Cost of living for businesses locating in Scotland

Cost of living comparison by city 

Table 1: Cost of living and rent comparison

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 31% less expensive in Dundee, 30% less expensive in Scotland’s largest city, Glasgow, 26% less expensive in Aberdeen, and 24% less expensive in the capital, Edinburgh. 

If you compare rents, Dundee is 77% less expensive, Glasgow is 72% less expensive, Aberdeen is 72% less expensive, and Edinburgh 62% less expensive than New York City.

Source: Numbeo Cost of Living Index – March 2021

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 34% lower than London. 

Source: Expatistan Cost of Living Calculator – March 2021 

Table 2: Most expensive cities ranked

Out of 209 city locations worldwide, the Mercer Cost of Living City Ranking placed two Scottish cities among the least expensive locations for working.  

Most expensive city is Hong Kong. Least expensive cities are Aberdeen (Scotland) 134th and Glasgow (Scotland) 141st. 

Source: Mercer Cost of Living City Ranking 2020 

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

Source: Scottish Income Tax: 2021-2022, Scottish Government

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.

Find out more about location to live and work