A lot of Americans daydream about moving abroad for a fresh start or a cheaper lifestyle. Before you make that leap, it helps to know where day-to-day costs hit the hardest and where your money stretches further. A 2025 analysis by international insurer William Russell compared routine living expenses that expats actually pay every month, then turned those prices into a single “expenditure score.” The study looked at utilities, public transportation, fuel, broadband, restaurant meals for two, gym memberships, and even average movie ticket prices, using recent price data to build a clear picture of everyday spending. It then ranked countries from most expensive to most affordable for expats.
What follows is a plain-English guide to the top five at each end of the list, plus quick budgeting tips for students, remote workers, and first-time expats. Keep in mind that this study emphasizes recurring everyday costs. That is useful for your first year abroad when you are settling in and trying to predict monthly outflows, but it is different from city rankings that lean heavily on rent or housing alone. If you cross-check with other research, you will still see a familiar theme: Switzerland and its neighbors are pricey, while parts of Latin America and Central Europe remain friendly to starter budgets.
How the rankings were built
Analysts assembled prices for a basket of daily expenses and normalized each metric to a score out of ten, then averaged the results into a country expenditure score. Switzerland lands at the top because it is costly across many categories at once, not just in one or two. On the other end, Mexico and parts of the Baltic region deliver low monthly costs for several essentials at the same time. Methodology notes show the basket focuses on repeatable, comparable items like transit tickets, fuel per liter, monthly internet, basic utilities, mid-range restaurant meals for two, gym memberships, and cinema tickets. That design makes the final ranking practical for monthly budget planning.
Most expensive countries for expats in 2025
The five priciest countries combine high leisure, transport, and connectivity costs with elevated prices for basics. For many Americans, the shock comes from how quickly small purchases add up.
Switzerland
Switzerland has the highest overall expenditure score. It posts the most expensive average gym membership and the highest cinema ticket price in the study. It also sits near the top for public transport fares and restaurant bills for two. That mix explains why even simple social plans cost more than you expect. If you move for work, a housing allowance and a transit pass will help, but your daily spending will still feel rich compared with the United States.
Iceland
Iceland ranks second. It has the most expensive public transit tickets and petrol per liter among the countries measured, plus the highest average monthly internet bill and one of the priciest restaurant checks for two. Utility bills are a relative bright spot thanks to abundant geothermal energy, but the rest of the basket stays elevated, which keeps monthly costs high.
Norway
Norway rounds out the top three. Expect steep public transport fares, upper-tier costs for eating out, and above-average broadband prices. Salaries can be strong, but the routine cost structure means you need a realistic buffer for entertainment and commuting if you are not on a robust expat package.
Denmark
Denmark sits fourth. Residents pay a premium for day-to-day dining and services, and the study captures how those smaller purchases accumulate. If you are transferring for work or study, dialing back restaurant spending and relying on bikes or transit can keep your budget balanced.
Netherlands
The Netherlands completes the top five. Utility and connectivity costs run high enough to move the country up the table, and eating out adds to the monthly total. Many expats offset this with strong cycling infrastructure and careful meal planning, but the baseline is still expensive compared with cheaper regions.
Most affordable countries for expats in 2025
Lower scores here come from genuinely cheaper utilities, transport, and everyday leisure. For Americans testing the waters abroad, these destinations make it easier to build savings while you learn a new system.
Mexico
Mexico takes the top spot as most affordable. Average utility bills and gym memberships are the cheapest in the study, and public transport is widely available at low fares in major cities. That combination trims monthly costs for both essentials and lifestyle, which explains the steady inflow of remote workers and students. Your biggest budgeting task will be choosing a city with the safety, community, and connectivity you want.
Lithuania
Lithuania ties for second-cheapest, driven largely by rock-bottom monthly internet costs. Public transport is also among the least expensive in the ranking. For expats who need reliable broadband for school or remote work, this pricing removes a major pain point. It is a rare case where you can boost speed and lower the bill at the same time.
Poland
Poland shares second place with Lithuania. Internet plans are inexpensive, cinema tickets are among the cheapest measured, and gym memberships are budget-friendly. If you want a European base with classic cities and quick rail links, Poland’s monthly cost profile makes it a practical option for first-time expats who need to watch cash flow closely.
South Korea
South Korea lands fourth on the affordability side in this study. Restaurant pricing and basic utilities often undercut Western European averages, and public transit is comprehensive and cheap across major metros. If you are an English-speaking student or teacher, lower day-to-day costs can help you save even if rent sits at a midrange level in Seoul.
Hungary
Hungary rounds out the top five most affordable. Budapest pulls many newcomers for its culture and café life, but the data signal that regular expenses like internet, gym, local transport, and modest meals are what keep monthly budgets comfortable. The sweet spot is a central European lifestyle with a gentler cost curve.
What this means for an American teen or first-time expat
If you are planning a gap semester, remote internship, or your first international job, use these findings to shape a basic budget. Start with the items you cannot avoid: utilities, internet, and local transport. In high-cost countries like Switzerland or Iceland, build a bigger buffer for social life, since gyms, movies, and casual meals cost more. In Mexico, Lithuania, or Poland, you can redirect savings from utilities and transit into travel or language classes without stretching your paycheck. If your plan focuses on a single city, compare this country list with a city-level ranking so you do not get blindsided by a specific housing market. The city lists often spotlight housing and import-heavy goods, while this country list focuses on everyday services you will pay for every month. Together, they paint a reliable picture of your real monthly spend.
Sources
- William Russell, “The Cost of Living Abroad in 2025: Most and Least Expensive Countries for Expats” (methodology and full ranking, incl. basket items and scores).
- MoneyWeek summary confirming top five most expensive and five most affordable countries with score table.
- The Economic Times recap of the ranking with key price examples (Switzerland, Iceland, Norway; Mexico, Lithuania, Poland).
- Mental Floss overview with maps and the same 2025 ranking and scores.
