Madrid and Barcelona Ranked Among the Most Expensive Cities for Expats

Hong Kong, Singapore and Zurich are the three most expensive cities to live in for the second year in a row, according to Marcer.

Madrid and Barcelona rank among the 30 most expensive European cities for expat professionals in 2024, according to Mercer's annual report. For the second year in a row, both cities have seen rising costs, with Madrid positioned 30th and Barcelona 25th in Europe. Globally, Madrid is ranked 76th, while Barcelona holds the 66th spot.

The latest "Cost of Living 2024" study, which evaluates over 200 goods and services across 226 cities worldwide, shows that Madrid and Barcelona have risen slightly in the rankings of the most expensive cities for expatriate professionals. The report highlights that inflation and exchange rate fluctuations, which significantly impacted the economies of both cities in 2023, will continue to affect expatriate salaries and savings throughout 2024.

Additionally, housing costs, local taxes, and education expenses are significantly contributing to the high cost of living for expatriates globally.

In Madrid, the biggest price increases this year have been in olive oil (up 75%), followed by oranges and flour, while fuel prices decreased by 4%. In Barcelona, sugar has seen the largest rise (61%), along with olive oil (47%) and flour (30%), with fuel prices dropping similarly to Madrid.

Juanvi Martinez, Mercer's Career Director, highlighted the profound impact of the cost of living crisis on multinational organizations and their talent management strategies in today's global landscape. Martinez emphasized the importance of open communication between companies and their employees to address workforce concerns and find the best solutions.

For the second consecutive year, Hong Kong, Singapore, and Zurich have been ranked as the most expensive cities in the world for corporate expatriates, according to the study. Notably, five of the top ten most expensive cities for expatriates are located in Europe.

The top four cities remain largely unchanged from 2023, with Switzerland dominating the rankings. Zurich holds third place, followed by Geneva in fourth, Basel in fifth, and Bern in sixth. London also features in the top ten, coming in at eighth place.