Cost of Living by Country: Cheapest and Most Expensive Countries

Switzerland has a cost of living index of 142.4, so it’s the most expensive country in the world. The high number is partly because of the massive tax rate that reaches up to 40% for income. You’ll even be taxed for living in your own home in Switzerland. Moreover, the purchasing power in the country is 118.44, and the monthly average income is $7,530. Also, the average monthly living expenses for a single person living in Geneva is $1,472.

Israel has a cost of living index of 130.2, so it takes second place among the most expensive countries to live in. The high living costs are partly because of the appreciating Israeli currency compared to the USD, and the import industry is slow, which resulted in local price spikes. The average monthly income in Israel is $4,130, and the average living expenses are $1,060.

The cost of living Index in the land of ice and fire is 128.0. Iceland is geographically isolated, which makes imports expensive, and due to the difficult conditions on the island, there is a lack of manufacturing. The average monthly income in Iceland is $5,368, and the cost of living for a single person excluding rent is $1,340. Furthermore, it’s one of the places with the highest cost of living in Europe because of the high tax rates for different categories.

Norway has a cost of living index of 124.6, so it’s also among the most expensive European countries to live in. However, the high living costs are offset by the high monthly earnings of $7,008. The country has many highly skilled jobs that allow locals to earn a good living. The cost of living in Norway is around $1,892 for a single person, which is among the highest on this list.

Barbados has a cost of living index of 121.5 because of the low monthly average income of just $1,393. However, because the country receives a lot of tourism, locals must compete in the rental market. The average cost of living in Barbados is $1,237, so it doesn’t top the cost of living rankings, but it’s high when taking into account the low income.

Denmark has a cost of living index of 119.9 due to high taxes, high salaries, and consumption-based culture. The average income per month in Denmark is $5,676, which is among the highest in Europe. Also, the average cost of living in Denmark is $1,110, which is manageable once taxes are accounted for.

Ireland has a cost of living index of 119.8 because it has higher tax rates than other countries in the EU. In particular, the VAT tax is high, which leads to higher import costs. However, the high living costs are offset by the high monthly average income of $6,210. The high cost of living in Ireland reaches $3,384 per month for a single person.

The cost of living index in Australia is 118.0, and it’s relatively high because of inflation, rising transportation costs, shipping container shortages, and negative weather effects like flooding. The average cost of living in Australia is $975, and the average monthly income is $4,730.

New Zealand has a cost of living index of 117.2, making it one of the countries with the highest cost of living. In fact, you can expect to pay around $2,221 for a single person living in one of the major cities like Auckland, Christchurch, and Wellington, while the average monthly income is $3,778.

Luxembourg has a cost of living index of 113.1 because home goods are expensive. Also, there is a shortage of cheap housing with a lot of demand. A single person can expect to pay around $1,026, excluding rent. Furthermore, the average income is $6,759, so it’s placed high in the standard of living rankings.

Tajikistan has a cost of living index of 22.8, and the average monthly income is just $96. It’s the country with the lowest cost of living because prices are a fraction of what you’ll pay elsewhere. For instance, a taxi costs around $0.5 per mile. Furthermore, the average cost of living in Tajikistan is around $287 per month without rent, and the figure is $817 for a family of four.

Angola has a cost of living index of 23.0, so it’s one of the cheapest countries to live in. Furthermore, the average income in Angola is just $148, much lower than most other countries and dangerously low to support an average of $863 in monthly living expenses. However, there is a high demand for housing in Angola, which is starting to push the cost of living up.

Kyrgyzstan has a cost of living index of 25.3, making it an extremely cheap country to live in. The cost of living is just $441 because utilities and food are cheap. Also, the rental prices are lower than in most other countries. Finally, the average monthly income is $98, which is also among the lowest in the world.

The cost of living index in Pakistan is 25.8, and a monthly average income of $125. The ranking reflects the low rental, food, and utility prices. The low cost of living is also true for Pakistan's middle and upper classes. A single person can expect to pay $294 per month, so it’s among the cheapest cost of living in the world.

Myanmar has a cost of living index of 27.0, which is low because it’s a developing country. However, many residents live below the poverty line because the monthly average income is just $95 whereas living expenses amount to $467. The country is currently going through turbulent political change, so the cost of living is unpredictable and might change in the rankings during the coming years.

The cost of living index in Egypt is 27.2, which is among the lowest cost of living in the world. The low cost of living is due to affordable transposition, goods, and rental costs. The basic necessities are plentiful, which means residents don't have to pay premium prices to live. Also, the average monthly wage is $293, which is enough to live modestly given the low cost of living.

Nepal has a cost of living index of 28.1, and the low living costs are a result of a lack of basic amenities like communication, power, water, and electricity. Therefore, the locals make do with what they have instead of spending money on utilities that are used in other countries. A single person can expect to live on $312 per month, which doesn’t include rent. Also, the average income is $103, which can be enough to live in Nepal, considering the low living costs.

India has a cost of living index of 28.8, so it’s ranked in the top ten for the lowest cost of living in the world. The low costs are a result of a developing market and low wages that lead to the low cost of production. The monthly average wage is just $397, which varies based on the area of the large country. Also, the cost of living is just $311 per month for a single person.

Azerbaijan has a cost of living index of 29.8 because transportation and the housing market are much cheaper than in other countries. Hence, a single person can live on $444 per month without rent. Also, the average monthly income is just $407, which is lower than the average living costs.

The international cost of living index for Algeria is 29.9, among the lowest in the world. The affordable living costs of $435 result from affordable food, utility, and housing costs. However, the average income is just $305.