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TEMPO.CO, Jakarta - The cost of living in certain regions can vary greatly depending on the cost of rent, groceries, and restaurant bills. While some people are lucky enough to call budget-friendly states home, others must pay extortionate fees to afford major amenities.
This article sheds light on the world's current most expensive countries to live in, uncovers the reasons behind the jaw-dropping costs, and explores the lifestyles that come with such hefty price tags.
10 Most Expensive Countries to Live in
The world’s largest cost of living database, Numbeo, has just unveiled its latest findings on the most expensive countries to live in 2025. From sky-high grocery bills to steep rent and dining costs, the data paints a vivid picture of luxury living. With additional reports from UK Yahoo Finance and GQ Magazine, here is a quick breakdown of the statistics.
1. Switzerland - 98.4
Switzerland is the most expensive country to live in where the picturesque panorama of mountainous land mass puts an extra charge on mainstream amenities. Despite its high ranking, citizens enjoy an exceptional quality of life, thanks to the country’s fresh air and local wages. Most importantly, Switzerland has not seen a decline in its purchasing power, affirming its comfortable lifestyle.
Local Purchasing Power Index: 159.7
2. Iceland - 83.4
Iceland may have a flawless reputation in different sectors, but it is also among the priciest island-state to build a life in. Its staggering score is attributed to the complex nature of retrieving goods from other countries including transport equipment, machinery, and capital utilities. For a single person to seek shelters in the island state, a minimum budget of US$1,274 is required, excluding rent.
Local Purchasing Power Index: 123.5
3. Bahamas - 81.4
As a desirable vacation retreat for many seasoned travelers, the Bahamas is not a place to put budget limitations. Due to its rather secluded location, thousands of kilometers away from the mainland of the United States, basic groceries are a luxury. Imported goods are accounted for high-priced duties, resulting in price spikes for many items including eggs, milk, and bread.
Local Purchasing Power Index: 58.4
4. Singapore - 79.1
A hub for many traveling souls from the West, Singapore is actually the most expensive country in Southeast Asia to live in. Owning a house under your name is nearly impossible unless the budget stays on top of the roof. Housing availability seems to be a persistent issue in the city-state, with renting prices varying from US$2,930 for a one-bedroom apartment.
On a brighter note, Singapore makes up for its sky-high costs with an exceptional quality of life and a robust social security system, offering residents a taste of modern luxury and peace of mind.
Local Purchasing Power Index: 93.8
5. Hong Kong - 73.6
Home to one of the world’s most populous civilizations, Hong Kong transforms into a pricey country. Compared to mainland China, this region sees a skyrocketing cost of living encompassing rent prices, fuel tariffs, and property rates. Individuals must have extraordinary survival skills to stay solvent in this financial capital.
Local Purchasing Power Index: 101.0
6. Barbados - 70.0
Just like other island countries, Barbados charges a considerably high cost of living, despite changes in the law to reduce VAT on essential foods in 2022. Even with the cut prices, a liter of milk will still set you back at US$3.53. Fortunately, Barbados may have a much lower rent index than the rest of the countries on this list.
Local Purchasing Power Index: 45.9
7. Norway - 69.0
Nestled in Scandinavia, Norway is a captivating blend of breathtaking beauty and staggering expenses. Its majestic natural wonders are matched only by the high cost of living, but generous salaries and steep sales taxes help strike a balance.
Unlike many developing countries, Norway’s living environment feels far more manageable, thanks to the government’s commitment to building world-class infrastructure. This commitment not only elevates everyday life but also cements Norway’s status as one of the happiest countries in the world.
Local Purchasing Power Index: 119.5
8. Denmark - 66.9
Denmark is a famous addition to the list, especially for its otherworldly cost of gasoline which will set you back at US$2 per liter. Dining out in Denmark is also a lavish journey to take, with restaurant bills for two people approaching US$100. In contrast, purchasing power in the country remains sturdy, which concludes Denmark’s efforts to create a high standard of living.
Local Purchasing Power Index: 133.6
9. Israel - 65.2
Israel has been struggling with high tariffs on its imported goods, solidifying the country’s position among the most expensive countries in the Middle East. Generally, the low wages are causing snowball issues in a variety of sectors including housing, electricity, and groceries. On Top of its extortionate basic amenities’ prices, a restaurant bill for two people will dig into your bank account as far as US$85.
Local Purchasing Power: 110.0
10. United States - 64.9
As a powerful country leading developed nations in economic terms, the high cost of living in the United States still presents hurdles for many people. Access to amenities is limited to those earning sky-high salaries, with healthcare being a notable hindrance. Above all, President Trump’s administration's higher tariffs have made the general cost of living even more pressing.
Local Purchasing Power: 146.2
In a world where the cost of living continues to rise, these countries stand out as the most expensive countries to live in. Despite the hefty price tags, many of these places also offer remarkable quality of life, modern infrastructure, and unmatched natural beauty.
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