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Expat life cheaper in Stockholm than Rome

The cost of living for expats is cheaper in Stockholm than in Rome or Milan, according to a global ranking released on Thursday.

Expat life cheaper in Stockholm than Rome
The Swedish capital, Stockholm, is cheaper for expatriates than Milan and Rome. Stockholm photo: Shutterstock

Milan is the 30th most expensive of 211 cities for expats, just one place above Rome, based on calculations by financial services provider Mercer.

Both Italian cities are getting comparatively more expensive, with Milan jumping 11 places in a year and Rome up from 44th place in 2013.

Based on the study, which compares the cost of over 200 goods and services, such as housing and transport, life is more expensive in each of the two Italian cities than Vienna, Stockholm and Helsinki.

For The Local's British Stockholm-based Assistant Editor, Sophie Inge, who has also worked in Rome, some aspects of life in Sweden are much more expensive.

“Generally, eating out regularly in Rome is not likely to break the bank (as long as you avoid the tourist traps) whereas in Stockholm you could only really afford it about twice a month on an average salary,” she said.

“Alcohol is also extremely expensive, with a glass of wine costing up to 120 kronor (€13).”

Travel and accommodation were however on a par in the two European capitals, she said, although the set-up in Stockholm makes it easier for expats to rent cheaper homes.

“It’s only when you rent in the centre of Stockholm that you have to pay through the nose. But the public transport system here is so efficient that it’s perfectly feasible to live in the suburbs and commute to work,” Inge said.

Overall the most expensive cities for expats are in Africa – the top spot was taken by Luanda, the Angolan capital, followed by Chad’s capital N'Djamena.

In Europe three cities made it into the top ten, all in Switzerland. Zurich was ranked fifth, closely followed by sixth-place Geneva and the capital, Bern, coming in eighth place.

At the other end of the scale, the cheapest expat city in the world was named as Karachi, in Pakistan. 

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ENERGY

EXPLAINED: How high will heating bills be this winter in Germany?

The cost of energy is expected to rise again this coming winter, even though the government's price cap is supposed to be in effect until April 2024. Here's what households can expect.

EXPLAINED: How high will heating bills be this winter in Germany?

The onset of winter will raise concerns for many in Germany about the cost of heating their homes, with memories of last year’s rocketing prices and concerns over domestic gas supply resurfacing. 

But, compared to last year, the energy prices have now largely stabilised, though they are still higher than in 2021.

The stabilisation in prices is partly thanks to the government’s energy price cap which came into force earlier this year to cushion the blow of soaring energy prices by capping electricity costs at 40 cents per kilowatt-hour and natural gas at 12 cents.

READ ALSO: Germany looks to extend energy price cap until April 2024

The federal government plans to maintain this cap until the end of April, though this could be extended even longer, if necessary. 

How high are heating costs expected to go this year?

For the current year, experts from co2online expect somewhat lower heating costs than last year.

Heating with gas, for example, is expected to be 11 percent cheaper in 2023 than in 2022, costing €1,310 per year for a flat of 70 square metres. 

The cost of heating with wood pellets will drop by 17 percent to €870 per year, and heating with heating oil will cost 19 percent less and amount to €1,130.

According to co2online, the costs for heating with a heat pump will drop the most – by 20 percent to €1,1105. The reason for this, according to co2online, is a wider range of heat pump electricity tariffs.

Tax hikes in January

Starting January next year, the government will raise the value-added tax on natural gas from seven to nineteen percent.

Alongside this, the CO2 price, applicable when refuelling and heating, will also increase.

According to energy expert Thomas Engelke from the Federal Consumer Association, these increases will mean that a small single-family household with three or four people that heats with gas would then pay about €240 more per year for gas.

“That’s a lot”, he said. 

Another additional cost factor to consider is that network operators also want to raise prices. However, the federal government plans to allocate €5.5 billion to cushion this increase for consumers as much as possible, so how such cost increases will ultimately affect consumers is currently hard to estimate.

READ ALSO: Why people in Germany are being advised to switch energy suppliers

Overall, it can be said that, from January, consumers will have to brace themselves for higher energy costs, even though massive increases are currently not expected.

Consumer advocate Engelke advised customers to closely examine where potential savings could be made this upcoming winter: “Those who are now signing a new gas or electricity contract should inform themselves and possibly switch. Currently, you can save a few hundred euros. It’s worth it. On the other hand, you should also try to save as much energy as possible this winter.”

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