The cost of living varies significantly across the world, with some countries demanding exceptionally high expenses for housing, food, transportation, and daily necessities. Factors such as strong economies, high wages, luxury lifestyles, and import dependencies contribute to these elevated costs. In this blog, we explore the 17 most expensive countries to live in 2025, highlighting their average salaries, living expenses, and what makes them costly yet desirable places to reside.
Most Expensive Countries in 2025
1. Switzerland
Switzerland has long been ranked as one of the most expensive countries to live in, and for good reason. With a GDP of around $824 billion (2024), this wealthy European nation boasts one of the highest standards of living globally. The strong Swiss Franc (CHF) contributes to high wages but also drives up the cost of living. Major cities like Zurich and Geneva are home to expensive real estate, consumer goods, and luxury services.
- Average Monthly Salary: Around $6,200
- Average Daily Living Cost: $95 – $120
- Average Living Cost: $3,000 – $4,000 per month (for a single person)
2. Norway
Norway, with a GDP of approximately $515 billion, combines high wages with high taxes to fund its extensive welfare system. The cost of living in Norway is elevated by steep import costs, a strong Norwegian Krone (NOK), and high social service costs. Cities like Oslo and Bergen, which are popular expat destinations, feature expensive housing, transportation, and services.
- Average Monthly Salary: Around $5,800
- Average Daily Living Cost: $80 – $100
- Average Living Cost: $2,500 – $3,500 per month
3. Iceland
Iceland’s relatively small population and reliance on imports drive up costs significantly. With a GDP of about $27 billion, the cost of living in Reykjavik is especially high due to limited competition, high energy prices, and reliance on goods that are not locally produced. Despite being an island nation, its economy is strong, especially due to tourism.
- Average Monthly Salary: Around $3,800
- Average Daily Living Cost: $70 – $90
- Average Living Cost: $2,200 – $3,000 per month
4. Singapore
As one of Asia’s most economically successful countries, Singapore has a GDP of about $500 billion. Its limited land availability, high housing costs, and car ownership taxes (COE) make it one of the priciest places to live. However, the city-state offers world-class healthcare, education, and infrastructure, making it a highly desirable but expensive place to live.
- Average Monthly Salary: Around $5,500
- Average Daily Living Cost: $60 – $90
- Average Living Cost: $2,500 – $3,500 per month
5. Luxembourg
With a GDP of approximately $90 billion, Luxembourg is a small but affluent country. Its wealthy economy, high wages, and expensive real estate—particularly in Luxembourg City—make it one of the most expensive places to live. The country has one of the highest GDPs per capita in the world, alongside a strong financial sector that attracts high-income expats.
- Average Monthly Salary: Around $6,000
- Average Daily Living Cost: $80 – $100
- Average Living Cost: $2,800 – $3,800 per month
6. Denmark
Denmark’s GDP stands at around $405 billion, supported by a robust economy that combines high wages with high living costs. Cities like Copenhagen are known for their expensive real estate markets and costly services, particularly with the added VAT (25%) and high taxation that fund the country’s extensive social programs. Housing costs, in particular, are quite steep.
- Average Monthly Salary: Around $5,500
- Average Daily Living Cost: $70 – $100
- Average Living Cost: $2,700 – $3,600 per month
7. Israel
Israel’s GDP stands at about $530 billion, with its economic growth driven by technology, military, and service sectors. Tel Aviv, a bustling tech hub, drives up living costs, particularly in housing. High-tech salaries are significant, but the costs associated with security, imports, and housing shortages add considerable financial strain.
- Average Monthly Salary: Around $3,900
- Average Daily Living Cost: $60 – $85
- Average Living Cost: $2,200 – $3,200 per month
8. South Korea
South Korea, with a GDP of $1.8 trillion, has one of the most vibrant economies in Asia, thanks to its tech-driven industry. Seoul, the capital, has a dense urban population, making housing costs high. The cost of living is elevated by education expenses, housing, and transportation, but high salaries and a booming tech industry offer compensation.
- Average Monthly Salary: Around $3,500
- Average Daily Living Cost: $50 – $80
- Average Living Cost: $1,800 – $2,800 per month
9. Japan
Japan, with a GDP of approximately $5 trillion, remains one of the largest economies globally. Major cities like Tokyo and Osaka have elevated costs, especially in housing and fresh food. Despite an aging population that places pressure on services, Japan continues to maintain a high standard of living.
- Average Monthly Salary: Around $4,000
- Average Daily Living Cost: $60 – $90
- Average Living Cost: $2,000 – $3,000 per month
10. Bahamas
With a GDP of around $13 billion, the Bahamas has a strong tourism-driven economy that influences its high cost of living. Imported goods, expensive luxury services, and reliance on tourism make daily expenses much higher than most other Caribbean countries.
- Average Monthly Salary: Around $3,000
- Average Daily Living Cost: $80 – $120
- Average Living Cost: $2,500 – $3,500 per month
11. Australia
Australia, with a GDP of about $1.5 trillion, is known for its high standard of living. Sydney and Melbourne are particularly known for their expensive housing markets and elevated utility costs. Remote geography and high import costs contribute to the overall high cost of living.
- Average Monthly Salary: Around $4,500
- Average Daily Living Cost: $70 – $100
- Average Living Cost: $2,200 – $3,500 per month
12. New Zealand
New Zealand, with a GDP of around $250 billion, offers a high quality of life but also faces housing shortages and high transportation and grocery costs. Cities like Auckland and Wellington experience steep real estate prices, which significantly raise living costs.
- Average Monthly Salary: Around $4,000
- Average Daily Living Cost: $60 – $90
- Average Living Cost: $2,200 – $3,000 per month
13. Ireland
With a GDP of about $650 billion, Ireland’s economy has seen significant growth, particularly in the tech sector. Dublin’s rapid growth has led to increased housing demand and a rise in living expenses, including high VAT and energy costs.
- Average Monthly Salary: Around $4,500
- Average Daily Living Cost: $70 – $90
- Average Living Cost: $2,500 – $3,500 per month
14. Netherlands
The Netherlands has a GDP of approximately $900 billion. The cost of living in cities like Amsterdam is increased due to the housing crunch, with rent prices soaring. The government’s eco-friendly policies, such as high energy taxes, further contribute to higher living expenses.
- Average Monthly Salary: Around $4,700
- Average Daily Living Cost: $65 – $85
- Average Living Cost: $2,500 – $3,500 per month
15. France
France’s GDP of around $2.8 trillion reflects its diverse and large economy. Paris, the capital, continues to be an expensive place to live, with high costs in housing, dining, and luxury goods. Social charges and high taxes also contribute to the overall expense of living.
- Average Monthly Salary: Around $3,800
- Average Daily Living Cost: $60 – $90
- Average Living Cost: $2,000 – $3,200 per month
16. United Arab Emirates (UAE)
The UAE, particularly Dubai and Abu Dhabi, has become a luxury lifestyle hub with high costs associated with housing, transportation, and imported goods. Despite tax-free salaries, the cost of living can be significant for expats, especially in terms of rent and utilities.
- Average Monthly Salary: Around $4,500
- Average Daily Living Cost: $80 – $120
- Average Living Cost: $2,500 – $3,500 per month
17. Sweden
Sweden, with a GDP of around $650 billion, is known for its high-quality welfare system funded by high taxes. While Stockholm offers a high standard of living, housing shortages, rising energy prices, and transportation costs increase expenses.
- Average Monthly Salary: Around $4,200
- Average Daily Living Cost: $65 – $90
- Average Living Cost: $2,500 – $3,300 per month
Final Words
Living in these expensive countries comes with both advantages and challenges. While high wages, excellent infrastructure, and strong economies make them attractive places to reside, the elevated costs of housing, goods, and services can be a significant financial burden. Whether you’re considering relocation, planning a visit, or simply curious about global living costs, understanding these factors can help you make informed decisions.
Ultimately, the cost of living is just one aspect—quality of life, career opportunities, and personal preferences play an equally important role in choosing the right place to live.
