Top 10 Most Expensive Country In The World In 2025

Switzerland tops the list with a Cost of Living Index of 130-140, while rent in Hong Kong exceeds HKD 30,000 monthly. Here are the top 10 most expensive country in the world in 2025 and what makes them worth the hefty price tag!

According to the latest Numbeo Cost of Living Index 2025, The World Bank, and Forbes, some countries stand out as the most expensive places to live in the world. The Cost of Living Index measures essential expenses such as housing, transportation, healthcare, and daily necessities. Countries with higher scores indicate a significantly higher cost of living compared to global averages.

For instance, Switzerland, which consistently tops the list, has a Cost of Living Index of 130-140, while Norway and Iceland fall within 110-140. Housing costs in some of these nations can reach up to 30-40% of an average household's income. In Singapore, rental prices range from SGD 2,000-4,000 per month, while Hong Kong sees rent levels between HKD 15,000-30,000 per month. Even groceries and utilities are costly, with Iceland’s grocery expenses reaching ISK 60,000-80,000 per month and Denmark’s averaging DKK 3,000-5,000 per month.

Choosing a country to live in or visit is a significant decision, often influenced by factors such as quality of life, healthcare, education, and economic stability. However, one crucial aspect that cannot be overlooked is the cost of living. For many, the financial implications of residing in or travelling to a particular country can be a determining factor.

Despite these high costs, these nations continue to attract residents and tourists due to their high wages, excellent social services, and advanced infrastructure. Countries like Luxembourg, Sweden, and Australia offer strong social security systems and high employment rates, making them appealing despite their high costs. 

This article explores the most expensive country in the world, shedding light on what makes them costly and why they remain desirable destinations despite their high living expenses.

What makes a country expensive?

The cost of living in a country is determined by various factors, including housing, transportation, healthcare, education, and daily necessities such as food and utilities. Countries with high living costs often provide exceptional quality of life, robust infrastructure, and advanced social services. However, these benefits come at a significant price, making them some of the most expensive places to live globally.

1. Housing costs: One of the biggest contributors to a high cost of living is housing. In cities such as Zurich, Hong Kong, and Singapore, limited land availability and high demand push property and rental prices to extreme levels. For example:

• The average monthly rent for a one-bedroom apartment in Zurich is CHF 2,500-3,500.
• In Hong Kong, renting a small apartment costs HKD 15,000-30,000 per month.
• In New York City, rent for a one-bedroom apartment averages USD 3,000-4,500 per month.

2. Transportation expenses: Public and private transportation costs also play a significant role in living expenses. Countries with well-developed public transport systems like Switzerland and Japan offer convenience but at a high cost.

• A monthly transport pass in London costs GBP 150-200.
• In Oslo, Norway, public transport passes range between NOK 800-1,200.
• Owning a car in Singapore is costly due to Certificate of Entitlement (COE) fees, pushing car ownership costs to over SGD 100,000.

3. Healthcare expenses: Countries with advanced healthcare systems tend to have high medical expenses. For instance:

• In Switzerland, mandatory health insurance costs CHF 300-500 per month.
• The United States has one of the highest healthcare costs, with the average annual insurance premium exceeding USD 7,000 per individual.
• Public healthcare in Norway is subsidised, but private insurance costs NOK 500-1,000 per month.

4. Education costs: Education also contributes to the high cost of living, especially in countries with world-renowned universities. Examples include:

• Tuition fees in the US range between USD 30,000-60,000 per year for private universities.
• International schools in Switzerland charge between CHF 25,000-40,000 per year.
• Higher education in Australia can cost between AUD 20,000-50,000 per year.

5. Food and daily necessities: Food prices in expensive countries are significantly higher due to import taxes, high labour costs, and limited local production.

• Groceries in Iceland cost between ISK 60,000-80,000 per month due to heavy reliance on imports.
• Dining out in Norway is expensive, with a meal at a mid-range restaurant costing NOK 250-500 per person.
• Singapore’s food expenses range between SGD 500-800 per month, heavily influenced by imports.

6. Taxes and social services: High taxation often correlates with expensive living conditions. Countries such as Sweden, Denmark, and the Netherlands have high-income taxes, which, while funding strong social services, reduce disposable income.

• Sweden’s top income tax rate reaches 57%.
• Denmark has an average income tax rate of 45-55%.
• The Netherlands imposes a VAT of 21% on goods and services.

Top 10 most expensive country in the world (2025)

Based on data from sources such as The World Bank, Forbes, and Numbeo, the following countries are ranked as the most expensive in the world in 2025. These rankings are determined by the Cost of Living Index, which considers essential expenses and lifestyle costs.

1. Switzerland

Switzerland consistently tops the list of the most expensive country in the world. Known for its breathtaking landscapes, political stability, and high standard of living, Switzerland offers world-class healthcare, education, and infrastructure. However, these benefits come with a hefty price tag.

Switzerland has some of the highest housing prices in the world, particularly in cities like Zurich, Geneva, and Basel. The cost of groceries and dining out is also steep, driven by high wages and import expenses. Additionally, healthcare is mandatory, and residents must bear significant insurance costs.

• Average Rent: CHF 2,000-3,000 per month (varies by city)
• Cost of Groceries: CHF 800-1,000 monthly for a family
• Transportation Costs: CHF 70-100 for a monthly public transport pass
• Healthcare Expenses: CHF 300-500 monthly for mandatory health insurance
• Cost of Living Index: 130-140

2. Norway

Norway is renowned for its stunning natural beauty, high wages, and excellent social welfare system. However, its high taxes and cost of goods and services make it one of the most expensive countries globally.

Norway is an expensive country due to high taxation, which increases the cost of goods and services. Additionally, high wages lead to increased costs for labor-intensive services. Expenses for utilities, transportation, and entertainment are also notably high, further contributing to the overall cost of living.

• Average Rent: NOK 10,000-15,000 per month
• Cost of Groceries: NOK 5,000-7,000 monthly
• Transportation Costs: NOK 700-1,000 for a monthly public transport pass
• Healthcare Expenses: Public healthcare is subsidised, but private insurance costs NOK 500-1,000 monthly
• Cost of Living Index: 110-120

3. Iceland

Iceland’s unique landscapes, including glaciers and waterfalls, make it a popular tourist destination. However, its remote location and reliance on imports contribute to its high cost of living.

The main cost drivers in Iceland include the high proportion of imported food and goods, which raises their prices. Additionally, a limited housing supply leads to expensive rental costs. Despite the country's reliance on geothermal power, energy costs remain high, contributing to the overall cost of living.

• Average Rent: ISK 180,000-250,000 per month
• Cost of Groceries: ISK 60,000-80,000 monthly
• Transportation Costs: ISK 12,000-15,000 for a monthly public transport pass
• Healthcare Expenses: Public healthcare is mostly free, but private insurance costs ISK 15,000-20,000 monthly
• Cost of Living Index: 130-140

4. Denmark

Denmark is known for its strong welfare system, high living standards, and excellent work-life balance. However, these benefits come with high taxes and living expenses.

Denmark is an expensive country due to its high housing and rental costs, which are among the highest in Europe. Additionally, the high tax rate increases the overall cost of goods and services. Food and groceries are also notably expensive compared to other European nations, further contributing to the high cost of living.

• Average Rent: DKK 8,000-12,000 per month
• Cost of Groceries: DKK 3,000-5,000 monthly
• Transportation Costs: DKK 400-700 for a monthly public transport pass
• Healthcare Expenses: Public healthcare is free, but private insurance costs DKK 500-1,000 monthly
• Cost of Living Index: 120-130

5. Singapore

Singapore is a global financial hub with world-class infrastructure, education, and healthcare. However, its limited land area and high demand for housing make it one of the most expensive countries in Asia.

High living costs are driven by several factors, including land scarcity, which makes housing expensive. Additionally, high taxation on cars and fuel significantly raises transportation expenses. The reliance on imported food further contributes to high grocery prices, adding to the overall cost of living.

• Average Rent: SGD 2,000-4,000 per month
• Cost of Groceries: SGD 500-800 monthly
• Transportation Costs: SGD 90-120 for a monthly public transport pass
• Healthcare Expenses: Public healthcare is subsidised, but private insurance costs SGD 100-200 monthly
• Cost of Living Index: 90-100

6. Luxembourg

Luxembourg is one of the wealthiest countries in the world, with a high standard of living and excellent social services. However, its small size and high demand for housing contribute to its high living costs.

The high cost of living is influenced by several factors, including expensive housing driven by strong demand from expatriates. Food and restaurant prices are above the European average, adding to daily expenses. While public transport is free, other utilities remain costly, contributing to the overall high living expenses.

• Average Rent: EUR 1,500-2,500 per month
• Cost of Groceries: EUR 400-600 monthly
• Transportation Costs: EUR 40-80 for a monthly public transport pass
• Healthcare Expenses: Public healthcare is well-covered, but private insurance costs EUR 150-300 monthly
• Cost of Living Index: 120-130

7. Hong Kong

Hong Kong is a bustling metropolis known for its high housing costs and vibrant economy. Its limited land area and high population density make it one of the most expensive cities in Asia.

Hong Kong is expensive primarily due to high rent, which is driven by land scarcity. The cost of imported food also contributes to the overall expense, as many items are priced higher. Additionally, premium healthcare services further raise living costs in the city.

• Average Rent: HKD 15,000-30,000 per month
• Cost of Groceries: HKD 3,000-5,000 monthly
• Transportation Costs: HKD 500-800 for a monthly public transport pass
• Healthcare Expenses: Public healthcare is subsidised, but private insurance costs HKD 1,000-2,000 monthly
• Cost of Living Index: 130-140

8. Australia

Australia offers a high quality of life, with excellent healthcare, education, and infrastructure. However, its high living costs, particularly in cities like Sydney and Melbourne, make it one of the most expensive country in the world.

The high cost of living in Australia is driven by several factors, including strong demand for real estate in major cities, which drives up property prices. Expensive healthcare and private insurance also contribute to the overall cost, along with the high costs of fuel and vehicle maintenance, which add to daily living expenses.

• Average Rent: AUD 2,000-3,500 per month
• Cost of Groceries: AUD 600-800 monthly
• Transportation Costs: AUD 120-200 for a monthly public transport pass
• Healthcare Expenses: Public healthcare is subsidised, but private insurance costs AUD 100-300 monthly
• Cost of Living Index: 100-110

9. Sweden

Sweden is known for its high taxes, robust social welfare system, and excellent quality of life. However, its high living costs make it one of the most expensive countries in Europe.

Sweden is expensive due to high taxation, with income taxes reaching up to 57% to fund public services, which also raises everyday expenses. Housing costs in cities like Stockholm, Gothenburg, and Malmö are high due to limited supply and high demand, especially from expatriates and skilled workers. 

Grocery prices are also higher, partly due to imports and high VAT rates. Additionally, long winters increase heating and electricity costs, and high fuel prices, driven by environmental taxes, make private transportation costly.

• Average Rent: SEK 8,000-12,000 per month
• Cost of Groceries: SEK 3,000-5,000 monthly
• Transportation Costs: SEK 800-1,200 for a monthly public transport pass
• Healthcare Expenses: Public healthcare is subsidised, but private insurance costs SEK 300-700 monthly
• Cost of Living Index: 110-120

10. Netherlands

The Netherlands offers a high quality of life, with excellent healthcare, education, and infrastructure. However, its high taxes and housing costs make it one of the most expensive countries in Europe.

The Netherlands is expensive due to a significant housing shortage, particularly in cities like Amsterdam, where rental prices are among the highest in Europe. High taxes, including income tax rates up to 49.5% and a 21% VAT, reduce disposable income and increase daily expenses. 

Although the country has an extensive public transport network, fares are relatively high, and fuel prices are expensive due to environmental taxes. Additionally, while public healthcare is well-covered, mandatory health insurance and private insurance costs are significant.

• Average Rent: EUR 1,200-2,000 per month
• Cost of Groceries: EUR 300-500 monthly
• Transportation Costs: EUR 50-100 for a monthly public transport pass
• Healthcare Expenses: Public healthcare is well-covered, but private insurance costs EUR 100-200 monthly
• Cost of Living Index: 110-120

Final thoughts 

The most expensive country in the world offer exceptional quality of life, advanced infrastructure, and robust social services. However, these benefits come at a cost, making them challenging for many to afford. Whether you are considering relocating or simply visiting, understanding the cost of living in these countries is essential for making informed decisions. While the financial burden may be significant, the rewards of living in these nations often outweigh the costs, making them some of the most desirable places in the world.

Pallavi Singal

Pallavi Singal is the Vice President of Content at ztudium, where she leads innovative content strategies and oversees the development of high-impact editorial initiatives. With a strong background in digital media and a passion for storytelling, Pallavi plays a pivotal role in scaling the content operations for ztudium’s platforms, including Businessabc, Citiesabc, and IntelligentHQ, Wisdomia.ai, MStores, and many others. Her expertise spans content creation, SEO, and digital marketing, driving engagement and growth across multiple channels. Pallavi’s work is characterised by a keen insight into emerging trends in business, technologies like AI, blockchain, metaverse and others, and society, making her a trusted voice in the industry.