People love to say Europe is too expensive now. Sometimes that is true. But not everywhere. If you skip famous capitals and travel simply, there are still cities where $40 a day is enough to eat well, sleep comfortably, and still have a great time.
These three cities prove it. They are deeply European, but will not break the bank.
Before jumping in, here is what $40 a day looks like. You sleep in a hostel or small guesthouse. You eat local food, not fancy meals. You walk a lot. You use buses or trams. It sounds basic, but it works.
1. Sofia, Bulgaria
Sofia is one of the cheapest capital cities in Europe. Hostels are affordable, and food is filling and cheap. You might grab a warm pastry in the morning, soup for lunch, and grilled meat at night, all without second-guessing it. The city feels layered. Roman ruins sit under your feet. Big churches rise over quiet streets. Cafes fill with students talking for hours. You might find yourself wandering all afternoon without spending much at all.
To keep costs low, stay central so you can walk. Join a free walking tour. Eat where locals eat, not near big landmarks.
2. Kraków, Poland
Kraków looks like a city out of a storybook. Cobblestone streets. A huge town square. A castle on a hill. The surprise is how affordable it still is. Hostels are reasonably priced, and food is hearty and cheap. Pierogi, soup, bread, and pastries go a long way. You can walk almost everywhere. Many museums are free on certain days.
Imagine sitting in the main square with a cheap coffee, watching street musicians while the sun goes down. It feels special, not rushed. Stick close to the Old Town or Kazimierz. Walk instead of riding. Save paid attractions for the ones that really matter to you.
3. Sarajevo, Bosnia and Herzegovina
Sarajevo feels different from anywhere else in Europe. Old markets, quiet mosques, cafes serving strong coffee, and mountains just beyond the city. Food is very affordable. Bakeries and small grill spots are everywhere. Many of the most powerful experiences cost nothing at all. Walking through the old bazaar. Climbing to a viewpoint. Sitting with a coffee and watching life pass by.
You might find yourself slowing down here without meaning to. The city encourages it. Stay in a small guesthouse. Eat where locals grab lunch. Spend money on one meaningful tour and keep the rest of your days simple.
Traveling Europe on $40 a day is still possible. You just need the right places, a slower pace, and the willingness to live like locals do.
Sources:
“Sofia Budget Travel Guide: How to Visit Bulgaria’s Capital on the Cheap.” The Savvy Backpacker, 2023.
“Krakow Price Guide: Calculating the Daily Costs to Visit.” The Savvy Backpacker, 27 Feb 2023.
“Backpacking Krakow Travel Guide (2026).” The Broke Backpacker, 14 Dec 2025.
“How Much Spending Money Do I Need for Sarajevo?” Exiap, 2 June 2025.