The Cost of Living: Europe’s Most Expensive Cities in 2025

Europe’s Pricey Patchwork: The Expat Cost of Living in 2025

For decades, Europe has drawn expatriates in search of prosperity, culture and political stability. Yet in 2025, that seductive promise comes at a dizzying price for the globally mobile professional. According to Xpatulator’s latest quarterly survey—benchmarking 780 locations globally with New York City set at 100—Europe hosts a patchwork of cities with cost of living indexes that make even the world’s most exclusive enclaves blush.

Monaco: Where Luxury Knows No Limits

Perched atop the European league table, Monaco reigns supreme with a stratospheric index of 140.6. This glittering tax haven, with its yachts and high-rollers, outstrips not only its continental peers but most of the world. Monaco’s astronomical cost is driven not just by its postage-stamp size and staggering property prices, but by the relentless pursuit of luxury: everything from groceries to services is inflated by the tastes of its super-rich denizens. For most, the cost is frankly absurd—this is a city-state designed for the 0.01%, not the typical expat.

Swiss Precision, Swiss Prices

Zurich (118.0) and Geneva (109.9) follow, their indexes underlining Switzerland’s reputation for both order and opulence. Swiss cities consistently top the cost tables thanks to a toxic cocktail of sky-high rents, robust wages, and inflexible local markets. While quality of life is superb—clean streets, world-class infrastructure and a sense of civic order—there is no escaping the sting of everyday essentials. A decent flat in central Zurich costs as much as a London penthouse; a pint, an arm and a leg. Geneva’s international community—fuelled by UN agencies and multinationals—has driven rents up further still. Frankly, unless your relocation package is suitably inflated, life in Swiss cities is not for the faint of wallet.

Nordic Strain: Scandinavia’s High Bar

Scandinavia’s infamous costliness is well-represented. Copenhagen (100.7) and Oslo (98.7) are joined by Helsinki (84.8) and Reykjavik (86.5), all underscoring the price of generous welfare states, high taxes, and isolated geographies. Denmark and Norway, in particular, layer on additional costs through VAT and “sin” taxes. For expats, the trade-off is obvious: exceptional public services and safety, offset by punishingly high grocery, alcohol, and transport bills. It is an expensive form of comfort—one you pay for in krone and kroner.

The UK: London and the Commuter Squeeze

London remains the UK’s costliest city for expats (98.9), just trailing Copenhagen and Oslo. Despite years of currency fluctuations and Brexit’s much-vaunted economic shockwaves, the capital’s housing shortage continues to keep rents and property prices elevated. It’s not just central London, either: Guildford (82.6), a popular commuter town in Surrey, creeps into the top 20, a telling indictment of the capital’s out-of-control sprawl and the overheated South-East property market. Both London and Guildford epitomise the paradox of British life—world-class culture and opportunity, if you can bear the rent.

France: A Tale of Two Cities—And More

Paris (92.5) continues to exert its gravitational pull, combining old-world glamour with modern-day sticker shock. Nice (86.5), Lyon (83.2), and Marseille (82.9) also make the top 20, reflecting a persistent urban/rural divide in France’s economic geography. In Paris, high demand, restrictive zoning, and the sheer weight of history keep rents and daily expenses eye-wateringly high. Meanwhile, Nice benefits (or suffers) from the Côte d’Azur’s appeal to the global elite, pushing up housing and service costs to near-Parisian levels.

Offshore Price Puzzles

Saint Helier (Jersey, 92.1) and St Peter Port (Guernsey, 82.4) are small in population but massive in cost. As offshore financial centres, they offer tax advantages—but living there is anything but cheap. These micro-economies import almost everything, and space is at a premium. The same logic holds in Nuuk (Greenland, 89.1), where geographical isolation and supply-chain costs drive up even the simplest of goods.

Germany and Ireland: Not Cheap, But Sensible

Munich (85.6) and Frankfurt (83.5) make Germany’s only appearances, reflecting both cities’ roles as economic powerhouses with high expat populations. The German cities offer exceptional infrastructure and stability, but not at the eye-watering levels seen in Switzerland or Scandinavia. Dublin (82.4) sneaks in at 20th, its costs inflated by tech boom property speculation and a chronic undersupply of homes.

The Expat Calculation: Is Europe Worth It?

What does this mean for anyone eyeing a European move? The cold reality is that Europe’s most attractive cities are also, almost universally, its most expensive. A few factors dominate: restrictive housing markets, high wages, limited supply, and the cost of importing goods to small or isolated locations. For those with a generous expat package or well-heeled remote workers, the trade-offs may be worth it—top-tier public services, culture, and security. For the rest, the numbers are sobering.

Relative to other parts of the world, Europe’s high cost of living is driven more by housing and local services than by raw consumer goods. Expats should expect to pay a premium for location, quality of life, and stability. In the end, the question is not whether you can afford to live in Europe’s top cities—but whether you’re willing to.

Use Xpatulator’s Cost of Living Calculators and Tools for informed decision-making about the cost of living and the salary / allowance / assignment package required to maintain the current standard of living.