17th October, 2023 in Expat Finances –
Latin America is generally thought of as having a low cost of living. But is this correct? Using data from Statista and Numbeo, we look at the most expensive countries in Latin America, breaking down the cost of living to see how cheap things really are.
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Uruguay
Uruguay is often thought of as the most developed Latin American country, so it’s no surprise that it’s also the most expensive, with a minimum monthly cost of living of $1,143. On average, a family of four will need $3,460, plus rent, and an individual will need $1,245, plus rent. The cost of living in Uruguay is just 3% lower than in the UK, although rental costs are around 45% lower.
The average monthly wage in Uruguay is $1,112. Rent costs in Uruguay range from $461 for a one-bedroom apartment outside of the city centre, to around $1,000 for a three-bedroom apartment in the city centre.
Panama
Panama is the second-most expensive country in Latin America. This can be partly attributed to its status as a developed country, and also because it uses the US Dollar as its official currency. The minimum monthly income needed for basic living is $1,112. On average, a family of four will need $2,890 per month, plus rent, and an individual will need $888, plus rent.
The average monthly wage in Panama is $782, quite a bit below the minimum required for basic living. Rent costs in Panama start at around $510 per month for a one-bedroom apartment outside of the city. A one-bedroom apartment in the city costs closer to $814, and a three-bedroom home in the city costs $1,672.
Chile
Chile is the third-most expensive country in Latin America. While the cost of living is cheaper than places such as the UK or US, prices can fluctuate across the country due to political and economic instability. So, cities such as Santiago can see relatively high costs of living, compared to the more rural areas.
Overall, Chile has a minimum cost of living of $1,028. On average, a family of four will need $2,468 per month to cover costs, plus rent, and an individual will need $763, plus rent. In Santiago, a family of four will need around $300 more per month, and an indicial will need around $80 more to cover costs.
The average wage in Chile is $610 after tax, not too different from the average wage in Santiago of $643.
Costa Rica
Costa Rica is the fourth-most expensive country in Latin America. The country has a high national debt with around 42% of the national budget going towards paying it. The country also imports more goods than it exports, and these products come with high taxation. These high costs are then passed on to the consumer.
The minimum cost of living in Costa Rica is $1,000. On average, a family of four will need around $3,214 per month, in addition to rent, and an individual will need $1,000 plus rent.
Rent in Costa Rica is, on average, $419 per month for a one-bedroom apartment in the city centre and $804 for the same size property outside of the city. A three-bedroom apartment in the city centre costs around $1,127 per month, and the same size home will cost around $804 per month outside of the city.
El Salvador
El Salvador is the fifth-most expensive country in Latin America. The minimum required to cover basic costs in El Salvador is $876. For a family of four, on average, $2,450 is required per month, plus rent, and an individual will need, on average, $763, plus rent.
The cost of living in El Salvador is 29% lower than in the UK, and rent is around 45% lower than in the UK. The average monthly wage in El Salvador is just $424 after tax.
Rent in El Salvador can range between $800 and $975 per month for a three-bedroom home and $500 and $700 for a one-bedroom home.
Guatemala
Guatemala is the sixth-most expensive country in Latin America. Like many other places, there can be a high discrepancy between the cost of living in rural areas and cities, but, in general, Guatemala has a low cost of living.
The minimum required to cover basic costs in Guatemala is $838 per month. On average, this rises to $2,274 for a family of four, in addition to rent costs, and $701 for an individual, plus rent. The average wage in Guatemala is $489 per month after tax.
The cost of living in Guatemala is 37% lower than in the UK overall, and rent prices are 56% lower. They can range from $345 to $486 for a one-bedroom home and $544 to $933 per month for a three-bedroom home.
Honduras
Honduras is the seventh-most expensive country in Latin America. It has a minimum monthly cost of living of $838. On average, a family of four will need $2,307 per month to cover costs, plus rent, and an individual will need $747, plus rent. The average wage in Honduras is $563 per month after tax.
Similar to Guatemala, Honduras has a cost of living that is 37% lower than in the UK. However, rent is lower than in Guatemala, at nearly 65% lower than the UK. Average prices range from $252 to $373 for a one-bedroom home, to $531 – $756 per month for a three-bedroom apartment.
Mexico
Mexico is the eighth-most expensive country in Latin America. The minimum required for basic costs per month is $786. Average costs rise to $2,343 per month for a family of four, in addition to rent costs, and $725 per month for an individual, plus costs for rent. The average wage in Mexico is $714 per month after tax.
Rent in Mexico ranges from $340 – $520 for a one-bedroom home and $687 and $969 per month for a three-bedroom home. Overall, rent is 53% lower than in the UK. Prices in popular tourist areas, such as Cancun, Mexico City, and Tijuana are typically more expensive than other areas. For example, rent in Mexico City ranges from $506 – $833 for a one-bedroom and $1,107 – $1,663 for a three-bedroom.
Ecuador
Ecuador is the ninth-most expensive country in Latin America. The minimum monthly cost of living in Ecuador is $785. Looking at average costs, this increases to $2,050 plus rent for a family of four, and $650 plus rent for an individual. The average monthly wage in Ecuador after tax is $514.
Rent in Ecuador ranges from $271 – $366 for a one-bedroom home and $477 – $600 per month for a three-bedroom home. Overall, rent is nearly 70% cheaper in Ecuador than in the UK.
Venezuela
Venezuela is the tenth-most expensive country in Latin America. The minimum required in Venezuela to cover basic costs is $770, which rises to an average cost of $2,451 plus rent for a family of four, and $780 plus rent for an individual. The average wage in Venezuela is $188 per month after tax.
Overall, the cost of living in Venezuela is 33% lower than in the UK, but rent is a huge 80% lower. On average, rent in Venezuela ranges from $184 -£203 per month for a one-bedroom home and $327 – $370 for a three-bedroom property.
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