Top 10 Most Expensive Places to Live in the World in 2025

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Living abroad can be exciting, but the cost of daily life is a major factor for anyone considering relocation. Some countries and cities carry high rents, expensive groceries, utilities, and services that quickly add up. Knowing which destinations are the priciest helps travelers and expatriates plan and budget effectively.

Living expenses vary widely around the world, influenced by factors such as local wages, housing demand, import reliance, and taxation. While some destinations offer luxury and convenience, others provide more affordable options.

The Cost of Living Index by Numbeo, updated throughout 2025, compares everyday expenses in thousands of locations worldwide. Costs are measured against New York City, set at 100, meaning a score above 100 indicates higher prices than in NYC.

Based on the mid-year 2025 report, here are the ten most expensive places to live, ranked from least to most expensive.

10. Guernsey

The Bailiwick of Guernsey, a self-governing British Crown Dependency in the Channel Islands, features picturesque landscapes and luxurious residences. St. Peter Port, the main town, is filled with multimillion-dollar homes. While rent, groceries, and dining costs remain high, they are still slightly below New York City’s prices.

The island combines serene landscapes with strong community life, attracting expatriates seeking tranquility, safe neighborhoods, and access to local culture alongside moderately lower costs than major metropolitan hubs.

9. Hong Kong

Hong Kong is a vibrant metropolis with a dynamic economy and abundant business opportunities. Rent and housing are particularly high due to limited land and population density. Dining out can be affordable in non-upscale restaurants, but overall living expenses remain elevated for residents and expatriates.

Hong Kong offers unmatched career opportunities, a dense international community, and vibrant cultural events, though residents must adapt to small living spaces and high urban congestion.

8. Luxembourg

Luxembourg’s strong economy drives up prices for groceries, dining, and other services. Higher wages help balance costs, while residents benefit from excellent healthcare and social support. The country combines high living standards with relatively manageable city sizes.

Luxembourg blends modern infrastructure with historical charm, providing top-quality education, international business presence, and secure neighborhoods that make the cost of living more tolerable for residents.

7. Denmark

Copenhagen is ranked among the top 15 most expensive cities globally, influencing Denmark’s overall cost index. Taxes and restaurant prices are high, though the country offers robust social support and quality healthcare, which contribute to its overall appeal despite the high living costs.

Denmark balances high expenses with excellent public transport, extensive social benefits, rich cultural life, and sustainable urban planning that enhances overall lifestyle satisfaction.

6. Norway

Norway’s major cities, such as Oslo, Bergen, and Trondheim, have high housing, grocery, and restaurant costs. Residents enjoy excellent public services, safety, and access to stunning natural landscapes. High expenses are offset by strong social systems and a high quality of life.

Norway’s natural scenery and outdoor recreation options complement high wages and strong welfare systems, offering residents health, safety, and well-being despite high living expenses.

5. Singapore

Singapore is a compact city-state with limited property, making housing and car ownership expensive. Public transport is efficient and relatively affordable, and hawker centers offer lower-cost dining. The city attracts global professionals with high salaries but equally high daily living costs.

Singapore combines efficient public services, green spaces, and safety with a cosmopolitan lifestyle, international schools, and job opportunities that attract global professionals despite elevated costs.

4. Bahamas

The Bahamas offers a tropical lifestyle, but life in Nassau and resort areas is costly. High rent and tourist demand drive prices up. Residents enjoy stunning beaches and an appealing climate, but everyday expenses remain elevated.

The Bahamas provides island leisure, abundant watersports, and a relaxed lifestyle, yet residents must navigate high utility costs and imported goods, especially in tourism-heavy areas.

3. Iceland

Iceland relies heavily on imports, which drives up grocery and fuel costs. Reykjavik exceeds New York City in restaurant prices. Despite the high costs, the country is considered one of the safest and happiest in the world, with remarkable landscapes and cultural appeal.

Nonetheless, Iceland blends extraordinary landscapes with a small, welcoming population, excellent healthcare, and low crime, making it desirable even with costly food and utilities.

2. Switzerland

Switzerland hosts some of the world’s priciest cities, including Zurich, Geneva, Basel, and Lausanne. High rents, taxes, and general living costs are balanced by excellent infrastructure, healthcare, and overall quality of life. Residents accept the high expenses in exchange for stability and services.

Switzerland offers a combination of scenic beauty, robust public services, and stable economy, which offsets its high prices and appeals to residents seeking security and quality infrastructure.

1. Cayman Islands

The Cayman Islands rank at the top of the list, attracting wealthy expatriates due to tax advantages and offshore financial services. Housing, food, and other living costs are significantly elevated. Those who can afford it gain access to luxurious amenities, pristine beaches, and stable economic conditions.

Cayman Islands feature exclusive beaches, offshore financial hubs, and high-end amenities, attracting wealthy expats, though everyday essentials and property come at premium costs.

Cost of Living Comparison Table

Country / Territory	Cost of Living Score (Numbeo 2025)
10. Guernsey	70.2
9. Hong Kong	72.2
8. Luxembourg	73.5
7. Denmark	74.1
6. Norway	78.9
5. Singapore	85.3
4. Bahamas	85.4
3. Iceland	94.5
2. Switzerland	106.8
1. Cayman Islands	108.2

Source: CN Traveler

Island nations like the Cayman Islands, Bahamas, and Guernsey tend to be expensive due to limited land, tourism, and import reliance. Scandinavian countries and Switzerland combine high salaries with elevated costs.

Urban financial hubs like Singapore and Hong Kong have high property prices and strong demand. Despite the costs, these locations generally provide high quality of life, excellent safety, and public services.

Conclusion

The world’s most expensive places require careful budgeting and planning for anyone considering relocation. From tropical islands to financial metropolises, high living costs are offset by safety, healthcare, and infrastructure.

Understanding the relative expenses helps expats and travelers make informed choices about lifestyle, accommodation, and daily spending.

For prospective expats, understanding the nuances of each destination is crucial. High-cost locations like the Cayman Islands, Switzerland, and Singapore may offer higher salaries or tax advantages.

Smaller regions such as Guernsey and the Bahamas provide lifestyle perks despite steep day-to-day expenses. Budget planning is essential.

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