Ever wondered where in the world is the most expensive place to live?

Using the latest data from Numbeo's Cost of Living Index, we've identified the countries where day-to-day life comes with a higher price tag. The index scores are percentages of the cost of living in New York City, which has an index score of 100. This means that countries scoring below 100 are cheaper to live in than The Big Apple, while countries scoring above 100 are more expensive.

Read on to discover the 25 countries with the highest cost of living scores in the world right now. Index scores factor in the cost of rent and we've excluded the following territories: Cayman Islands, Isle of Man, and Macao.

All dollar amounts in US dollars unless otherwise stated. Data correct as of September 2025.

Although domestic produce is typically good value, South Korea tends to be expensive for imported goods. For example, the nation imports a staggering 150,000 metric tonnes of dairy products every year, and a gallon of milk will set you back almost $8 (£5.88).

All this makes the country a considerably more expensive place to live than China, but if you compare it to Western countries it’s remarkably affordable. Excluding rents, Seoul is 26.6% cheaper than London, while rents themselves are an eye-popping 210.9% lower, according to Numbeo’s figures. 

New Zealand has fallen a lot in the current rankings – down from the 13th most expensive place in 2024 to the joint 24th spot now. Its recent bout of economic difficulty could be to blame. 

However, the country still has to import many of its goods, which are saddled with import taxes, and that keeps its cost of living score elevated to some extent. Moreover, housing is expensive, particularly in Auckland, where the average apartment purchase price is high – almost as much as the suburbs of Sydney and far more than many European cities. 

It might come as a surprise to find notoriously pricey Sweden so low down the list. Although it’s notably cheaper than its Nordic neighbours, it has high sales taxes, meaning everything from food and drink to clothes can be more expensive than elsewhere.

A typical pair of jeans, for example, will cost almost $97 (£71), while a McDonald's meal comes in at just under $11.70 (£8.60). But despite these costs, residents are clearly 'lovin' it' in the Scandinavian country: Numbeo ranks Sweden as 'very high' in its Quality of Life index, higher than the UK, US or Canada.

Finland is another pricy nation, with mobile phone contracts, mortgage interest and meals out all costing more than they do elsewhere. On a brighter note, at $362 (£266) the monthly cost of a kindergarten place is relatively modest. 

Another thing to bear in mind is that Finland has topped the UN World Happiness Report for the last eight years. Before landing first place in 2018, it featured in the top five every year since the report's inception in 2013. According to the Finnish Happiness Institute, proximity to nature is a big reason for the country’s success. Some things are more important than economics, it seems. 

Belgium is the 21st most expensive country with a Numbeo score of 45.9. As the epicentre of European politics, the most expensive city is Brussels, where annual school fees can exceed $22,600 (£16.6k) per child and a pair of jeans could set you back almost $100 (£73).

And when it comes to dining out, it's not just the capital that's costly; Numbeo ranks Belgium's restaurant score higher even than countries like Canada, Australia and Singapore, which have a more significant cost of living score overall. That said, Belgians can enjoy a half litre of their world-famous domestic beer for the equivalent of just $2.46 (£1.80).

In common with many other countries, France has seen its Numbeo cost of living score come down quite a bit in recent months – and it’s making for a slightly more comfortable ranking, as the country has now fallen from 15th to 20th position in our ranking. Still, with taxes and high wages, it’s not the cheapest place to be. Cars prove particularly expensive; a Volkswagen Golf or equivalent, for example, costs over $38,000 (£28k).

Meanwhile in Paris – once rated the most expensive city in the world – the price of that car would buy you less than four square metres of an apartment. According to data from Investropa, average accommodation costs can reach over $11,000 (£8k) per square metre. One area that’s much more bon marché is public transport: a single journey in the capital will only set you back around $2.93 (£2.15) thanks to relatively high subsidies. 

The 19th most expensive country is Germany, according to Numbeo’s research. Prices here seem to be a mixed bag, with groceries and restaurant bills comparatively low and rents some 29.7% lower than in the UK. However, basic utilities are much higher. The electricity, heating and waste disposal for an average-sized apartment is over $350 (£250) a month. 

Inflation in Germany is now easing, and food prices in particular are less of a problem than they were a year ago. Energy prices have also started to ease. However, services like insurance and health are bucking the trend and stalling a greater reduction in the headline inflation rate. 

It might be a cheaper place to live than its North American neighbour, but Canada's prices are still consistently high across the board. Milk is particularly costly, coming in at $8.42 (£6.19) a gallon. Like for like, it’s much more expensive than petrol, which costs $4.26 (£3.13) a gallon.

Looking ahead, the cost of many goods could rise substantially due to in the face of President Trump's tariffs. The Canadian Chamber of Commerce has previously said American tariffs on Canadian goods could cost each citizen over $1,300 (£1k) each, while retaliatory tariffs from Ottawa would lead to a 4.1% spike in consumer prices. 

Residents of the United Arab Emirates (UAE) enjoy high average salaries, and what’s more, they pay no income tax on them. This must come as a relief as things can be very expensive. Buying a city apartment comes at a premium, while rents are a third higher than even the United Kingdom – itself hardly a cheap place for tenants. Meanwhile, a standard hatchback like a Volkswagen Golf will set you back almost $45,000 (£33k). This reflects the 5% sales tax that’s applied to all goods and services. After all, building a metropolis in the desert doesn’t pay for itself.

On the bright side, a gallon of petrol in the oil-rich UAE is just $2.91 (£2.14). Utilities are also much more affordable than they are elsewhere.

Landlocked in the heart of Europe, Austria now ranks 16th on our list. The country's inflation rate has bounced back a little over the course of this year and prices of household goods and services remain stubbornly high. Utilities seem particularly expensive, at over $385 (£283) a month for an average apartment. 

Even so, Vienna, the Austrian capital, scored first place in Mercer's Quality of Living City Ranking for 10 consecutive years between 2009 and 2019. So while keeping the lights on at home might be expensive, the locals don't seem to be complaining.

Like neighbouring New Zealand, Australia relies heavily on imports, and most of those have to travel a long way to reach it, pushing up prices of many everyday items. For example, an imported bottle of beer costs over $7 (£5.14), while food prices have risen faster than the long-term average. Even so, the country’s Numbeo cost of living index score is down a lot since last year, suggesting things might be taking a turn for the better.

Australia’s underlying inflation rate fell to 3.2% at the end of 2024, which could help explain the fall. In light of this, the country's central bank has since cut interest rates for the first time since the pandemic, which should help ease pressures for borrowers and consumers more generally. 

The overall figures reported by Numbeo often hide geographical extremes within countries, and the economically disparate UK is no exception. In London, for instance, a meal out for two people typically costs more than $108 (£80) and the average property price now sits at almost $900,000 (£660k), according to Rightmove. Yet in the northern city of Middlesbrough, that meal would cost two-thirds of the price and the average home costs under $231,000 (£170k). Many other items mirror this trend. 

In fact, though it might surprise some citizens, the UK was a newcomer to the top 30 most expensive countries as recently as 2023. It’s now the 14th priciest, despite its cheaper regions. And all over the country, people are braced for costs to continue rising as increased employment costs and persistent above-target inflation take their toll. 

Island life often comes at a cost. Though prices in Papua New Guinea are generally cheaper than in other island nations, various goods and services are more expensive than you might expect. Internet access, for example, is prohibitively pricey at an average of $177.71 (£130) a month, more than double the amount you'd pay in the United States. Considering local purchasing power is lower in Papua New Guinea, it's unsurprising the island has a dramatically smaller percentage of internet users. 

When it comes to accommodation, Numbeo data shows city centre prices aren't far off those you'll find in the US (though you'll pay far less in other areas). In supermarkets, meanwhile, basic groceries such as milk, fruit and certain vegetables all cost more than their American, British and Australian equivalents. 

Israel has moved up the ranking from 19th to 12th most expensive country with a cost of living index score of 51.8. Research by the Israeli Federation of Labour Unions has found that housing, electricity, food and beverages have all grown more expensive in Israel, compared with the OECD average. Meanwhile, late last year the state comptroller reported that low wages were to blame for reducing Israelis’ purchasing power.

It all adds up to some eye-opening figures. A pair of leather shoes costs over $140 (£103), while a standard car like a Volkswagen Golf is almost $48,000 (£35.3k).

Mind you, if you wanted that VW Golf, you’d be even worse off buying it in Copenhagen, where it would cost over $50,000 (£36.7k). Scandinavia is not known as a cheap destination – two of our top 10 countries are in the region, while Denmark is the 11th most expensive in the world. Petrol for that car will cost you over $8.50 (£6.24) a gallon, and if you console yourself with a restaurant meal the bill will be over $110 (£81) for two. 

People in Denmark may be less likely to complain about poor pay because local purchasing power is high, meaning residents are better equipped to cope with the burdensome cost of living.

Kicking off the top 10 most expensive countries in the world is the United States with a Numbeo index score of 54.6. With a high level of competition and plentiful supplies of most items, the US enjoys good value in quite a few areas. Petrol, clothing and groceries tend to compare well – notwithstanding the recent egg shortage which has seen prices spike by over a third due to bird flu.

However, healthcare is eye-wateringly expensive: the average insurance premium for a single person last year was nearly $9,000 (£7.2k), while rent is also sky-high. A one-bedroom city centre apartment costs around $1,730 (£1.3k) per month. 

Life in the Netherlands is far from cheap, with staples like chicken, rice and potatoes, as well as cars, all firmly in the upper half of Numbeo’s international price range. 

Cars and gasoline are both notably expensive, with a Volkswagen Golf (or equivalent) costing almost $40,000 (£29.4k). On the plus side, these prices go some way to explaining why the nation is one of the least polluted countries on our list. Indeed, the Netherlands comes second in Numbeo's Quality of Life Index despite being the world's ninth most expensive nation to live in.

At 25%, Norway has one of the world’s highest sales tax rates, which pushes up the cost of most everyday items. Alcohol is especially costly, with a half-litre of imported beer setting drinkers back over $10 (£7.30). Food has a lower tax rate of 15% but is still considered expensive, with a kilo of beef coming in at $13.67 (£10). 

One cost that might become more predictable for Norwegians is electricity: the government wants to offer consumers a fixed price per kilowatt and share less with neighbours via interconnectors, which it says puts pressure on domestic prices.

UK prices may be heading north but for the most part the cost of living in neighbouring Ireland remains even higher, with items from groceries to petrol all that bit more expensive. In some cases, like cars, they’re significantly more pricey, and part of the reason is the Republic’s higher sales tax, which at 23% is 3% greater than the UK’s rate. Meanwhile, Dublin is the sixth most expensive city in the world to lease accommodation, despite (or perhaps because of) rent controls. 

Still, a few things in Ireland are cheaper than in the UK. These include monthly utility bills, which at $243 (£178) are now only around three-quarters of the British cost. Property, beef and draft domestic beer are also less expensive.

Tiny Luxembourg is the sixth most expensive country in the world, according to Numbeo. Groceries, meat, cheese and property are among the areas that are notably high priced. 

On the other hand, Luxembourg has a very high average monthly salary of over $5,484 (£4k) after tax, so perhaps spending isn’t all that painful for many people. And even those on an economy drive would find it easy enough to take the bus or tram – because they’re completely free. In 2020, Luxembourg became the first country in the world to scrap public transport fares. 

With Hong Kong, we move into the top five most expensive countries in the world. Although it’s a special administrative region of China, the cost of living there is far higher than on the mainland, meaning residents need increasingly deep pockets to get by.

On average, Hong Kong's consumer prices, including rent, are around 68% more expensive than in China, while petrol is nearly twice as pricey. As you might expect in such a populous and crowded island, purchasing property is especially expensive. 

The fourth most expensive slot is yet another island nation. The sun-kissed Bahamas may be like paradise for visitors, but residents are stuck with a high cost of living.

A meal for two in the archipelago costs more than almost any other country surveyed, weighing in at $120 (£88) while a bottle of wine alone will set you back $30 (£22). Even staples like milk, eggs and bread are expensive, with prices hiked by the need to import so many items. Meanwhile, high taxes add to the cost, with approximately 25% of government revenue coming from import and export duties.

Iceland is not only another island that has to source many things it needs from overseas, but it also has tight regulations on importing goods, which drives up prices further still. The country's groceries are among the most expensive in the world, with milk, eggs, chicken and beef all comparatively costly. Almost everything else, from leather shoes ($234/£172) to a McDonald’s meal ($20.48/£15) is similarly steep.  

There's some relief when it comes to the monthly cost of utilities though, as Iceland enjoys relatively inexpensive geothermal heating and hydropower.

Another island, Singapore has an index score of 80.9.

Alcohol is considered a luxury item and is extortionately expensive, with a bottle of wine costing over $23 (£17). Meanwhile renting a one-bedroom apartment in the city centre costs more than $3,100 (£2.3k) per month, and buying a new car is drastically more expensive in Singapore than in almost any other country due to the government saddling purchases with taxes and tariffs as a form of traffic control. Motorists must also pay to drive according to the route they take and time of day.  

The most expensive country in the world is Switzerland. (Only the British Overseas Territory of the Cayman Islands, excluded from our ranking, has a higher cost of living). Home to the best quality watches, posh chocolate and private banks, it’s perhaps little surprise that life in the mountains is expensive. In fact, if you remove rental prices from the equation, the cost of living in five major Swiss cities (Zurich, Geneva, Basel, Lausanne and Bern) is even higher than it is in New York City.

But far from Manhattan’s traffic fumes, all that Alpine fresh air helps the country achieve a ‘very high’ quality of life score. Numbeo also rates Swiss purchasing power as ‘very high’, meaning most citizens enjoy a comfortable lifestyle despite the hefty bill.

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