As of 2026, Switzerland remains the most expensive country in Europe (and often the world) by a significant margin. The cost of living in cities like Zurich and Geneva is roughly 15-20% higher than in London or Paris. This high cost is driven by exceptionally high wages, a strong Swiss Franc, and high import costs for food and luxury goods. Following Switzerland, Iceland and Norway round out the top three, largely due to their remote locations and the high cost of energy and imported consumer products. For travelers in 2026, a basic meal in a Swiss restaurant can easily cost $40–$50 USD per person. Denmark and Luxembourg are also consistently in the top tier of the 2026 price index. If you are looking for the "opposite" end of the spectrum, countries in the Balkans (like Albania or North Macedonia) or Eastern Europe (like Bulgaria) remain the most affordable on the continent, where the "purchasing power" of the Euro or Dollar is significantly higher.