Switzerland is the most expensive place for expats in Europe due to the comparative strength of the Swiss franc.
Swiss cities take four of the top 10 places in a survey by expat benefits consultancy ECA International.
Zurich is the most expensive city in Europe – headed by Hong Kong and Luanda, Angola.
Although Luanda tops the list, the cost of living in this African country is hugely inflated by logistic and security problems.
Due to a scarcity of Western goods, importing them to Luanda can be costly.
Strong franc bolsters prices
Hong Kong has a high cost of living often due to the cost of buying or renting a home.
“The comparative strength of the franc has contributed to Switzerland remaining as one of the most expensive countries surveyed in the world. Despite prices hardly rising in the previous year, Swiss cities dominate the top of the rankings,” said Steven Kilfedder, production manager, ECA International.
“The cost of goods typically purchased by international assignees in Luanda, which was already high due to poor infrastructure and high oil-fuelled demand, has been pushed much higher in the last year. The Angolan kwanza is increasingly overvalued, which pushes up relative costs, while the continued weakness of the black-market exchange rate has also inflated the price of imported goods.”
London tumbles down rankings
The decline of the Pound and the Euro has seen many European world cities tumble down the rankings.
London dropped 67 places to rank 132nd out of 460 cities in the survey – and every other British location is lower down the list.
“Thanks to the weakened pound UK businesses are paying more to send staff to work overseas, but it is cheaper to bring staff to the UK,” said Kilfedder. “UK locations have seen the most dramatic decline in Europe this year and the fifth-largest decline in the world – behind cities in Sierra Leone, Nigeria, Egypt and Ghana in Africa. All ranked UK cities have dropped below regional rivals Paris, Berlin and Brussels in the cost of living rankings.”
Most expensive cities for expats
Ranking | City | Country |
1 | Luanda | Angola |
2 | Hong Kong | Hong Kong |
3 | Zurich | Switzerland |
4 | Geneva | Switzerland |
5 | Basel | Switzerland |
6 | Bern | Switzerland |
7 | Tokyo | Japan |
8 | Seoul | Korea |
9 | Caracas | Venezuela |
10 | Khartoum | Sudan |
Source: ECA International