With Toronto’s rent and cost of living crisis making us live like paupers, many Torontonians are looking elsewhere to spend their hard earned checks and strike a better work life balance. But where in the world are there cheaper places than Toronto that can let you to live like a king? Well, let me show you. But first, to know where you can thrive outside of Toronto, we must find how much Toronto living costs us.
Toronto Living Costs in 2024
According to my Toronto friends and the website Numbeo, the cost of living in Toronto is roughly $3,824 CAD for a single person including rent for a 1bd, utilities, and groceries a month. My friends in Toronto have corroborated these numbers and tell me they pay similarly for a 1 bedroom plus expenses.
Please also note, while $3,800 CAD sounds like a lot, For Canadians, that gets eaten away quickly as most of you reading this will know. In fact some of my Toronto friends make over $10,000 CAD a month and still struggle to grow their nest egg and stash savings away from Canada’s inflationary grasp.
Now if we take a quick look at Toronto’s 2021 Income Census numbers, the median salary of Torontonians is $4,795. A respectable sum, but when nearly 80% or ($3,824) or more of that pre-tax income goes to food and shelter, it’s hard to feel financial free and be excited for your future living in Canada’s big cities.
So, What can you Afford with a Toronto Cost Of Living around the World?
First lets look at the numbers:
Average Take Home Pay in Toronto for the Average Renter:
Average Monthly Salary: $4,795
Average Monthly Rent (Including Utilities, Groceries, and Condo Fees): $3,824
Amount Left Over: $971 CAD
Other Classic Canadian Expenses:
Subscription Services and Personal Fun: $250
Phone Bill: $100
Clothing, shopping, and Incidentals $200
Total other expenses: $550
Total Left on an Average Canadian Salary in Toronto:
~ 421 CAD or 306 USD
As you can see, a strong financial future for renters in Toronto is a laughable theory. Most of your money from your job goes back into taxes, rent, and utilities to keep yourself sheltered and fed. Not such a fun way to live. The ratio of take home pay to expenses is a huge factor in why I decided to escape Canada and it’s overpriced cities.
Although it’s tough at first, if your under 30, I would say it’s essential for your future unless your inheriting a lump sum, land, housing, or successful business in the future there. For everyone else, here are a the best places where you can live well on a Toronto Salary.
Portugal – A Rising Haven for Expats
As someone who’s lived in Portugal and is familiar with the real estate and rental market there, I can confidently say prices are rising, but the work-life balance is much better than in Toronto. Not to mention the weather, safety, and smiles of the friendly people too.
With the average Toronto cost of living at $3,824 CAD or 2,609.17 EUR, you will be able to live comfortable even in Portugal’s largest cities such as Lisbon or Porto.
Furthermore, you will be able to get an apartment in the city for yourself at around 800 EUR / 1200 CAD. While it’s still a bit of cash, you’ll be able to reduce your car expenses as the public transit is quite good and affordable in Lisbon.
Most importantly, you’ll be able to save around 40-60% of your income compared to a measly 20% (or less) if your eating noodles everyday in Toronto.
While Portugal is filling up quickly with expats, and prices are rising, it’s still a comparatively better place to live than Toronto at this point and gets our Run From Canada recommendation.
Spain – A Vibrant Oasis for Canadians
Spain is another lovely option which I’ve had the privilege to live in, and I can tell you first hand it’s much cheaper and fullfilling than living in Toronto. Not only is English widely spoken, housing affordability is almost infinitely better than in Toronto. Furthermore, because of this, rents are much cheaper as well, and especially outside of Catalonia.
Furthermore, although I am hugely biased as a Spain Expat myself, Spain has a unique energy that Toronto is missing.
While maybe not the best for working, your mental health will thank you. But back to the costs. In Spain the average rent in a major city will run you back 700 EUR or 950 CAD for a 1-2 bedroom apartment in a large city. Mostly outside Barcelona.
Furthermore your groceries per month will be under 300 CAD for a single person and utilities are often included in the rent. Tack on some expat healthcare and you’re set to live there cheaply for the long term.
In fact, I was able to save about 60% of my income while living in Spain when I first arrived. It was a glorious feeling to have escaped the overpriced freezer back home.
Costa Rica – A Cheap Refuge from Canadian Prices
Costa Rica is a lush refuge located only 5 hours away from Toronto. Expats from there tell me, it’s a game-changer for your mental health compared to the hustle and bustle of city life back in Toronto. With its mix of nature, good climate, and laid back living, you’ll be thanking yourself you didn’t leave earlier.
In Costa Rica, you don’t have to worry about language either. English is commonly understood here, which makes the transition smoother. Housing prices are much lower than in Canada too; if you’re looking for a 1-2 bedroom flat, they’ll run you back around 700 CAD for a cozy place, and that’s usually with a stunning view.
Plus, your monthly groceries will be below 400 CAD and extremely fresh and local.
Furthermore, the affordable local healthcare will keep you in tip top shape while you explore your new paradise.
Now if we add all of this together, the cost of living in Costa Rica is roughly 1200 – 1500 CAD depending on your consumption needs and housing choice for 1 person. If we do the math, 1500 CAD is only about 39% of your income. Being that includes almost everything, except for incidental expenses like nights out or trips through the jungle, Costa Rica becomes quite affordable compared to Toronto.
The overall cost of living is significantly lower, allowing for a more relaxed approach to spending. Healthcare, a crucial factor for many expats, is both high-quality and affordable, with comprehensive coverage plans that won’t leave you anxious about your budget. Plus, the natural beauty and outdoor activities are endless, promoting a healthy, eco-friendly lifestyle that’s hard to replicate in urban Canada. Whether you’re ziplining through the canopy or relaxing on pristine beaches, the mental health benefits alone are worth the move.
Panama – A Golden Gem People with Passive Income
Panama is another hidden treasure for anyone looking to stretch their dollar without skimping on lifestyle.
With it’s strong currency, connections to the US, and cheaper cost of living, Panama is a place where you can escape Canada’s housing crisis to with ease.
The cost of living in Panama for 1 person is around 1700 Canadian a month. This includes your rent, groceries, and utilities. It also considers you’re living in Panama City where most of the industry and action is. Even at $1700 CAD a month, which is a bargain, especially considering the tier 1 city setting and amenities, Panama is an affordable choice offering a blend of vibrant city life and tranquil retreats, all while maintaining a cost of living that’s hard to beat.
Furthermore, groceries and dining are very affordable, with your monthly grocery bill being similar to Costa Rica’s but likely under 450 CAD. Utilities are usually separate but remain modest. Plus, Panama offers attractive retiree benefits and expat-friendly health insurance options, making it ideal for long-term stays without breaking the bank.
Did I also mention that most Panama apartments come with amenities like pools, gyms, and security?
These perks can provide you a Toronto lifestyle but at a fraction of the cost. The country’s strategic location also offers unique business opportunities and access to international markets, adding to its appeal for expats. With its stable economy and use of the USD, Panama combines ease of living with the excitement of an emerging cultural and economic landscape. Whether it’s exploring the historic Panama Canal or indulging in the local nightlife, life here is rich with experiences yet easy on the pocket.
Bulgaria – An Underrated Playground for Nomads
I know I know, Bulgaria? Where is that? Hold on to your horses. What if I told you that Bulgaria is a secret expat and digital nomad hotspot. In my travels I’ve met many couples and solo travelers who’ve had nothing but nice things to say about living in Bulgaria. Especially in the smaller areas like Bankso.
So, naturally, I did my research to see what all the hype is about.
It turns out that the cost of living in Bulgaria is desirable for anyone looking to escape Toronto. For rent, food, plus additional utilities you’ll be set back around 1700 Bulgarian Lev or about $1300 CAD.
If we go back the the median Toronto Income, that is only 34% of your pay, making it a healthy financial haven for you to grow your savings while away from home. Furthermore the cost of food, insurance, transportation and the safety is worth a lot in itself.
For anyone considering leaving Canada or Toronto, maybe for a fresh start or to get their finances in shape, I would suggest Bulgaria.
It’s an overlooked gem with a mild climate, mountains, activities and a lot of fun for those tired with Toronto life.
Wrapping Up – Finding Cheaper Places Than Toronto to Live
As Canadian monetary policies continue to produce pressure on the cost of living, leaving the nest to safeguard your future and your children’s future becomes less and less of a crazy idea. If you’re considering leaving the great white north, or a Canadian big city we can help. Whether your just looking for cheaper places than Toronto to live for a brief time, or for the long term, our guides based on expat experiences are designed to make your journey smoother.
Check out the link below to start your great Canadian exit.
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