Depending upon where in the United States you live, it's one of the more expensive countries to live in. Yet 50 other countries are also considered the most expensive in the world, though many of them have costs that are significantly lower than the U.S.
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Even if a country has cheap rent and bargain prices on food, it could be pricey in other areas. High taxes, low wages and above-average transportation costs can all contribute to a high cost of living for residents.
GOBankingRates crunched numbers from around the world to find the places where you might struggle to cover the costs of daily living. The study also included the local purchasing power for each country, which shows how much your dollar can buy. Generally, the higher the overall cost of living and the lower the purchasing power, the higher the country ranked on this list of the most expensive places to live.
1. Singapore
Cost-of-living index: 85.9
Local purchasing power: 95.6
Rent in Singapore is $3,016.21 per month, but its cost-of-living is only slightly more than 14% higher than the U.S. average.
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2. Switzerland
Cost-of-living index: 114.2
Local purchasing power: 118.7
Switzerland has one of the highest costs of living in the world. Rent is only $1,633.64 but worldwide income tax can run up to 40%. You're even taxed for living in your own home. However, Swiss citizens at least enjoy purchasing power that's 12.1% higher compared to New York.
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3. Iceland
Cost-of-living index: 83.3
Local purchasing power: 90.1
Iceland's high cost of living isn't due to housing. You can rent a home for $1,438.35. However, it's food that's pricey -- you'll spend 20% more on groceries here than in the U.S.
4. Ireland
Cost-of-living index: 70.5
Local purchasing power: 82.6
You might not expect Ireland to be in the top five most expensive countries, but it is. Here, while the cost of groceries is about 15% lower than the U.S. it has nearly 10% less purchasing power than the U.S.
5. Malta
Cost-of-living index: 61.4
Local purchasing power: 50.6
Malta has lower prices on just about everything as compared to the U.S., including an 11% cheaper cost of living.
6. Norway
Cost-of-living index: 88.6
Local purchasing power: 95
While rent is on the lower side in Norway, averaging $941.36 per month, groceries are almost 10% more expensive than the U.S.
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7. Lebanon
Cost-of-living index: 65.8
Local purchasing power: 22.7
Lebanon's cost of living is actually only 6% cheaper than the U.S. over all, but its local purchasing power is less than 93% as much as what you'd have in the states. Rent is lower than many of the countries on the list, however, at an average of $558.74 per month.
8. Australia
Cost-of-living index: 75.3
Local purchasing power: 110.9
Although Australia is one of the most expensive countries to live in, residents enjoy some of the highest purchasing power in the world. The country ranks No. 6 in this regard, however its citizens have 5% less purchasing power than the U.S.
9. Israel
Cost-of-living index: 76.4
Local purchasing power: 80.5
Israel's cost of living is almost 4% higher than the U.S. average. Rent here is $1,003.08 per month, and groceries are about 8% lower than in the U.S.
10. New Zealand
Cost-of-living index: 72.9
Local purchasing power: 93
While New Zealand's cost of living is almost exactly the same as the U.S, New Zealanders pay about 2%less in groceries, and almost 2% more in healthcare costs.
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11. Luxembourg
Cost-of-living index: 73.2
Local purchasing power: 127.1
Luxembourg's cost of living is almost exactly the same as the U.S, groceries are 4% cheaper.
12. Cyprus
Cost-of-living index: 55.9
Local purchasing power: 54.8
Although Cyprus has a high cost of living, it's less pricey than the U.S. as a whole. The average rent is only $862.45 per month and groceries are almost 26% lower than the U.S.
13. Trinidad and Tobago
Cost-of-living index: 53.3
Local purchasing power: 38.9
With rent costs that are among the lowest on this list, and groceries about 20% lower, it's easy to live the good life in Trinidad and Tobago.
14. Venezuela
Cost-of-living index: 41.6
Local purchasing power: 12.4
Venezuela is another country where the cost of living is much lower than the U.S., but purchasing power is extremely low. Groceries, rent and healthcare costs are all significantly lower here, though it is still considered an expensive country overall.
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15. Canada
Cost-of-living index: 66.1
Local purchasing power: 102.1
Our northern neighbor, Canada enjoys a cost of living that's comparable to the U.S. as a whole. However your purchasing power is a lot weaker in Canada, at about 13% less than the U.S. Canadians pay only 1,123.66 in rent, however, and a few percentage points more for healthcare.
16. Nigeria
Cost-of-living index: 30.9
Local purchasing power: 8.4
Nigeria may be on the list of most expensive countries, but in contrast to the U.S. it's quite a bit cheaper. Its cost of living is almost 42% less than the U.S. but its purchasing power is remarkably low. Here Nigerians pay about $758.57 in rent per month, and healthcare costs are about 20% less than the U.S.
17. Denmark
Cost-of-living index: 78.6
Local purchasing power: 105
Although this country is marginally cheaper to live in, it's still about 6% more expensive than the U.S. in overall cost of living. While residents here enjoy more purchasing power than in other countries, it's still lower than the U.S.
18. Uruguay
Cost-of-living index: 59.9
Local purchasing power: 38.4
Although Uruguay makes the list of the most expensive countries to live in, its cost of living is still a good 12.5% lower than in the U.S. Healthcare, grocery and rent are also less expensive here, though, again, it has a lower purchasing power.
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19. Panama
Cost-of-living index: 48.2
Local purchasing power: 36.4
Panama's cost of living is 24% lower than the U.S. Healthcare and grocery costs are still cheaper than the U.S.
20. Greece
Cost-of-living index: 54.6
Local purchasing power: 41.9
Grecian living is about 17.8% less expensive than U.S. living. Rent is almost laughably cheaper, at an average of $419.37 per month- which is good because the 44% personal income tax rate in Greece will take a large bite from budgets.
21. Netherlands
Cost-of-living index: 68.6
Local purchasing power: 107.8
The Netherlands is only less than 4% more expensive than the U.S. overall, but don't fool yourself -- it costs far more to live in the Netherlands than in the U.S. in general. It's also not very tax-friendly, with personal income tax rates of up to 49.5%.
22. Italy
Cost-of-living index: 61.3
Local purchasing power: 66.5
Italy has a high cost of living that's less than 11% cheaper than the U.S. in general and ranks in the top 20 worldwide. Healthcare and grocery costs are still cheaper than the U.S., however.
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23. France
Cost-of-living index: 68.7
Local purchasing power: 86.2
France has a high cost of living, and is about 3% less expensive compared to life in the U.S. You save the most on rent, which is more affordable, though groceries and healthcare are higher.
24. South Korea
Cost-of-living index: 70.4
Local purchasing power: 85.85
Life in South Korea is pricier than in the U.S. as a whole, but it's still 2% cheaper compared to United States. Rent in South Korea is also particularly inexpensive, at $417.17 per month on average.
25. Dominican Republic
Cost-of-living index: 41.8
Local purchasing power: 23
In the Dominican Republic, though it's considered a more expensive country, expenses here are still quite a bit lower than the U.S.
26. Costa Rica
Cost-of-living index: 48.8
Local purchasing power: 41.5
Costa Rica is an expensive country to live in when you compare its cost of living to its low purchasing power. Groceries, healthcare and rent are all cheaper than the U.S., as well, however.
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27. Sweden
Cost-of-living index: 62.9
Local purchasing power: 101.2
Sweden's high cost of living is tempered with a solid purchasing power. However, this country also has a high tax rate, with personal income tax hovering around 32%.
28. Qatar
Cost-of-living index: 59.5
Local purchasing power: 123.6
It's no secret that Qatar has a high cost of living. Rent is an average of $1,429.05 per month, as well. The upside is grocery costs at about 24% lower than the U.S.
29. Belgium
Cost-of-living index: 65.6
Local purchasing power: 94.5
Maybe it's all that chocolate they make, but it's a tiny bit more expensive to live in Belgium than in the U.S. overall. However, Belgians pay about 6% more in healthcare costs.
30. Austria
Cost-of-living index: 66
Local purchasing power: 91.2
A 55% income tax rate is just one factor that makes Austria an expensive country to live in. However, softening the blow is a local purchasing power that's just 6% less than that of the U.S. and affordable rent.
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31. Finland
Cost-of-living index: 67.5
Local purchasing power: 98.8
Even though Finland is one of the world's most expensive countries to live in, rent prices are relatively low, averaging $799.76 per month. Groceries run about 13% cheaper, though healthcare is about 8.5% higher.
32. United Arab Emirates
Cost-of-living index: 60.3
Local purchasing power: 123.4
The UAE is one of the most expensive countries, yet it costs almost 12% less to live there compared to the U.S. average. Other advantages come through in a grocery cost that is about 25% less than the U.S. and lack of a personal income tax.
33. United Kingdom
Cost-of-living index: 61.5
Local purchasing power: 98.9
Overall cost of living in the U.K. is 11% cheaper than the U.S., and people in the UK pay about 24% less in groceries than the U.S. Britons pay more taxes, though, with a high end of 45% for the personal income tax rate.
34. Albania
Cost-of-living index: 37.4
Local purchasing power: 30.1
Rent costs are significantly cheaper in Albania than in the U.S., as are grocery and healthcare costs. However, the low purchasing power nullifies some of those costs.
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35. Iran
Cost-of-living index: 35.2
Local purchasing power: 21.1
The cost of living in Iran is significantly cheaper on the whole than in the U.S. for just about every category, but the country has very low purchasing power.
36. Slovenia
Cost-of-living index: 50.8
Local purchasing power: 61.7
Living in Slovenia might look attractive at first glance thanks to its cost of living, which is 21% lower than in the U.S. However, residents pay a 50% personal income tax.
37. Chile
Cost-of-living index: 44.1
Local purchasing power: 37.3
Chile might not seem to have a high cost of living, as it's significantly cheaper than the U.S. However, be prepared to join the ranks of starving artists in the "land of poets" -- wages are low, and purchasing power is, too.
38. Belarus
Cost-of-living index: 35.4
Local purchasing power: 36.4
Belarus has a significantly cheaper cost of living than the U.S. Groceries and health care will cost you less, too.
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39. Germany
Cost-of-living index: 62.9
Local purchasing power: 107.06
It costs about 10% less to live in Germany than in the U.S.. Germany also delivers 3% more purchasing power. However, its average 37.7% personal tax rate makes Germany one of the more heavily taxed countries in the world.
40. Latvia
Cost-of-living index: 50.9
Local purchasing power: 52.8
It costs about 21% less to live in Latvia than in the U.S..Groceries and healthcare are cheaper, as well.
41. Slovakia
Cost-of-living index: 44.2
Local purchasing power: 56.3
Slovakia's cost of living is lower than the U.S. but so is its purchasing power. However, in most other categories, groceries, rent and healthcare, it's still cheaper than the U.S.
42. Serbia
Cost-of-living index: 37.2
Local purchasing power: 39.6
Serbia is another country where the cost of living is much lower than the U.S., but purchasing power is extremely low. Groceries, rent and healthcare costs are all significantly lower here, as well.
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43. Portugal
Cost-of-living index: 45.3
Local purchasing power: 51.7
A cost of living that's 27% lower than the U.S. might make Portugal look like a sweet deal. However, with a 48% income tax rate on the high end, and you'll soon discover that Portugal is one of the most expensive countries to live in.
44. Japan
Cost-of-living index: 64.6
Local purchasing power: 100.4
Japan's overall cost of living is almost 8% lower than the U.S., and Japan also offers rents that are cheaper than what you'd pay in the states. Expect to pay almost 5% less for groceries and around 12% more for healthcare.
45. Estonia
Cost-of-living index: 54.8
Local purchasing power: 61.4
The cost of living in Estonia is significantly cheaper on the whole than in the U.S. for just about every category, but the country has very low purchasing power.
46. Jordan
Cost-of-living index: 46.8
Local purchasing power: 38
Despite having a cost of living that's considerably cheaper than the U.S., living in Jordan can still be a challenge due to the low purchasing power.
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47. Jordan
Cost-of-living index: 46.8
Local purchasing power: 38
Despite having a cost of living that's considerably cheaper than the U.S.,living in Jordan can still be a challenge due to the low purchasing power.
48. Hungary
Cost-of-living index: 39.2
Local purchasing power: 53.1
Hungary has a lower cost of living compared to the United States. It's an affordable destination to live in, and you can save a lot on daily expenses like groceries and healthcare.
49. Guatemala
Cost-of-living index: 40.2
Local purchasing power: 29.7
Guatemala's cost of living is relatively affordable compared to the US, with a 30% lower overall cost. However, the purchasing power is not as high, 86% less than the US. Despite this, the rent is lower than most countries on the list, with an average of $432.61 per month.
50. Russia
Cost-of-living index: 40.8
Local purchasing power: 40.9
The cost of living in Russia is less than in the U.S. in every single category. Housing is particularly inexpensive, with the average one-bedroom apartment costing just $354.19 a month.
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Jodi Thornton-O'Connell contributed to the reporting for this article.
Methodology: For this study, GOBankingRates selected measures of affordability from Numbeo. GOBankingRates began by analyzing 131 countries' (1) overall cost of living index score for each country, (2) local purchasing power, which measures the local buying power of typical incomes, (3) groceries cost of living index score, and (4) healthcare quality index score. Then, by analyzing 422 international cities for which complete data was available, GOBankingRates found each country's (6) average monthly rent. To calculate this figure, GOBankingRates first created monthly rent estimates for all countries by averaging the mean costs of (a) a one-bedroom residence in the city center and (b) one-bedroom residence outside the city center. Estimates for each country were then created by averaging these rent figures. All data used for these five factors was sourced from Numbeo. Each factor was then scored, with overall cost of living index and average rent being weight double, countries were ranked on their cumulative score. Only the countries with data available for all factors were considered in the final ranking. All data was collected on and up to date as of July 13, 2022.
This article originally appeared on GOBankingRates.com: The World’s Most Expensive Countries To Live In
