What is the cheapest City in Europe?

Laurence · Post by **Laurence** » Sun Dec 10, 2006 6:56 am

Hello,

This will sound very naive because I have not travelled much in Europe and my geography is appalling, but I live in the UK and need to move to a very cheap country. By profession I am a novelist, with a UK publisher, so wherever I live in the world I will still earn the same amount of UK sterling, and as I don't earn a huge amount and have no serious ties in the UK, it makes sense to move to a cheap country where my money will go further.

People suggest China but it is too far for me. So I am thinking of Eastern Europe.

A friend suggested Warsaw but looking at hotel prices, it doesn't look that cheap to me.

Any suggestions? Preferably someone that isn't very dangerous and in the middle of a war. I want a fairly easy life!

It must be a city, that is the main thing.

Of course I will research the chosen country before I visit and make sure I know what I am doing, but I just need a starting point.

Thanks!

johnsienk · Post by **johnsienk** » Sun Dec 10, 2006 9:06 am

Laurence · Post by **Laurence** » Sun Dec 10, 2006 10:22 am

Thanks for the reply, johnsienk!

Prague is a city I have been considering. It is very likely that I will choose Prague.

Can anyone tell me, if move to Prague, and if I employ a personal assistant to help out around the house, how much would it cost per hour?

To put it another way...

What does a cleaner earn in Prague, for example? In the UK I guess it's between £5 to £10 an hour, though I don't know for sure.
(£5 is around 210CZK)

Thanks!

Post by **John** » Sun Dec 10, 2006 11:35 am

Laurence, don't overlook the Republic of Ireland. I say that in view of the beneficial tax regime applying to "creative" income, given you say you are a novelist. As long as your income is less than €500000 per year it is exempt from Irish tax.

Whereas if you move to a country such as the Czech Republic you will probably end up paying income tax on your royalties.

But if you are determined to move to somewhere in the eastern part of the EU, don't overlook Hungary. When we visited Budapest on holiday we were amazed just how cheap food and clothing appeared to be.

johnsienk · Post by **johnsienk** » Sun Dec 10, 2006 11:38 am

johnsienk · Post by **johnsienk** » Sun Dec 10, 2006 11:44 am

Laurence · Post by **Laurence** » Sun Dec 10, 2006 1:17 pm

John wrote: Whereas if you move to a country such as the Czech Republic you will probably end up paying income tax on your royalties.

Actually I wouldn't move there in the legal sense. I would just go out there for a few months then come back for a few weeks to visit family, do that several times throughout the year. I would keep my UK bank account and so on, and my agent is in the UK and the publisher is in the UK, so I don't see why I would pay income tax in Czech. Or am I wrong? Someone please correct me if I'm wrong, I'm not very knowledgeable in these areas...

Laurence · Post by **Laurence** » Sun Dec 10, 2006 1:31 pm

For some reason, I'm not attracted in Ireland, and I want really really cheap. I'm very attracted to Prague, let's stick with that for the moment...

The question is, what sort of rent would I have to pay in Prague? I can't stand suburbs, I want to live in the really exciting areas with lots of bars and restaurants.

And it would be a one bedroom flat, not a tiny studio flat but I don't need anything really flash. Just somewhere clean and practical I suppose. The sort of flat that might cost £200-£300 a week in London tube zone 1.

Any idea what that sort of flat might cost in central Prague?

johnsienk · Post by **johnsienk** » Sun Dec 10, 2006 1:58 pm

johnsienk · Post by **johnsienk** » Sun Dec 10, 2006 2:00 pm

Post by **John** » Sun Dec 10, 2006 2:11 pm

Laurence wrote:so I don't see why I would pay income tax in Czech. Or am I wrong?

You don't see? In which case you certainly need to take some advice from a Tax Adviser in your chosen country.

The fact is that if you are deemed to be tax resident in a country it is often the case that you are taxed upon your worldwide income, not just the income arising from the country in which you are living.

In short, don't just make an assumption about your potential tax liability ... find out about it before you move there.

Laurence · Post by **Laurence** » Sun Dec 10, 2006 2:38 pm

Thanks for your help, John. But surely the tax issue depends on where you are an official resident. I will be "on holiday" in Prague for a few months, technically speaking. I will still officially be a resident of the UK. Surely people who go on holiday don't pay tax in two countries - even if they go for two months?

Post by **John** » Sun Dec 10, 2006 2:54 pm

Your posting ends with a question mark, and I don't profess to know the answer. But a Tax Adviser in your chosen country would. All I am saying is don't just assume what the answer is.

Different countries have different tax laws. Don't assume that the UK's laws apply elsewhere. The laws on "residence" vary considerably around the world.

Laurence · Post by **Laurence** » Sun Dec 10, 2006 2:54 pm

And for my final question, anyone know what a poorly paid job pays in Prague? The sort of part time job a student might take. For example, working as a cleaner or in a shop or as a waiter/waitress.

Any ideas?

I need to employ an assistant, you see, just to help out with very basic things.

Thanks for everyone's help on this!

johnsienk · Post by **johnsienk** » Sun Dec 10, 2006 4:12 pm

Post by **John** » Sun Dec 10, 2006 4:35 pm

But surely the tax issue depends on where you are an official resident. I will be "on holiday" in Prague for a few months, technically speaking.

Absolutely right. Having done a check on Google it seems that a person is not resident in the Czech Republic unless physically resident in the country for at least 183 days in the calendar year.

So when you say "a few months", you mean 6 or more? Or 5 or less?

Johnsienk, you misunderstand the effect of a Double Taxation Agreement. I suspect that this is the document you are referring to. It does not stop income etc being taxed in more than one country but instead regulates the respective tax regimes so that no excessive tax is applied.

Laurence · Post by **Laurence** » Sun Dec 10, 2006 4:38 pm

Thanks for this, guys. I'm not going to worry about the tax thing. I'd probly just go for about two months, come back for a month, then go again for two months and so on.

I'll just repost my previous question in case it goes unnoticed...

anyone know what a poorly paid job pays in Prague? The sort of part time job a student might take. For example, working as a cleaner or in a shop or as a waiter/waitress.

Any ideas?

I need to employ an assistant, you see, just to help out with very basic things.

Thanks for everyone's help on this!

johnsienk · Post by **johnsienk** » Sun Dec 10, 2006 5:01 pm

johnsienk · Post by **johnsienk** » Sun Dec 10, 2006 5:09 pm

Wanderer · Post by **Wanderer** » Sun Dec 10, 2006 7:03 pm

I think the word is 'domiciled' or 'habitually resident'.

You'll be taxed as resident of the country which fits the above and no saying 'it's a holiday place not my home' will convince the tax authorities, they will both want their slice of the card hence take the advice offered here, get a Tax advisor.

I'd go to Russia, Sankt Petersburg, away from all this PC crap and Nanny State nonsense we have hear. No need for a tax advisor, just get a 'krisha' to sort all that out!

Laurence · Post by **Laurence** » Sun Dec 10, 2006 10:31 pm

OK, so to summarize, if I go to Warsaw instead of Prague then I definitely won't be taxed twice, but we're not certain about Prague. Is that right? I'd probably just as happilly go to Warsaw as Prague.

nouna · Post by **nouna** » Tue Dec 12, 2006 4:18 pm

Laurence wrote:Thanks for this, guys. I'm not going to worry about the tax thing. I'd probly just go for about two months, come back for a month, then go again for two months and so on.

I'll just repost my previous question in case it goes unnoticed...

anyone know what a poorly paid job pays in Prague? The sort of part time job a student might take. For example, working as a cleaner or in a shop or as a waiter/waitress.

Any ideas?

I need to employ an assistant, you see, just to help out with very basic things.

Thanks for everyone's help on this!

My house cleaner here in Budapest gets 1200 hungarian forints per hour which is equivalent to about 3.2GBP so I would assume that rates for similar jobs in Prague would fall in the same range.

Laurence · Post by **Laurence** » Thu Dec 14, 2006 9:05 am

Thanks for that info! I can't afford to pay that as I am poor myself :{

Perhaps I need to go further east. Bulgaria or somewhere? I think people earn half as much there but if anyone can confirm this it would be very useful!

raina · Post by **raina** » Thu Dec 14, 2006 10:38 am

Check out this site aimed at helping people who wish to move to Prague.

http://www.expats.cz/

Saykocan · Post by **Saykocan** » Wed Jan 10, 2007 3:01 am

How cheap of a place are you looking for? If you are looking for a good European city to live in with ridiculously low prices, I second those who say Prague. Warsaw could very well be an option, as it's almost equally beautiful and cheap. Also very calm, and pretty much ideal for a novelist. BUT.. You'll have VERY difficult times with the lingo, especially in Poland. They are lovely people, they make great soups, they just don't speak English (including many young people)..

If you want an exciting city that never sleeps, Istanbul could be an option. It's not dirt cheap like CZ or PL, but still cheaper than England. If you don't drink much and you don't drive, you'll live a pretty decent life with £500 a month. If you do those, however, you'll need more like 1000€ a month. Also consider Izmir, which is cheaper and has a very European lifestyle and beautiful women, if you don't mind some strong Aegean sun.

As for Prague and Warsaw, £500 would be quite alright, anything more would be plenty. This time, including drinking and driving (not at the same time

)

Mind you, if you live in a hotel, you'll be poor no matter where you go. So I'd get that crazy idea and look for a short term rental in the destination city if I were you.

Speaking of safety, on a scale from 1 to 100, the higher number being the safer, I'd rate Istanbul at 80, Prague at 85, and Warsaw at 95.

Good luck

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What is the cheapest City in Europe?

What is the cheapest City in Europe?