What’s the Most Expensive Place to Live in the World?

The cost of living can vary dramatically around the globe and be impacted by a huge number of factors. For expats, it’s essential to understand these differences to plan a move or manage a budget abroad.

Using data from Numbeo, we’ve drilled down to find the most expensive places to live in the world and explored what day-to-day life might cost for those living as expats in these high-cost areas.

In this section, we look at the countries where daily expenses such as groceries, dining, transportation, and utilities, are highest, giving you an insight into what you might pay as an expat outside your home country.

Bermuda ranks as the most expensive place to live in the world by cost of living. This is partly due to its small island economy, which relies heavily on imports. This drives up the price of everyday goods, such as groceries and other consumer products. Utilities, fuel, and services such as dining out are also significantly more expensive due to limited local resources and the high cost of doing business.

For example, according to Numbeo, a meal at an inexpensive restaurant in Bermuda costs around £40.99 – 173% more than the UK average of £15. A litre of milk is £3.90 in Bermuda, which is 213% higher than in the UK. A mobile phone plan in Bermuda is around £109 a month, which is a huge 723% higher than the UK average of £13.34. Some of the only areas in which Bermuda is cheaper than the UK are for a monthly public transport pass and for basic utilities (such as electricity, water, heating etc.).

The cost of living in Bermuda is, on average, 97.3% higher than in the UK. However, at the same time, the average monthly salary is around 111% higher than in the UK, which can help offset some of these elevated costs. For expats, this means that while day-to-day expenses are high, the increased earning potential can make the financial adjustment more manageable. However, it’s still essential to keep a careful budget to maintain your desired lifestyle.

The Cayman Islands is the second most expensive place to live globally, with everyday goods and services significantly higher than in many other countries. This is partly because imports drive up the cost of groceries, consumer products, and utilities, while services such as dining out reflect the high cost of operating in a small island economy.

According to Numbeo, a fresh loaf of white bread costs £4.39 in the Cayman Islands, which is 251% higher than the UK average of £1.25. A mobile phone plan is 513% higher in the Cayman Islands (costing £82 against the UK’s £13.34), and a monthly gym membership is 318% higher (costing £146 compared to £34.87 in the UK). Some of the only prices that are lower in the Cayman Islands than in the UK are around transport – a monthly public transport pass, gasoline, and a mid-size car can all be bought for, on average, cheaper than in the UK.

Overall, the cost of living in the Cayman Islands is 73.6% higher than in the UK, excluding rent. The average salary, however, is around 124% higher than in the UK, which can help expats manage these elevated expenses.

The US Virgin Islands is the third most expensive place to live in the world when it comes to everyday expenses. Many goods, including groceries, consumer products, and utilities, must be imported, which pushes prices well above those in most countries. As with the previous countries, the price of dining out and local services reflect the higher cost of operating in a small island economy.

According to Numbeo, fresh fruit and vegetables are substantially more expensive in the US Virgin Islands than the UK. For example, 1kg of oranges is 280% more expensive (£8.01 vs £2.10), and 1 lettuce is 278% more expensive (£3.35 vs £0.88). Childcare is one area which is cheaper in the US Virgin Islands – the monthly fee is around £906, which is 29% cheaper than the UK cost of £1,278.

On the whole, the cost of living in the US Virgin Islands is 68.2% higher than in the UK, excluding rent. However, the average monthly salary is only around 14% higher than in the UK, meaning expats face a significant gap between income and day-to-day costs. Careful budgeting would be essential for those who relocate here, as higher prices will not be fully offset by local salaries.

Switzerland is well known for its high standard of living, and this is reflected in the cost of everyday goods and services. Groceries, dining, transportation, and utilities are all significantly more expensive than in many other countries. These higher costs are driven by strong local wages, high quality standards, and overall economic stability.

According to Numbeo, a meal out in Switzerland is around 57% more expensive than in the UK, and a fast food meal is around 77% more expensive. Public transport is also, on the whole, more costly in Switzerland than the UK – a one-way ticket is around 32% more expensive and gasoline is nearly 20% more expensive. Basic utilities is one area in which Switzerland is cheaper than the UK – the monthly cost is £205, compared to £240 in the UK.

Overall, the cost of living in Switzerland is 64.7% higher than in the UK, excluding rent. At the same time, the average salary is around 128% higher than in the UK. So, while living in Switzerland does come with a premium, the higher earning potential and strong local infrastructure can make day-to-day life manageable for those moving from abroad.

The Solomon Islands are among the more expensive places to live in terms of everyday expenses, largely due to the need to import most goods. Groceries, consumer products, and utilities all carry higher price tags, while services such as dining out and local amenities also reflect the challenges of operating in a remote island economy.

According to Numbeo, eating out and buying groceries is actually, mostly, cheaper in the Solomon Islands than the UK. However, where the costs differ is for utilities – basic monthly utilities (including heating, electricity, and water) is nearly double the cost at £401 compared to the UK’s £240. Similarly, broadbills are over double the cost, at £75.68 in the Soloman Islands compared to £32.12 in the UK.

Overall, the cost of living in the Solomon Islands is 53.8% higher than in the UK, excluding rent. However, the average salary is around 82% lower than in the UK, which means expats could face a significant disparity between income and daily expenses.

In this section, we look at which countries are most expensive based on rental costs. It can give expats an idea of where housing costs are highest and what they might expect to pay when relocating abroad

Bermuda is the most expensive place in the world for rental costs, with prices far exceeding those in most other countries. This is partly due to limited land availability on the small island which drives up demand for housing. In addition, strict zoning regulations and high construction costs further push rents higher. Expats and locals alike need to compete for a relatively small number of properties, which keeps rental prices exceptionally steep.

According to Numbeo, rent prices in Bermuda are 243.1% higher than in the UK, costing around £2,017 for a one-bedroom city apartment and £4,188 for a three-bedroom place. For expats, this means that accommodation could take up a significant portion of monthly expenses.

The Cayman Islands is the second most expensive place to live in the world for renting property. Like Bermuda, this is due to limited land availability, high demand from both locals and expats, and the cost of construction on the islands, which all contribute to elevated rental prices. Popular areas and expatriate-friendly neighbourhoods often see the highest rents, which reflects the desirability of these locations.

According to Numbeo, rent prices in the Cayman Islands are 140.2% higher than in the UK. It costs around £2,788 for a one-bedroom city apartment and £6,415 for a three-bedroom. For expats, this means housing can be one of the largest monthly expenses, so careful planning is essential when considering a move to the islands.

Singapore is the third most expensive place in the world for renting property, driven by high population density, limited land availability, and strong demand from both locals and expats. Prime locations and central districts command particularly high rents, which refelcts the city’s status as a global business and financial hub.

According to Numbeo, rent prices in Singapore are 116.4% higher than in the UK, costing around £2,225.21 for a one-bedroom city apartment and £4,235 for a three-bedroom apartment.

Hong Kong is known for its notoriously high rental prices, which is driven by a combination of limited land, high population density, and strong demand from both residents and expatriates. Apartment sizes are often smaller than in other major cities, but this does little to reduce the overall cost, as prime locations and central districts command premium rents.

According to Numbeo, rent prices in Hong Kong are 82.3% higher than in the UK. On average, it costs £1,629 for a one-bedroom apartment in the city, and £3,624 for a three-bedroom.

Gibraltar has some of the highest rental costs relative to the UK, driven by its small size, limited housing stock, and high demand from both locals and expats. The territory’s popularity as a financial and business hub adds pressure to the rental market, particularly in central areas.

According to Numbeo, rent prices in Gibraltar are 67.3% higher than in the UK. It costs around £1,628 for a central one-bedroom apartment and around £2,916 for a three-bedroom place.

This combined index looks at both everyday expenses and rental costs, offering a complete picture of how expensive it is to live in different cities around the world. By factoring in groceries, utilities, services, and housing, it provides a more comprehensive comparison for expats considering a move abroad.

When considering both everyday expenses and rent, Bermuda remains the most expensive place in the world for expats. High import costs, limited local resources, and strong demand for housing combine to make both daily living and accommodation exceptionally costly. Salaries are higher than in many countries, but the sheer scale of expenses means careful budgeting is essential for anyone relocating here.

Taking both everyday expenses and rental costs into account, the Cayman Islands is the second most expensive place to live in the world. Imported goods, limited land, and strong demand for housing all contribute to high prices. Higher average salaries can help offset some of the costs, but nevertheless, living here requires financial planning to maintain a comfortable lifestyle.

Switzerland is the third most expensive place to live in the world when both everyday expenses and rent are considered. High-quality goods, services, and utilities, combined with strong demand for housing, contribute to the overall cost. Higher average salaries help offset these expenses, but careful budgeting is still important.

When combining everyday expenses with rental costs, the US Virgin Islands is the fourth most expensive place to live. Imported goods, limited local resources, and higher prices for services contribute to steep day-to-day expenses. With average salaries only slightly higher than in the UK, expats may find that the cost of living outpaces income, so careful financial planning is extremely important.

Considering both everyday expenses and rent, Singapore is the fifth most expensive place to live in the world. High population density, limited land, and strong demand for quality housing push rents upward, whilst the cost of groceries, utilities, and services is also elevated. Expats will need to manage the overall cost of living while enjoying the city’s lifestyle and amenities.

The local purchasing power index measures how far an average salary goes in a particular city, taking into account the cost of goods and services. For expats, this is an important metric: a high cost of living can feel more manageable if local wages are proportionally higher, whilst lower purchasing power means even a good salary might not stretch far. In this section, we look at the countries with the lowest purchasing power to find out which places might feel most expensive in real terms.

Cuba has the lowest local purchasing power in the world, which means that the average salary goes much further behind the price of everyday goods and services. According to Numbeo, local purchasing power in Cuba is 98.0% lower than in the UK, despite the cost of living including rent being 45.8% lower. In addition to this, the average salary is 98% lower in Cuba then in the UK.

This disparity is largely due to low average wages in the country combined with the high relative cost of imported goods and limited availability of certain products. For expats, this means that while daily expenses might be lower than in many Western countries, local incomes do not provide the same financial flexibility.

Syria is the second lowest in the world for local purchasing power, meaning the average salary has very limited ability to cover the cost of goods and services. According to Numbeo, local purchasing power in Syria is 95.1% lower than in the UK, even though the cost of living including rent is 68.3% lower. In addition, the average salary is 98% lower in Syria.

This gap is largely driven by low wages and economic instability, which makes everyday expenses relatively difficult for residents. For expats, this highlights that while prices may be lower in Syria than in many countries, local incomes do not provide much financial flexibility, so it could feel more expensive.

Nigeria has very low local purchasing power, with the average salary covering far less than in many other countries. According to Numbeo, local purchasing power in Nigeria is 92.8% lower than in the UK, even though the cost of living including rent is 52.0% lower. Plus, the average salary is 96% lower in Nigeria.

This difference means that, for residents, everyday items can feel relatively expensive despite lower prices. Factors such as import reliance, inflation, and the availability of goods contribute to this perception, which could make day-to-day life feel costlier than the numbers alone might suggest.

Cameroon has among the lowest local purchasing power globally, with wages far below those in the UK. Numbeo reports that local purchasing power in Cameroon is 90.9% lower and the average salary is 95% lower, while the cost of living including rent is 44.4% lower.

As a result, everyday essentials can seem disproportionately expensive relative to local incomes. Limited availability of imported goods, inflationary pressures, and regional economic factors all contribute to this gap, which shapes the way residents experience the cost of living.

Ethiopia ranks low for local purchasing power, with average salaries covering far less than in the UK. According to Numbeo, local purchasing power in Ethiopia is 89.8% lower, even though the cost of living including rent is 40.8% lower. In addition, the average salary in Ethiopia is 94% lower than in the UK.

This means that, despite relatively modest prices for everyday goods, many residents could it challenging to manage routine expenses. Contributing factors include limited access to imported products, inflation, and broader economic constraints, which together make basic living costs feel more substantial relative to income.

It’s essential to understand the true cost of living when you’re considering a relocation. At Expatriate Group, we help expats navigate these financial realities by offering tailored international health insurance, so you can focus on settling into your new home knowing your healthcare needs are taken care of. Explore our plans today to make sure your move abroad is as smooth and secure as possible.