Panama has been named the world's best country for expatriates for the second consecutive year. This Central American nation received high marks for its quality of life, affordable public transit, and natural beauty. The ranking comes from a 2025 Expat Insider survey conducted by InterNations.
Key Takeaways
- Panama is the top country for expats, according to the 2025 InterNations survey.
- Ninety-four percent of expats in Panama are satisfied with their life abroad.
- The country is particularly popular among retirees, with 35% of expats being retired.
- High satisfaction rates are attributed to quality of life, public transportation, travel opportunities, and natural environment.
- Colombia and Mexico followed Panama in the top three for expats.
Panama's Appeal to Global Residents
The 2025 Expat Insider survey, shared with Travel + Leisure, highlighted Panama's strong performance. A significant 94 percent of expats living in Panama reported satisfaction with their lives in the country. This high level of contentment contributed to Panama securing the top position for the second year running.
Panama's appeal extends to retirees. The survey found that 35 percent of expats in Panama are retired. For 18 percent of these individuals, retirement was the main reason for their relocation to the country. This demographic trend suggests Panama offers specific advantages for those seeking post-career living options.
Did You Know?
- Panama boasts a diverse natural environment, including extensive coastlines on both the Pacific and Atlantic oceans.
- The country's capital, Panama City, features a modern skyline alongside historic areas like Casco Viejo, a UNESCO World Heritage site.
- Panama is known for its coffee production, particularly in regions like Boquete.
Factors Contributing to High Satisfaction
Several factors contributed to Panama's leading position in the survey. The country scored highly in the quality of life index. Expats specifically praised the availability and affordability of public transportation. This makes daily commuting and exploration more accessible for residents.
Opportunities for travel within and from Panama also received positive feedback. Its geographical location makes it a hub for regional travel. Additionally, the country's natural environment, including its beaches and diverse ecosystems, was a significant draw for many respondents.
"Panama offers a unique blend of urban convenience and natural beauty, which is highly valued by expats seeking a balanced lifestyle," an InterNations spokesperson stated in the survey report.
Other Top Countries for Expats
Following Panama, Colombia ranked second on the list. This South American nation was noted for its low cost of living. According to the survey, 81 percent of expats in Colombia were satisfied with their financial situation. Like Panama, Colombia also received positive feedback for its quality of life. Some expats in Colombia relocated for personal reasons, such as love, or for job-related opportunities.
Mexico secured the third position in the survey. Thailand and Vietnam completed the top five list. These countries generally offer attractive living conditions and opportunities for individuals looking to live abroad.
Survey Methodology
InterNations conducted its analysis by surveying over 10,000 expats. These respondents represented 172 different nationalities. The survey examined expat life in 46 different countries, focusing on several key areas. These included working abroad, personal finances, overall quality of life, expat essentials (like visas and housing), and the ease of settling in.
Countries at the Lower End of the Rankings
While some countries excelled, others faced challenges in the expat survey. Kuwait was ranked at No. 46, placing it at the lower end of the spectrum. It received low scores for both quality of life and ease of settling in. The survey indicated that 70 percent of expats in Kuwait moved for job-related reasons. However, many reported dissatisfaction with their work-life balance. Furthermore, 38 percent of expats in Kuwait felt their disposable household income was insufficient for a comfortable life.
Turkey followed Kuwait in the rankings. Expats in Turkey often cited language barriers as a significant hindrance to their experience. South Korea, which had been at No. 23 in 2024, dropped to No. 44 in the 2025 survey. InterNations noted recent political changes in South Korea. These changes led to less affordable transportation and medical care, impacting expat satisfaction.
Preparing for an Expat Journey
Becoming an expat is a significant life decision. There are steps individuals can take to make the transition smoother. It is important for those considering a move to save sufficient funds for international relocation. Understanding and meeting all visa requirements is also crucial.
Travelers from the U.S. should register with the U.S. State Department's Smart Traveler Enrollment Program (STEP). This program helps the embassy locate citizens in an emergency. It is also advisable to contact banks to arrange international financial services and set up appropriate international phone plans. Preparing for unexpected challenges along the way is also important. Connecting with other expats in the destination country beforehand can also provide valuable support and insights.
- Save for relocation: Ensure financial readiness for international moving costs.
- Understand visa rules: Research and meet all legal requirements for residency.
- Register with STEP: U.S. citizens can get alerts and assistance from the embassy.
- Arrange finances: Inform banks and set up international accounts if needed.
- Plan communication: Secure international phone services.
- Connect with others: Engage with expat communities for advice and support.
