Dreaming of working abroad or taking a break for a long spell overseas? Before you pack your bags, be warned, not all destinations are kind to your wallet. Some countries may offer postcard views and high standards of living, but they come with a hefty price tag. Others might quietly help you stretch your savings, even with modest earnings. According to ET, a new analysis by international insurer William Russell maps out the most and least expensive countries for expatriates in 2025, ranking destinations based on utilities, entertainment, transport, and more.Here’s a look at the top three most and least expensive places to live abroad this year.
Switzerland: Europe’s Alpine jewel, pricey in every way
- Switzerland sits atop the cost-of-living charts with an Expat Expenditure Score of 9.29 out of 10.
- Living here is not for the faint-hearted or the light-walleted. A gym membership costs £65.74 (US$87.40) per month, the highest in the world. Moviegoers pay around £18.15 (US$24.13) per ticket.
- A typical restaurant outing could cost £99.84 (US$132.74). Even commuting adds up, with a public transport ticket priced at £3.08 (US$4.10).
Iceland: The land of fire and ice comes at a cost
- Iceland ranks second on the list of most expensive countries, with a score of 8.48/10.
- Though it didn’t lead in any single category, its consistently high prices across entertainment, transport, and utilities place it firmly among the costliest.
- The allure of dramatic landscapes and a peaceful lifestyle must be weighed against the strain on your monthly budget.
Norway: Scandinavian comfort, Scandinavian costs
- In third place is Norway, scoring 7.72 on the index.
- Public transport averages £3.00 (US$3.99) for a single ride. Dining out sets expats back £71.47 (US$95.02) on average, and internet bills run around £44.24 (US$58.82) monthly.
- Its consistently high rankings across categories make it a tough place for budget-conscious expatriates.
While the top three countries may impress with safety, healthcare, and natural beauty, they also demand deep pockets and meticulous financial planning.In contrast, the least expensive countries on the list offer many of the same essentials, public transport, connectivity, and fitness options, at a fraction of the cost. For digital nomads, young professionals, or early retirees, these budget-friendly destinations offer a chance to enjoy a global lifestyle without the financial strain.
Mexico: A Latin American escape That Saves You Money
- At the other end of the spectrum is Mexico, the least expensive country in the ranking with a score of just 0.67.
- Utility bills average £46.06 (US$61.24) per month, and gym memberships are only £25.21 (US$33.52).
- For those seeking a warm climate and rich culture without breaking the bank, Mexico offers unmatched value.
Lithuania: Baltic beauty with budget benefits
- Lithuania, with a score of 2.23, boasts the lowest internet costs globally at £11.64 (US$15.47) per month.
- Public transport is also among the cheapest at £0.85 (US$1.13) per trip.
- These factors make Lithuania ideal for expats looking to live affordably in Europe without compromising on lifestyle.
Poland: Central Europe’s affordable gem
- Sharing second place with Lithuania, Poland offers equally attractive affordability.
- Cinema tickets cost just £5.77 (US$7.67), and gym memberships average £27.71 (US$36.84).
- Internet access is also low-cost, at £12.26 (US$16.43) per month, making Poland a favourite among digital nomads and budget travellers.
