Colombia once again drew the attention of those considering moving, working, or retiring beyond their borders. The 2026 Cost of Living report by Numbeo — the collaborative cost of living database — ranked the South American country with a score of 31.7 as the fifth cheapest in Latin America to live.
In addition, with these figures, Colombia ranks 118th worldwide this year — in 2025, it ranked 117th with a score of 26.0 — according to this comparative index, which uses relative prices compared to New York City as its baseline.
This means that, in dollar terms, many everyday goods and services in Colombia are more affordable than in most of the region’s economies.
For visitors or residents earning income in strong currencies, the perception of low costs is tangible: From rents to groceries and transportation, prices appear to offer value compared to international standards.
In response to that report, economists agree that behind the apparent low cost are structural variables of the Colombian economy that, for locals, do not always translate into greater well-being.
The combination of the exchange rate, wages, and economic productivity paints a complex picture that invites looking beyond the raw figures and understanding what “cheap” truly means when crossing a border.
Colombia ranks as fifth cheapest country in Latin America for foreigners
The index that places Colombia in fifth position in Latin America measures the cost of living in dollars and compares it with a global benchmark such as New York City.
Economies such as Uruguay or Costa Rica appear more expensive, while Paraguay, Bolivia, and other countries in the region position themselves as slightly more affordable options.
This approach, useful for travelers and expatriates with income in strong currencies, does not always capture the subtleties of daily life for Colombians living on local incomes.
For a foreigner who receives a salary in euros or dollars, Colombia may seem temptingly inexpensive: Meals, urban transportation, services, and basic rentals generally cost less in absolute terms than in many cities in North America or Europe.
Specialized cost-of-living sites estimate that a modest rental, along with basic expenses, can be maintained within budgets that in other countries would only cover the rent of a single room.
This difference has made the country an attractive destination for retirees, remote workers, and those seeking quality of life without paying the figures seen in major global capitals.
However, experts point out that economic reality is more complex than a simple “cheap” label. The depreciation of the peso against the dollar directly influences how prices are valued in foreign currency: If the local currency loses value, the same goods and services become cheaper for someone earning in a strong currency.
This means that Colombia’s appeal for those coming from abroad is partly linked to shifts in the foreign exchange market rather than to an absolute collapse in real costs.
This is compounded by a labor market with average wages that are low compared to more developed economies. For a Colombian worker paid in pesos, the cost of living — although lower in percentage terms compared to countries such as the United States or Switzerland — represents a significant portion of income.
The domestic perception of the cost of living is tied to purchasing power and income distribution, issues that are not fully captured in international indexes.
From rent to daily essentials, see how 155 countries compare across the global cost of living index in 2026. // https://t.co/QDREyQx8SK
— Metro COLA (@MetroCOLA) February 11, 2026
Colombia, cheaper for whom and why
The difference between living cheaply and living well also sparks debate. For a foreigner with fixed income in a strong currency, everyday expenses may be surprisingly low, even when compared to mid-sized cities in Europe or North America.
Restaurants, public transportation, and even rents can fit into budgets that in other countries would be considered modest. This has fueled growing interest from retirees and digital nomads in Colombia, along with its cultural diversity, landscapes, and climate — factors that make the idea of residing here more attractive.
Nevertheless, economists warn that interpreting Colombia as an economic paradise solely because of its position in this type of ranking oversimplifies a complex reality.
Relatively low productivity and a productive structure with high levels of informality help keep prices contained in dollar terms, but they also reflect areas where the economy is still struggling to close gaps with more developed neighboring countries.
This, in turn, limits the capacity for wage growth and for economic opportunities that truly improve the quality of life for the majority.
The debate over the cost of living in Colombia touches on deeper issues than mere comparative figures. While for many the appeal of low prices may be an invitation to relocate or invest in the country, for others, it is yet another manifestation of structural gaps that persist.
The figures in the international index may serve as a reference. Still, they do not replace an analysis that accounts for local economic conditions, wage dynamics, and the inequalities that affect broad segments of the population.
The world’s most expensive countries and the ranking in LatAm
According to Numbeo’s 2026 study, globally, the most expensive territory to live in is Bermuda (135.8), followed by several island economies and financial centers such as the Cayman Islands (115.6) and the United States Virgin Islands (111.3). Switzerland (110.7) ranks third, and Singapore (87.7) leads in Asia.
Regarding Latin America, Puerto Rico (62.6) stands out as the most expensive country in Latin America and the Caribbean. It is followed by Uruguay (55.6), Jamaica (54.5), and Costa Rica (52.9), all with higher scores than European countries such as Greece or Spain.
In addition, Colombia is still preceded among more expensive Latin American countries by Trinidad and Tobago (52.0); Panama (45.5); Mexico (42.6); Suriname (42.3); Cuba (41.8); Argentina (41.3); Guatemala (40.4); El Salvador (39.6); Chile (39.0); the Dominican Republic (38.2); Venezuela (37.7); Honduras (36.6); Nicaragua (34.2); and Peru (33.5).
In subsequent positions — that is, cheaper than Colombia—in Latin America, only Ecuador (30.9); Brazil (30.1); Paraguay (28.5); and Bolivia (27.3) appear, the latter ranking 139th globally as the most affordable country in Latin America to live.