The cost of living is the amount of money needed to sustain a certain comfort level in a location. The cost of living covers such basics as housing, groceries, taxes, and healthcare. Some countries have a very high cost of living, particularly in areas surrounding large cities.
For example, in the United States, cities like New York and San Francisco have a very high cost of living, while such areas as rural Mississippi, Kansas, or Oklahoma may be notably more affordable. Some nations have a very low cost of living, which can make them attractive destinations for expats, retirees, and others interested in reducing their expenses.
As a rule, cost of living computations start by recording the cost of various needs, from rent/mortgage and health care to a loaf of bread, in a given city. Those costs are then compared to the price of the same necessities in a baseline location, such as New York City (USA), or Prague in the Czech Republic. Finally, the numbers for each region in a given country are averaged to enable nation-to-nation comparisons.
Every source adds its own spin on the math, which results in slightly different lists. The table below presents a full list of the countries and their scores. To explore the opposite end of the spectrum, take a look at the most expensive countries to live in.