8 million inhabitants, remains one of the cheapest major metropolises in the world while still experiencing noticeable price increases, especially for housing. The capital’s cost-of-living index sits around 23.1, close to the national average. Yet the city is ranked among the 5% cheapest cities globally, and 1st in the country for cost of living.
Compared to other metropolises, Dhaka appears particularly cheap:
| Comparison | Dhaka is… |
|---|---|
| London | ~82% cheaper |
| Hong Kong | ~72% cheaper |
| Prague | ~58% cheaper |
| New York | huge gap, rents are over 10 times higher |
But this apparent cheapness hides a paradox: for residents paid in local currency, life remains difficult. The median net salary is around $181 per month (about 33,260 ৳ in Dhaka), an amount that covers only 0.4 months of average expenses. Rents have risen sharply in recent years, with some upscale neighborhoods seeing increases of up to 24%.
For an expat, goods and services priced at the local market (transport, basic food) are very affordable. However, international segments (upscale housing, international schools, private healthcare, imported goods) are significantly more expensive, with prices sometimes comparable to those in richer countries.
Housing: the key advantage… if you know how to choose
Housing is both the big advantage and the main budget trap for expats in Bangladesh. Overall, rents are very low by Western standards, but the bill shoots up as soon as you look for an “international-standard” apartment in Dhaka’s expat neighborhoods.
Rent levels for locals and middle classes
For a Bangladeshi or an expat willing to accept a more “local” level of comfort, rents remain extremely affordable. In Dhaka, aggregated data gives the following ranges:
| Type of housing in Dhaka | Location | Average monthly rent |
|---|---|---|
| 1 bedroom | city center | ~14,400 ৳ (8,000–20,000 ৳) |
| 1 bedroom | outside center | ~7,900 ৳ (5,000–12,000 ৳) |
| 3 bedrooms | city center | ~37,800 ৳ (25,000–60,000 ৳) |
| 3 bedrooms | outside center | ~21,600 ৳ (15,000–35,000 ৳) |
In neighborhoods considered “normal” (Mirpur, Mohammadpur, parts of Uttara), you can find:
– a furnished 85 m² apartment for around 22,900 ৳ per month,
– a 45 m² studio for around 25,300 ৳, with basic options from 15,000 ৳.
For a single Bangladeshi on a tight budget, a “frugal living” scenario in Dhaka runs around 19,000–26,000 ৳ per month, including:
– 8,000–12,000 ৳ for rent on a small place,
– 3,000–4,000 ৳ for utilities,
– 8,000–10,000 ৳ for food and transport.
A middle-class family should budget 20,000 to 30,000 ৳ for rent on a 2-3 room apartment, which represents 35 to 50% of their total monthly budget (39,000–55,000 ৳), severely limiting their savings capacity.
Expat rents: Gulshan, Banani, Baridhara
Expats, especially those sent by companies or NGOs, concentrate in a few secure residential areas: Gulshan, Banani, Baridhara, Bashundhara. The price gap with the local market is spectacular: in these zones, an expat often pays two to three times more than a Bangladeshi for a comparable space.
The ranges reported for typical expat housing are as follows:
| Type of expat housing | Neighborhood | Typical monthly rent |
|---|---|---|
| 2 bedroom standard expat | Gulshan | 60,000–100,000 ৳ |
| 2–3 bedroom “upscale” expat | Gulshan/Banani | 85,000–137,000 ৳ (total budget housing + utilities + leisure) |
| 1 “nice” bedroom (expat) | major cities | $300–600 |
| 2 “nice” bedroom (expat) | major cities | $300–600, sometimes more |
| Large apartment or house | Dhaka/Chittagong | $1,000 and up |
In dollars, many accounts put:
– a “nice” 1-bedroom for an expat between $200 and $400 per month (and sometimes up to $800 in the best residences),
– a 2-bedroom between $300 and $600, or even $1,200 in the most sought-after neighborhoods.
Rents in upscale neighborhoods have increased by up to 24% in recent years.
For an expat with a housing allowance, this extra cost may remain acceptable. For those who have to pay out of pocket, choosing the right neighborhood—for example a good compromise in Dhanmondi or parts of Uttara—can dramatically lower the bill without giving up basic security.
Buying property
Real estate purchases are more of interest to locals and the diaspora than to transient expats, but prices give a good idea of the differences between neighborhoods.
| Location | Price per square foot (৳) | Comment |
|---|---|---|
| Gulshan / Banani (upscale) | 25,000–35,000 ৳ | about $205–287 per sqft |
| Dhanmondi / Baridhara | 17,000–25,000 ৳ | 25–40% increases in two years in some areas |
| Badda / outskirts of Dhaka | 4,800–10,000 ৳ | much more affordable |
| Average city center Bangladesh | ~8,452 ৳ per sqft | 4,500–15,000 ৳ |
| Average outside center Bangladesh | ~4,725 ৳ per sqft | 3,000–9,300 ৳ |
In very exclusive enclaves like Baridhara DOHS, a bungalow or standalone house can reach 4–8 crore ৳, i.e., about $470,000 to $940,000.
Mortgage interest rates are around 8–14% for a fixed 20-year loan, with an average close to 10–11%, making real estate credit expensive by Western standards.
Utilities and services: still modest bills
Basic services remain, for now, very affordable, even as their costs rise.
For an 85 m² apartment, average monthly bills are around:
– 3,300–4,500 ৳ for basic utilities (electricity, gas, water, trash),
– 3,700 ৳ or so according to other sources for a comparable space,
– about 3,700 ৳ (3,692 ৳) for a studio occupied by a single person.
In practice, a family consumes 200 to 300 kWh of electricity per month. At the base rate of about 7.74 ৳ per kWh, that equals a cost of 1,600 to 2,400 ৳ for electricity alone. The pricing system is progressive: the more you consume, the higher the price per kWh, possibly exceeding 14 ৳ for very large domestic consumers.
A detailed snapshot for Dhaka:
| Item | Average monthly cost | Observed range |
|---|---|---|
| Electricity + water + gas + trash (85 m²) | ~3,309 ৳ | 2,000–7,438 ৳ |
| Fixed internet (≥ 60 Mbps, unlimited) | ~1,608 ৳ | 1,000–3,000 ৳ |
| Mobile plan (calls + ≥ 10 GB data) | ~612 ৳ | 300–1,000 ৳ |
Converted to dollars, these amounts remain negligible for an expat:
– total electricity: $4–28 per month on average,
– water: less than $4,
– internet: $10–24,
– mobile plan: $7–18.
For an expat used to European prices, it’s often one third or even one quarter of typical household bills. On the other hand, power outages and water pressure problems are part of daily life: having a UPS, a building-wide generator, or a water tank becomes an important selection criterion when looking for housing.
Food: eating for a few dollars a day
Food is one of the most advantageous categories in Bangladesh. An expat willing to eat like a local can eat decently for a pittance. But as soon as you go for imported products, “Western” restaurants, or alcohol, the bill climbs very quickly.
Eating out
Across the country, a simple meal in a small restaurant costs on average 200 ৳, about $2, with variations between 100 and 350 ৳ depending on the establishment. In Dhaka, the average is more like 250 ৳, and the range goes from 130 to 500 ৳ for a basic dish.
For a slightly more elaborate meal:
A three-course meal for two people in a mid-range restaurant costs about 1,000 ৳ nationwide (1,500 ৳ in Dhaka), with a general range between 800 and 2,500 ৳. For a quick meal, a McDonald’s combo meal is around 500–600 ৳, possibly up to 950 ৳ in some neighborhoods.
In dollars, a “decent” dinner at an average restaurant runs between $5 and $15 per person. A meal at a very upscale restaurant with international service can reach $100 to $150 for two.
Drinks are often the most disproportionate item: local draft beer (pint) is frequently charged at 500 ৳, sometimes even more than a dish, with maximums exceeding 1,000 ৳. Imported alcohol, when available, is even more expensive and tightly regulated.
Grocery shopping
At markets and supermarkets, basic products remain very affordable. Average store prices in Bangladesh and Dhaka give an idea of the local food budget:
| Product (average prices) | Bangladesh (৳) | Dhaka (৳) |
|---|---|---|
| Milk (1 liter) | ~90–100 ৳ | ~90–100 ৳ |
| White bread (500 g) | ~64 ৳ | ~76 ৳ |
| Rice (1 kg) | ~72 ৳ | slightly more expensive (~73–75 ৳) |
| 12 eggs | ~140 ৳ | ~148 ৳ |
| Chicken fillets (1 kg) | ~234–310 ৳ | ~169 ৳ per lb (≈ 338 ৳/kg) |
| Beef (1 kg) | ~780–790 ৳ | slightly more expensive in Dhaka |
| Apples (1 kg) | ~290–300 ৳ | ~292–307 ৳ |
| Bananas (1 kg) | ~108–110 ৳ | ~108–110 ৳ |
| Bottled water (1.5 L) | ~32–35 ৳ | ~34 ৳ |
For an expat who cooks at home, a budget of $100 to $150 per month per person is more than enough for mostly local groceries. Those who load up on imported products (European cheeses, brand-name cereals, wines, Western snacks) will see the bill quickly climb: these products can cost the same, or even more than they do in their home country.
The daily cost of adequate food in Bangladesh ranges from 355 to 844 takas, or about 3 to 7 US dollars.
Transport: getting around for pennies
Transport is extremely cheap, but it comes at the cost of time lost in traffic jams and discomfort, especially during rush hour.
Public transport, rickshaws, and metro
A single local bus ride in Dhaka typically costs between 10 and 30 ৳ ($0.10–$0.30). Urban transport tickets are charged at around 50 ৳ on average according to databases, i.e., $0.40.
A monthly pass for public transport is around 1,800–2,435 ৳ (about $12–15), with a broader range of 800 to 5,000 ৳ depending on the city and services.
Dhaka’s recent metro charges fares between 30 and 60 ৳ per trip, i.e., $0.35–$0.70. It’s a very attractive mode of transport to avoid traffic jams, even though its network is still limited.
Rickshaws, Dhaka’s iconic vehicles, offer short trips of a few minutes for a fare between 20 and 50 taka (i.e., $0.20 to $0.50). For very short distances, they are often the simplest and most economical means of transport.
Taxis and ride-hailing
Traditional taxis are rarely used by locals, but available for expats. The starting fare is around 100–150 ৳, with a cost of about 80 ৳ per mile. A typical urban trip charges between $3 and $10.
Ride-hailing services like Uber, Pathao, and OBHAI offer modern alternatives to traditional taxis in major Bangladeshi cities, with transparent and competitive fares.
Base fares around $1–2, with a per-kilometer cost varying between $0.20 and $0.50. They often offer a more competitive and transparent alternative to traditional taxis.
Very popular for their agility. The starting fare is about 20–25 ৳ (taka). An excellent option for quickly weaving through dense traffic.
Fuel remains affordable for an expat, but relatively expensive for a local salary. A liter of gasoline costs around 110–125 ৳, about $1.
Private car and domestic flights
Buying a car in Bangladesh is a heavy investment, largely due to taxes. A new Volkswagen Golf or Toyota Corolla costs around 3–3.8 million ৳, i.e., around $30,000.
Most expats who have a car opt for a rental with driver:
– $30–50 per day for a basic car,
– 2,500–6,000 ৳ per day ($25–60) with a driver.
Domestic flights between major cities (e.g., Dhaka – Chittagong) typically cost $50 to $100 one way, a reasonable price to save several hours of often grueling road travel.
Healthcare: moderate costs, uneven quality, insurance essential
Bangladesh’s healthcare system has improved on several indicators (declining infant mortality, rising life expectancy) but remains very fragile. Health spending accounts for about 2.5% of GDP, well below the 5% recommended by the WHO, and nearly two-thirds of costs are paid directly by patients.
For an expat, the message is clear: you absolutely cannot rely on the public system, and it is strongly advised to have an international health insurance that includes medical evacuation.
Public vs. private
Public hospitals are officially free for citizens, but not for foreigners, and suffer from chronic underfunding: limited facilities, outdated equipment, overcrowded services, uneven hygiene, and considerable waiting times. Outside Dhaka and Chittagong, healthcare options become very limited.
Expats favor private hospitals in major cities (e.g., Apollo, Square Hospital in Dhaka) for care that meets international standards, better facilities, reasonable wait times, and English-speaking staff. However, for serious or highly specialized conditions, these facilities are limited, often leading affluent families and expats to seek treatment abroad, especially in India or Thailand.
Cost of care
Basic procedures remain affordable, but a serious hospitalization can be very expensive without insurance:
The cost of a quick consultation with a private doctor in Dhaka is about 1,500 takas, roughly a dozen dollars.
On average, Bangladeshis spend $250 to $500 per year out-of-pocket for healthcare, in a system where local insurance remains rare and limited.
For the expat, serious international health insurance, covering hospitalization, outpatient visits, medications, and especially evacuation, typically ranges from $500 to $2,000 per year, or $80 to $300 per month. Common figures for comfortable coverage are around $150 to $300 monthly, with basic plans starting at $80–150.
Given the risk of evacuation in case of a serious accident (to India or another country in the region) and the frequent need to pay for care in cash, this expense is not a luxury but an essential element of an expat’s budget in Bangladesh.
Education and international schools: the biggest expense for families
For expats with families, enrolling children in the local school system is not a realistic option. Most turn to international schools, concentrated in Dhaka (Gulshan, Baridhara, Bashundhara, Banani, Dhanmondi) and, to a lesser extent, in Chittagong.
These schools, often accredited and offering IB, British, North American, or Australian curricula, provide high-end facilities and a cosmopolitan environment… at fees that are anything but “Bangladeshi”.
Tuition fee levels
Fees vary enormously from school to school, but three segments can be distinguished:
| School segment | Level | Annual fee range (per child) |
|---|---|---|
| Budget | primary | ~150,000–350,000 ৳ |
| Mid-range | primary | ~450,000–750,000 ৳ |
| Mid-range | secondary/IB | ~750,000–1,000,000 ৳ |
| Premium | primary | ~900,000–1,300,000 ৳ |
| Premium | secondary/IB | ~1,100,000–1,600,000 ৳ (or more) |
Concrete examples give a clearer idea:
The combined annual tuition and boarding fees at a boarding school like Haileybury Bhaluka in Bangladesh.
On top of these amounts, add:
– registration or admission fees, often between 25,000 and 80,000 ৳ for affordable schools, and up to 300,000–500,000 ৳ for premium schools,
– costs for books and materials (15,000–50,000 ৳ per year),
– uniforms (10,000–20,000 ৳ per year),
– school transport (5,000–15,000 ৳ per month),
– activities, trips, and school outings (5,000–20,000 ৳ annually).
International exams are also billed separately: for the British curriculum, expect about 10,000–15,000 ৳ per subject at O-Level, and 15,000–20,000 ৳ per subject at A-Level. With 7 to 9 subjects at O-Level and 3 to 5 at A-Level, the bill can quickly add up.
Average annual tuition cost for a child in an international school in Dhaka for an expat.
Scholarships and financial aid
To slightly reduce the bill, some international schools offer partial scholarships, mainly based on academic merit, sometimes on financial need:
– 10–40% reductions in tuition fees at several respected Dhaka schools for top-performing students,
– specific scholarships for high school years or for students who perform particularly well in exams,
– sibling discounts (often 5–10% off fees for the second child, and more for subsequent ones).
Full scholarships (100%) are, however, extremely rare and reserved for exceptional cases.
Leisure, sports, clothing: comfort at a low price
Leisure activities, clothing, and durable goods generally remain affordable for an expat.
In Dhaka, you typically find: vibrant markets, a rich culture, varied cuisine, and historic monuments.
The average price in Bangladeshi taka for a cocktail in a chic Dhaka bar, equivalent to about $13.
On the clothing front, even international brands remain reasonable compared to Western incomes:
| Item | Average price in Dhaka |
|---|---|
| Levi’s 501 jeans | ~2,080 ৳ (≈ $19–21) |
| Summer dress at chain store (Zara, H&M) | ~2,330 ৳ |
| Nike running shoes (mid-range) | ~4,900 ৳ |
| Men’s leather dress shoes | ~4,460 ৳ |
Basic electronics also remain at acceptable levels: a 40-inch TV for around 49,800 ৳, an 800–900W microwave for around 15,000 ৳, a 128 GB tablet for about 35,700 ৳.
For an expat, this budget item therefore remains relatively secondary compared to housing, school, and healthcare.
Budget scenarios for an expat
By cross-referencing various data sources, we can outline several budget profiles for an expat in Dhaka:
Estimated monthly budgets for different profiles and lifestyles in Dhaka, in US dollars.
A budget of $800 to $1,200 per month covers decent housing, occasional outings, and a few taxi rides.
A budget of $1,500 to $2,200 per month for two adults and one child, excluding high-end international school fees.
Between $5,000 and $7,000 per month for a high-standard apartment, driver, domestic help, frequent outings, and the most expensive international school. A cost two to three times lower than in a major Western metropolis.
For profiles very careful with spending, “frugal” budgets identified in Dhaka go as low as:
– about $338 per month for a single person (including housing),
– $507 for a couple,
– $721 for a family of four, by adopting a very local lifestyle.
“Comfort/luxury” budgets go well above $1,500 per month for a single person and over $3,000 for a family.
Income, taxation, and expat status
The average monthly salary in Dhaka is around $560 according to some estimates, barely above the average cost of living. The median net salary, around $181, is not even enough to finance half a month of typical expenses.
Expats, on the other hand, are generally paid in foreign currency, with salaries and/or allowances aligned with their home countries. They effectively compete on the housing market with “corporate” budgets rather than local salaries, which helps drive up rents in certain neighborhoods.
A foreigner is considered a tax resident in Bangladesh if they stay at least 182 days in the year, or 90 days in the year and 365 cumulative days over the previous 4 years. Residents benefit from a progressive scale with an exemption on the first 250,000 ৳ (higher ceiling for women, seniors, and disabled), then rates that can reach 20-25%. Non-residents are taxed at a flat rate of 30% on their taxable income.
Bangladeshi employers must withhold tax at source each month and remit it to the tax authorities. However, the system remains complex, and it is common for expats to use a local advisor to navigate it, especially with double taxation agreements (such as the one with the United States) and income from multiple countries.
For foreigners, the right to work in Bangladesh is conditional on holding an appropriate work visa (types E, E1, A3) and a work permit, notably issued by BIDA. Tourist or business visas do not legally allow engaging in paid employment.
A very contrasting quality of life
Beyond the numbers, living in Bangladesh means accepting a very particular environment. The country offers cheap daily life, warm people, rich cuisine, spectacular landscapes, but also:
– extreme urban density in Dhaka,
– significant air pollution,
– a two-tier healthcare system,
– demanding bureaucracy (visas, permits, address registrations),
– uneven infrastructure, especially outside major cities,
– a climate marked by monsoon and flooding episodes.
For a well-prepared expat, with good health insurance, a suitable housing budget, and a schooling solution for children, life in Bangladesh can be financially very advantageous and culturally enriching. With an equivalent budget, it is possible to employ domestic staff, a driver, or a nanny, which significantly improves daily comfort compared to many Western countries.
Conversely, an expat who arrives without knowledge of local realities, without administrative support, and without budget flexibility to afford the few key services (decent housing, private healthcare, school) would quickly feel the city “doesn’t forgive.”
In summary
Bangladesh combines a structurally very low cost of living with pockets of high prices reserved for services with an international dimension—precisely what most expats seek: secure neighborhoods, private clinics, international schools, imported goods. With a local salary, daily life is tough. With an income in hard currency, however, the country offers one of the best cost-of-living-to-comfort ratios in the world, provided you know how to balance between a “local” lifestyle and a “Western” standard of living.
Building your expat budget in Bangladesh therefore mainly means answering a few key questions:
– in which neighborhood and at what level of comfort do you want to live?
– what type of schooling will you provide for your children, and what portion will the employer cover?
– what level of health coverage and medical evacuation will you choose?
– how far are you willing to adopt local habits (food, transport, local leisure)?
The answers to these questions can make the monthly bill vary by a factor of ten, without exaggeration. But in any case, and this is what explains its growing attractiveness, Bangladesh remains, for a well-prepared expat, one of the countries where you can still live “comfortably” on a reasonable budget.
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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.
