7 Most Expensive Cities In Europe

The most expensive European cities, like London and Paris, are no longer beacons of opportunity. They have become challenging places to live. Living costs, particularly housing, have skyrocketed, leaving many residents questioning whether better options exist elsewhere. In northern cities, harsh weather adds to the challenges, and the high expenses make living increasingly difficult.

In this article, we’ll break down the downsides of living in any of Europe's seven most expensive cities and, most importantly, where you can go instead to enjoy a better quality of life. 

Copenhagen boasts a high quality of life but is costly, with expensive housing, high taxes, and steep daily expenses. Its rich culture and nightlife are offset by long winters and a challenging cost of living

7. PARIS, FRANCE

Paris, the capital of France, is a dream destination for many, but daily life in this city presents significant challenges. Apart from being one of Europe’s most dangerous cities, Paris is also one of the most expensive cities in the world. 

Everyday living expenses in Paris are notably high, with a family of four’s estimated monthly expenses reaching almost $4,000 USD, according to Numbeo. Housing costs are particularly steep, with rent for a one-bedroom apartment in the city centre averaging over $1,300 USD. If you want to buy a house, property prices remain among the highest in Europe, with the mean cost per square metre sitting over $10,000 USD. 

Despite its cultural richness and numerous tourist attractions, Paris currently faces safety concerns, especially in the suburbs. Pickpocketing and street crime are common in tourist areas and crowded spots. Moreover, Paris also deals with overcrowding and traffic congestion in popular tourist locations.

While France’s capital remains a cultural epicentre with world-class museums, fine dining, and lively nightlife, many residents struggle with the economic reality of living there. Not only is rent expensive in Paris, but so are other living expenses. To make matters worse, your money won’t go far due to multiple taxes, including income tax, which can reach up to 45%. 

6. COPENHAGEN, DENMARK

Denmark’s capital typically ranks high in terms of quality of life, but residing there full-time is another story. Copenhagen is expensive, and the country’s high taxes further complicate living comfortably in this city. 

To illustrate Copenhagen's cost, consider the expenses of a single person, typically around $1,200 USD before rent. If you have a family of four, the cost can easily reach over $4,000 USD. Apartments are equally expensive, with one-bedroom apartments outside the city centre costing around $1,300 USD. Other costs, like food and entertainment, are substantial. For instance, a meal at an inexpensive restaurant can cost over $20 USD, while dinner for two at a mid-range restaurant can cost over $100 USD. 

Last but not least, taxes are also high. Income tax, for example, can be over 50%, while capital gains are taxed at 42%. These high tax rates and living expenses in Copenhagen significantly impact take-home pay. Maintaining a comfortable lifestyle in the Danish capital is anything but easy. 

Despite how expensive it is to live in Copenhagen, it offers a rich cultural experience with numerous museums and a diverse nightlife scene. Still, the long, dark winters and cool summers might be challenging for some residents.

Oslo boasts a high quality of life and stunning nature but is among the world’s most expensive cities. High living costs, steep taxes, and rising property prices challenge residents despite its vibrant culture

5. OSLO, NORWAY

Norway’s capital is also renowned for its high standard of living and beautiful natural surroundings. However, living expenses in Oslo are anything but affordable. Indeed, Oslo is one of the most expensive cities in Europe and the world. 

Let’s examine Oslo's cost. According to Numbeo, a single person's estimated monthly costs are over $1,200 USD, while a one-bedroom apartment outside the city centre can easily cost over $1,100. Moreover, property prices are expected to rise between 3% and 7%. Food costs, whether groceries or dining out, are also notably expensive. For instance, a three-course meal for two at a mid-range restaurant can be over $100 USD. 

Oslo offers many leisurely activities, especially for young people and museum lovers. The nightlife scene is diverse, and the various museums, including the Munch and National Museums, offer a rich cultural experience. 

Although Norway’s capital ranks high in terms of quality of life, the reality of everyday residents may be slightly different. Not only are the living expenses in Oslo extremely high, but so are taxes. For instance, the country enforces wealth and personal income taxes of up to 1.1% and 22%, further decreasing residents’ savings. Even worse, the applicable exit tax would force you to give even more money to the government in order to change your tax residency.

4. LONDON, UNITED KINGDOM

London is an economic powerhouse for the United Kingdom and the world. Like New York, it’s a major financial centre offering lucrative job and career opportunities for ambitious individuals. However, living in London is expensive.

The overall cost of living has skyrocketed in the last few years, especially since COVID and the Ukraine-Russia war. The price of electricity, for instance, is almost a whopping $0.30 USD per kWh. Housing isn’t affordable, either; according to Numbeo, a 1-bedroom apartment outside of the city centre is nearly $2,000 USD a month, while the same type of apartment in the city centre can easily be around $2,700 USD. Other living expenses in London, like groceries and transportation, are really pricey.

Despite high salaries, the intense competition for jobs in London can lead to long working hours and stress. Additionally, the city has seen a surge in violent crime, with knife or sharp instrument offences steadily increasing since 2020. 

Rent, groceries, and utilities are some of the reasons why living in London is so expensive. The high taxes have further encouraged many wealthy people and entrepreneurs to flee the country for greener pastures. For instance, the standard VAT rate is 20%, while income tax can reach up to 45%. London will undoubtedly remain a cultural hub with its many museums, tourist attractions and gastronomic offerings, but it is perhaps better to enjoy all of them as a tourist. 

Reykjavik’s remote location and reliance on imports drive high living costs. Many young residents seek opportunities abroad as expenses and taxes consume much of their income, despite its natural beauty

3. REYKJAVIK, ICELAND

Iceland’s capital is undeniably beautiful, especially if you love spending time in nature and seeing the northern lights. However, if you look at how expensive Reykjavik is, it’s easy to see why many young locals have chosen to live elsewhere. 

Many young, educated Icelanders left the country in 2015, and according to official statistics from 2023, more than 8,000 people aged 20 to 34 migrated. This data showcases that certain working-age individuals seek better opportunities elsewhere, whether for a job related to their university studies or a better quality of life. 

Reykjavik’s main issue is its location and limited resources, forcing it to import essential goods like groceries. This scarcity of resources contributes to the high cost of living. The island’s remote location and harsh weather conditions further increase the cost of goods, as transportation is challenging. For example, monthly expenses for a family of four can easily reach over $5,000 USD, while renting a one-bedroom house in the city centre can cost around $2,000 USD, according to Numbeo. Eating out in Reykjavik is also expensive, with inexpensive meals for one sitting at over $20 USD

In Reykjavik, you have to deal with high living costs and taxes that can quickly eat into half of your gross income. Plus, unless you love cold weather, this is not a city you’ll likely want to live in.

2. ZURICH, SWITZERLAND

Zurich, Switzerland’s financial and technological centre, consistently ranks as one of the world’s most livable cities, but this status comes with a hefty price tag. Housing in Zurich is costly, with a one-bedroom apartment in the city centre costing around $2,500 USD per month, according to Numbeo. Buying property is even more challenging, with the price per square metre exceeding $14,000 USD. Other living expenses in Zurich, such as dining out and grocery shopping, are high. For example, a simple meal at an inexpensive restaurant costs approximately $30 USD, while a meal at a mid-range restaurant can reach $130 USD. 

Not only is Zurich expensive, but its taxes can also be quite high. For example, the effective income tax rate may eat into 40% of an individual’s income, while various taxes on wealth, inheritance, and gifts further hinder wealth preservation.  

Despite Zurich’s high salaries and exceptional amenities, only about 15% of its population can afford to buy property. While Zurich offers a vibrant lifestyle, excellent infrastructure, and proximity to nature, the financial burden of living there may lead many to explore alternative locations as remote work grows in popularity.

Geneva, known for its stunning Alpine setting and global diplomacy, is among the world’s most expensive cities. High housing costs, steep taxes, and elevated living expenses challenge residents despite high salaries

1. GENEVA, SWITZERLAND

Geneva, located on the shores of Lake Geneva and surrounded by the Alps, is renowned for its stunning natural beauty and international significance as a hub for diplomacy and finance. However, living in Geneva is very expensive.

The cost of housing is exceptionally high. According to Numbeo, a one-bedroom apartment in the city centre can cost around $2,000 USD per month. The price per square metre typically exceeds $14,000 USD for those considering homeownership outside of the city centre and exceeds $18,000 USD in the city centre. Additionally, other living expenses in Geneva are generally steep. For example, an affordable restaurant meal may cost about $30 USD, and a meal at a mid-range restaurant can cost around $130 USD. 

While salaries in Geneva rank among the highest in Europe, these extreme living costs significantly offset them. Furthermore, the effective income tax rate can reach up to 48%, and there’s even a top 0.3% wealth tax. 

WHY LIVING IN THESE CITIES NO LONGER MAKES SENSE

The financial and lifestyle trade-offs of living in Europe’s most expensive cities have become increasingly unfavourable, leading some residents to seek more affordable alternatives. For instance, the rise of remote work allows many to work anywhere in the world as long as they have an internet connection, and living in expensive cities no longer makes sense. 

While these cities may offer lucrative career opportunities and cultural experiences, residents’ day-to-day reality falls short of expectations. The pressure to maintain a high income, cover living expenses, and keep up with tax obligations complicates wealth creation and starting a family. 

Europeans are increasingly looking for more affordable options worldwide. In addition to stretching their earnings further, they seek a better quality of life, access to nature, less crowded spaces, and a more relaxed pace. Remote work has made these transitions more doable for many professionals and entrepreneurs. 

Also, certain countries have developed pensionist visas to attract foreign retirees and individuals living off passive income. These visas allow them to live comfortably at a fraction of the cost they’d pay back home. 

Discover affordable, attractive alternatives for a better quality of life. Panama, with its tax benefits, reasonable costs, and year-round warm climate, is a top choice for expats seeking modern amenities and natural beauty

DISCOVERING AFFORDABLE, ATTRACTIVE ALTERNATIVES

Fortunately, if you want to enjoy a better quality of life at a fraction of the cost, many options are available. I’ve lived in many different countries, such as Singapore, the UAE, and my current home, Panama. Below are some of the affordable, attractive alternatives to keep on your radar:

PANAMA: A POPULAR DESTINATION FOR EXPATS

Moving to Panama was one of the best decisions I made in my life. After living for multiple years in the UAE, I had various options in mind, such as Thailand and Costa Rica. However, Panama was the country that met all of my criteria. Its tax regime is excellent, including its territorial basis of taxation, which makes foreign-earned income tax-free. Moreover, foreign and domestic investors are on equal footing, and the living expenses here are reasonable. You can benefit from excellent resident programs like the Qualified Investor Visa if you want to live here full-time. 

Regarding lifestyle, Panama offers many advantages, especially if you’re a snowbird seeking good weather. The climate in Panama is stable year-round, with dry and rainy seasons yet warm temperatures in most of the country. Plus, it offers modern amenities, including top-notch hospitals, homeschooling and unschooling options, and stunning natural beauty. 

OTHER AFFORDABLE REGIONS TO CONSIDER

Apart from Panama, Paraguay is a country to keep an eye on. Like Panama, it has territorial taxation, allowing expats to keep more disposable income. Moreover, Paraguay offers various residency permits, including a fast-track permanent residency program that requires a meagre $70,000 USD investment.

Brazil’s Northeast is also attractive for expats, especially digital nomads, retirees, and investors. Its tropical climate ensures warm temperatures year-round, allowing you to ditch the heavy coats and sweaters. Lucrative real estate projects offer excellent upside for savvy investors, whether looking for a cash-flowing property or simply a beautiful beachfront house. 

Europe’s costly cities offer little return for high expenses and taxes. Affordable alternatives like Panama and Brazil’s Northeast provide better lifestyles. Embrace remote work for new possibilities

CONCLUSION

Europe’s most expensive cities present difficulties that are almost impossible to ignore. The steep cost you must pay hardly justifies what you’re getting in return, while the high taxes and other challenges like lack of safety make thriving in these cities a constant struggle. 

Remember that living in these countries is a choice, not a necessity. With the rise of remote work and digital nomadism, many have discovered a new world of possibilities. Affordable alternatives like Panama, Paraguay, and Brazil’s Northeast offer lower living costs and a more enjoyable lifestyle. 

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