Expat Friendly: These 9 Countries Welcome Foreign Residents

More people are living outside their home countries than ever before. In 2025, more people are living outside their country of birth than at any prior point in recorded history, and moving abroad is no longer just for diplomats or high-level executives – it has become a genuine lifestyle choice for millions. The global expat community includes digital nomads, retirees, remote workers, and skilled professionals all searching for the same thing: a country that actually wants them there.

InterNations recently released its Expat Insider 2025 survey ranking the best countries for expats, surveying over 10,000 expats across 46 destinations based on five key categories: working abroad, personal finance, quality of life, expat essentials, and ease of settling in. The results might surprise you. Let’s dive in.

1. Panama: The Consistent Champion

For the second consecutive year, Panama ranked as the best country for expats overall. According to the survey, nearly all expats are happy with their life abroad, and Panama has become the top destination for retirees, with more than a third of respondents already retired and nearly one in five having moved there specifically to retire.

Panama has long been known as an affordable destination. For roughly $800 to $1,500 per month, expats can live comfortably in smaller towns and communities, while those choosing Panama City will need a somewhat higher monthly budget.

Panama uses the US dollar, which eliminates currency exchange headaches for Americans entirely. Housing ranks as especially affordable, with a strong majority of expats reporting satisfaction at a time when housing costs are putting real pressure on expats in many other countries globally.

Panama offers expats several different visa options, including the Friendly Nations visa, the Pensionado Program, and the Remote Worker visa – making it one of the most structurally welcoming countries in the world for people looking to put down roots abroad.

2. Colombia: The Surprise Riser

Climbing from fifth place in 2024 to second overall in 2025, Colombia is one of the biggest movers in the expat rankings. The survey found that roughly four in five respondents are satisfied with their financial situation, and the vast majority state that their disposable household income is more than sufficient for a comfortable life.

The cost of living in Colombia is dramatically lower than in the United States, and rent prices in particular are a fraction of what you would expect to pay back home. Think of it like this: the same monthly rent you might spend on a small studio apartment in a mid-tier American city could get you a spacious, modern flat in Medellín with a city view.

Notably, more than a third of expats in Colombia said they wanted to stay forever, and nearly half said they have no clear plans of leaving the country – a striking indicator of how deeply expats fall in love with the place.

Colombia offers several visa options for expats, including the Type M for Migrant and the Type V for Visitor, both with subcategories covering investment, work, retirement, student, and digital nomad arrangements.

3. Spain: Europe’s Lone Top-10 Star

Spain is the only European country to land a spot in the overall top 10 best countries for expats, according to the most recent InterNations Expat Insider survey. That’s a remarkable feat for a continent that prides itself on quality of life standards.

Madrid, Barcelona, Seville, and Bilbao all boast large English-speaking expat communities, while Valencia is gaining serious traction as well, topping InterNations’ 2024 Quality of Life Index. Spanish cities like Valencia, Málaga, and Alicante ranked in the top three of the most recent list of best cities for expats worldwide.

According to the Expat Insider 2024 survey, roughly four in five expats reported feeling happy living in Spain, and the country offers the chance to tap into a genuinely rich and distinct cultural identity.

Spain boasts high-quality healthcare, solid infrastructure, and strong safety at a relatively low cost. It also offers multiple visa pathways, including options for digital nomads and a golden visa that grants residency for a real estate investment threshold. Honestly, for Europeans and non-Europeans alike, Spain is hard to argue against.

4. Indonesia: Friendly, Affordable, and Fulfilling

Indonesia has shot up to a top-three spot among the best expat destinations, thanks to its welcoming attitude toward foreigners, exceptionally low cost of living, and phenomenal work-life balance praised by the vast majority of expats.

Social integration happens organically in Indonesia, with the InterNations survey showing that nearly all expats describe locals as friendly and welcoming, and cultural immersion is accessible even for complete newcomers. It’s the kind of place where you don’t feel like a visitor for long.

The financial picture is especially compelling, with Indonesia ranking near the top globally in personal finance. The vast majority of expats report that their income is sufficient for comfortable living, well above the global average, and this affordability extends across housing, transportation, food, and services.

Residents in Indonesia work an average of fewer than 39 hours per week, well below the global average, and the country ranks first in terms of overall job satisfaction and personal career opportunities. The tradeoff is a less developed digital infrastructure in many areas, which is worth knowing before you go.

5. Vietnam: The World’s Most Affordable Expat Destination

For the fourth consecutive year, Vietnam ranked as the most affordable country in the world for expats, placing first out of 53 destinations when it comes to personal finances, according to the 2024 InterNations study. That’s a streak that speaks for itself.

Out of surveyed expats living in Vietnam, the vast majority rated its cost of living favorably – that’s more than twice the global average – and more than two thirds of respondents said their disposable household income is more than enough to lead a comfortable life, compared to roughly two in five globally.

Expats are particularly satisfied with their work-life balance in Vietnam. Close to three in four gave this a positive rating, well above the global average, and the same proportion reported high overall job satisfaction.

Ho Chi Minh City, Hanoi, and Da Nang are favorites among expats, offering a modern standard of living at very affordable costs, along with large expat communities to help newcomers settle in. It’s a country that keeps rewarding those who give it a genuine chance.

6. Mexico: The Warmth Capital of Expat Life

Coming in among the top rankings in InterNations’ 2024 list for friendliness toward expats, Mexico continues to win hearts with its warmth and vibrancy. Nearly nine in ten expats say they are happy living there, thanks to friendly locals, a strong sense of welcome, and a culture that is genuinely easy to adapt to.

Roughly four in five respondents noted that they feel welcome in the country, and Mexico ranked first in terms of getting used to the local culture and second when it comes to finding local friends. For anyone who values human connection in a new home, that matters enormously.

Cities like Mexico City, Guadalajara, and Monterrey provide sophisticated urban experiences with modern amenities, comprehensive public transportation, and dynamic professional ecosystems – combining economic opportunity with cultural richness.

That said, concerns around safety and affordability remain real considerations. Just about two thirds of expats in Mexico report feeling safe, compared to a much higher share worldwide – something to weigh carefully depending on which city or region you’re considering.

7. Thailand: Easy Living in Southeast Asia

Thailand is among the friendliest countries, making it easy for expats to settle in. Respondents placed Thailand in the top ten for feeling welcome and at home, finding friends, and getting used to the local culture. Thailand also ranks first globally for housing affordability and ease of finding accommodation.

For those searching for a location that prioritizes ease of living, Thailand stands out. Everyday tasks like getting a taxi or ordering groceries can be handled through a single app, making daily logistics surprisingly smooth.

Thailand is in the process of launching a digital nomad visa for remote workers who meet a minimum bank balance requirement. There is also the Thailand Elite Visa, a long-term tourist visa that allows investors to live in the country for up to 15 years, with costs varying depending on the tier chosen.

The food alone could make a compelling argument for moving here. But beyond the iconic street food and temples, Thailand offers a pace of life and a social openness that many expats describe as genuinely transformative.

8. Malaysia: Asia’s Most Welcoming Long-Term Home

Malaysia has emerged as one of Southeast Asia’s most attractive destinations for expatriates, retirees, professionals, and families. Living in Malaysia offers a blend of modern conveniences, cultural diversity, and economic opportunities, with a strategic location, multicultural society, excellent infrastructure, and affordable cost of living.

There are currently around 250,000 foreign expats living in Malaysia, nearly a whole percentage point of the total population. The country is known for its excellent healthcare system and high-quality education, making it attractive for families and retirees. Malaysia is also one of the few Southeast Asian countries where foreigners can own land outright.

Considered by many as the easiest digital nomad visa to secure in all of Asia, Malaysia boasts both affordability and a reputation as one of the top expat-friendly countries globally. That combination is hard to find anywhere else in the region.

The Malaysia My Second Home program is a long-term visa initiative designed to attract foreign nationals to live, invest, and retire in the country. Relaunched in 2024 with major updates, it now offers three-tiered options that accommodate different income levels and lifestyle needs. As of mid-2025, there were about 57,608 active holders under the program.

9. Costa Rica: Where Expats Become Locals

Costa Rica was named the most expat-friendly country in the 2024 ease-of-settling-in rankings. The country ranked first for two of the three subcategories and placed in the top ten across all factors of that particular index.

The Ease of Settling In Index is based on three subcategories. Local Friendliness measures how welcoming residents are toward expats specifically. Finding Friends assesses whether expats have a personal support network and whether making local friends is easy. Culture and Welcome covers ease of adapting, the sense of being welcomed, and the feeling of being truly at home. Costa Rica tops them all.

Costa Rica operates on a territorial taxation system, which means it only taxes income earned locally – a significant financial advantage for remote workers or those drawing foreign income. For digital nomads especially, this is the kind of tax structure that can turn a destination from appealing to outright compelling.

It’s hard to say for sure which country is the perfect fit for every expat, but Costa Rica keeps drawing people in and, more importantly, keeping them there. The combination of natural beauty, genuine local warmth, and smart legal frameworks for foreign residents makes it a standout in any honest comparison.

The data from these surveys paints a clear picture: expats thrive where they feel genuinely welcomed, where their money stretches further, and where the bureaucratic process doesn’t feel like a punishment. Latin America and Southeast Asia dominate the top spots for 2024 and 2025, while traditional European destinations like Spain hold their own with healthcare and quality of life. Whatever your priorities, the world in 2026 has more open doors for foreign residents than ever before.

What would you have guessed before reading this? Tell us in the comments which country surprised you most.