Amsterdam drops to 85th most expensive city for expats

Amsterdam dropped 21 spots on Mercer's list of most expensive cities in the world for expats. The Dutch capital is now in 85th place, down from last year's 64th position. On the list of European cities, Amsterdam is still 12th most expensive, Het Parool reports.

In compiling its ranking, Mercer looked at a number of factors, including the cost of food, entertainment, rent and the costs a company needs to incur to keep its employees safe. Many European cities fell in the ranking due to the dollar's stronger position against the euro. This means it's less expensive for companies working in dollars to send their staff to Europe.

There are three European cities in the top 10 of the rankings, all of them in Switzerland. Zurich is the most expensive European city at number 4 on the list. The most expensive city in the world for expats is the Angolan capital of Luanda. Hong Kong came in second place and Tokyo in third.