Before You Move: 10 Countries Where Expats Rank Quality of Life Highest

Panama

For the second consecutive year, Panama ranked as the best country for expats, with an impressive 94% of expats reporting happiness with their life abroad. Approximately 35% of respondents are already retired, and 18% say their primary motivation for moving was to retire there. The Central American gem combines accessible bureaucracy, affordable living costs, and a culture that genuinely welcomes foreigners.

Newcomers are most satisfied with the low cost of living, which they can more than comfortably cover, and 71% report they feel they’re paid fairly (compared with 58% globally). 35 percent of expats said they plan to stay forever, compared to 24 percent who say that globally. For about $800 to $1,500 per month, you can live comfortably in small towns, villages and farming communities, though those looking to live in Panama City will require a higher monthly budget of up to $2,500.

Colombia

Climbing from fifth place in 2024 to number two this year, Colombia ranked as the second-best country for expats, with 81% of respondents satisfied with their financial situation. What makes Colombia truly special goes beyond money, though. 36% of expats said they wanted to stay in Colombia forever, and another 47% said they have no clear plans of leaving the country.

Colombia also ranked highly in the quality of life index, with 92% of respondents stating that their disposable household income is sufficient to lead a comfortable life in the South American country. Similar to what makes Panama such a great place, Colombia also shines in the ease of settling in index, meaning expats appreciate the friendliness of the population, feel welcome, and find it easy to integrate into the local culture and to make friends.

Mexico

Expats love Mexico, with 89 percent reporting they are happy with their lives abroad. It’s hard to say for sure, but that’s a staggering figure that speaks volumes. The North American country ranked number one for ease of settling in, with expats citing the ease of adapting to the local culture and the friendliness of locals, which extends to making new friends. The majority of expats, about 79 percent, say they feel at home in Mexico, and 67 percent are satisfied with their jobs, although 31 percent of expats in Mexico are already retired.

A whopping 71% of expats are happy with the cost of living, compared to the low score of 44% globally. Expats also reported that the housing market in Mexico was extremely satisfactory, with affordable housing being readily available even in the most popular areas. Honestly, if you’re looking for a combination of vibrant culture, reasonable expenses, and genuinely warm people, Mexico keeps delivering year after year.

Spain

Spain ranked number one for quality of life and number four for overall happiness level, with 84 percent of expats here, compared to 67 percent globally, saying they’re happy in Spain. 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 health-care system.

Spain is the only country in Europe to rank within the top 10, with Cyprus next at number 14, though it dropped to number fourteen after being at number four in 2024. Still, that’s a strong showing for a European destination. You’ll find everything from gorgeous coastal cities to vibrant urban centers, world-class cuisine, and a lifestyle that prioritizes enjoying the moment.

Indonesia

Indonesia surged in the rankings to be named the number five best country for expats thanks to its low costs, friendly people, and good work-life balance. Expats are especially satisfied with their decisions to work in Indonesia, saying they’re happy with their jobs, personal career opportunities, and short working hours. Let’s be real, there’s something about the archipelago’s thousands of islands that makes the daily grind feel a lot less grindy.

Expats in Indonesia rated its health care and air quality poorly, though they favorably rated other quality of life factors like good weather, culinary variety and a fun nightlife. So yes, there are trade-offs depending on what matters most to you. Still, the overwhelming sense of community and the sheer natural beauty make it a top contender for those willing to navigate some infrastructure challenges.

Thailand

Thailand is among the friendliest countries, making it easy for expats to settle in, with respondents placing Thailand in the top ten in terms of feeling welcome and at home, finding friends, and getting used to the country’s culture. Thailand is also ranked first for housing affordability and ease of finding accommodation. It’s not hard to see why digital nomads and retirees alike flock here by the thousands.

Thailand, long known as a favourite destination for expats, ranks eighth in the Personal Finance Index, with the country’s combination of low living costs and high quality of life continuing to attract expats from around the world. In response to the growing trend of remote work, the Thai government is actively promoting Thailand as an attractive destination for digital nomads, launching new, more convenient, and streamlined visa policies, as well as developing digital infrastructure to make it easier for remote workers and freelancers to live and work in Thailand long-term.

Portugal

81% of expats rate Portugal’s overall quality of life as exceptional. There were over 10,000 US citizens living in Portugal in 2025, reflecting a 239 percent increase from 2017. The surge isn’t surprising when you consider Portugal’s serene coastal towns, thriving tech scene, and genuinely welcoming communities.

Portugal generally offers lower average property prices than Spain, especially outside the capital cities and popular tourist zones, though Spain’s expansive range of lifestyle locations continues to attract international attention. Groceries and dining out are generally cheaper in Portugal, with excellent local markets where residents can purchase fresh fruit, vegetables, fish, and meat at reasonable prices, and dining at restaurants is also more affordable, particularly in areas outside Lisbon and Porto.

Vietnam

Vietnam’s number one ranking in Personal Finance for the third consecutive year exemplifies the country’s appeal for those seeking financial breathing room. Work-life balance represents another Vietnamese strength according to the survey data, with a 39-hour average workweek and growing acceptance of flexible arrangements creating space for expats to explore the country’s extraordinary cultural and natural diversity.

Here’s the thing: Vietnam isn’t without challenges. Traffic congestion remains Vietnam’s most visible quality-of-life challenge according to the InterNations survey, particularly in major cities, with the motorbike-dominated transportation culture requiring adjustment for many Western expats, though ride-sharing apps have simplified mobility for newcomers. If you can adapt to the bustling streets and humid climate, the rewards are substantial.

United Arab Emirates

The United Arab Emirates outshines most countries in terms of quality of life, career prospects, and personal safety, and is also an absolute leader in expat essentials, with 80% of respondents noting that it is not necessary to learn Arabic to live in the country. Expats claim not to have issues with bureaucracy or immigration laws. That’s a game changer for anyone who has ever been buried in paperwork during an international move.

The UAE offers a truly modern, cosmopolitan lifestyle with state-of-the-art infrastructure and abundant job opportunities, particularly in finance, tech, and hospitality sectors. Let me be clear: it’s expensive to live here, especially in Dubai or Abu Dhabi. Yet many expats find the tax-free salaries and high standard of living justify the costs.

Brazil

Brazil wins expats’ favour by the ease of settling in and local friendliness towards foreign residents, with nearly four in five respondents happy with their financial situation in Brazil, as their income is more than enough for a comfortable life. Brazil is vibrant, colorful, and endlessly diverse, offering everything from pristine beaches to bustling urban centers like São Paulo and Rio de Janeiro.

The country’s warmth extends beyond its tropical climate. Brazilians are known for their open, friendly nature and love of celebration. Whether it’s Carnival, beach barbecues, or spontaneous gatherings, the social life here is unmatched. What’s fascinating is how expats consistently report feeling genuinely welcomed and integrated into local communities, which isn’t always the case in other destinations.