Be Careful: The 5 Countries Expats Feel Happy In and the 4 They Regret
Moving abroad is one of those decisions that sounds almost romantically simple – pack a bag, buy a one-way ticket, start over somewhere warm and beautiful. Millions of people do exactly this every year. The number of people living outside their country of birth has steadily increased, reaching roughly 300 to 304 million in mid-2024. That is a staggering portion of humanity rolling the dice on a new life in a foreign land.
Here is the uncomfortable truth though: not every story ends in paradise. Some expats land in their dream destination and genuinely never look back. Others find themselves trapped between sunk costs and quiet misery, wondering where it all went wrong. The difference between those two outcomes often comes down to one thing. The country they chose. So, let’s get into it.
Why the Data Matters More Than the Instagram Photos
Let’s be real for a second. Most people choose their expat destination based on a mix of travel memories, cost-of-living calculators, and maybe a YouTube video from someone who really loves their new life in Bali. That is not research. That is wishful thinking dressed up in a linen shirt.
InterNations, the world’s largest expat community with more than 5.7 million members, has published its annual Expat Insider survey since 2014. It is one of the most extensive surveys about living and working abroad, and in its most recent edition, more than 10,000 respondents representing 172 nationalities provided insights into expat life in 46 countries. That is not opinion. That is scale.
The results are published as an overall ranking of popular expat destinations, with additional information across five topical indices: Working Abroad, Personal Finance, Quality of Life, Expat Essentials, and Ease of Settling In. This is the kind of comprehensive data that should be informing every major relocation decision made today.
Happy Country #1: Panama – The Reigning Champion Two Years Running
In 2026, Panama once again ranks first overall, with all five indices placing in the top three and an impressive 94% of expats happy with their life abroad. It stands out especially as a retirement haven, with far more retirees than the global average and many moving there specifically to retire. Two years in a row at the top. That is not a fluke.
Panama is considered the best country for expats due to its exceptional quality of life, stable economy, and friendly environment for foreigners. The cost of living is relatively low, especially compared to North America and Europe, and expats can enjoy modern infrastructure, world-class healthcare, and a tropical climate.
The country ranked 4th in Expat Essentials, with administrative processes that are remarkably straightforward by Latin American standards. Housing also ranks as especially affordable, with a strong majority of expats reporting satisfaction – a figure that stands out at a time when housing costs are creating pressure for expats globally. Honestly, it is hard to argue with numbers like those.
Happy Country #2: Mexico – Warmth That Goes Deeper Than the Sun
Mexico is the number one expat destination for happiness according to several surveys, with roughly nine in ten expats satisfied with their quality of life. It has been near the very top of expat rankings for over a decade, which says something genuinely powerful about the place.
Mexico offers affordable living for those earning in strong currencies like the USD, GBP, or EUR, rich culture, world-renowned cuisine, and famously warm locals. To put numbers into perspective, rents in Mexico City are roughly 70% lower compared to San Francisco, while groceries run close to half the price. That kind of financial breathing room changes everything about daily life.
Expats in Mexico appreciate the local job market and career opportunities in the country, and results also suggest expats value their work-life balance, with nearly double the global average claiming to be completely satisfied. Safety concerns do require thoughtful consideration, particularly in certain areas of the country, and some expats have also reported pushback from locals due to the influx of Americans entering. No destination is perfect, but Mexico keeps pulling people in for very good reasons.
Happy Country #3: Spain – Europe’s One True Standout
Spain is the only country in Europe to rank within the top 10 in the InterNations Expat Insider survey. It ranked number one for quality of life and number four for overall happiness level, and roughly four in five expats say they are happy in Spain, compared to about two thirds globally. That gap between Spain and the global average is remarkable.
Spain ranked first for good weather, culture, and nightlife, as well as recreational sports opportunities, and the country has an affordable, accessible, and high-quality healthcare system. Plus, it is easy to get around, thanks to a good public transportation infrastructure.
For context, rental prices in Madrid are roughly 62% lower than in San Francisco and over 60% lower in Barcelona. I think Spain genuinely delivers on its promise for most people who move there, more so than almost anywhere else in Europe. The question is whether you can handle the pace of local bureaucracy. That one takes patience.
Happy Country #4: Vietnam – The World’s Most Affordable Expat Destination
For the fourth consecutive year, Vietnam is the most affordable country in the world for expats, ranking first out of 53 destinations when it comes to personal finances, according to the 2024 InterNations study. Four years in a row. That is not coincidence. That is a structural advantage.
Out of those surveyed in Vietnam, nearly nine in ten rated the cost of living favourably, more than twice the global average. Nearly seven in ten said their disposable household income was more than enough to lead a comfortable life, compared to roughly four in ten globally. Those are extraordinary numbers for any country.
Generally, work-life balance trumps career advancement in Vietnam. Notably, less than half of the country’s expat population works full time, compared to the global average of 57%, with about one in five working part-time and around 18% being retired. Vietnam did place 40th out of 53 countries in quality of life and 29th in expat essentials, so the trade-off is real. But for those prioritising financial freedom above almost everything else, Vietnam is genuinely in a league of its own.
Happy Country #5: Portugal – Quietly Exceptional
In 2024, Portugal was recognised as the seventh safest country in the world according to the Global Peace Index. Safety, sunshine, and affordable seafood on every corner. That combination alone is enough to turn many heads.
According to the 2025 Global Retirement Index, Portugal is the second-best place in the world to retire. For retirees especially, that ranking matters enormously. Living in Portugal provides a significant advantage in affordability compared to many other European countries, with essential expenses such as food, groceries, utilities, and healthcare generally more budget-friendly.
According to the 2024 Expat Insider survey by InterNations, Portugal placed 15th out of 53 countries overall. Expats consistently highlight the friendliness of locals, the simplicity of integrating into the community, and the laid-back lifestyle. It is not flashy. It is not the most talked-about destination on social media. Yet people who move there tend to stay, and that quiet loyalty says everything.
Regret Country #1: Kuwait – Last Place, Year After Year
The 2024 Expat Insider poll, which drew responses from more than 12,500 expats based in 174 countries or territories, ranked Kuwait as the worst place for overseas inhabitants – the seventh time this has happened in the eleven surveys conducted by InterNations. Seven times at the bottom. That is not bad luck. That is a pattern.
Kuwait ranks poorly for its climate and weather, with summer temperatures reaching above 50 degrees Celsius, as well as its healthcare, and only about one in five expats are happy with their social life there. Most expats move there for work and are employed full time, but dissatisfaction with job security, work-life balance, and fair pay is widespread. Extreme heat, limited leisure and cultural options, poor air quality, and a challenging social environment further dampen the experience, leaving many expats planning an early exit.
Overall, only roughly four in ten expats in Kuwait are happy with their lives, significantly lower than the global average. The financial lure of tax-free salaries brings people in. The reality of daily life drives them out. It is one of the starkest mismatches between expectation and experience in the entire expat world.
Regret Country #2: South Korea – Impressive on Paper, Isolating in Practice
Living in South Korea can be a genuine challenge for immigrants. Finding new friends and maintaining a social life proves especially difficult given the peculiarities of the local culture. The country’s technology and infrastructure are world-class. The social integration experience is, for many foreigners, the opposite.
South Korea makes up part of the bottom three destinations in InterNations rankings, with expats in particular agreement that working there is tough, ranking in the bottom ten of the Working Abroad Index as well as the bottom spots for Work Culture and Satisfaction. That is a telling combination of challenges for anyone considering a move there.
I know it sounds counterintuitive given how vibrant Korean culture appears from the outside. K-pop, Korean cinema, the food scene in Seoul – it all looks extraordinary. Yet the gap between being a tourist and actually living and building a life inside a deeply hierarchical, linguistically demanding society is enormous. Many expats describe the experience as admiring a beautiful window from outside, without ever quite being invited in.
Regret Country #3: Germany – Efficient but Emotionally Exhausting
Germany features consistently in the bottom ten of the InterNations ease of settling in index, appearing alongside the United Kingdom and Finland as persistently low-ranked European destinations for expats. Expats leaving Germany mentioned cost of living struggles the most in broader expat regret datasets.
Countries of Scandinavia and Germany present a lot of social challenges for expats, with very sparse opportunities to make local friends. The bureaucracy in Germany is notoriously complex. The language barrier in professional settings is steep. And German social culture, while respectful, is famously reserved and slow to warm up to newcomers. Think of it like trying to make friends with someone who insists on reading the instruction manual before saying hello.
Professional opportunities in the UK and Germany cannot make up for the unsatisfying quality of life and high cost of living that both countries present, and Germany has struggled to escape the bottom ten in ease of settling in. For skilled professionals chasing career growth, Germany makes sense. For anyone who also wants to feel genuinely at home, it is a much harder sell.
Regret Country #4: The United Kingdom – Familiar on the Surface, Crushing Underneath
The United Kingdom, with its rich history and broad culture, is far from exempt from expat regrets. Complaints include the damp, cold weather and a perceived lack of work-life balance, especially in management positions. The weather is almost too easy a target, but it genuinely shapes daily life in ways that only become apparent after several grey months in a row.
Being homesick, difficulty finding work, and struggling with the cost of living are the top three reasons expats move back home from the UK, with struggling to make friends and a strong pull toward existing family forming the other major pressures. According to research from AXA Global Healthcare, as of June 2024, the vast majority of expats reported feeling isolated after leaving their home country, with almost half saying the main reason was missing family and friends.
In some major European cities, such as London, Zurich, Amsterdam, and Paris, living expenses rival those of top U.S. cities. London in particular eats salaries alive. The promise of English-language ease and a world-class city quickly collides with housing costs that are genuinely shocking, commutes that drain the soul, and a social culture that can feel impenetrable for years. Many expats describe it as the hardest easy country in the world to live in.
