Top 20 Most Expensive Places to Live in 2025: A Global Cost of Living Guide
2025-01-08
The 2025 cost-of-living rankings reveal the world’s priciest countries/states, led by Monaco (index 138.6), Singapore (119.4), and Hong Kong (116.5). High costs in these locales are driven by limited land, strong financial sectors, and global appeal. Switzerland, the Cayman Islands, and US hotspots like Hawaii and California also rank high, thanks to strong currencies, premium lifestyles, and elevated housing and transport costs. Scandinavian countries like Denmark and Norway feature due to high wages balanced by steep taxes, while island nations such as the Bahamas and Bermuda face heavy import reliance. For prospective residents, these rankings highlight the need for substantial income and careful planning to navigate the trade-offs between opportunity and expense in these exclusive destinations.
As of January 2025, the world’s costliest countries/states are characterised by exclusivity, high standards, and constrained resources. Maintaining it's status as the worlds most expensive place is Monaco, with a staggering cost-of-living index of 138.6, well above New York City’s baseline of 100. A tiny Mediterranean principality, Monaco’s exorbitant living costs are driven by its limited land, sky-high property prices, and a concentration of ultra-wealthy individuals attracted by its low taxes.
Trailing Monaco are two key Asian financial powerhouses: Singapore (119.4) and Hong Kong (116.5). These dense, high-tech metropolises face similar challenges—scarce land, rising housing costs, and the expense of maintaining their status as global economic hubs. Singapore’s strict import dependency and Hong Kong’s constrained geography contribute to their costs, making them financial epicentres accessible primarily to high-income professionals.
Switzerland (103.8) represents Europe’s priciest mainland entry. Renowned for its impeccable quality of life, banking prowess, and alpine allure, the nation commands steep prices for food, housing, and services. Similarly, the Cayman Islands (103.3), a tax-free paradise in the Caribbean, is a playground for financiers and expatriates, but limited agricultural output and reliance on imports push living costs skyward.
Hawaii (95.3) is a unique outlier among U.S. states, with its high costs stemming from geographic isolation and reliance on imported goods. This mirrors trends in the Caribbean, where nations such as the Turks and Caicos Islands (94.8), the Bahamas (94.5), and Grenada (93.7) are both idyllic and costly. While their tourism-fuelled economies sustain local livelihoods, residents must grapple with high import costs and limited infrastructure.
Jersey (92.9) combines the financial sophistication of a tax haven with the charm of an English Channel island. Its limited space and heavy reliance on imports make it one of Europe’s pricier locales. Denmark (93.6) and Norway (91.9) represent Scandinavia’s high-cost living, where robust social welfare systems and high wages are offset by steep taxes, expensive housing, and elevated prices for everyday goods.
Israel (91.2) is the only country in the Middle East, amongst the worlds 20 most expensive locations. Its tech-centric economy and geopolitical complexities have inflated housing and living expenses, particularly in cities like Tel Aviv. Across the globe, smaller states such as Liechtenstein (89.9) and São Tomé and Príncipe (89.1) reflect the challenges of maintaining prosperity in geographically constrained or import-reliant economies.
In the Pacific, New Zealand (90.2) balances stunning natural beauty with a housing affordability crisis exacerbated by international demand. Meanwhile, Bermuda (89.0) maintains its place as an elite destination with its reliance on imports and exclusive positioning as a financial hub. Finally, California (88.8) and the US Virgin Islands (87.7) showcase the costs of living amidst natural beauty and high demand. California, the home of Silicon Valley and Hollywood, contends with sky-high property prices, while the US Virgin Islands grapple with the twin challenges of insularity and tourism dependence.
For those considering relocation to these costly destinations, the implications are significant. High cost-of-living indices often signify not just financial barriers but lifestyle trade-offs. For expatriates, these rankings highlight the need for substantial earnings, careful financial planning, and an awareness of local realities. While the world’s most expensive locales promise prestige, career opportunities, or idyllic surroundings, they come at a steep price—one that requires both ambition and acumen to navigate.
Ultimately, these rankings underscore the dichotomy of exclusivity and opportunity. For some, these locations offer the allure of high salaries and a cosmopolitan lifestyle. For others, they symbolise barriers to entry that are as much about economics as they are about geography.
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.