Countries with the Best Purchasing Power in 2026: 40-Country Ranking
Where do local salaries buy the most? The Local Purchasing Power Index measures real affordability by comparing what residents can actually afford with their typical wages.
Full 40-Country Rankings by Purchasing Power
Numbeo's Local Purchasing Power Index (NYC = 100). Higher = local wages buy more. This is the ultimate "bang for buck" metric.
| # | Country | Purchasing Power | COL Index | Rent Index | Region |
|---|---|---|---|---|---|
| 1 | Switzerland | 170.6 | 110.7 | 51.5 | Europe |
| 2 | Denmark | 146.6 | 78.9 | 28.9 | Europe |
| 3 | United Arab Emirates | 134.5 | 64.4 | 47.3 | Middle East |
| 4 | Saudi Arabia | 132.8 | 43.9 | 13.5 | Middle East |
| 5 | Finland | 129.4 | 69.0 | 21.9 | Europe |
| 6 | Norway | 124.7 | 83.7 | 29.2 | Europe |
| 7 | Austria | 120.0 | 71.3 | 25.1 | Europe |
| 8 | South Korea | 111.5 | 61.6 | 16.1 | Asia |
| 9 | United States | 110.4 | 68.8 | 40.7 | North America |
| 10 | South Africa | 109.2 | 37.1 | 13.0 | Africa |
| 11 | Australia | 102.6 | 73.4 | 41.6 | Oceania |
| 12 | Sweden | 99.4 | 60.2 | 23.7 | Europe |
| 13 | Spain | 98.1 | 51.6 | 21.2 | Europe |
| 14 | Netherlands | 97.8 | 68.4 | 37.8 | Europe |
| 15 | Poland | 97.1 | 47.3 | 18.4 | Europe |
| 16 | Germany | 95.3 | 68.7 | 24.6 | Europe |
| 17 | Canada | 92.8 | 63.0 | 36.5 | North America |
| 18 | Hong Kong | 91.6 | 75.2 | 63.1 | Asia |
| 19 | Ireland | 88.9 | 70.3 | 56.2 | Europe |
| 20 | New Zealand | 88.7 | 73.4 | 36.4 | Oceania |
| 21 | United Kingdom | 88.2 | 67.8 | 32.1 | Europe |
| 22 | Singapore | 87.8 | 81.8 | 73.1 | Asia |
| 23 | Belgium | 87.3 | 66.2 | 28.5 | Europe |
| 24 | France | 81.6 | 67.7 | 30.9 | Europe |
| 25 | Malaysia | 80.1 | 34.0 | 9.2 | Asia |
| 26 | India | 76.1 | 25.7 | 9.8 | Asia |
| 27 | Turkey | 72.8 | 39.2 | 13.3 | Europe/Asia |
| 28 | Japan | 70.4 | 49.7 | 14.7 | Asia |
| 29 | Italy | 64.6 | 60.1 | 28.0 | Europe |
| 30 | Greece | 64.1 | 54.0 | 13.7 | Europe |
| 31 | Portugal | 59.7 | 48.8 | 22.2 | Europe |
| 32 | Chile | 52.8 | 39.0 | 11.6 | South America |
| 33 | Mexico | 50.7 | 39.7 | 18.6 | North America |
| 34 | Argentina | 47.5 | 41.3 | 12.1 | South America |
| 35 | Brazil | 46.1 | 30.1 | 8.5 | South America |
| 36 | Thailand | 45.5 | 38.0 | 13.9 | Asia |
| 37 | Vietnam | 42.5 | 26.4 | 9.9 | Asia |
| 38 | Colombia | 39.9 | 31.7 | 10.9 | South America |
| 39 | Philippines | 33.9 | 30.1 | 7.8 | Asia |
| 40 | Indonesia | 29.3 | 26.1 | 9.1 | Asia |
What Purchasing Power Actually Means
The Local Purchasing Power Index answers a simple question: "Can a typical resident afford a comfortable life here?"
A score above 100 means residents have more buying power than New Yorkers. Below 100 means less. Crucially, this accounts for local wages — not expat salaries. If you earn a Western salary while living in a country with a low COL but also low purchasing power, your position is far better than the index suggests.
This is why the index is most relevant for people earning local wages or considering local employment. Remote workers earning in USD/EUR should look at our salary-specific rankings instead.
Learn more about these metrics in our cost-of-living comparison guide.
Top 10 by Purchasing Power — Quick Profiles
1. Switzerland — Index: 170.6
COL: 110.7 · Rent: 51.5 · Region: Europe
1BR rent (city): $2,280 · Groceries: $680/mo · Tax range: Federal 0%–11.5% + cantonal (total ~22%–45%)
Salary calculator →2. Denmark — Index: 146.6
COL: 78.9 · Rent: 28.9 · Region: Europe
1BR rent (city): $1,445 · Groceries: $460/mo · Tax range: ~37% bottom, 55.9% top
Salary calculator →3. United Arab Emirates — Index: 134.5
COL: 64.4 · Rent: 47.3 · Region: Middle East
1BR rent (city): $2,050 · Groceries: $305/mo · Tax range: 0% personal income tax
Salary calculator →4. Saudi Arabia — Index: 132.8
COL: 43.9 · Rent: 13.5 · Region: Middle East
1BR rent (city): $505 · Groceries: $290/mo · Tax range: 0% on employment income (foreigners and nationals)
Salary calculator →5. Finland — Index: 129.4
COL: 69.0 · Rent: 21.9 · Region: Europe
1BR rent (city): $1,000 · Groceries: $420/mo · Tax range: 12.64%, 19%, 30.25%, 34%, 44% (state) + municipal
Salary calculator →6. Norway — Index: 124.7
COL: 83.7 · Rent: 29.2 · Region: Europe
1BR rent (city): $1,480 · Groceries: $525/mo · Tax range: 22% general + bracket tax (effective 22%–39.6%)
Salary calculator →7. Austria — Index: 120.0
COL: 71.3 · Rent: 25.1 · Region: Europe
1BR rent (city): $1,140 · Groceries: $435/mo · Tax range: 0%, 20%, 30%, 40%, 48%, 50%, 55% (seven bands)
Salary calculator →8. South Korea — Index: 111.5
COL: 61.6 · Rent: 16.1 · Region: Asia
1BR rent (city): $685 · Groceries: $480/mo · Tax range: 6%, 15%, 24%, 35%, 38%, 40%, 42%, 45%
Salary calculator →9. United States — Index: 110.4
COL: 68.8 · Rent: 40.7 · Region: North America
1BR rent (city): $1,850 · Groceries: $410/mo · Tax range: 10%–37% federal
Salary calculator →10. South Africa — Index: 109.2
COL: 37.1 · Rent: 13.0 · Region: Africa
1BR rent (city): $565 · Groceries: $195/mo · Tax range: 18%, 26%, 31%, 36%, 39%, 41%, 45%
Salary calculator →Frequently Asked Questions
What is purchasing power parity?
Purchasing Power Parity (PPP) measures how much local wages can buy in local prices. A purchasing power index of 110 (NYC = 100) means local residents can buy 10% more goods and services than a New Yorker with their typical wage. It's the best single metric for comparing real living standards.
Why is purchasing power more important than raw salary?
A $200K salary in Zurich may buy less than a $60K salary in Bangkok. Raw salary ignores price levels entirely. Purchasing power combines both income and costs into one metric, answering: 'How well off are residents actually?' That's what matters for quality of life.
Can a low-cost country have high purchasing power?
Absolutely. If local wages are high relative to local prices, purchasing power is high. The US has high costs AND high wages, resulting in high purchasing power. Conversely, Switzerland has very high costs that partially offset its world-leading wages.