The Cost Of Living Abroad In 2025: Most And Least Expensive Countries For Expats

Relocating to another country is an exciting experience full of fresh opportunities—new culture, new cuisine, and the chance to start over. But for expats, it also comes with a financial reality check.

If you’re dreaming of expat life in 2025, it’s essential to understand how much your new lifestyle might actually cost. So, where does expat life cost the most—and where can your money go further?

In this article

• What makes a country expensive for expats?
• What is the most expensive country for expats?
• Where is the cheapest country for expats?
• Which country spends the most on living costs?

What makes a country expensive for expats?

The cost of living can vary dramatically from one destination to another and what seems like a dream move could become a budgeting nightmare if you’re not prepared. From sky-high rent and restaurant bills to unexpected utility costs, your money might not stretch as far as it did back home.

So where are the world’s most expensive countries for expats in 2025—and where can you live well for less? We’ve analysed living expenses in countries around the world to uncover where expats are likely to spend the most—or save the most—in 2025. Our ranking takes into account a range of everyday expenses, including public transport, fuel, internet and utility bills, eating out, and gym memberships.

Understanding these differences can help you plan your relocation more realistically. And remember—if you’re planning to move abroad, don’t forget about income protection insurance. For expats living abroad, it ensures financial security while navigating an unfamiliar country where support systems may be limited or hard to access.

What is income protection insurance and how can it support you?

Our full guide covers everything you need to know

What is the most expensive country for expats?

Switzerland is the most expensive country for expats

1/ Switzerland

Expat Expenditure Score: 9.29/10

Switzerland has the highest cost of living, scoring 9.29 out of 10. The central European nation has the highest average price of a gym membership at £65.74/US$87.40 a month, and the most expensive cinema tickets at £18.15/US$24.13 per ticket on average. It also places second for average public transport tickets (£3.08/US$4.10) and restaurant meals (£99.84/US$132.74).

2/ Iceland

Expat Expenditure Score: 8.48/10

Iceland takes second place for four of the factors we examined. The Nordic nation has the most expensive public transport at £3.77/US$5.01 and petrol costs at £1.84/US$2.44 per litre. It also has the most costly monthly internet bills (£60.44/US$80.36) and eating out costs, at £103/US$136.95 on average for two people. However, it has some of the cheapest utility bills on the list, at £64.31/US$85.50 a month, on average.

3/ Norway

Expat Expenditure Score: 7.72/10

Norway rounds out the top three. The Scandinavian nation ranks in the top third for most of the factors we looked at. However, it has the third-highest public transport costs, at £3.00/US$3.99 for a one-way ticket. The country also ranks in the top five for the price of a restaurant meal, £71.47/US$95.02, and average monthly internet costs around £44.24/US$58.82.

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Which is the cheapest country for expats?

Mexico is the cheapest country for expats

1/ Mexico

Expat Expenditure Score: 0.67/10

Mexico is the least expensive country in terms of the cost of living, with an overall score of 0.67 out of 10. The North American nation has the cheapest average utility bills and the cheapest gym membership on the list at £46.06/US$61.24 and £25.21/US$33.52 respectively.

2/ Lithuania

Expat Expenditure Score: 2.23/10

Lithuania, in the Baltic region of Europe, is next. The country has the cheapest average internet bill, at £11.64/US$15.47 per month. It also ranks in the top five for public transport costs, at £0.85/US$1.13 for a one-way ticket, giving it an overall score of 2.23 out of 10.

2/ Poland

Expat Expenditure Score: 2.23/10

Lithuania’s neighbour, Poland, is in joint-second place. The country has the second-cheapest cinema tickets, at £5.77/US$7.67 and monthly internet costs at £12.26/US$16.43, and ranks third for its gym membership prices at £27.71/US$36.84 per month.

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The most expensive countries for…

Public transport

Iceland – £3.77 for a one-way ticket

When you move abroad, familiarising yourself with your new home is essential, and public transport is the most cost-effective and convenient way to explore your surroundings.

However, if you’re considering relocating to Iceland, it has the most expensive public transport at £3.77/US$5.01 for a one-way ticket on average.

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Petrol

Iceland – £1.84 per litre

If you rely on a car to get you around, petrol prices can be a huge factor in your cost of living expenses. Due to its high fuel tax rates, Iceland has the most expensive average petrol prices, at £1.84/US$2.44 per litre.

Utility bills

Austria – £282.19 a month

Necessities like water and electricity are essential for living comfortably. However, utility bills can vary from country to country. Austria has the highest utility bills on the list, averaging £282.19/US$375.19 a month, thanks to increasing infrastructure maintenance costs being passed on to customers.

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Internet bills

Iceland – £60.44 a month

Staying connected with your family and friends back home through video calls and social media can help stop you from feeling homesick as an expat. Due to the lack of competition from internet providers in a country as small as Iceland, it has the most expensive average internet bills, at £60.44/US$80.36 a month.

Gym membership

Switzerland- £65.74 a month

Going to the gym as an expat won’t just keep you healthy. It lets you socialise with locals and other expats, make new friends, and improve your language skills. However, this is a bit more difficult in Switzerland, as it has the highest gym membership fees at £65.74/US$87.40 a month on average.

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Cinema tickets

Switzerland- £18.15

Watching local films or even dubbed international releases can help sharpen your language skills in a fun and immersive way. For those considering a move to Switzerland, the cost of this activity is the highest average cinema ticket price, at £18.15/US$24.13.

Restaurants

Iceland – £103

Visiting restaurants allows you to explore the local cuisine and experience the local culture in your chosen country. However, the average restaurant bill in Iceland will set you back £103/US$136.95 for two people. This is due to the country’s reliance on food imports, which pushes prices up. 

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Which country spends the highest proportion of its income on the cost of living?

Estonia spends the most on the cost of living

1/ Estonia

14.7% of monthly income spent on the cost of living

Estonia takes the top spot as the country spending the most on the cost of living. Estonians spend around a sixth (14.7%) of their monthly income on essentials. The highest cost is utility bills, averaging £229.95/US$305.74 a month, nearly a tenth (9.4%) of the average monthly income.

2/ Greece

13.9% of monthly income spent on the cost of living

Greece takes second place, with an average income of £1,975/US$2,520 a month, £274.50/US$364.97 of which is spent on the cost of living, or nearly one-sixth (13.9%). The cost of living is so high in Greece due to a sharp increase in inflation caused by rising food and energy prices. From January to July 2024, food prices in Greece rose by 3.9%, 0.6% higher than the EU average.

3/ Slovak Republic

13.6% of monthly income spent on the cost of living

Next is the Slovak Republic, where the average resident spends a seventh (13.6%) of their income on the cost of living. High inflation rates and a lack of real wage growth in recent years have contributed to the country’s high cost of living.

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We look at how you can protect your life and well-being as an expat

Protect your income, protect your lifestyle

Life abroad can be full of opportunity—but it can also be unpredictable, especially when the cost of living is high. Whether you’re relocating for work or chasing a new adventure, it’s important to safeguard the income that supports your lifestyle.

At William Russell, we’ve spent over 30 years supporting expats around the world with tailored international insurance solutions. Our international income protection insurance gives you a financial safety net if illness or injury stops you from working—so you can keep up with your living costs—wherever life takes you. Speak to our award-winning team today to find out how we can help.

Discover how income protection insurance can help safeguard your life abroad

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Methodology

Beginning with a list of OECD countries, we analysed each country on the following factors. We then gave each country a normalised score out of ten for each factor before taking an average range across these scores to reach our final overall score out of ten.

From Numbeo’s Cost of Living Index, we recorded the following data:

1. The average price for a one-way ticket on public transport.
2. The average price for a litre of petrol.
3. The average cost of basic utilities, including electricity, heating, cooling, and water.
4. The average price of internet bills.
5. The average cost of a fitness club membership.
6. The average price of a cinema ticket
7. The average price of a three-course meal for two at a mid-range restaurant.

To find the proportion of monthly salary spent on the cost of living for each country, we added the cost of utilities, internet, fitness club membership, cinema tickets, and a meal at a mid-range restaurant to find the total overall monthly expenditure in each country, taken from Numbeo. We then sourced the average annual wage in each country from the OECD and divided this by 12 to find the average monthly salary, before dividing monthly expenditure by average monthly wages to find the proportion in each country.

Currencies were converted from USD to GBP on 25/04/2025 using xe.com.

Data was collected in April 2025 and is correct as of then.

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