Rising cost of living in Estonia is bad news for expat entrepreneurs

Is Estonia’s escalating cost of living bad news for expat entrepreneurs?

According to expat bloggers who’ve lived in Estonia for a good while, the country’s rising cost of living is a cause for real concern. Expats who use the country as their business base and travel regularly to other European capitals claim Estonian is now a far more expensive expatriate hub than the rest of Europe. It’s true that rent in Estonia’s capital Tallin are continuing to rise, but, five years or so ago, living costs were considered reasonable enough for expatriates in the tech industry to arrive and set up without too much upfront expense.

Dividing the weekly spend and adding one-off expenses, it seems essentials such as food are at least still affordable, but it has to be said that clothing and shoes are far more expensive in Estonia than in the rest of Europe. One winter sports lover buys his kit in Scandinavia as it’s far too expensive in Tallin. Groceries cost much the same as they do in the UK and Germany, with household necessities also on a par with most of the rest of Europe. The bad news for techies is that electronics are far, far more expensive than in the rest of Europe and America, giving financial headaches for those needing to upgrade or replace essential equipment in this internet age.

Another somewhat surprising high-cost luxury likely to affect expats who read in bed is the average cost of books – at least 30 per cent dearer than anywhere else in Europe. Some five years or so ago, housing rental charges were in line with salaries, but the gap between rentals in other European capitals and Tannin is now far smaller. However, eating out is slightly cheaper than in the majority of other favourite European hangouts, but the lack of quality and variety in the food is a let-down for those used to major European cuisines.