Cost of living in the Baltic states: an insight into rental prices and salaries

The Baltic states— Estonia, Latvia, and Lithuania— offer a unique living experience filled with history, nature, and a rapidly developing economy. However, when considering moving or purchasing property in the Baltic states, it is important to understand the differences in living costs, particularly regarding rental prices and wages.

Rental Prices

Starting with rental prices, there is a significant difference between the Baltic capitals. In 2025, Tallinn, the capital of Estonia, typically stands out with the highest rental costs associated with its thriving technology sector and high quality of life. Studio apartments in the city centre average around 800 euros per month. In comparison, Riga, the capital of Latvia, offers more reasonable prices of about 600 euros for a similar apartment. However, Latvia has slower economic growth compared to Estonia. Lithuania's capital Vilnius finds a middle ground with average rental prices around 700 euros, supported by a strong IT industry and cultural viability.

Wages

When it comes to wages, a similar gradient exists. Estonia consistently holds the highest position in terms of average monthly salaries, approximately 1500 euros, making it the most economically stable of the three countries. Lithuania follows with an average salary of around 1200 euros. Latvia lags slightly behind with an average monthly salary of about 1100 euros. Wage differences are closely linked to the economic opportunities and living costs in each country.

The Best Country to Live In

Deciding which Baltic state is best to live in depends on what is most important to each individual. Estonia offers the highest wages and a strong digital economy, making it an attractive place for technology professionals and digital nomads. Its capital, Tallinn, is renowned for its digital infrastructure, ease of doing business, and high standard of living.

Lithuania, with its capital Vilnius, could be a golden mean, offering a vibrant cultural scene and a rapidly growing tech industry without the high costs of Tallinn. It is an excellent choice for those looking for a balance between affordability and opportunities.

Latvia, despite the lowest average wages, compensates with lower living costs, which could appeal to those seeking an affordable European experience. Riga is rich in history and architecture, providing a beautiful yet economical lifestyle, making it an ideal place for artists, students, and retirees.

Conclusion

Ultimately, the best Baltic state to live in is a subjective question based on personal and professional priorities. Estonia is suitable for those who prioritize a technology-driven, high-standard lifestyle. Lithuania offers a culturally rich life with a growing economic sector. Latvia is ideal for those seeking a quieter pace with lower living costs. Each country offers a unique set of advantages, making the Baltic region diverse and appealing for various reasons. Whether you are a traveller, investor, or simply interested in relocating, the Baltic states have something to offer everyone.