Top 6 affordable European towns where you can live for under €2,000 a month

"These smaller towns offer something people are increasingly looking for right now," says Jennifer Stevens, Executive Editor of InternationalLiving.com.

"You're not just cutting costs—you're gaining a sense of community, a healthier pace of life, and everyday experiences that feel more meaningful."

The report suggests that those prepared to venture beyond major metropolitan areas can discover walkable neighbourhoods, access to fresh local food, and a more unhurried daily rhythm.

The findings draw on insights from correspondents based across the globe, highlighting communities that combine reduced housing expenses with natural surroundings and reliable local services.

Lousã, Portugal

Among the Portuguese destinations featured, Lousã emerges as a particularly compelling option in the country's central region.

Situated roughly 35 minutes from the university city of Coimbra, this town provides residents with essential amenities including healthcare facilities, supermarkets and banking services, all set against the striking backdrop of the Serra da Lousã mountains.

The surrounding landscape offers walking routes, cascading waterfalls and heritage sites, while the medieval Castle of Lousã, dating to the 11th century, sits within easy reach on foot.

Nearby, the Schist Villages including Talasnal showcase traditional stone architecture that draws visitors throughout the year.

Housing costs remain notably accessible, with two- or three-bedroom properties available to rent for between $700 and $1,000 monthly (approx. £550 and £790), while homeowners with a vehicle can maintain a comfortable standard of living on around $2,000 each month (approx. £1,580).

Amarante, Portugal

Heading north, Amarante presents a different character entirely, its historic centre stretching along the banks of the Tâmega River.

With origins reaching back to the fourth century BC, this town maintains a distinctly traditional atmosphere that locals describe as "calma".

Rather than chain retailers, the streets are lined with family-run bakeries, produce stalls and restaurants serving regional cuisine, while agricultural connections help keep daily expenses in check.

Central apartments with two or three bedrooms typically cost around $1,000 monthly to rent (approx. £790).

Castelo Branco, Portugal

Further east, Castelo Branco near the Spanish frontier offers perhaps the most affordable option, with one-bedroom flats starting from approximately $550 per month (approx. £435).

This city blends contemporary infrastructure with a historic quarter of narrow cobbled lanes and whitewashed facades, supported by hospitals, clinics and locally sourced goods including olive oil and cheese from the Beira Baixa region.

Kavala, Greece

Across the Aegean, Greece presents equally attractive prospects for budget-conscious residents seeking coastal living.

Kavala, constructed around a broad bay in the north, features an atmospheric old quarter where Ottoman-era houses cluster beneath a hilltop fortress, with an ancient aqueduct providing a dramatic harbour backdrop.

Monthly rents here fall between €300 and €600 (approx. £260 and £510), enabling individuals to live well on €1,000 to €1,600 (approx. £860 and £1,370), with Thessaloniki accessible in under two hours for additional services.

Litochoro, Greece

Meanwhile, Litochoro offers an altogether different appeal at the foot of Mount Olympus, positioned just ten minutes from the sea.

This village provides direct access to the Enipeas Gorge, mountain trails and waterfalls, fostering a tight-knit community where tradition remains central to daily existence.

Rental accommodation costs €300 to €600 monthly (approx. £260 and £510), with overall expenses typically ranging from €1,000 to €1,500 (approx. £860 and £1,280).

Nafpaktos, Greece

Nafpaktos rounds out the Greek selections, occupying a picturesque position on the Gulf of Corinth where a Venetian harbour and elevated castle define the townscape.

Daily rhythms here follow the unhurried "siga siga" philosophy, yet practical considerations remain well served, with the city of Patras within convenient reach.

Accommodation ranges from €350 to €700 monthly (approx. £300 and £600), while living costs average between €1,100 and €1,500 (approx. £950 and £1,280).

"These out-of-the-fray towns aren't yet on the mainstream radar—places the locals know, but which foreign tourists and transplants have yet to find in great numbers," Ms Stevens adds.

"What people discover in these towns is that a better life isn't just about spending less. It's about how you spend your time—walking to the market, knowing your neighbours, and enjoying a day that feels less rushed."