Sarajevo is the cheapest of 50 European cities in the Post Office’s 2026 City Costs Barometer, with Bucharest, Tirana and Belgrade close behind. If you’re willing to trade the Amalfi Coast for the Balkans, you can still eat well, sleep well and skip the second mortgage this fall. Just keep most of the trip east of Vienna.
Updated November 3, 2026.
I’ve been hunting for cheap European cities for a long time, and the pattern never changes. A city gets a name for being cheap, everyone shows up, and the deal is gone in a season or two. It’s the same story as the little restaurant that gets one good review and suddenly has a two-hour wait. Riga was the budget champion last year. It isn’t anymore. Fall helps, though: the summer crowds leave, hotel rates soften, and several of these cities look their best right when the leaves start doing their thing.
Think of this as a shortlist for the budget-minded and the mildly impatient. It does mean swapping a five-star cave hotel for a hostel with excellent Wi-Fi. In return, your money still buys dinner, a museum and a late drink without a second thought.
Sarajevo, Bosnia and Herzegovina — The Reigning Champion
Sarajevo topped the Post Office’s 2026 City Costs Barometer. The survey prices 12 everyday tourist items for two people, including two nights in a three-star hotel, a three-course dinner, coffee, beer, airport transfers and the top museum. Sarajevo’s total came to £248, about $333, the lowest of the 50 cities measured.
Most of us have stood in front of a menu in a pricey city and quietly done the math before ordering. In Sarajevo, you’d do a lot less of that.
The city earns its spot for more than price. It sits in a valley ringed by mountains, and its old town splits the difference between Ottoman lanes and Austro-Hungarian boulevards, which makes “East meets West” feel like more than a tourism slogan. It’s compact, so most visits barely need a taxi.
Bucharest, Romania — The Eastern European Bloc
Bucharest finished second on the Barometer at £258, and Tirana, Albania was third at £263. Eastern European cities took eight of the ten cheapest spots. Bucharest’s Lipscani old town gives you the cobblestones, which look better than they roll under a suitcase, as anyone who has tried it knows. It also has Cărturești Carusel, a gorgeous bookstore that’s worth a look even if you buy nothing, and the huge Palace of the Parliament isn’t far away.
Riga, Latvia, last year’s cheapest city, slipped to sixth at £278. A “cheap” title doesn’t last long once word gets out.
Krakow, Poland — Reliable Value Pick
Krakow didn’t make the Post Office’s top ten this year, but it’s still cheap by any normal measure. Hostelz.com puts a backpacker’s day there at about $69, covering a hostel bed, food, local transport and an activity. Rynek Główny is one of the largest medieval market squares in Europe. Wawel Castle sits just up the road, and the Kazimierz district handles the galleries and coffee without big-city prices. It doesn’t feel like a compromise. The old-school milk bars, plain canteens left over from a different economic era, are a cheap place to get a real meal. Autumn tends to bring a quieter, more poetic version of the city, with fewer tourists.
Belgrade and Sofia — The Balkans Keep Climbing
Belgrade placed fourth on the Barometer at £265, and it comes with a great perk. Since January 2025, the city’s buses, trams and trolleys have been free to ride. The Church of Saint Sava, one of the largest Orthodox churches anywhere, charges no admission either, which is either a lovely gesture or the smartest marketing move in the city, possibly both. The free transit is less polished than in Western Europe, so bring a little patience.
Sofia isn’t on this year’s ranking, and its bargain reputation is fading for a clear reason. Bulgaria switched from the lev to the euro on January 1, 2026, and prices have been drifting toward the eurozone average since. It’s proof that currency unions have consequences well beyond the exchange counter, and that cheap cities have a way of aging out of the club once they join a bigger one.
Zagreb, Croatia — Overlooked on Purpose
Croatia‘s tourist trade runs mostly on Split and Dubrovnik. That leaves Zagreb as a capital most visitors never think about, since it sits too far inland for a coastal trip. What you lose in sea views you get back in a walkable center full of cafés, with none of the July and August price spikes the coast gets. That’s either an oversight or a gift, depending on how you feel about crowds. Most of us have picked a famous spot because it was famous, then spent half the trip standing in line. In the fall, Zagreb rewards you because nobody else is thinking about it, or, arguably, ever.
Ljubljana, Slovenia — Small, Green, Car-Free
Ljubljana rarely tops these lists, but it punches above its size. It was European Green Capital in 2016, and its center is largely car-free. The Ljubljanica river runs through the middle, and a handful of footbridges make downtown feel like one big plaza. It’s smaller and quieter than Krakow or Belgrade, which suits anyone who wants Eastern European value without the crowds. It’s a hidden gem in a fairly literal sense, since most people haven’t heard of it.
Lisbon, Portugal — A Fading Bargain
Lisbon used to be the big exception on lists like this, a Western European capital that quietly undercut its neighbors. That gap has narrowed. Travel site TwoTicketsAnywhere puts a mid-range hotel at $110 to $250 a night, with dorm beds from about $35. It says prices are “starting to compare relatively close” to Paris or Amsterdam.
The hills, the pastel buildings and the Fado drifting out of Alfama bars still make the trip worth it. Everyone has seen the postcard photos, but the prices are where the story has changed. The discount just isn’t the selling point it was.
Lille and Strasbourg — France’s Budget Exceptions
France rarely shows up on “cheap Europe” lists. This year, though, Lille and Strasbourg were the only Western European cities in the Barometer’s top ten. Lille tied Vilnius for seventh at £289, and Strasbourg was ninth at £319.
Neither city sells beaches or blockbuster monuments. Both have compact, walkable centers and strong regional food, and Strasbourg’s Alsatian cooking alone is worth the trip. If you want a French city break without Paris prices, these two are the closest thing to a loophole. For more ideas, see our picks of the most beautiful countries to visit.
Cheapest European Cities: Common Questions
What is the cheapest city in Europe right now?
Sarajevo, according to the Post Office’s 2026 City Costs Barometer. It priced 12 tourist items for two people, including two hotel nights, meals, drinks, transport and sightseeing, at £248 in Sarajevo. That was the lowest of 50 European cities. Bucharest (£258) and Tirana (£263) came next.
Why isn’t Riga the cheapest city anymore?
Riga was the cheapest city in last year’s Barometer but slipped to sixth in 2026, at £278. Sarajevo, Bucharest, Tirana, Belgrade and Trenčín in Slovakia all came in cheaper. Prices tend to climb once a city becomes known as a bargain, and the rankings shift every year.
Is Lisbon still a budget destination?
Less than it used to be. TwoTicketsAnywhere puts mid-range hotels at $110 to $250 a night and says Lisbon’s prices are now starting to compare closely with Paris and Amsterdam. Dorm beds from about $35 still make it workable on a tight budget, but the old discount has shrunk.
Does Belgrade really have free public transportation?
Yes. Belgrade made its buses, trams and trolleys free to ride starting in January 2025, so visitors don’t need a ticket or a transit card to get around. Add the free entry to the Church of Saint Sava and the city’s fourth-place £265 Barometer total, and it’s one of the easiest cheap trips in Europe.