This Country Was Just Named No. 1 in the World for Expats—and It Has Beautiful Beaches, Great Coffee, and Affordable Living

Known for its incredible coffee, gorgeous beaches, and welcoming culture, it’s no wonder Panama was named the best country in the world for expats.

The designation was part of a 2025 expat insider survey from expat community InterNations, which was shared with Travel + Leisure. In Panama, which took the top spot for the second year in a row, 94 percent of expats surveyed were satisfied with their lives abroad. The country was also considered a top spot for retirees with 35 percent of expats there retired and 18 percent saying retiring was their primary reason for moving.

The country’s high ranking was due in part to its high quality of life, including affordable public transportation, extensive opportunities to travel, and beautiful natural environment.

The country of Colombia came in second on the list thanks to its low cost of living with 81 percent of expats there surveyed satisfied with their financial situation. Expats also lauded Colombia for its quality of life, while some said they relocated for love or for job-related reasons.

Colombia was followed by Mexico, Thailand, and Vietnam rounding out the top five.

On the other end of the spectrum was Kuwait at No. 46, which had low scores in both quality of life and ease of settling in. The survey found 70 percent of expats there moved for job-related reasons, but many weren’t satisfied with their work-life balance and 38 percent “don’t feel their disposable household income is enough to lead a comfortable life.”

That was followed by Turkey where expats felt hindered, in part, by the language barrier. South Korea came in at No. 44—well below its 2024 spot of No. 23—with InterNations noting the country’s recent political upheaval, leading to less affordable transportation and medical care there.

To complete its analysis, InterNations surveyed more than 10,000 expats across 172 nationalities, examining expat life in 46 different countries. The survey looked at working abroad, personal finances, overall quality of life, expat essentials like visas and housing, and the ease of settling in.

Becoming an expat is a big decision, but there are a few things travelers can do to make it easier. Travelers considering a big move should save up for their international relocation, get acquainted with all visa requirements, register with the U.S. State Department’s Smart Traveler Enrollment Program (STEP), contact their bank and arrange international phone plans, and prepare for a few bumps along the way. Connecting with fellow expats ahead of time can also help with a smooth transition.