The ranking of the most expensive locations for expats around the world was featured in a on 7 June. The company carries out surveys--which compare a basket of like-for-like consumer goods and services, as well as take rental costs and accommodation data into account--to assess living costs around the world.
Luxembourg is in eighth position this year, up two spots compared to the 2022 European ranking.
The top five most expensive European cities for expats have retained their rankings from last year: Geneva, London, Zurich, Bern and Copenhagen.
Nordic cities, however, such as Stockholm, Sweden, Stavanger, Norway, or Reykjavik, Iceland, saw their positions drop in the 2023 list of European locations, partially due to the weakening of their currencies.
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“These developments across Europe highlight the dynamics influencing the cost of living in different regions,” said Steven Kilfedder, head of production at ECA International. “Our cost of living rankings are affected by two factors: prices and exchange rates. Even when prices are rising quickly as they are in much of Europe, a city can become comparatively cheaper for visitors if the currency is weaker. This is the case for Norwegian and Swedish cities, where the inflation rates peaked at around 10%, but their rankings have plummeted by an average of 10 places due to the weakening of their respective currencies.”
Global ranking
Geneva, the most expensive city for expats in Europe, ranked third globally, after New York and Hong Kong. London and Zurich also made it into the top 10 most expensive cities for expats, with Bern in 11th place this year.
The report also noted that 61% of locations within the eurozone have risen in the global ranking due to high inflation. Locations in France, however, seem to be an exception as the surveyed French cities have seen lower inflation than other places using the euro, said ECA International.
Despite a cost-of-living crisis and higher food prices in the United Kingdom, UK cities--except London--have dropped in the global ranking. “This can largely be attributed to the weakness of the pound, which has made the country cheaper for people coming to the UK from other countries,” said Kilfedder.