Cost of Living: US vs Abroad — Where Does Your Dollar Go Further?

Americans spend an average of $3,500 per month on basic living expenses — rent, groceries, healthcare, transport, and the occasional dinner out. In cities like New York, San Francisco, or Boston, that number climbs past $5,000 without breaking a sweat. And for what? A studio apartment, a health insurance plan with a $6,000 deductible, and a grocery bill that somehow keeps going up every quarter.

Here is the uncomfortable math that more Americans are running every year: the same quality of life — or better — can be had abroad for 40 to 70 percent less. Not in some remote village with no internet, but in vibrant cities with modern infrastructure, world-class healthcare, and communities of people who made the same move years ago.

In this guide, we break down the cost of living US vs abroad across five core categories: rent, groceries, healthcare, transport, and dining out. We compare the US head-to-head against three of the most popular expat destinations — Portugal, Mexico, and Thailand — using real data, not forum anecdotes from 2018.

Every data point comes from institutional sources including Numbeo cost indices, World Bank purchasing power parity data, and local rent surveys. For the full breakdown of how we collect and normalize this data, see our methodology.

The US Baseline: What $3,500 a Month Actually Buys You

Before we look abroad, let’s establish what the average American spends and where the money goes. According to the Bureau of Labor Statistics and Numbeo’s 2025 cost index data, here is a typical monthly budget for a single person living in a mid-tier US city:

• Rent (1-bedroom, city center): $1,500/mo — This is the national average for a one-bedroom apartment. In coastal cities, expect $2,000–$3,000+. Even in mid-size cities like Austin, Denver, or Nashville, $1,300–$1,800 is standard.
• Groceries: $450/mo — A standard grocery basket for one person. Prices vary by region, but the USDA’s moderate food plan lands squarely in this range.
• Healthcare: $550/mo — Average monthly premium for an individual marketplace plan plus typical out-of-pocket costs. Employer-sponsored plans are cheaper on paper but still cost $200–$400/mo in employee contributions.
• Transport: $600/mo — Car payment, insurance, gas, and maintenance. Public transit is an option in a handful of cities, but most Americans are car-dependent.
• Dining out: $400/mo — About 8–10 meals out per month at $30–$50 per restaurant visit, including tip.

That is $3,500 before utilities, subscriptions, clothing, travel, or savings. And critically, it does not include the financial anxiety that comes with knowing a single medical emergency could wipe out months of careful budgeting. Now let’s see what the same categories cost in three countries where hundreds of thousands of Americans have already relocated.

US vs Portugal: Western Europe at Half the Price

Portugal has become the default answer when Americans ask “where in Europe can I actually afford to live?” And the data backs it up. Lisbon and Porto have gotten pricier over the past few years due to expat demand, but cities like Braga, Coimbra, and the Algarve region remain remarkably affordable by any Western standard.

The country offers something rare: a genuine European lifestyle — cobblestone streets, excellent public transit, universal healthcare, and 300 days of sunshine a year — at roughly 50% of US costs. The D7 passive income visa and Digital Nomad Visa make legal residency accessible for most Americans with remote income or savings.

The numbers tell a clear story: Portugal runs about 51% cheaper than the US on a total monthly basis. The biggest savings come from healthcare and transport. Portugal’s national health service (SNS) provides universal coverage for residents, and comprehensive private insurance for expats costs $80–$150 per month — a fraction of US premiums. Public transit in Lisbon and Porto is excellent, and a monthly pass costs about $45.

The tradeoff? Salaries in Portugal are significantly lower than the US, so this comparison works best for Americans earning remotely in dollars. Lisbon rents have also been climbing — if budget is the top priority, look at Porto, Braga, or smaller Algarve towns where rents drop another 20–30%. See Portugal’s full country profile.

US vs Mexico: Maximum Proximity, Minimum Cost

Mexico is the most popular expat destination for Americans, and it is not hard to see why. Same time zones. Direct flights from almost every US city. A culture many Americans already have some familiarity with. And costs that make US prices look absurd by comparison.

Mexico City, Oaxaca, Merida, San Miguel de Allende, and the Lake Chapala area are all thriving expat hubs with established communities, reliable infrastructure, and cost of living that runs 60–65% below the American average. The 180-day tourist visa means you can test the waters for six months before committing to a longer-term residency permit.

The savings in Mexico are dramatic across every category. Rent is the headline number — a modern, furnished one-bedroom in Roma Norte (Mexico City’s most popular expat neighborhood) runs $500–$800, and that drops to $350–$500 in Merida or Oaxaca. But the category where Mexico truly shines is dining. Mexican street food is legendary, and a full meal from a taqueria or market stall costs $2–$4. Even sit-down restaurants in nice neighborhoods rarely exceed $15 per person.

Healthcare is another area where the comparison is almost laughable. Private health insurance in Mexico costs $60–$120 per month for comprehensive coverage. A doctor’s visit at a private clinic runs $20–$40. Dental work and elective procedures are 50–70% cheaper than in the US, which is why medical tourism to Mexico is a multi-billion-dollar industry.

The tradeoffs to consider: safety varies significantly by region, bureaucracy can be slow, and the quality of tap water and air quality in Mexico City are common complaints. But for Americans on a budget who want to stay close to home, the value proposition is hard to beat. Explore Mexico’s full profile.

US vs Thailand: The Gold Standard for Expat Value

If Mexico wins on proximity and Portugal wins on European lifestyle, Thailand wins on sheer value per dollar. For over two decades, Thailand has been the benchmark destination for expats seeking a high quality of life at a fraction of Western costs. Chiang Mai, Bangkok, Phuket, and Koh Samui each offer distinct lifestyles, but they all share one thing: your money goes three to four times further than it does in the United States.

Thailand also has something most budget destinations lack — world-class healthcare infrastructure. Bumrungrad International Hospital in Bangkok is literally a top global medical tourism destination, providing care that rivals the best US hospitals at a tenth of the price. The country’s new Long-Term Resident (LTR) visa gives qualifying remote workers and retirees a 10-year stay with tax benefits.

Thailand delivers the deepest overall savings at 73% below US costs. The standout is rent: a modern one-bedroom apartment in Chiang Mai runs $300–$450, and even Bangkok — a megacity of 10 million people — averages just $400–$700 for city-center apartments that would cost $2,500+ in any comparable American city.

Transport costs are almost negligible. Bangkok’s BTS Skytrain and MRT metro are modern, air-conditioned, and cost pennies per ride. In Chiang Mai, most expats get by with a rented scooter for $60–$80 per month. Ride-hailing via Grab is ubiquitous and cheap — a 20-minute ride costs $2–$4.

The trade-offs: the distance from the US makes visits home expensive (expect $800–$1,200 for flights), the language barrier is real outside tourist areas, and visa rules — while improving — still require more planning than Mexico’s simple 180-day stamp. See Thailand’s full profile.

Where Does Your Dollar Go the Furthest?

Looking at the three comparisons above, a pattern emerges. Your dollar stretches furthest in Southeast Asia, followed by Latin America, and then Southern Europe. But raw cost is only one factor. The right country for you depends on what you are optimizing for — proximity to the US, European lifestyle, healthcare quality, or maximum savings.

Here is how the most popular expat destinations stack up when we combine cost of living with quality-of-life factors that matter to Americans abroad:

Category-by-Category Breakdown: Where You Save the Most

Not every expense category shrinks equally when you move abroad. Understanding where the biggest savings come from helps you set realistic expectations and budget accurately.

Rent: The Biggest Line Item, the Biggest Savings

Rent is where Americans hemorrhage the most money domestically, and it is also where the biggest international savings come from. The US average of $1,500 for a one-bedroom drops to $800 in Portugal, $500 in Mexico, and $400 in Thailand. That single line item alone saves you $700–$1,100 per month — which is $8,400–$13,200 per year back in your pocket.

A key nuance: rent in expat-popular neighborhoods tends to be 20–40% higher than the city average. The $500 Mexico number is for a nice neighborhood in Mexico City. Move to a local-focused area or a smaller city, and it drops to $300–$400. Move to a trendy expat bubble, and it creeps toward $700–$900.

Healthcare: The Category Americans Underestimate

This is the sleeper category. Americans are so conditioned to accept astronomical healthcare costs that many do not realize how radically different the rest of the world operates. In Portugal, residents access the national health service at minimal cost. In Thailand, a comprehensive private insurance plan costs $50–$100 per month. In Mexico, IMSS (the public system) costs about $50 per year for residents, and private insurance runs $60–$120 monthly.

Compare that to the US, where the average individual spends $550 per month on premiums and out-of-pocket costs — and still faces surprise bills, denied claims, and $6,000+ deductibles. For Americans with chronic conditions or families with young children, healthcare savings alone can justify the move abroad.

Transport: Cars Are the Silent Budget Killer

The average American spends $600 per month on transportation, mostly because car ownership is non-negotiable in most US cities. Abroad, this equation flips entirely. Portugal, Mexico, and Thailand all have functional public transit, affordable ride-hailing, and walkable city centers. Monthly transport costs drop to $60–$150, saving you $450–$540 per month.

In Bangkok, the BTS and MRT cover the city for about $30–$50 per month of regular use. In Lisbon, a monthly transit pass is $45. In Mexico City, the metro costs $0.30 per ride. The freedom from car payments, insurance, gas, parking, and maintenance is one of the most underappreciated benefits of living abroad.

Groceries and Dining: Daily Savings Add Up

Food costs abroad typically run 40–65% below US levels. The savings are especially dramatic for dining out. A restaurant meal in Thailand costs $3–$8 versus $35–$50 in the US. That is not comparing street food to fine dining — that is comparing a proper sit-down restaurant meal in Bangkok to a mid-range dinner in Chicago.

Groceries follow a similar pattern, though the gap narrows when you buy imported Western products. Local produce, meat, and staples are dramatically cheaper abroad. But if you insist on American brands or specialty imports, expect to pay a premium. The best strategy: eat local as much as possible, and budget for the occasional imported treat.

The Hidden Costs (and Savings) Nobody Talks About

Raw cost comparisons tell most of the story, but there are a few factors that standard cost-of-living calculators miss:

• US tax obligations: Americans owe federal taxes regardless of where they live. The Foreign Earned Income Exclusion (FEIE) shields the first ~$126,500 of foreign-earned income, but self-employment tax, investment income, and state taxes (in some states) still apply. See our expat tax guide for the full breakdown.
• Flights home: Budget $500–$1,200 per round-trip depending on destination. Mexico and Portugal are cheap to fly to from the US East Coast. Thailand is not.
• Currency risk: If you earn in USD and spend in another currency, exchange rate fluctuations can swing your monthly budget by 5–15%. Use Wise or Revolut to minimize conversion fees.
• Setup costs: Your first 2–3 months will be more expensive than average. Security deposits, visa fees, furnishing, and the inevitable “tourist pricing” phase add up. Budget an extra 30–40% for the transition period.
• Savings potential: Here is the flip side. If you earn a US salary remotely and live in Thailand, the money you are not spending adds up fast. Saving $1,500–$2,500 per month means $18,000–$30,000 per year — enough to aggressively pay down debt, invest, or build a real financial cushion for the first time.

Which Country Is Right for You?

The data makes one thing clear: almost any popular expat destination offers dramatically lower costs than the US. But the best choice depends on your specific situation:

• Want to stay close to the US? Mexico is unbeatable. Same time zones, cheap flights, and a 66% cost reduction.
• Prioritize European lifestyle and EU residency? Portugal gives you Western Europe at roughly half the cost of France, Germany, or the UK.
• Maximizing savings or retiring on a fixed income? Thailand stretches your dollar the furthest with the best healthcare infrastructure of any budget destination.
• Want the best balance of everything? That depends on your personal priorities — which is exactly what our personalized matching quiz is built to figure out.

The cost of living in the US is not going down. Rent, healthcare, and groceries have outpaced wage growth for over a decade, and the trend shows no sign of reversing. For a growing number of Americans, the most rational financial decision is not to find a cheaper apartment or switch insurance plans — it is to move somewhere where the baseline cost of a good life is fundamentally lower.

Start with the numbers. Factor in what matters most to you beyond cost — safety, healthcare, climate, culture, visa accessibility. Then go try it. The data is clear, and the math works.