In this article we are going to list the 10 most expensive countries in Europe. For a detailed coverage of this topic and a more comprehensive list please take a look at the 25 most expensive countries in Europe.
10. Austria
Real GDP / GDP by PPP ratio: 0.92
5 year GDP growth rate: 9.8%
Austria may be a small country but it is among the most expensive countries in Europe primarily because of high taxes which have funded excellent infrastructure.
9. United Kingdom
Real GDP / GDP by PPP ratio: 0.94
5 year GDP growth rate: 9.2%
The United Kingdom has been among the worst hit by the energy crisis due to the country’s reliance on gas to heat homes and create electricity, especially among Western European companies. London is already considered to be among the costliest places in the world to live in, with astronomical rents pricing out many from living in the city.
8. Ireland
Real GDP / GDP by PPP ratio: 0.94
5 year GDP growth rate: 43.2%
Various industries in Ireland, including insurance, telecommunications, groceries and banking, don’t have a lot of competition which results in companies being able to increase prices and passing them off to customers without fear of customers leaving for competitors, with consumer prices in Ireland considered to be much higher than the EU average.
7. Finland
Real GDP / GDP by PPP ratio: 0.98
5 year GDP growth rate: 16.3%
One of the reasons cited for Finland being an expensive country is because of a lack of competition in various industries, which allows companies within those industries to raise prices without much blowback.
6. Luxembourg
Real GDP / GDP by PPP ratio: 0.99
5 year GDP growth rate: 25.6%
Luxembourg’s population is continuing to increase, and considering how small the country actually is, there is a lack of housing which is driving up housing prices. The nation provides a lot of support to its residents, such as free public transport throughout the small country.
5. Sweden
Real GDP / GDP by PPP ratio: 1.03
5 year GDP growth rate: 18.3%
Scandinavian countries dominate the top 5 most expensive countries in Europe, staying true to their historical reputation. The reasons for each country are quite similar as well, with a high cost of goods and services because of high salaries and taxes.
4. Denmark
Real GDP / GDP by PPP ratio: 1.05
5 year GDP growth rate: 18.7%
High taxes on income and consumption in addition to higher salaries make Denmark an expensive country with rent in the nation, especially in major cities, generally being higher than most other countries. High salaries means that products are more expensive while high VAT means that the final cost of products for consumers is even higher.
3. Norway
Real GDP / GDP by PPP ratio: 1.13
5 year GDP growth rate: 26.7%
Norway’s riches come from its vast oil reserves, which have been used to fund a social system in the country to ensure that the distribution of income isn’t one sided, which is why the cost of living is higher in the country. High progressive tax rates in the nation are implemented to maintain an egalitarian society, which seems to be working as despite the country being so expensive to live in, it also regularly ranks among the happiest countries in the world.
2. Switzerland
Real GDP / GDP by PPP ratio: 1.19
5 year GDP growth rate: 15.2%
Switzerland is well-known for being counted among the most expensive countries in the world, and the trend continues unabated. Residents in the country enjoy a high standard of living, all of which comes at a high cost, which is why it is among the most expensive countries in Europe. However, for people with jobs in the country, salaries are quite generous, especially in relation to the cost of living, which is why it is not as expensive for residents.
1. Iceland
Real GDP / GDP by PPP ratio: 1.19
5 year GDP growth rate: 12.3%
Topping the list of the 25 most expensive countries in Europe is one of the most stunning countries in the world in Iceland. While Iceland suffered heavy losses during the financial crisis from 2008 to 2011, the country posted a remarkable recovery, with a heavy focus on tourism. Since Iceland has to import most of its goods, as the country has a population of around 400,000, things are generally more expensive to buy. Transportation costs are also quite high since its an island.
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