Best Countries for Expats to Live and Work in 2026

Panama has been named the world’s best destination for expatriates for the third consecutive year, according to the Expat Insider 2026 survey by InterNations, which gathered responses from nearly 8,000 expats representing 162 nationalities.

Participants rated their adopted countries across five key categories: working abroad, personal finances, quality of life, expat essentials and ease of settling in. A total of 31 countries met the minimum participation threshold of at least 50 respondents to be included in the final rankings.

Panama Retains the Top Spot

Panama ranked first overall thanks to strong scores in affordability, work-life balance and ease of settling in.

Nine in 10 expats said their household income is sufficient for a comfortable life, compared with a global average of 71%, while 76% reported being satisfied with their financial situation, well above the global average of 55%.

The country’s overall cost of living also received positive ratings from 69% of respondents, compared with a worldwide average of 39%.

Panama performed particularly well in housing, with 90% of expats saying it is easy to find accommodation. The country also ranked second for the ease of obtaining a visa.

Expats praised Panama’s friendly local population, with 90% describing residents as welcoming to foreigners. Every respondent surveyed also gave the country’s natural environment a positive rating.

Panama remains especially attractive to retirees. Thirty-seven percent of respondents were already retired, compared with a global average of 14%, while 18% said retirement was the main reason they relocated there.

Those still working ranked Panama first globally for work-life balance and third for working hours.

Mexico Excels at Helping Expats Feel at Home

Mexico placed second overall and ranked first worldwide for ease of settling in.

Expats cited the friendliness of local residents and the ease of making friends as key strengths. Nearly three-quarters said meeting local people was easy, compared with a global average of 39%, while 34% said most of their friends were local residents—double the worldwide average.

Mexico also ranked third in personal finances. More than 80% of respondents said their income allows them to live comfortably, and 73% expressed satisfaction with their financial situation.

Career opportunities were another strength, with Mexico ranking second for both career prospects and overall job satisfaction. Nearly seven in 10 respondents said they felt fairly compensated for their work.

However, safety remained a concern. Mexico ranked 25th in the safety and security category, with only 68% of expats reporting that they felt personally safe, compared with 81% globally. Air quality and the urban environment also received relatively low scores.

Thailand Has the Happiest Expats

Thailand ranked third overall and recorded the highest levels of overall happiness among expats.

According to the survey, 86% said they are happy living in Thailand, while 42% would like to remain there permanently.

The country also ranked second for personal finances, with 85% of respondents praising its low cost of living. Housing was considered both the most affordable and among the easiest to find.

Thailand also proved popular with retirees, who made up 40% of respondents, while 22% said retirement was their primary reason for moving there.

The country ranked first for helping expats feel at home, and respondents also rated local residents as the friendliest in the world. Healthcare also performed well, with medical quality ranking fourth globally.

Europe’s Highest-Ranked Destinations

Only three European countries made the global top 10.

Spain ranked sixth overall and was Europe’s highest-performing destination, leading the quality-of-life category thanks to its climate, leisure opportunities, affordable public transportation and travel options.

Portugal finished eighth, ranking fourth for personal finances and seventh for ease of settling in.

Luxembourg completed the top 10, placing fourth for working abroad and ranking first globally for salary levels and job security.

Lowest-Ranked Countries

At the bottom of the rankings were the United Kingdom (28th), Turkey (29th), Germany (30th) and Norway (31st).

Norway finished last overall, ranking last for ease of settling in and 30th for both quality of life and personal finances.

Germany also performed poorly, finishing last in the expat essentials category. Respondents cited difficulties with digital services, bureaucracy, housing and language barriers. It also ranked 28th for ease of settling in and 23rd for personal finances.