A family spends 89% of its income, Tirana the second most expensive capital in Europe

As inflation and the rising cost of living continue to put pressure on household budgets across Europe, affordability has become one of the defining economic issues for the average European citizen.

Tirana has been ranked the second most expensive city in Europe, as a four-member family with two adults earning an average salary spends 89% of its income to maintain a normal standard of living.

At these levels, Tirana ranks behind only Lisbon, which tops the list in Europe with a level of 12195.8%.

The data were made public in a recent report by Tradingpedia. To determine which capitals offer the best standard of living with the smallest financial burden relative to monthly income, Tradingpedia compared data from 37 European capitals, taking into account daily expenses and average monthly net salaries (the “real” salary after all taxes and deductions are subtracted from gross pay). The information for Albania was processed by Monitor.

The report takes into account net salary, which for Albania is 760 euros per month, and calculates family income at 1,520 euros per month, assuming that two adults are working.

Monthly expenses for a family of four are estimated at 1,353 euros, meaning nearly 90% of income must be spent.

Albania has a much higher cost of living than other countries in the region. In Skopje, North Macedonia, where the average net salary is at levels similar to Albania, at 769 euros per month, monthly expenses for a family of four are 1,037 euros, accounting for 67% of income, far less than in Albania.

In Belgrade, where the net salary is 1,081 euros, the share is 68.2%, while monthly expenses are slightly higher than in Tirana, reaching 1,478 euros, but net salaries are about 30% higher.

In Podgorica, the average monthly net salary is 883 euros, higher than in Albania, and monthly expenses are lower at 1,077 euros, making Sarajevo relatively the city with the lowest cost of living in the region in relation to income.

Data for Kosovo are not included in this report.

The cheapest city to live in is Brussels, where the average monthly net salary for one person is 2,945 euros, while monthly expenses are 2,653 euros, or 45% of income./Monitor