
Cost of living for businesses locating in Scotland
Thinking of a cost-effective location to grow your business? Compared to the rest of Europe, and cities like London, New York and San Francisco, Scotland is a less expensive location to live and work.
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.

Lower set-up and living costs for higher return on investment
As well as being more cost effective than other leading locations for locating businesses, Scotland has plenty of other impressive numbers that can support your decision-making.

One of the lowest tax rates in Europe
At 19%, Scotland (and the rest of the UK) has the lowest business tax rate of any G7 country - and joint lowest in the G20.

Property and salary costs up to 40% less than London
*Scotland is an extremely cost-effective location for property, staff and cost of living compared to London.

Low risk location
Scotland is a stable, safe and secure location with strong, transparent government and robust legal institutions with coherent regulatory practices.
*Source: Cushman & Wakefield Global Occupier Metrics, May 2020
Property and sites to suit your business
Scotland offers a diverse range of property solutions to suit your needs. From city centre locations and business parks that are within an easy commute of a working community of 2.8 million people, to rural sites, industrial units, large-scale manufacturing plants, port-side hardstanding facilities and development land for new build options, we can help you find the perfect location.

Cost of living comparison by city
Table 1: Cost of living and rent comparison
City |
Cost of Living Index |
Rent Index |
Zurich |
128 |
63 |
New York |
100 |
100 |
San Francisco |
94 |
100 |
Paris |
82 |
46 |
London |
83 |
68 |
Dublin |
78 |
57 |
Amsterdam |
81 |
51 |
Edinburgh (Scotland) |
69 |
32 |
Glasgow (Scotland |
66 |
29 |
Dundee (Scotland) |
63 |
23 |
Aberdeen (Scotland) |
62 |
20 |
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).
Scottish cities vs New York
Cost of living expenses (excluding accommodation) in Scotland’s cities relative to New York City are 38% less expensive in Aberdeen, 37% less expensive in Dundee, 34% less expensive in Scotland’s largest city, Glasgow, and 31% less expensive in the capital, Edinburgh.
If you compare rents, Aberdeen is 80% less expensive, Dundee is 77% less expensive, Glasgow is 71% less expensive, and Edinburgh is 68% less expensive than New York City.
Source: Numbeo Cost of Living Index – April 2022
Cost of living comparison with London
Along with highly competitive salaries, Scotland’s cities offer monthly living costs that are typically around 10% lower than other UK cities such as Cambridge and Oxford and as much as 39% lower than London.
Source: Expatistan Cost of Living Calculator – April 2022
Table 2: Most expensive cities ranked
Out of 206 city locations worldwide, the Mercer Cost of Living City Ranking placed two Scottish cities among the least expensive locations for working.
City |
Ranking |
Ashgabat |
1st |
Hong Kong |
2nd |
Zurich |
5th |
London |
18th |
New York |
14th |
San Francisco |
25th |
Paris |
33rd |
Dublin |
39th |
Amsterdam |
44th |
Berlin |
60th |
Toronto |
98th |
Aberdeen (Scotland) |
128th |
Glasgow (Scotland) |
131st |
Most expensive city is Ashgabat in Turkmenistan. Least expensive cities are Aberdeen (Scotland) 128th and Glasgow (Scotland) 131st.
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. Cost of living in Edinburgh is 31% lower than in London.
And workers in Glasgow’s growing financial services industry fare even better. Cost of living in Glasgow is 36% lower than London. That pattern is repeated for other financial hubs in Europe and beyond according to Numbeo Cost of Living Comparison – April 2022
Table 3a: Total cost of living comparisons for fintech and financial services hub cities
Compared to... |
Glasgow is... |
London |
36% lower |
New York |
51% lower |
Paris |
24% lower |
Amsterdam |
27% lower |
Compared to... |
Edinburgh is... |
London |
31% lower |
New York |
47% lower |
Paris |
19% lower |
Amsterdam |
21% lower |
Compared to... |
Dundee is.. |
London |
26% lower |
New York |
58% lower |
Paris |
35% lower |
Amsterdam |
37% lower |
Source: Numbeo Cost of Living Comparison - April 2022 (calculations use Consumer Prices Plus Rent Index)
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 comparisons for energy and low carbon hub cities
Compared to... |
Aberdeen is... |
Stavanger |
40% lower |
Houston |
22% lower |
Source: Numbeo Cost of Living Comparison – April 2022 (calculations use Consumer Prices Plus Rent Index)
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 comparisons for tech and creative industries hub cities
Compared to... |
Glasgow is... |
San Francisco |
50% lower |
San Jose |
37% lower |
Los Angeles |
35% lower |
Boston |
39% lower |
Dublin |
28% lower |
Compared to... |
Edinburgh is... |
San Francisco |
46% lower |
San Jose |
32% lower |
Los Angeles |
30% lower |
Boston |
34% lower |
Dublin |
23% lower |
Compared to... |
Dundee is.. |
San Francisco |
57% lower |
San Jose |
46% lower |
Los Angeles |
44% lower |
Boston |
47% lower |
Dublin |
38% lower |
Source: Numbeo Cost of Living Comparison – April 2022 (calculations use Consumer Costs Plus Rent Index)
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 |
Standard UK Personal Allowance |
Up to £12,570 |
0% |
Starter Rate |
£12,571 to £14,732 |
19% |
Scottish Basic Rate |
£14,733 to £25,688 |
20% |
Intermediate Rate |
£25,689 to £43,662 |
21% |
Higher Rate |
£43,663 to £150,000 |
41% |
Top Rate |
over £150,000 |
46% |
A place that's home
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.
That’s why Scotland has enjoyed a strong track record of inward investment over the last ten years. Watch our inspirational video - Scotland can offer even more.
Enjoy a fantastic quality of life
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. Got questions about healthcare, housing, education or culture in Scotland? Our friends at TalentScotland can help answer your questions.
Find out more about living in Scotland
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. City? Countryside? You don't choose, you get both. Coast to coast, learn about Scotland's vibrant cities and regions.
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You might also be interested in
Investment opportunities
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.