Cost of living in Scotland
How does the cost of living in Scotland compare with the rest of Europe, and cities like London, New York and San Francisco?
Your money goes further
Scotland is a great place to locate your business - and latest reports show it’s less expensive to live and work in Scotland than cities like London, Zurich, Paris and Dublin.
The money you spend on staff will go much further in Scotland, because the cost of living is so much lower here than in many other parts of the UK.
And you’ll be pleasantly surprised by how attractive your labour costs will be.
Cost of living comparison with New York
Cost of living expenses (excluding accommodation) in Scotland’s cities relative to New York City are 30% less expensive in Aberdeen, 32% less expensive in the capital, Edinburgh, 35% less expensive in Dundee, and 37% less expensive in Scotland’s largest city, Glasgow.
If you compare rents, Dundee is 80% less expensive, Glasgow is 77% less expensive, Aberdeen is 76% less expensive, and Edinburgh 69% less expensive than New York City.
Table 1: Cost of living and rent comparison
|
City |
Cost of Living Index |
Rent Index |
|
Zurich |
131 |
64 |
|
New York |
100 |
100 |
|
San Francisco |
92 |
109 |
|
Paris |
88 |
45 |
|
London |
78 |
65 |
|
Dublin |
81 |
60 |
|
Amsterdam |
82 |
55 |
|
Aberdeen (Scotland) |
70 |
24 |
|
Edinburgh (Scotland |
68 |
31 |
|
Dundee (Scotland) |
65 |
20 |
|
Glasgow (Scotland) |
63 |
23 |
These indices are relative to New York City. Which means that for New York City, each index should be 100(%). If another city has, for example, rent index of 120, it means that on an average in that city rents are 20% more expensive than in New York City. If a city has rent index of 70, that means on an average in that city rents are 30% less expensive than in New York City. If a city has a Cost of Living Index of 120, it means Numbeo estimates it is 20% more expensive than New York (excluding rent).
Cost of living comparison with London
Along with highly competitive salaries, Scotland’s cities offer monthly living costs that are roughly 10% lower than other UK cities such as Cambridge and Oxford and as much as 30% lower than London.
Source: Expatistan Cost of Living Calculator – July 2020
Out of 209 city locations worldwide, the 2019 Mercer Cost of Living City Ranking placed two Scottish cities among the least expensive locations for working. (See Table 2 below)
Table 2: Most expensive cities ranked
|
City |
Ranking |
|
Hong Kong |
1st |
|
Zurich |
5th |
|
San Francisco |
16th |
|
London |
19th |
|
Dublin |
46th |
|
Amsterdam |
64th |
|
Berlin |
82nd |
|
Toronto |
98th |
|
Aberdeen (Scotland) |
134th |
|
Glasgow (Scotland) |
141st |
Most expensive city is Hong Kong. Least expensive cities are Aberdeen (Scotland) 134th and Glasgow (Scotland) 141st.
Cost of living by industry hubs
Scotland’s capital city, Edinburgh, remains the UK’s largest financial hub outside London – but there's a significant difference in the cost of living between the two cities. The differences in prices of housing and transport are particularly stark with transport being 47% cheaper and housing 33% cheaper in Edinburgh compared to London.
And workers in Glasgow’s growing financial services industry fare even better with housing being 43% cheaper and transport a whopping 41% cheaper than London. That pattern is repeated for other financial hubs in Europe and beyond according to Expatistan Cost of Living Calculator – July 2020
Table 3a: Total cost of living plus rent comparisons for fintech and financial services hub cities
|
Compared to... |
Glasgow is... |
|
London |
28% lower |
|
New York |
56% lower |
|
Paris |
23% lower |
|
Amsterdam |
26% lower |
|
Compared to... |
Edinburgh is... |
|
London |
21% lower |
|
New York |
49% lower |
|
Paris |
16% lower |
|
Amsterdam |
19% lower |
|
Compared to... |
Dundee is.. |
|
London |
28% lower |
|
New York |
56% lower |
|
Paris |
23% lower |
|
Amsterdam |
26% lower |
The links between Scotland’s energy industry and Norway and the United States go back a long way. Locate your business in Scotland's energy capital, Aberdeen to save on living and housing costs.
Table 3b: Total cost of living plus rent comparisons for energy and low carbon hub cities
|
Compared to... |
Aberdeen is... |
|
Stavanger |
17% lower |
|
Houston |
7% lower |
Source: Numbeo Cost of Living Index – Mid-Year 2020
The total cost of living (including accommodation) in some of America’s tech and creative hubs and in Dublin is much higher when compared to Scotland's tech hubs.
Table 3c: Total cost of living plus rent comparisons for tech and creative industries hub cities
|
Compared to... |
Glasgow is... |
|
San Francisco |
56% lower |
|
San Jose |
34% lower |
|
Los Angeles |
30% lower |
|
Boston |
38% lower |
|
Dublin |
26% lower |
|
Compared to... |
Edinburgh is... |
|
San Francisco |
49% lower |
|
San Jose |
27% lower |
|
Los Angeles |
23% lower |
|
Boston |
31% lower |
|
Dublin |
19% lower |
|
Compared to... |
Dundee is.. |
|
San Francisco |
56% lower |
|
San Jose |
34% lower |
|
Los Angeles |
30% lower |
|
Boston |
38% lower |
|
Dublin |
26% lower |
Source: Numbeo Cost of Living Index – Mid-Year 2020
It’s little wonder that more and more tech companies and their staff are choosing to call Scotland home.
Tax and social security
Individual tax rates make up a fairly large proportion of take-home pay in European locations. These taxes usually go towards the provision of public services and Scotland has a progressive approach to tax with lower earners paying less tax.
Table 4: Personal income tax rates for different income bands in Scotland
|
Band |
Taxable income |
Scottish tax rate |
|
Personal allowance |
Up to £12,500 |
0% |
|
Starter rate |
£12,501 to £14,549 |
19% |
|
Basic rate |
£14,550 to £24,944 |
20% |
|
Intermediate rate |
£24,945 to £43,430 |
21% |
|
Higher rate |
£43,431 to £150,000 |
41% |
|
Top rate |
over £150,000 |
46% |
A better quality of life
Of course, we understand that you need to consider more than just the cost of living before deciding to set up business or operations in a new country. You'll benefit from Scotland's welcoming business environment, diverse industries, vibrant cities and our stunning landscapes too. A place you can call home.
By investing in Scotland you’ll still have the connections and access to world markets you need to grow your business. And, with convenient commute times between our major cities, Scotland gives you the opportunity to find the work-life balance that suits you. It’s time to connect with Scotland.
Your guide to setting up in Scotland (PDF, 1.35MB)
Get the best value for your money
If you’re thinking of setting up a business in Scotland we can offer competitive costs and a welcoming business environment to help deliver a return on your investment.
That’s why Scotland has enjoyed a strong track record of inward investment over the last ten years. But Scotland can offer even more.
Moving your business here means you’ll have the chance to enjoy our fantastic quality of life – and a cheaper cost of living than many other regions in the UK and Europe.
Living in Scotland
Got questions about healthcare, housing, education or culture in Scotland? Our friends at TalentScotland can help answer your questions.
You might have heard of our stunning scenery, our vibrant cities and our famous golf courses – our low cost of living gives you even more chance to enjoy them all.
Locations to live and work
City? Countryside? You don't choose, you get both. Coast to coast, learn about Scotland's vibrant cities and regions.
Get trade and investment updates, news and insight from Scotland direct to your inbox.
You might also be interested in
Commercial property
Scotland is one of Europe's top investment locations with its smart cities, enterprising business parks and prime real estate open to you.
Financial and tax incentives
We can provide the financial support you need to make your project come alive.
Our people and skills
Companies that invest in Scotland have access to an exceptionally educated, skilled and talented workforce.
Ask our experts
Got a question about cost of living in Scotland? We’re always ready to help.