![]() * Full data available in table after text.Īs seen above, cost of living can also be broken down into individual indices, such as rent or restaurants. Top 10 Countries with the Highest Cost of Living (source: Numbeo 2022)*: Rank ![]() For example, Numbeo uses New York City as a baseline with the value of 100.00, so countries whose average cost of living is lower than that of New York City would have a cost of living index lower than 100.00 and countries with a higher average cost of living would have an index of higher than 100.00. Most sources express cost of living as a number (often referred to as an index) which is then compared to a baseline country or city. As such, each source has its own equation for determining cost of living. Ideally, areas with a higher cost of living would also have a higher average income to offset those costs, but this is not always the case.ĭetermining the cost of living in a region or country is a complicated process. Also, cities and metropolitan areas tend to have a higher cost of living than rural areas. Broadly speaking, developed countries (or those in the global north) often have a higher cost of living than do developing and least-developed countries (though standard of living is generally higher), which are usually cheaper to live in and also notably poorer. Cost of living data is used to track and compare variations in the price of goods and services over time or between multiple locations (usually cities or countries). Cf.Cost of living is the amount of money needed to sustain a reasonable standard of living and afford basic expenses such as housing, food, taxes, and healthcare. * The marked countries are not independent and sovereign states, but dependent territories of other states. Both studies refer only to some few and usually large cities in which UBS and Switzerland have representation. Other indicesThere are some other indices, e.g., the study by the Swiss bank UBS issued about every three years or from the EDA (Federal Departement of Foreign Affairs). In a further evaluation, we compare numerous factors of different countries in order to derive a ranking for the quality of life. However, other factors such as medical care or political stability should also be taken into account. Quality of life in relation to cost of living In the search for a potential adopted country, the cost of living usually has the highest priority. This would correspond to about one-28th of the purchasing power inside the US. Whether it is realistic to survive with a purchasing power index of 3.5 (Haiti) does not matter in this table. Therefore this list should be regarded as a mathematical theorem. It does not take into account the differences between poverty and wealth, as well as prices for goods that do not belong to normal needs. The calculated cost of living index is based on the OECD, the Worldbank, the IMF and Eurostat figures and has been completed by our own researches. In the result, people in Switzerland can afford about 10 percent less than a US citizen. Now you calculate the 39% higher costs against the 25% higher income. But the average income in Switzerland of 7,409 USD is also 25% higher, which means that citizens can also afford more goods. With a cost of living index of 139 all goods are on average about 39% more expensive than in the USA. If it is lower, the population is less wealthy. If it is higher, people can afford more based on the cost of living in relation to income. The calculated purchasing power index is again based on a value of 100 for the United States. The monthly income (please do not confuse this with a wage or salary) is calculated from the gross national income per capita. 80, the usual expenses in another country are 20% less then in the United States. All other countries are related to this index. ![]() Cost of living and purchasing power related to average incomeWe adjusted the average cost of living inside the USA (based on 2022) to an index of 100. ![]()
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