In 2025, expatriates seeking the best countries to live and work have diverse options shaped by lifestyle, financial considerations, job opportunities, and cultural integration. As reported by InterNations’ annual Expat Insider survey, which polled over 10,000 expats from 172 nationalities, Panama has once again secured its position as the top destination for expats worldwide, continuing a trend it has dominated for consecutive years. Its appeal is grounded in a high quality of life, affordable living, and strong social integration.

Panama’s tropical climate, vibrant culture, and modern infrastructure make it a prime choice among retirees and working professionals alike. With 94% of expats there reporting satisfaction with their life, Panama’s ranking reflects broad contentment across key indices such as personal finance, healthcare, and safety. Kathrin Chudoba, editor-in-chief of InterNations, remarked, “Panama consistently ranks within the top three across all major indices, demonstrating a balanced combination of lifestyle and affordability.”

Following Panama, Colombia and Mexico claim the second and third spots, respectively. Latin American countries rank highly for ease of settling in, with expats praising their welcoming communities, rich cultural experiences, and opportunities for social engagement. Mexico, in particular, excels on the Ease of Settling In Index, as expats find it straightforward to make friends and integrate. However, concerns over safety and air quality temper the overall experience.

Asia emerges as a significant contender, with five nations in the top ten: Thailand (4th), Vietnam (5th), China (6th), Indonesia (8th), and Malaysia (10th). These countries attract expats with affordable living costs, growing job markets, and enriching cultural experiences. Financial considerations are increasingly central to expat preferences, and several affordable Asian countries are rising in the rankings.

Within Europe, Spain retains a strong position as the sole European country in the top ten, noted for its lifestyle, climate, and hospitality, though economic concerns affect some expats’ satisfaction. Other European countries, including the Netherlands, Luxembourg, and Denmark, rank highly on quality of life metrics such as safety, healthcare, and infrastructure but are relatively costlier.

The United States ranks 36th, slipping slightly from previous years, reflecting concerns about affordability, healthcare quality, and ease of access to essential services according to the survey’s respondents.

Experts observe that economic and financial stability now weighs heavily in expat decisions, surpassing scenic beauty or cultural allure. “In 2025, the best countries for expats are those offering reliable economic conditions and financial opportunities,” said Kathrin Chudoba, highlighting a trend that has intensified over recent years.

In sum, the expat landscape in 2025 is marked by a balance of affordability, community, and quality of life, with Panama leading the way. Prospective expats are advised to weigh various factors including financial realities, healthcare, cultural integration, and safety when choosing their next home abroad.The best countries for expats in 2025 combine affordability, quality of life, and welcoming communities, with Panama leading the pack once again. According to the InterNations Expat Insider report, which surveyed over 10,000 expats from 172 nationalities, Panama ranks first for the second consecutive year. Expats praise its tropical climate, modern infrastructure, and strong social integration, with 94% reporting satisfaction in their lifestyles there. Kathrin Chudoba, editor-in-chief of InterNations, notes, “Panama consistently ranks within the top three across all key categories, balancing lifestyle and affordability.”

Following Panama, Colombia and Mexico take the second and third spots. Latin American nations dominate the top rankings for ease of settling in, with expats noting the warmth of locals and social opportunities as major draws. Mexico, in particular, performs best on the Ease of Settling In Index, although concerns like safety and air quality slightly affect its overall ranking.

Asia is strongly represented among the top ten, with Thailand (4th), Vietnam (5th), China (6th), Indonesia (8th), and Malaysia (10th) offering affordable living costs and growing job opportunities. Financial factors have become increasingly crucial for expats, with many prioritizing economic stability and cost-effectiveness over traditional attractions like scenery alone.

In Europe, Spain is the only country in the top ten, favored for its lifestyle and climate despite some economic concerns. Other European countries such as the Netherlands, Denmark, and Luxembourg are highly rated for quality of life but tend to rank lower overall due to higher living costs.

The United States ranks 36th, slightly down from the previous year, as expats report challenges with affordability, healthcare quality, and access to services.

Chudoba emphasizes a key trend: “Economic and financial well-being are becoming the most decisive factors for expats’ satisfaction, more than picturesque surroundings or culture.” This shift reflects growing global economic uncertainties and rising living costs.

In summary, 2025’s best countries for expats highlight a balance of financial feasibility, quality of life, and social integration. Panama remains the top choice, particularly for retirees, while Latin America and Asia feature prominently for their welcoming environments and affordability. Prospective expats should carefully consider personal priorities such as cost, safety, healthcare, and cultural fit when choosing a destination.