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2. Zurich, Switzerland

Zurich, Switzerland's largest city, keeps the number two spot from last year after holding the title of the city with the best quality of life in the world previously. It is also one of three Swiss cities to make the top 10 rankings – tying with Germany for the most number of cities on the list.

Known as a global financial center, one out of every nine jobs in Switzerland is based in Zurich. Its low tax rates attract overseas companies and the assets of the 82 banks based there are equivalent to more than 85 percent of the total value of assets held in Switzerland. The city is also the country's biggest tourist destination, famous for its lakeside location and chain of hills that run from north to south, providing an extensive range of leisure activities.

The cost of living in Zurich is the sixth highest in the world, according to Mercer. Both Zurich and Geneva make Switzerland the most expensive country to live in in Western Europe. The city also attracts people to buy luxury properties here, because of its low taxes, safety record and good education system, according to real estate firm Knight Frank.

José Fuste Raga | Getty Images