The Swedish capital fell from the 89th spot last year to 127th in financial services provider Mercer's 25th edition of the cost of living for people working abroad, thanks in part to the weak Swedish krona.
That makes Stockholm the cheapest of all the Nordic capitals for workers stationed abroad.
Denmark's Copenhagen, ranked number 20 on the list, is the most expensive in the Nordics, and Hong Kong is the world's most expensive city for expatriates, according to Mercer.
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The other Nordic capitals were Oslo (61) and Helsinki (65). Reykjavik was not included in the rankings.
The priciest city in Europe was Zurich, the only European city to make the top 10 (5th).
Mercer in total surveyed 500 cities around the world and included 209 of them in the ranking, using New York City as the base city and measuring currency movements against the US dollars.
It took into account the cost of more than 200 items, including housing, household goods, food, transportation, clothing and entertainment.
Top 10 most expensive cities in the world
1. Hong Kong
9. New York City
Read the full ranking here.