Geneva has remained in fifth position while Zurich has risen one position to sixth place, which it shares jointly with Singapore.
Bern has also climbed two positions to 14th place, making it the fourth most expensive European city in the survey.
The study noted that the majority of European cities had dropped in the rankings due to the weakening euro, while Swiss cities bucked the trend thanks largely to the strong franc.
Tokyo knocked Angola’s capital, Luanda, from the number one spot. Osaka takes up third position, with Moscow in fourth. Karachi, at position 214, was found to be the world’s cheapest city for expatriates.
The survey covered 214 cities across the world and compared the costs of over 200 items including household goods, food, travel and housing, usually the biggest expenses for expatriates. New York, the most expensive US city in 33rd position, was used as the base city.
Some of the largest jumps in the rankings were seen in New Zealand, where Auckland and Wellington each leaped a massive 62 places to 56th and 74th positions respectively.
External link: The top 50 cities in the Mercer rankings.