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Yes i would say 1000-1200euro tops for the budget with option to add more ram later. Would you think i3 is enough? I am not too familiar with the newer generations
Even a raspberry pi can run linux with an lxd desktop, and this i3 is a few times faster than a raspberry pi. But it depends on what you want to with it...
Correction, Raspberry pi zero can run lxd, been there done that. So if that's all OP wants a $10 computer should do it, he really needs to be more specific.
I need it for normal desktop use. Email, coding, browsing (no gaming)
Then you probably don't need 32 GB RAM, unless you've measured actual in-use RAM and found that you need it. Halve it to 16 GB and you'll probably find more options.
Spend an hour or two at https://www.cpubenchmark.net/