Madrid and Barcelona are among the 30 most expensive European cities for expat professionals, as both cities have become more expensive for the second consecutive year in 2024, according to Mercer's annual ranking.
Madrid and Barcelona ranked 30th and 25th in Europe, respectively, while globally the Spanish capital is in 76th position and Barcelona in 66th.
According to the latest "Cost of Living 2024" study, which compares the cost of more than 200 goods and services in 226 cities on five continents, Madrid and Barcelona have climbed "slightly" up the ranking of the most expensive cities in the world for expatriate corporate staff.
According to the report, the main factors that affected the economies of both cities in 2023, as well as globally, will continue to influence them in 2024, as inflation and exchange rate fluctuations have a direct impact on expatriate salaries and savings.
Moreover, housing costs, local taxes and education expenses, among others, are weighing heavily on the cost of living for expatriates around the world.
"All of these factors make it difficult for companies to attract and retain talent, limiting employee mobility and driving up operating costs," the report notes.
In the Spanish capital, the items that have risen the most this year are olive oil (75%), followed by oranges and flour, while fuel fell by 4%. In Barcelona, they are sugar (61%), olive oil (47%) and flour (30%), while fuel dropped similarly to Madrid.
Mercer's Career Director, Juanvi Martinez, said that in the current global landscape, "the cost of living crisis has had a significant impact on multinational organisations and their overall talent management".
"Companies must communicate openly with their employees to address the concerns of their workforce and find optimal solutions," Martinez concluded.
Globally, for the second year in a row, the study ranks Hong Kong, Singapore and Zurich as the most expensive cities in the world for corporate expatriates. What's more, five of the top 10 most expensive cities in the world for expatriates are European.
The top four are in Switzerland, with little change from 2023. In addition to Zurich, which is in third place, Geneva is in fourth place, Basel is fifth, and Bern and London are in sixth and eighth place, respectively.
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