Armenia is generally affordable by European standards, though the gap has narrowed in recent years, particularly in Yerevan.
Housing
Rent is the largest variable. Central Yerevan, especially the Kentron district, commands a clear premium. Move a few metro stops out and prices fall noticeably for comparable space. Outside the capital, housing costs drop again, substantially.
Furnished apartments are common and usually let on flexible terms. Utilities are billed separately and are modest, though heating in winter is a real line item.
Food
Local produce, bread, dairy, and meat from markets are inexpensive and good. Imported goods carry the usual premium. Eating out spans a wide range: neighbourhood places are cheap, while the restaurants around the centre are priced for an international clientele.
Transport
Public transport is very cheap. Taxis, ordered through apps, are inexpensive by Western standards and are what most residents use for anything awkward. Owning a car is optional in Yerevan and more useful elsewhere.
Healthcare
Private clinics are widely used, and consultations and procedures generally cost far less than equivalent care in Western Europe or North America. Private insurance is affordable and worth having.
Connectivity
Mobile data and home internet are cheap and fast, which is a large part of why Armenia has become popular with remote workers.
Putting it together
A single person living modestly outside the centre will spend considerably less than in most European capitals. A family wanting central housing, private schooling, and imported goods will find the difference smaller, though still favourable.
The honest summary is that Armenia rewards those willing to live somewhat locally, and is merely reasonable for those who want to import their previous lifestyle wholesale.
Keep in mind: Requirements and procedures can change. It is always best to check the latest information or get professional assistance.