The best countries for expats in 2026, ranked for cost of living, quality of life and more

Are you dreaming of a life on further-flung shores? If so, you’re not alone. In fact, an increasing number of people are turning those dreams into reality. According to the Office for National Statistics, a significant year-on-year high of 642,000 people departed the UK to live abroad for at least 12 months in 2025.

Whether it’s a long-term retirement plan or a possibility thanks to the rise of digital nomadism, many of us find ourselves wondering what a life abroad looks like – and where’s best to embark on such an adventure.

Thankfully, InterNations’ Expat Insider Report for 2026 weighs up the most important factors to consider when plotting a move to a new country. Its comprehensive assessment covers factors such as quality of life, the cost of living, work-life balance and happiness levels. Other considerations include the friendliness of local residents, working hours and the ease of obtaining a visa.

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In first place is the Central American nation of Panama. Claiming the top spot among 31 nations, the country ranks second for ease of settling in and tops the charts for working abroad and personal finance indices. Panama also ranks sixth for quality of life, and 87 per cent of expats in Panama are happy with their lives abroad. 90 per cent of expats praise the friendliness of local residents, while visas are easy to obtain compared with most other countries on the list.

Mexico ranks second, ranking first in InterNations’ ease of settling-in index. Expats report that locals are friendly towards foreign residents and that making new friends is easy, while roughly four in five expats feel like their disposable income is enough for a comfortable life. The country also has the world’s best ratings for culture and nightlife, and climate and weather.

It’ll be unsurprising to any digital nomad who’s passed through the country that Thailand is the third-best place for expats right now. Thailand is home to the happiest expats worldwide: 86 per cent are happy with their lives abroad, compared with 70 per cent globally.

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While Latin American and Southeast Asian countries dominate the top 10, the worst places for expats in 2026 are predominantly European countries. Norway ranks 31st, closely followed by Germany, Turkey and the United Kingdom.