Have you ever wondered how much you would need to earn to maintain a lifestyle similar to the one you have today in another country? Traveling or moving abroad can reveal an important difference: the same amount of money can buy very different quantities of products and services depending on where you are.
The cost of living around the world varies considerably. And it is not enough to look only at prices: average income also changes completely how expensive or affordable a country feels.
Which Countries Have the Highest Cost of Living?
The latest data from the comparison analyzed here shows significant differences among countries. To make the comparison easier to understand, Brazil is used as a reference with an index of 100. Therefore, a country with an index of 150 has average costs approximately 50% higher than those in Brazil according to the methodology used.
| Country or region | Cost of living index | Average monthly income | Purchasing power |
|---|---|---|---|
| Bermuda | 311.9 | US$ 11,614 | 423.6 |
| Cayman Islands | 303.1 | US$ 6,827 | 256.1 |
| Iceland | 281.5 | US$ 7,435 | 300.4 |
| Switzerland | 278.1 | US$ 9,194 | 376.1 |
| Denmark | 226.9 | US$ 6,433 | 322.5 |
| United States | 216.4 | US$ 7,401 | 389.0 |
| Norway | 208.7 | US$ 8,109 | 442.0 |
| Portugal | 140.5 | US$ 2,494 | 201.9 |
| Brazil | 100.0 | US$ 879 | 100.0 |
| India | 49.2 | US$ 230 | 53.1 |
The figures refer to 2025 according to the methodology presented by the source and are part of a comparison involving 175 countries and regions. The source itself points out that the index is a statistical representation and cannot capture every difference in real-life living conditions.
World Data — Global Cost of Living Comparison
A country ranking as inexpensive does not automatically mean that its residents enjoy a more comfortable life. Income, product availability, quality of services and other factors also need to be considered.
Where Does Brazil Rank in the Global Comparison?
In the comparison presented, Brazil has an index of 100, serving as the reference point for other countries. This means that figures above or below 100 indicate, according to this methodology, average costs that are higher or lower than those in Brazil.
The country ranks 106th among the 175 locations included in the latest version of the table. In practice, this places Brazil somewhere in the middle of the international cost-of-living comparison.
Countries such as Portugal, Spain, Japan and Italy have higher indexes than Brazil. Meanwhile, countries such as Turkey, Russia, Vietnam and India have lower indexes.
But there is an important detail: comparing only the price of goods can lead to the wrong conclusion.
A More Expensive Country Can Have Greater Purchasing Power
Imagine two people: one lives in a country where products are relatively inexpensive but earns a low income; the other lives in a country where everything costs more but earns much more.
Who is better off? You cannot answer that question by looking at prices alone.
That is why the comparison also considers purchasing power. This indicator seeks to relate the cost of goods and services to the income available to consumers.
In the table analyzed, Portugal has a cost-of-living index of 140.5, while its purchasing power index reaches 201.9. Brazil, on the other hand, has 100 for both reference indicators.
This helps explain why a country can be more expensive to live in and, at the same time, provide greater purchasing power for people earning the local income.
OECD — Purchasing Power Parities
How Is a Country’s Cost of Living Calculated?
One way to make this type of comparison is by using a consumer basket. It includes different goods and services considered representative of a population’s needs.
This basket may include items such as food, beverages, transportation, energy, household products and other everyday expenses. The methodology needs to account for the fact that consumption habits are not the same in every country.
A product may be purchased in large quantities in one region and have little importance in another. The same applies to fuel, food, transportation and other items.
Therefore, an international comparison does not simply mean taking the price of a product in Brazil and converting it into U.S. dollars.
The goal is to compare price levels more broadly by considering a representative basket of goods and services.
The OECD explains that purchasing power parities are used precisely to eliminate price differences between countries and enable more appropriate economic comparisons.
OECD — Purchasing Power Parities
Why Can the Same Product Cost So Much More in Another Country?
Taxes, wages, transportation, import costs, availability of raw materials and quality standards can directly influence the final price.
A product that is inexpensive in one country may also have different characteristics from a similar product sold in a market where there are stricter safety, quality or sustainability requirements.
This means that a lower price does not necessarily mean an equivalent product or a lower cost of living in every respect.
Is Cost of Living the Same as Quality of Life?
No. This is one of the main distinctions you need to understand.
A country can have a high cost of living while also offering higher salaries, good infrastructure and more accessible public or private services for its population.
Likewise, a country with low prices may have lower average incomes and greater difficulties in important areas of everyday life.
That is why anyone thinking about traveling, studying, working or living abroad should consider factors beyond prices.
Healthcare, safety, transportation, education, housing, economic stability and job opportunities can completely change what it is like to live in a particular place.
If you are comparing countries as potential places to move, do not use a cost-of-living ranking as your only decision-making criterion.
What Should You Consider Before Choosing a Country to Live In?
If your goal is to find out where it would be less expensive to live, it is worth making a more complete comparison. The first step is to separate the expenses that are actually part of your routine.
- housing and rent;
- food;
- transportation;
- electricity and internet;
- healthcare;
- education;
- taxes;
- leisure;
- insurance;
- salary or available income.
Then compare those costs with what you actually intend to consume. A single person may have completely different expenses from those of a family with children, for example.
It is also worth checking whether the figures used in a ranking are national averages or represent specific cities. The cost of living in a capital city can be very different from that of a smaller city in the same country.
Why Should Cost-of-Living Rankings Be Interpreted Carefully?
Every index depends on a methodology. Results can change depending on the products analyzed, the weight assigned to each category, the period covered by the data and the way currencies are converted.
The source used as a reference points out that certain situations can produce less representative results, especially in countries where there are large differences between official exchange rates and rates used in the market.
In addition, a national index represents an average. It does not mean that everyone in that country spends exactly those amounts.
For this reason, rankings are excellent for gaining an overall perspective, but they do not replace specific research when you are planning a trip or a move.
World Bank — Brazil Economic Data
Which Country Is the Cheapest to Live In?
In the comparison presented, India appears among the countries with the lowest cost-of-living index, at 49.2, followed by Pakistan, Myanmar and Bulgaria near the bottom of the table.
This does not mean, however, that anyone could automatically live in these countries for half the cost they would have in Brazil. The index represents a statistical average and should be analyzed together with income, product quality, services and local conditions.
Which Country Has the Highest Cost of Living?
In the most recent table from the source analyzed, Bermuda has the highest cost-of-living index, at 311.9, followed by the Cayman Islands and the Turks and Caicos Islands.
It is important to note that some locations on the list are not sovereign countries. Therefore, international rankings may combine independent countries with territories or regions that have their own economic characteristics.
Is Brazil an Expensive Country to Live In?
In the comparison used here, Brazil serves as the reference with an index of 100 and ranks 106th among 175 countries and regions. This shows that there are places that are both more expensive and less expensive than Brazil.
However, determining whether Brazil is “expensive” also depends on available income and the expenses being considered. For a personal analysis, the ideal approach is to compare salary, housing, food, transportation and other expenses.
Conclusion
The cost of living around the world varies enormously, but understanding these differences requires looking beyond the price of goods and services. Income, purchasing power, quality, taxes and local conditions are all part of the equation.
If you are thinking about traveling, studying, working or living in another country, use rankings as a starting point. Then create a budget based on your own situation and the expenses you will actually have.
Which country do you think would be an interesting place to live because of its cost of living? And if you could choose today, would you prioritize lower prices or a higher salary even if it meant living in a more expensive country?
FAQ
What does a cost-of-living index mean?
It is a measure used to compare the prices of goods and services among different countries or regions. In the comparison analyzed here, Brazil has an index of 100, and other locations are ranked above or below that reference.
What is the cheapest country to live in?
In the table analyzed, India has one of the lowest cost-of-living indexes, at 49.2. However, that does not automatically make it the best place to live, since income, services, product quality and local conditions also need to be considered.
Is a country with a high cost of living a bad place to live?
Not necessarily. A country may have high prices while also offering much higher salaries. That is why purchasing power is important: it helps evaluate how much local income allows a person to consume after taking prices into account.
Is the cost of living the same in every city within a country?
No. Major cities and tourist regions often have different prices from smaller cities. Rent, transportation and food can vary significantly within the same country, which is why a national average does not represent every location.
What is purchasing power?
It is a way of assessing how much a given income can buy after considering the price level. In international comparisons, it helps show why a more expensive country can still provide greater purchasing power to people earning the local income.
Is cost of living enough to choose a country to live in?
No. Before making a decision, it is also important to analyze salaries, housing, healthcare, safety, education, transportation, taxes, job opportunities and quality of life. Cost of living should be only one part of the comparison.
Why can the same product cost more in another country?
Taxes, transportation, import tariffs, wages, availability of raw materials, competition and quality standards can affect the final price. Therefore, simply converting a price into another currency does not, by itself, reveal the true cost of living in a particular country.
