As the third overall most expensive place to live in the world, Zurich has an overall cost of living index of 134.72. The overall index is comprised of 13 different basket groups. The assumption using the overall index is that everything is paid from the salary package. In addition, the cost of living calculations are weighted according to typical monthly international expatriate spending patterns. The Household Accommodation Basket for example, has a weighting of 30%, while the Groceries Basket has a weighting of 16.5%. That means that an international expatriate who, for example, earns 10,000 would typically spend 3,000 (30% of 10,000) on housing and 1,650 on groceries.
Of the top 50 most expensive destinations to live based on the overall cost of living, Europe has 12 locations listed.
The latest international cost of living rankings are based on data collected during the past 3 months for 780 international locations, covering every country world-wide.
The cost of living (COL) data collected is representative of an expatriate lifestyle. The components of the COL data are local prices for fixed quantities of the same goods and services in each location, local inflation and exchange rates. Prices in each location are affected by availability (i.e. supply & demand) as well as local pricing regulations and taxes on goods and services (e.g.premiums on luxury brands). Local inflation is usually representative of local price increases which in turn impacts an expatriates purchasing power in the host country. The exchange rate impacts both the price of imports to the host country and the expatriate assignment salary calculation between the home and host country. The cost of living has a significant impact on the purchasing power of an expatriate’s salary package.
The top 20 Most expensive places to live in Europe – Overall Cost of Living & All Baskets:
- Switzerland, Zurich
- Switzerland, Geneva
- Switzerland, All Areas
- Norway, Oslo
- Liechtenstein, Vaduz
- United Kingdom, London
- Norway, All Areas
- Russia, Moscow
- Liechtenstein, All Areas
- Denmark, Copenhagen
- Denmark, All Areas
- Monaco, Monaco
- France, Paris
- Austria, Vienna
- Jersey, Saint Helier
- Jersey, All Areas
- Finland, Helsinki
- Italy, Rome
- Germany, Frankfurt
- Austria, All Areas
Xpatulator.com’s cost of living data is based on prices for the same quantity and quality of goods and services, representative of expatriate lifestyle, in each city. The data is collected and updated on a quarterly basis. The cost of living data is used by Xpatulator.com clients to calculate salary purchasing power parity, cost of living allowances, and customized (i.e. clients can select their own base city) cost of living indexes for expatriate assignments online, using Xpatulator.com’s 3 premium content calculators.
The 13 basket groups do not count equally and are weighted according to expatriate expenditure norms as follows (weighting percentage is in brackets):
1. Alcohol & Tobacco (2%): Alcoholic beverages and tobacco products.
2. Clothing (2.5%): Clothing and footwear products.
3. Communication (2%): Telephone, Internet, Mobile Contract and Calls.
4. Education (5%): Creche Fees, School Fees, College Fees, and Tertiary Study Fees.
5. Furniture & Appliances (5%): Furniture, household equipment and appliances.
6. Groceries (16.5%): Food, non-alcoholic beverages and cleaning materials.
7. Healthcare (5%): Doctor Consultation rates, Private Ward Rate, Prescription Medicine, and Private Medical Insurance Contributions.
8. Household (30%): Housing rental, utilities, local rates and residential taxes.
9. Miscellaneous (3%): Stationary, Linen and general goods and services.
10. Personal Care (3%): Personal Care products and services.
11. Recreation & Culture (6%): Books, Camera Film, Cinema Ticket, DVD and CD’s, Sports goods, Theatre Tickets.
12. Restaurants Meals Out and Hotels (2%): Dinner at Restaurant (non fast food), Hotel Rates, Take Away, Drinks & Snacks (fast Food).
13. Transport (18%): Public Transport, Vehicle Costs, Vehicle Fuel, Vehicle Insurance and Vehicle Maintenance.
Xpatulator.com is the most comprehensive source of international cost of living information. We provide free international cost of living overviews and rank information covering 13 cost of living baskets and every country around the world as well as premium content calculators.
Founded in 2007, Xpatulator.com’s mission is to organize the world’s cost of living indices, exchange rates and relative hardship indices and make it accessible and useful to all.