The dream destination for international workers and digital nomads has fundamentally changed. According to the comprehensive Expat Insider 2025 survey conducted by InterNations, the traditional strongholds of Western Europe and North America have been eclipsed by nations offering a superior combination of affordability, cultural warmth, and work-life balance. As inflation and housing crises make major global hubs increasingly prohibitive, the global expat community is voting with its feet, prioritizing personal finance and ease of settling over prestige salaries. This year’s top rankings are dominated by Latin American and South-East Asian nations, proving that happiness abroad is less about what you earn, and far more about how easily you can settle, thrive, and make your money stretch. The undisputed champions, led by Panama and Colombia, offer a refreshing alternative to the high-pressure, high-cost lifestyles that once defined the expat experience.
Panama: The Undisputed King of Expat Contentment
Panama cemented its dominance in 2025, claiming the top spot for the second year in a row. The Central American nation achieved top-three placements across all five indices of the Expat Insider survey, demonstrating a rare consistency in delivering a holistic, high-quality life for foreigners. A remarkable 94% of expats surveyed reported being satisfied with their life in Panama, underscoring its broad appeal across different demographics, from young professionals to retirees.
The key to Panama’s success lies in its exceptional performance in the Ease of Settling In index, where it ranked second globally, praised for its friendly locals and highly welcoming culture. This cultural acceptance is compounded by the country’s dedicated focus on retirement, with 35% of respondents already retired—significantly higher than the global average. Furthermore, the country scores highly in the Quality of Life index (3rd), driven by ample opportunities for travel, affordable public transportation, and a stellar natural environment that provides an immediate draw for those seeking an outdoors-centric lifestyle.
While the expat life in Panama is overwhelmingly positive, there are some minor structural issues that newcomers note. The country ranks lower in areas such as the availability of green goods and services, as well as the infrastructure for cars. However, for a community that is deeply satisfied with their disposable income and welcoming experience, these drawbacks are considered negligible. The comfortable financial life, coupled with the relaxed pace, has led more than a third of the expats there to state that they plan to stay in the country forever.
Latin America’s Ascendancy: Colombia and Mexico
Following closely behind Panama, two other Latin American nations solidify the region’s position as the world’s most welcoming and financially rewarding destination for expats. Colombia made a significant leap from 5th place in the previous year to claim the second-place ranking in 2025. This dramatic rise is almost entirely attributed to its performance in the Personal Finance index, where it ranked second, thanks to the extremely low cost of living.
Expats in Colombia feel financially secure; a massive 81% of respondents reported satisfaction with their financial situation, a stark contrast to the global average. Beyond the financial advantage, Colombia is celebrated for its warm, vibrant culture, which allows for effortless integration. While its infrastructure is still catching up, the combination of cultural richness, affordable living, and high satisfaction among retirees who enjoy the slow pace of life makes it an increasingly popular and rewarding destination for those prioritizing quality of life over career velocity.
Mexico, consistently one of the most popular destinations for Americans moving abroad, secured the third spot. It continues to rank highly based on perennial strengths: the exceptional warmth of its people, the richness of its culinary culture, and the highly desirable lifestyle. Expats laud Mexico for the ease of making friends and the sense of belonging that the local community readily offers. The low cost of living remains a powerful magnet, especially for those working remotely or moving for retirement, ensuring that personal savings and income stretch further than in most other destinations worldwide.
South-East Asia’s Value Hubs: Thailand and Vietnam
South-East Asia once again proved its mettle as a highly attractive region for expats, with both Thailand (4th) and Vietnam (5th) rounding out the top five. These countries stand out primarily for providing excellent value for money and a seamless blend of modern urban living with accessible natural beauty and low living expenses.
Vietnam is particularly championed for the financial benefit it provides, allowing expatriates’ incomes to go significantly further than in comparable destinations. Expats are drawn to Vietnam’s dynamic and buzzing cities, coupled with a fast-developing economy that offers good employment opportunities, particularly in international business and education. The affordable lifestyle, spanning from street food to rental costs, makes financial stress a minimal concern for residents.
Thailand maintains its strong position thanks to its tropical climate, relaxed atmosphere, and excellent, affordable healthcare system. The nation offers a diverse environment, from bustling Bangkok to tranquil island retreats, appealing to retirees and digital nomads alike. While the ease of navigating bureaucracy can occasionally pose challenges, the overall expat satisfaction derived from the low cost of living and the rich cultural experience keeps Thailand firmly entrenched in the top tier of desirable expat destinations globally.
The Struggle of the Giants: When Wealth Isn’t Enough
In a telling sign of changing expat priorities, many of the world’s wealthiest and most industrialized nations tumbled down the rankings. These countries, while offering strong economies and high-paying jobs, are increasingly failing expats on the critical indices of Personal Finance, Cost of Living, and Ease of Settling In.
The United States, for instance, scored poorly despite its powerful economy, primarily due to the exorbitant costs and complexities of its healthcare system and the pervasive struggle with poor work-life balance. Similarly, the United Kingdom, grappling with a persistent cost of living crisis and bureaucratic hurdles, saw its appeal decline significantly. Across Western Europe and the Nordic countries—including Germany, Sweden, and Denmark—high taxation and extremely high costs of housing and daily life negate the benefit of high salaries. Furthermore, many expats in these wealthy nations reported significant difficulties in social integration, citing reserved local cultures that make it challenging to build local friendships and a sense of belonging. The underlying message is clear: for the modern expat, a high salary that is entirely consumed by high expenses is far less attractive than a moderate income that enables a comfortable, stress-free life abroad.
The Unwelcoming Depths: Kuwait and the Bottom Ranks
On the opposite end of the spectrum, the survey identified countries that struggled most to provide a satisfactory experience for their foreign residents. At the very bottom of the 46 destinations ranked was Kuwait. The nation earned the unfortunate title of the least welcoming country, scoring poorly across nearly every single metric, particularly in the Ease of Settling In index.
Expats in Kuwait reported low levels of satisfaction due to an unwelcoming atmosphere and a lack of local friendliness, leading to a palpable feeling of isolation and little sense of belonging. The challenging social environment, combined with deficiencies in the quality of life index, made Kuwait the least desirable destination. Other countries struggling at the bottom included South Korea and Türkiye (Turkey). South Korea’s low ranking was attributed to poor integration scores, intense work pressure, and a significant language barrier, while Türkiye’s low score reflected ongoing political and economic instability, leaving expats feeling uncertain about their future and quality of life there.
