Iceland is the most expensive country to live in in 2026, according to recent coverage that says it has overtaken Switzerland for the top spot.

Quick Scoop

  • A June 2026 report says Iceland now ranks first globally for cost of living.
  • The same report says Switzerland was previously at the top, but Iceland has moved ahead.
  • For the European Union specifically, Denmark was listed as the most expensive member state, with prices at 140% of the EU average.

Why it’s so high

Iceland’s high cost of living is usually tied to imported goods, energy costs, and a small market that keeps prices elevated. That pattern also shows up in other expensive island economies and import-dependent countries.

In plain terms

If you mean the single most expensive country worldwide, the answer is Iceland in 2026. If you mean the most expensive country in the EU, the answer is Denmark.

[10][3] [1][6]
Scope Most expensive country Source
Worldwide Iceland
European Union Denmark
**TL;DR:** Iceland is the most expensive country to live in globally in 2026, while Denmark leads the EU.