Cost of Living

BiH consistently ranks among the cheapest countries in Europe for daily living expenses. The fixed EUR peg eliminates currency risk for European-based earners, while those earning in USD or GBP benefit from strong purchasing power. Groceries cost about 60% less than Western Europe, and dining out is remarkably affordable.

Opening a bank account in BiH requires a residence permit or registered business. The banking sector is stable and well-regulated, with several international banks operating locally. ATMs are widely available in cities, and card payments are accepted at larger stores and restaurants, though cash remains king in smaller establishments.

BiH has a simple, low-tax regime that appeals to business-minded expats. Personal income tax is a flat 10%, and corporate tax is also 10% — among the lowest rates in Europe. VAT is 17%. However, social security contributions add significantly to the effective tax burden for those with registered businesses.

Living cheaply in BiH is easy if you adopt local habits. The biggest savings come from shopping at open-air markets, eating at local ćevabdžinicas rather than tourist restaurants, and choosing neighborhoods slightly outside the tourist core.