Panama has been named the world's best destination for expats in 2026, according to the annual Expat Insider survey by InterNations.
The Central American nation led a global top five that also included Mexico, Thailand, the United Arab Emirates and Brazil in the study, which evaluated 31 locations on quality of life, financial conditions and social integration.
InterNations surveyed foreign residents on criteria ranging from career prospects and housing access to digital infrastructure and local friendliness. The findings, reported by the BBC, revealed that seven of the top ten countries excelled in ease of settling in, while five ranked among the highest for personal finance. Spain, Singapore, Portugal, Malaysia and Luxembourg completed the top ten list.
Panama Leads Global Rankings For Third Straight Year
Panama secured first place overall for the third consecutive year, while also topping individual indices for working abroad and personal finances. Survey data showed 87 percent of expats in Panama were satisfied with their lives, compared to 70 percent globally, and 90 percent found securing housing straightforward.
Ariel Barrionuevo relocated eight years ago from Argentina to Panama's Caribbean coast and serves as a hotel manager on Isla Colon in the Bocas del Toro archipelago. He explained that he quickly realized the area's relaxed pace allowed him to sleep better, wake up refreshed and live in the moment. His routine includes stops by the sea, walks through a tropical garden and listening to native birds. Barrionuevo noted that daily expenses were lower than in Argentina, while economic stability aided business and personal planning.
Reza Motallebpour moved from Canada to Panama City in 2026. He stated that remote working was particularly easy due to reliable internet in homes and coworking spaces, while praising local banking services and the benefits of a dollarized economy.
The country does present minor drawbacks. Delays in deliveries and unpredictable weather can disrupt schedules, especially across island communities, though residents reported these issues mattered little to those seeking a less stressful lifestyle.
Mexico Offers Strong Community And Low Living Costs
Mexico placed second overall and took first place in the Ease of Settling In index. The survey showed 73 percent of foreign residents found it easy to make local friends, compared to a global average of 39 percent, with double the global average reporting that their social circles consisted mainly of locals.
Kirsten Rakuya moved with her husband from Chicago to the coastal city of Puerto Vallarta in 2022. She credited a strong sense of community and lower living costs for keeping them in the country, noting that a street taco costs about $1 and a recent emergency appendectomy and hospital stay cost under $4,000, an amount she described as unthinkable in the United States.
However, safety remains a vulnerability. Mexico ranked 25th out of 31 destinations for safety, with 68 percent of expats rating personal safety positively compared to 81 percent worldwide.
Thailand Ranks Highest For Expat Happiness And Value
Thailand claimed third place overall and recorded the highest satisfaction levels globally, with 86 percent of expats reporting happiness with their life abroad. It also achieved the top score for cost of living, with 85 percent rating expenses favorably, more than double the global average.
British resident Bethan Jentiprafet moved from Devon to Thailand with her Thai husband and two children in 2024 for an intended one year stay. She said that within two weeks she decided not to return to the UK, recalling that her family's first street food meal for four cost about £1. She added that the local education system and its emphasis on respect had a positive effect on her son.
Aaron Henry, who moved from Los Angeles 11 years ago, observed that Bangkok had modernized without losing its identity, adding international dining, modern parks, art galleries and luxury shopping centers while preserving Thai cultural traditions. Researchers noted that adapting to local customs and showing respect for societal norms remain essential for new arrivals.
United Arab Emirates Combines Safety And Career Growth
The United Arab Emirates finished fourth, scoring strongly in career prospects and practical needs such as entry visas and language accessibility. The survey was conducted in February and March 2026, spanning periods before and after the outbreak of the US and Iran conflict, meaning geopolitical impacts were only partially reflected. Foreign residents reported that daily routines continued largely as normal despite minor adjustments.
Michelle Sterling, an image consultant who divides her time between Dubai and the United States, stated that she currently prefers Dubai because it offers a safer, more comfortable and more affordable lifestyle.
Nikita Oruganti moved from London to Dubai in 2026 to work in communications. She highlighted the welcoming environment for foreigners, feeling of stability and clear communication from authorities during uncertain times. For an authentic experience, she advised visitors to step away from luxury settings for a day, ride the metro during peak hours, walk through historical districts like Bur Dubai and Deira, cross Dubai Creek on a traditional wooden boat and eat at small Indian, Filipino or Lebanese eateries.
Outside Dubai, British expat Sharon McKernan has lived in Ras Al Khaimah for eight years. She praised the relaxed pace of life, reduced traffic congestion, increased family time and efficient healthcare services across the emirate.
Brazil Enters Top Five Driven By Local Hospitality
Brazil entered the top five for the first time, earning high scores for happiness, settling in, local friendliness and culture. Expats cited the warmth and social nature of Brazilians as the primary factor creating a sense of belonging.
Clint Manning moved from Barbados to Sao Paulo to grow his business. He described how quickly acquaintances become friends, noting that someone met on Thursday might invite a newcomer to a traditional churrasco barbecue by Saturday. Manning acknowledged that limited English usage poses an initial challenge, but explained that it forces newcomers to practice Portuguese daily. He recommended exploring the Vila Madalena, Bela Vista and Liberdade neighborhoods, as well as Ibirapuera Park.
Chris Cole, who lived in Sao Paulo for 12 years, emphasized that local residents created a feeling of inclusion from the beginning, making foreign workers feel part of society rather than outsiders.
