4. Moscow, Russia
Moscow is the most expensive city in Europe for expatriates and has ranked fourth globally since 2010.
Despite widespread concerns over corruption, red tape, pollution and growing traffic congestion, Moscow's place as Russia's main political and business capital makes it the top destination for expat workers. The city attracts more investment than other Russian cities and accounts for about a quarter of the country's $1.5 trillion economy. Daily issues like power outages and safety also drive up the cost of living for foreigners.
The rising cost of renting property is the most substantial increase in living costs for 2012, according to Mercer, with a luxury two-bedroom apartment going up by $200 compared to last year. Demand for luxury property in Moscow is also high because of growing wealth from the country's oil and commodities boom. Moscow is home to the most billionaires in the world at 79, according to Forbes.
Monthly Rent, Luxury 2 Bedroom: $4,200
Cup of Coffee: $8.37
One Gallon of Gasoline: $3.67
Daily International Newspaper: $9.78
Fast-Food Meal: $6.70