Cost of Living Index by Country 2026

In 2026, Bermuda stands out with the highest cost of living in the world, boasting an index of 135.8. Switzerland follows with an index of 110.7, while the United States shows an index of 68.8. These figures allow for comparisons of daily expenses and help in planning a budget suitable for the country of residence.

The cost of living index by country in 2026 represents a comparative measure of the expenses necessary to maintain a similar standard of living across different nations. In 2026, Bermuda has the highest index at 135.8, followed by Switzerland at 110.7 and the United States at 68.8. Cost of Living in Taiyuan — 5 Key Expenses (2026)

hotel vs airbnb vs hostel vs coliving in fr: what to choose

esim for fr: airalo vs holafly vs nomad vs local

workplace harassment in England expatriate

What is the cost of living in 2026?

The Cost of Living Index by country in 2026 reveals significant disparities. Bermuda ranks first with an index of 135.8, followed by Switzerland at 110.7. These indices include categories such as the Rent Index, the Groceries Index, and the Restaurant Price Index. Bermuda, being an island with limited access to local resources, sees its prices significantly increased by the cost of imports. In Switzerland, although costs are high, they are offset by generally higher incomes, which improves purchasing power.

In the United States, the index of 68.8 indicates a relatively more affordable cost of living, although this varies greatly from state to state. In California, for example, the cost of living is much higher than in the Midwest. Canada, with an index of 63.0, offers a competitive cost of living, particularly attractive for families and retirees due to its public healthcare system and high-quality infrastructure.

An essential aspect to consider is how these indices influence overall quality of life. For instance, a high index does not only reflect high costs but also access to high-quality services and products, which can be a determining factor in choosing a country for expatriation. How to Obtain a Visa for

How does the cost of living affect country choice?

The choice of country of residence is heavily influenced by the cost of living. For example, a single expatriate may prefer the United States for a better Local Purchasing Power Index (146.0), while a family might prioritize Canada for lower housing costs. Young professionals, often driven by career opportunities, may be attracted to dynamic cities like New York or San Francisco in the United States, despite their high cost of living.

For families, Canada offers a stable living environment, with relatively low housing costs and excellent educational services, making it a preferred destination. Conversely, for those with high incomes, Bermuda remains attractive despite its high cost of living, particularly for those seeking a luxurious and exclusive lifestyle.

Finally, the choice of country may also be influenced by factors such as visa policies, job opportunities in specific sectors, and the quality of infrastructure, all of which can offset a higher cost of living.

Which destination to choose based on your profile?

The choice of destination largely depends on your profile and personal priorities. For a single person in the tech sector, the United States offers a good balance between cost of living and job opportunities, particularly in Silicon Valley. Startups and large tech companies there offer competitive salaries that can offset the higher cost of living in certain areas.

For a family, Canada is often unbeatable due to its reasonable housing costs and family services such as quality public schools and free healthcare. For a retiree, Switzerland, with its high purchasing power, is a wise choice for a comfortable retirement, thanks to its healthcare system and picturesque landscapes that offer exceptional quality of life.

Digital nomads seeking a luxurious and peaceful living environment may find Bermuda very attractive, despite its high cost. The infrastructure for remote work, although still developing, is sufficient for those who can afford the cost. Lastly, for entrepreneurs, the United States offers a dynamic and diverse market, although the tax factor should be seriously considered.

The detail that changes everything

An often-overlooked aspect is the tax impact. For example, Switzerland offers significant tax advantages for expatriates, which can offset an initially high cost of living. These advantages include tax reductions on certain incomes and deductions for moving expenses, making Switzerland particularly appealing for high-income expatriates.

In contrast, the United States, while competitive in terms of purchasing power, imposes heavier taxation on worldwide income. This factor can influence expatriates' decisions, especially those with assets or income in multiple countries. The complex U.S. tax laws often require the assistance of experts to navigate effectively.

Similarly, Canada, with its moderate tax regime and double taxation agreements, greatly facilitates life for expatriates. These agreements help avoid double taxation of income, providing greater peace of mind for those settling there for an extended period.

💡 Good to know

The cost of living can vary significantly within the same country, depending on the region. For example, living in Silicon Valley in the United States is much more expensive than in a smaller city in Texas.

The Cost of Living Index is calculated by comparing the prices of goods and services in each country, including rent, groceries, and restaurants. An index of 100 represents the global benchmark. For example, an index of 135.8 for Bermuda means that the cost of living there is 35.8% higher than the global average.

In 2026, Switzerland stands out with a Local Purchasing Power Index of 170.6, indicating that local salaries allow for purchasing power above the average. This figure is particularly advantageous for expatriates who benefit from high salaries in this country.

Bermuda is expensive primarily due to its geographical isolation and dependence on imports, which drives up the costs of goods and services. Additionally, its limited real estate market results in high rents, reflected in a Rent Index of 108.2.

In Switzerland, the cost of living is higher than in the United States, with an index of 110.7 compared to 68.8. This is due to higher housing and dining costs, but it is offset by superior purchasing power in Switzerland.

Switzerland offers tax advantages to expatriates, including tax reductions on certain incomes and deductions for moving expenses. These measures aim to attract international talent while maintaining a competitive cost of living.

Yes, Canada combines a reasonable cost of living with excellent quality of life, making it a preferred destination for families and expatriates seeking a stable and welcoming environment. The cost of living is lower, but public services and quality of life remain high.