Where to Work and Build Wealth in Europe (2025 Rankings)
Neuschwanstein castle, Germany. Germany ranks 5th in our top European countries to work abroad to build wealth. Curious to know which 4 countries rank even better? Read further below! Photo by Mathias Konrath on Unsplash.
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Disclaimer: I am not a financial adviser, and this content is for informational and educational purposes only. Please consult a qualified financial adviser for personalized advice tailored to your situation.
Best Countries in Europe to Build Wealth and Achieve FIRE
Looking to build wealth and retire early in Europe? This article ranks the best countries and cities in Europe to achieve FIRE (Financial Independence, Retire Early) based on average salaries and cost of living data. We compare 37 countries and 94 cities using data from Numbeo to help you identify the most financially advantageous places to live and work. If you want to increase your savings rate and cut years off your retirement timeline, this post is for you. These 2025 rankings can help answer questions like “What is the best country to live and earn money in Europe?” or “Which country is best to pursue FIRE in Europe?”
In a previous post, we explored how living in Germany may help or hinder your journey to financial independence. We provided insights into salaries, taxes, cost of living, cultural circumstances, and other factors to be aware of when considering Germany as a location to pursue financial independence.
To illustrate, we found that the cost of living in major European cities like Madrid or Rome was 11.9% and 13.9% lower than Berlin, respectively, yet the net average salary in the German capital was almost 40% and 75% higher than in the two cities. Clearly, Berlin offers a financial edge for those pursuing financial independence compared to major cities in southern Europe, such as Madrid and Rome.
Wondering where to work in Europe and build wealth faster? Our data-driven analysis extends this analysis to nearly 40 different countries (and 90+ cities) to reveal which ones offer the best balance of high salaries and low living costs—ideal for anyone pursuing FIRE or looking to relocate for financial gain.
Nobody doubts that Madrid, Spain, is a vibrant and beautiful place to live—but its ratio of net salary to cost of living is poor compared to many other European cities. Photo by Jorge Fernández Salas on Unsplash.
How to Choose the Best Countries in Europe for Financial Independence
Why Savings Rate Is the Key to Early Retirement
As we’ve covered in previous posts, the most important factor for achieving financial independence is your savings rate, i.e., the percentage of your net take home pay you are able to put away and invest on a regular basis. There are many different calculators you can use to estimate your timeline to reaching financial independence (for example, our free Financial Independence Calculator).
The bottomline, as depicted in Figure 1 below, is that there is a non-linear relationship between your savings rate and your timeline to reaching financial independence and (early) retirement. Reducing expenses can significantly accelerate your financial independence timeline because it lowers your required nest egg while increasing monthly savings. It has a double impact—hence, the non-linear relationship.
Figure 1: Non-linear relationship between your savings rate (X axis) and your timeline to reaching financial independence (Y axis). Play around with your own data here.
Methodology: How We Ranked the Best European Countries for FIRE
If you’re asking “Which country pays well and is affordable to live in?”, net take-home pay and cost of living are key factors. To maximize your savings rate, focus on countries with high salaries and affordable cost of living—both factors are key to accelerating your journey to financial independence.
For our analysis of European countries, we use cost of living and average net (after tax) salary data from Numbeo. Our analysis includes 37 countries in Europe and 94 cities. As part of our methodology for an exploratory country analysis, we propose plotting the differences in cost of living and salary in relation to where we are based—in my case, Germany (see Figure 2).
In the X axis we present the cost of living in different countries as a percentage of Germany’s cost of living. For example, Norway’s cost of living is 18.4% higher on average than in Germany. Similarly, the Y axis represents each country’s net average salary in relation to Germany. For instance, the Netherlands presents salaries that are 15.6% higher on average than in Germany, while France’s salaries are 16.9% lower.
The red line serves as a benchmark, indicating countries with similar financial independence potential compared to Germany. For example, Sweden falls right on the red line: its net average salary is 7% lower than in Germany, but its cost of living is also 7% lower. Hence, the experience of pursuing financial independence should be—more or less—similar in both countries.
We have developed the figure below into an interactive tool (for PC only), where the user can select their current country of residence, and a similar chart is generated to gauge which countries would be best placed for relocation in relation to that specific country. This approach gives clarity to anyone wondering which European country is best for saving money, earning well, or building long-term wealth.
Figure 2: Identifying suitable countries to pursue financial independence from the perspective of someone living in Germany (0,0 in the graph). The X axis depicts the cost of living difference (%) in relation to Germany’s cost of living. They Y axis presents the net average salary difference (%) in relation to Germany’s salary. In general, countries situated above the red line are—in theory—better performers than Germany for these two variables. Check out our interactive tool, where you can select your current country of residence , and a similar chart will be generated to gauge which countries would be best placed for relocation in relation to your specific country. The tool may take a moment to load, and at the moment works best for PC.
Top high earning Countries in Europe for Financial Independence
As observed in Figure 2 above, Germany is comparatively a strong location to pursue financial independence. From the perspective of someone living in Germany, there are only 4 countries in Europe where it may be easier to pursue financial independence via savings maximization—the Netherlands, Denmark, Switzerland, and Luxembourg.
These are ideal options if you’re searching for the best countries for FIRE in Europe or where foreign workers can earn strong salaries. The outputs of this exercise align well with our general perception of pursuing financial independence in Germany.
Figure 3 applies this method to Italy, highlighting which European countries offer better financial independence opportunities. In this case, we find there are 13 countries where the difference in salary in relation to Italy are substantially larger than the difference in cost of living (Switzerland, Luxembourg, Denmark, Netherlands, Germany, United Kingdom, Sweden, Norway, Finland, Belgium, Ireland, Austria, and France).
For example, the UK and Sweden have 81.2% and 62.4% higher average net salaries, respectively, than Italy, but enjoy a cost of living that is only 22.3% and 6.2% higher than its transalpine counterpart. Sounds like quite a bargain. You could consider relocating to countries with lower living costs but proportionally higher salaries, creating ideal conditions for financial independence (e.g., Spain, Poland, Czech Republic, and Estonia, although the last two fall very close to the red line.). To illustrate, the cost of living in Spain is 7.5% lower than in Italy, yet they enjoy salaries that are, on average, 7.3% higher. Again, this looks like a good deal for someone in Italy.
Figure 3: Identifying suitable countries to pursue financial independence from the perspective of someone living in Italy (0,0 in the graph). The X axis depicts the cost of living difference (%) in relation to Italy’s cost of living. The Y axis presents the net average salary difference (%) in relation to Italy’s salary. Switzerland—the top performer with Luxembourg—is left out of this figure so it is easier to visualize all other countries. In general, countries situated above the red line are—in theory—better performers than Italy for these two variables. Check out our interactive tool, where you can select your current country of residence , and a similar chart will be generated to gauge which countries would be best placed for relocation in relation to your specific country. The tool may take a moment to load, and at the moment works best for PC.
Brandenburg Gate, Berlin, Germany. Photo by André Fuck on Unsplash.
Best Cities in Europe to Live, Work, and Save for FIRE
This methodology can also be applied to individual cities, revealing the best urban locations in Europe for financial independence. There are interesting differences to be observed. For instance, from the perspective of someone living in Berlin (Figure 4), we can observe that there are actually at least 8 Germany cities where the difference in salary in relation to Berlin is substantially larger than the difference in cost of living. It may be easier to pursue financial independence in cities like Frankfurt, Nuremberg, Stuttgart, Dresden, Hamburg, Cologne, Düsseldorf, or Leipzig than in Berlin, thanks to better salary-to-cost ratios.
Top-performing cities for financial independence include Zurich, Luxembourg, and Geneva, known for high salaries and proportionally manageable living costs (these cities have been left out of the figure to avoid distorting the visualization of the rest). In addition, there are 21 other European cities in the dataset where pursuing financial independence may be faster than in Berlin. Some examples of top performing cities outside of Germany and Switzerland would be The Hague and Eindhoven (The Netherlands), Gothenburg (Sweden), Copenhagen (Denmark), Glasgow and Edinburgh (UK), or Oslo (Norway).
There are also major European cities where it would be substantially more difficult to pursue financial independence. Indeed, 69 other cities in the dataset would—on average—slow down the pursuit of financial independence in relation to living and working in Berlin. Poor-performing capitals for financial independence include: Lisbon (Portugal), Athens (Greece), Rome (Italy), Budapest (Hungary), Moscow (Russia), Paris (France), London (UK), Madrid (Spain), or Dublin (Ireland). In these countries, the relationship between salary and cost of living is not ideal.
Figure 4: Identifying suitable European cities to pursue financial independence from the perspective of someone living in Berlin, Germany (0,0 in the graph). The X axis depicts the cost of living difference (%) in relation to Berlin’s cost of living. The Y axis presents the net average salary difference (%) in relation to Berlin’s average net salary. Geneva, Zurich, and Luxembourg—the top performers—are left out of this figure so it is easier to visualize all other cities. In general, cities situated above the red line are—in theory—better performers than Berlin for these two variables.
Other Important Factors to Consider When Choosing a Country for FIRE
While salary and cost of living are critical for achieving FIRE, expats and foreign workers should also weigh other key factors—such as visa requirements, healthcare quality, and lifestyle compatibility—before choosing a country to relocate to.
This post focused on identifying top European countries and cities for financial independence based on economic data. But financials aren’t everything. The table below highlights additional variables—ranging from legal considerations to cultural fit—that are equally important when deciding where to live, work, and build long-term wealth.
Table 1: Example of variables to consider when deciding to move to another country in search of better economic opportunities.
| Category | Variables |
|---|---|
| Economic Variables |
- Job opportunities and industry relevance - Currency stability and exchange rates - Inflation rates and economic stability |
| Legal and Political Environment |
- Political stability and freedom - Ease of obtaining work or residency visas - Legal protections for expats and workers - Property rights and investment opportunities |
| Quality of Life |
- Healthcare quality and affordability - Education system - Safety and crime rates - Air and water quality |
| Cultural and Social Factors |
- Language barrier and availability of resources for non-native speakers - Cultural compatibility and social norms - Community and networking opportunities for expats - Food and cuisine variety |
| Infrastructure and Accessibility |
- Transportation systems and connectivity - Availability of technology and internet - Proximity to other countries for travel |
| Personal and Family Considerations |
- Access to healthcare for family members - Availability of recreational activities and lifestyle preferences - Work-life balance culture - Climate and weather preferences |
| Financial System and Opportunities |
- Banking systems and ease of transferring money - Investment opportunities and regulations - Access to affordable housing and utilities - Social security or retirement benefits for residents |
| Cultural Tolerance and Diversity |
- Acceptance of diverse cultures, religions, and lifestyles - Religious freedom and tolerance |
| Taxation and Residency Benefits |
- Double taxation treaties with your home country - Retirement benefits or tax incentives for expats |
| Future Considerations |
- Long-term prospects for citizenship or permanent residency - Stability of political policies and leadership - Opportunities for personal and professional growth |
Wagenbrüchsee, Bavaria, Germany. Photo by Mateusz Sałaciak on Pexels.
Conclusion: Choosing the Best Place in Europe for Financial Independence
In this post, we explored a simple yet effective methodology for identifying suitable countries and cities in Europe to accelerate our path to financial independence. We leveraged publicly available data from Numbeo and compared the cost of living and average net salaries across 37 European countries and 94 cities. The objective was to help readers make informed decisions when considering relocation during the accumulation phase of their financial independence journey.
Although you can easily reproduce the analysis for your own location by substituting data from Numbeo and tailoring it to your specific circumstances, you can also use the graphs above to see how other countries and cities roughly perform in relation to yours. Share your thoughts in the comments below: how does your city or country rank for financial independence, and would you relocate for better opportunities?
In a previous post, we covered in detail the pros and cons of pursuing FI in Germany and came to the conclusion that it is generally a solid choice, at least from the financial perspective. This was further supported today using salary and cost of living data—only Switzerland, Luxembourg, Denmark, and the Netherlands performed better. Finally, while financial metrics are important, factors like quality of life, cultural fit, and long-term goals (Table 1) are also essential when considering relocation for financial independence.
Enjoyed this post? Check out our interactive tool where you can select your current country of residence , and a similar chart to Figure 2 will be generated to gauge which countries would be best placed for relocation in relation to your specific country. The tool may take a moment to load, and at the moment keep in mind that it works mainly for PC.
Didn’t find what you were looking for? Check out our latest articles further below (after the FAQs section)
Frequently Asked Questions (FAQs)
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According to our analysis, the top countries for FIRE (Financial Independence, Retire Early) are Switzerland, Luxembourg, Denmark, the Netherlands, and Germany. These countries outperform others in salary-to-cost ratio, helping you save a larger portion of your income.
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By comparing average net income and cost of living (as we did using Numbeo data), you can identify countries and cities where you’ll get more value from your earnings. A higher salary in a low-cost country means a higher savings rate, which is the key to faster financial independence.
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Absolutely. If you're working abroad in Europe, moving to a city or country with better pay and lower costs can significantly accelerate your path to financial independence. Our data-driven charts help identify the most financially advantageous relocation options.
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Berlin remains a solid option, but our comparison reveals that several other German cities—like Frankfurt, Stuttgart, and Hamburg—offer even better financial conditions due to higher salaries and similar or slightly lower living costs.
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Beyond finances, consider visa policies, healthcare quality, lifestyle fit, job market strength, and long-term stability. Our post includes a full checklist of non-financial variables to help guide your relocation decision.
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Yes, but keep in mind that while salaries are high, cost of living is also steep. However, their salary-to-cost ratios are still among the best in Europe. With disciplined savings, you can make significant progress toward FIRE even in pricier countries.
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