Top 10 Most Expensive Countries to Live In, 2023

To sustain a basic standard of living, people engage in economic activities and necessary consumption. The most essential expenses typically include clothing, food, and housing. However, when there’s a gap between economic capacity and the cost of these essentials, we often perceive a place as having a high cost of living. This happens when typical economic activities can’t cover basic needs. Today, I’ve compiled a list of the top 10 most expensive countries to live in for 2023, based on data from LivingCost.org. The figures below account for rent, food, transportation, and various daily expenses.

10. Australia [Per Person Living Cost: $2,212]

Australia ranks as the 10th most expensive country to live in. The monthly living cost for one person is $2,212, while for a family of four, it’s $5,111. For the average American in their 20s or 30s, this could feel like living paycheck to paycheck. Major contributors to Australia’s high cost of living include taxes, housing, and groceries. Despite these financial demands, Australia remains a popular destination, attracting countless tourists with its appeal.

9. Luxembourg [Per Person Living Cost: $2,271]

Luxembourg is the 9th most expensive country, with a monthly per-person living cost of $2,271. This relatively small nation is as renowned for its wealth as it is for its high costs. Its well-structured banking and financial sectors attract investments from the world’s elite, while excellent healthcare and education systems enhance residents’ quality of life. In fact, Luxembourg boasts lower poverty and unemployment rates compared to neighboring countries.

8. United States [Per Person Living Cost: $2,317]

The United States ranks as the 8th most expensive country. The monthly living cost for one person is $2,317, and for a family of four, it’s $7,080. Healthcare, taxes, and housing are the primary drivers of these costs. However, expenses like entertainment, cultural activities, and groceries are relatively affordable compared to other high-cost countries.

7. Liechtenstein [Per Person Living Cost: $2,326]

Liechtenstein requires a monthly living cost of $2,326 per person, or $7,240 for a family of four. Despite its small size, the high cost of living stems from its tax policies and elevated standard of living. This high standard drives demand for robust policies and welfare, which in turn increases taxes and overall expenses. Consequently, wages in Liechtenstein are also high. As long as incomes support the high costs, it doesn’t seem to pose a significant issue.

6. Ireland [Per Person Living Cost: $2,343]

Ireland, located near the United Kingdom, is the 6th most expensive country. The monthly cost for one person is $2,343, while for a family of four, it’s $6,820. Interestingly, while Ireland ranks 6th for individuals, its cost for families is relatively lower. Housing and healthcare are the largest expenses. Nevertheless, Ireland’s strong economy and rich cultural heritage attract numerous tourists, contributing to a high standard of living for residents.

5. Iceland [Per Person Living Cost: $2,457]

Iceland takes the 5th spot as one of the most expensive countries. The monthly cost for one person is $2,457, but for a family of four, it’s surprisingly lower at $3,370. Iceland’s high costs are attributed to its isolated island geography and small population. However, the country offers excellent healthcare, an enviable education system, stunning natural beauty, and low crime rates, which other European nations admire. With a thriving tourism industry, Iceland’s economy remains quite stable.

4. Switzerland [Per Person Living Cost: $2,850]

Switzerland’s cost of living is notoriously high, even among tourists. There’s even a saying in the U.S.: “Someone who visits Switzerland once might not be rich, but someone who goes twice must be.” The idea is that a first-time visitor might be shocked by the prices, but those who return multiple times can afford them. Switzerland, the 4th most expensive country, has a monthly per-person cost of $2,850 and $9,670 for a family of four. These near-$10,000 monthly costs for a family can be staggering, but Switzerland’s robust economy and high quality of life keep poverty rates low and satisfaction high.

3. Cayman Islands [Per Person Living Cost: $3,255]

The Cayman Islands, a lesser-known name, rank 3rd. Located in the Caribbean, this nation is famous as a scuba diving haven. The monthly living cost per person is $3,255, and for a family of four, it’s $7,620. A booming economy, rising service standards, and a rapidly growing tourism industry contribute to these high costs. Still, the elevated standard of living and thriving tourism make the costs seem justifiable.

2. Singapore [Per Person Living Cost: $3,408]

Singapore, known as one of Asia’s wealthiest and most transparent nations, takes the 2nd spot. The monthly cost per person is $3,408, and for a family of four, it’s $9,960. High housing costs and an elevated standard of living drive these expenses. Singapore’s stable politics enable significant investment in public welfare, and the country is renowned for attracting foreign investment to fuel economic growth.

1. Monaco [Per Person Living Cost: $3,955]

Monaco claims the top spot as the most expensive country to live in. One of the smallest nations by land area, Monaco is synonymous with wealth. The monthly cost per person is $3,955—3.88 times the global average—while a family of four needs $11,850. Monaco is the only country where family costs exceed $10,000. But there’s no need to worry: Monaco’s per capita income is $7,560 after taxes, supporting its high costs.

Looking closely at the world’s most expensive countries, a common theme emerges: they all have exceptionally high standards of living. Housing and taxes consistently account for the largest share of expenses. High taxes feel worthwhile when they translate into robust welfare benefits. By comparison, the average monthly living cost in the United States is $2,317, which is relatively high. Excluding rent, however, it drops to about $1,000, still significant compared to other countries. Housing seems to be a major factor in the U.S. cost of living, much like in these top-ranked nations.