Key Highlights
Visiting or relocating to your desired country is not smooth, considering the financial aspects. The cost of living fluctuates at a high scale. Choosing a country to live in is a tough decision to make. But proper research on the moving location can help you to make better decisions when choosing the country. Let's find out which are the most expensive countries in the world.
Updated List of the Most Expensive Countries in the World 2025:
1. Switzerland
2. Norway
3. Iceland
4. Denmark
5. Singapore
6. Luxembourg
7. Hong Kong
8. Australia
9. Sweden
10. The Netherlands
11. Finland
12. France
13. The United States of America
14. Japan
15. The United Kingdom
The above list showcases the top 15 most expensive countries in the world according to various sources such as The World Bank, Forbes, and Numbeo. These rankings are determined by the cost of living index, which considers factors such as housing, transportation, and food prices.
15 Most Expensive Countries in the World in 2025
The cost of living is a factor which can not be ignored. Maintaining an average lifestyle is basic and necessary. Necessities are not meant to be a burden on the pocket. But at the same time, there are countries where maintaining an average lifestyle is not easy. This blog will talk about the top 15 most expensive countries in the world and its aspects.
1. Switzerland
The country’s exemplary scenery and standard of living make this country a special one. Switzerland is the 3rd most expensive country in the world. It has the best quality education and other basic facilities. The cost of living for an individual is Fr. 1,539.4, and for a family of four, Fr. 5,638. It is not only on the list of the most expensive countries in the world but also one of the most desired destinations. The country has the best infrastructure, education system, and healthcare facilities. The country has a stable economy and political stability, which contribute to making the country a developed one and among the top 10 most expensive countries in the world. Switzerland is indeed a good option to consider relocating to; at the same time, it is the most expensive country in the world to live in.
- Average Rent: CHF 2,000-3,000 per month (varies widely by city)
- Cost of Groceries: High; a basic grocery bill for a family can range around CHF 800-1,000 monthly.
- Transportation Costs: Public transport monthly pass: CHF 70-100.
- Healthcare Expenses: Mandatory health insurance; average premium varies but can be CHF 300-500 monthly.
- Cost of Living Index: Approximately 130-140.
2. Norway
Norway is one of the most desired destinations for people globally, especially for Indians. The country has the most stable economy and a safe and secure environment to live in. The country has beautiful mountains and sceneries making it the best tourist destination and a place to reside.
The average monthly housing cost is around $952. Other costs like healthcare, groceries, and several other reasons are the reasons that make this country one of the most expensive countries in the world.
- Average Rent: NOK 10,000-15,000 per month (varies by location)
- Cost of Groceries: The average monthly grocery bill is around NOK 5,000-7,000 higher than in many other countries.
- Transportation Costs: Public transport monthly pass: NOK 700-1,000.
- Healthcare Expenses: Public healthcare is heavily subsidized; private insurance can cost NOK 500-1,000 per month.
- Cost of Living Index: Approximately 110-120.
3. Iceland
The country’s scenery, with beautiful glaciers and waterfalls, make this country a beautiful and most desired destination. This northern European country’s lifestyle maintenance is an expensive question. The cost of living is Kr 172,087 for an individual and Kr 635,450 for a family of four.
Iceland is also among the top 10 most expensive countries in the world. The major reason behind being the 6th most expensive country is the cost of basic necessary needs management. This means that housing cost, groceries, and healthcare are very expensive in the country. These factors include this country being the most expensive country in the world to live in.
- Average Rent: ISK 180,000-250,000 per month (varies significantly by location)
- Cost of Groceries: The average monthly grocery bill is around ISK 60,000-80,000 due to import costs.
- Transportation Costs: Public transport monthly pass: ISK 12,000-15,000.
- Healthcare Expenses: Public healthcare is mostly free; private insurance can cost ISK 15,000-20,000 per month.
- Cost of Living Index: Approximately 130-140.
4. Denmark
Denmark offers a strong welfare system and high living standards, attracting residents with its quality of life. Average monthly rents range from DKK 8,000 to 12,000, reflecting its high housing costs. Healthcare is publicly funded, but private insurance adds to expenses. Groceries and transportation are also relatively expensive, contributing to Denmark's reputation as one of the costliest countries to live in.
- Average Rent: DKK 8,000-12,000 per month (varies by city)
- Cost of Groceries: High; average monthly grocery bill is around DKK 3,000-5,000.
- Transportation Costs: Public transport monthly pass: DKK 400-700.
- Healthcare Expenses: Public healthcare is free; private insurance can cost DKK 500-1,000 per month.
- Cost of Living Index: Approximately 120-130.
5. Singapore
Singapore ranks 7th in the most expensive countries in the world. The country is renowned for its world-class infrastructure and the best education and healthcare facilities. Hence, the best environment comes at a price. The country’s cost of living is S$1,546 for an individual and S$5,585.
The country’s highest rate of transport, groceries, and other basic needs are the factors that contribute to making the country the 7th most expensive country in the world to live.
- Average Rent: SGD 2,000-4,000 per month (varies widely by location)
- Cost of Groceries: Moderate to high; average monthly grocery bill around SGD 500-800.
- Transportation Costs: Public transport monthly pass: SGD 90-120.
- Healthcare Expenses: Public healthcare is subsidized; private insurance can cost SGD 100-200 per month.
- Cost of Living Index: Approximately 90-100.
Also Read: What Is Global Exposure? It's Benefits and Calculation
6. Luxembourg
Luxembourg is one of the costliest countries in the world. The country’s major part of the economy is based on the export of iron and steel. The individual cost of living is €942.80, whereas €3,276 for a family of four. Housing costs are very expensive in the country, nearly three times higher than the living cost of Indian metropolitan cities. This country has some good work opportunities too with good salaries. The country’s high standard of living makes this country the most expensive country in the world to live in.
- Average Rent: EUR 1,500-2,500 per month (varies by location)
- Cost of Groceries: Moderate; average monthly grocery bill is around EUR 400-600.
- Transportation Costs: Public transport monthly pass: EUR 40-80.
- Healthcare Expenses: Public healthcare is well-covered; private insurance can cost EUR 150-300 per month.
- Cost of Living Index: Approximately 120-130.
7. Hong Kong
Hong Kong's expensive housing market and high cost of goods and services make it one of Asia's priciest cities. Average monthly rents vary widely from HKD 15,000 to 30,000. Healthcare is subsidized, but private insurance is costly. Groceries and transportation costs are also high, maintaining Hong Kong's reputation as an expensive place to reside in Asia.
- Average Rent: HKD 15,000-30,000 per month (varies widely by location)
- Cost of Groceries: High; average monthly grocery bill is around HKD 3,000-5,000.
- Transportation Costs: Public transport monthly pass: HKD 500-800.
- Healthcare Expenses: Public healthcare is subsidized; private insurance can cost HKD 1,000-2,000 per month.
- Cost of Living Index: Approximately 130-140.
8. Australia
Australia offers high living costs, particularly in cities like Sydney and Melbourne, which are known for their quality of life and vibrant culture. Average monthly rents range from AUD 2,000 to 3,500. Healthcare is subsidized, but private insurance varies widely. Groceries and transportation costs are moderate to high, contributing to Australia's reputation as an expensive country.
- Average Rent: AUD 2,000-3,500 per month (varies by city)
- Cost of Groceries: Moderate to high; average monthly grocery bill around AUD 600-800.
- Transportation Costs: Public transport monthly pass: AUD 120-200.
- Healthcare Expenses: Public healthcare is subsidized; private insurance can cost AUD 100-300 per month.
- Cost of Living Index: Approximately 100-110.
9. Sweden
Sweden's high taxes and robust social welfare system provide a high standard of living. Average monthly rents range from SEK 8,000 to 12,000, reflecting its premium housing costs. Healthcare is publicly funded, but private insurance adds to expenses. Groceries and transportation costs are also relatively high, contributing to Sweden's position as an expensive Nordic country.
- Average Rent: SEK 8,000-12,000 per month (varies by city)
- Cost of Groceries: Moderate; average monthly grocery bill is around SEK 3,000-5,000.
- Transportation Costs: Public transport monthly pass: SEK 800-1,200.
- Healthcare Expenses: Public healthcare is subsidized; private insurance can cost SEK 300-700 per month.
- Cost of Living Index: Approximately 110-120.
10. Netherlands
The Netherlands combines a high quality of life with high taxes and housing costs. Average monthly rents range from EUR 1,200 to 2,000. Healthcare is well-covered, but private insurance can be costly. Groceries and transportation costs are moderate to high, maintaining the Netherlands' reputation as an expensive country to reside in Europe.
- Average Rent: EUR 1,200-2,000 per month (varies by city)
- Cost of Groceries: Moderate; average monthly grocery bill is around EUR 300-500.
- Transportation Costs: Public transport monthly pass: EUR 50-100.
- Healthcare Expenses: Public healthcare is well-covered; private insurance can cost EUR 100-200 per month.
- Cost of Living Index: Approximately 110-120.
11. Finland
Finland offers a high cost of living, particularly in terms of housing and goods. Average monthly rents range from EUR 900 to 1,500. Healthcare is well-covered, but private insurance can be expensive. Groceries and transportation costs are moderate, contributing to Finland's position as one of the more expensive Nordic countries to live in.
- Average Rent: EUR 900-1,500 per month (varies by location)
- Cost of Groceries: Moderate; average monthly grocery bill is around EUR 300-500.
- Transportation Costs: Public transport monthly pass: EUR 50-100.
- Healthcare Expenses: Public healthcare is well-covered; private insurance can cost EUR 100-200 per month.
- Cost of Living Index: Approximately 110-120.
12. France
France, especially Paris, is known for its high living costs and cultural attractions. Average monthly rents range from EUR 800 to 1,500. Healthcare is well-covered, but private insurance adds to expenses. Groceries and transportation costs are moderate, maintaining France's reputation as an expensive European country to reside in.
- Average Rent: EUR 800-1,500 per month (varies by city)
- Cost of Groceries: Moderate; average monthly grocery bill is around EUR 300-500.
- Transportation Costs: Public transport monthly pass: EUR 50-80.
- Healthcare Expenses: Public healthcare is well-covered; private insurance can cost EUR 100-200 per month.
- Cost of Living Index: Approximately 100-110.
13. United States
Among the top 10 most expensive countries in the world, The United States of America comes in the 10th position. The country has excellent facilities in terms of education and health. At the same, it is on the list of the most expensive countries in the world. The minimum monthly cost required to live in The United States is $2,317. But due to its high standard of living and lifestyle, the cost is worth paying.
- Average Rent: USD 1,000-3,000 per month (varies widely by city)
- Cost of Groceries: Moderate; average monthly grocery bill is around USD 300-500.
- Transportation Costs: Public transport monthly pass: USD 70-150.
- Healthcare Expenses: Healthcare costs vary widely; private insurance can range from USD 100-500+ per month.
- Cost of Living Index: Approximately 90-100.
14. Japan
Japan, especially Tokyo, is one of the world's most expensive cities to live in, driven by high living standards and premium housing costs. Average monthly rents vary widely from JPY 80,000 to 150,000. Healthcare is well-covered, but private insurance can be expensive. Groceries and transportation costs are moderate, maintaining Japan's reputation as an expensive Asian country to reside in.
- Average Rent: JPY 80,000-150,000 per month (varies by city)
- Cost of Groceries: Moderate; average monthly grocery bill is around JPY 30,000-50,000.
- Transportation Costs: Public transport monthly pass: JPY 10,000-15,000.
- Healthcare Expenses: Public healthcare is well-covered; private insurance can cost JPY 10,000-20,000 per month.
- Cost of Living Index: Approximately 90-100.
15. United Kingdom
The United Kingdom, particularly London, is known for its high housing costs and living expenses. Average monthly rents range from GBP 800 to 1,500. Healthcare is publicly funded, but private insurance can be costly. Groceries and transportation costs are moderate, reflecting the UK's position as an expensive European country to live in.
- Average Rent: GBP 800-1,500 per month (varies by city)
- Cost of Groceries: Moderate; average monthly grocery bill is around GBP 300-500.
- Transportation Costs: Public transport monthly pass: GBP 60-150.
- Healthcare Expenses: Public healthcare is free; private insurance can cost GBP 100-300 per month.
- Cost of Living Index: Approximately 100-110.
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Factors Affecting Cost of Living in Countries
The cost of living in any country is influenced by several key factors that collectively determine how expensive it is to reside there. Here are some of the primary factors affecting the cost of living:
1. Housing Costs: The price of rent or mortgage payments is a significant factor. High demand in urban areas and limited supply can drive up housing costs. Additionally, the quality and size of accommodation also affect rental prices.
2. Food and Groceries: The cost of basic food items and groceries varies by region and country. Factors such as import costs, agricultural policies, and local production levels can influence prices.
3. Transportation: The cost of public transport, fuel prices, vehicle costs, and infrastructure development impact transportation expenses. Cities with extensive public transport networks may have lower overall transportation costs compared to those reliant on private vehicles.
4. Healthcare: Healthcare costs include expenses for medical insurance, consultations, treatments, medications, and hospital services. Countries with universal healthcare systems often have lower out-of-pocket expenses compared to countries relying more on private healthcare.
5. Utilities: Monthly expenses for electricity, heating, cooling, water, and garbage disposal contribute to the cost of living. Prices can vary based on climate, energy sources, and government regulations.
6. Education: Costs related to education, including tuition fees, school supplies, and extracurricular activities, impact families with children. Higher education costs, such as university tuition, also affect living expenses.
7. Taxation: Income tax rates, property taxes, sales taxes (VAT/GST), and other levies governments impose affect disposable income and purchasing power.
8. Entertainment and Leisure: Costs associated with dining out, cultural activities, sports, and recreation influence the overall cost of living. Prices for leisure activities vary widely depending on the region's popularity and amenities.
9. Currency Exchange Rates: For expatriates or travellers, fluctuations in exchange rates between their home currency and the local currency can significantly impact the cost of living abroad.
10. Economic Stability and Inflation: Countries experiencing economic stability and low inflation rates tend to have more predictable costs of living. Inflation can erode purchasing power, increasing the overall cost of goods and services.
11. Quality of Life Indicators: Factors such as air quality, safety, healthcare quality, education standards, and overall infrastructure influence the desirability and cost of living in a particular location.
12. Local Market Competition: Competition among businesses, retailers, and service providers affects pricing. Areas with more competition may offer lower prices for goods and services compared to less competitive markets.
These factors interact in complex ways, and their impact on the cost of living can vary greatly from one country to another and even within regions of the same country. Understanding these factors is crucial for individuals and businesses evaluating relocation, investment opportunities, or travel plans.
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Conclusion
We always look for countries with the best living environments. Including the best education, healthcare, security, and economic and political stability. Where we can study, work, or live permanently with comfort and peace. However, some countries are considered to be the most expensive when it comes to meeting the above-mentioned basic needs. Due to this, even a small visit to these countries can burden your pockets. Different factors bring these countries to the list of the most expensive countries to live in.
If you want to know more about these countries or are thinking of relocating to any of these, consult TerraTern for the best possible assistance.
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