Panama named best country for expats for third straight year
by Macarena Hermosilla · UPIJuly 27 (UPI) -- Panama has been named the world's best country for expatriates for the third consecutive year, according to the 2026 Expat Insider survey published by InterNations. The Central American nation topped the ranking of 31 countries, largely thanks to its strong work-life balance and purchasing power.
Mexico ranked second overall and led the index measuring ease of settling in, reflecting how easy expatriates say it is to make friends and how welcome they feel in the country.
The survey gathered responses from nearly 8,000 expatriates representing 162 nationalities. Participants rated their satisfaction across five categories: working abroad, personal finances, quality of life, expat essentials and ease of settling in.
Panama ranked first worldwide for working abroad and personal finances. It also placed among the top performers for ease of settling in and expat essentials, helped by what respondents described as a welcoming local population and accessible visa options.
The country also remains a popular destination for retirees. According to the survey, 37% of respondents living in Panama are retired, while 18% said retiring abroad was their primary reason for moving there.
Mexico stood out for its welcoming culture and strong personal finances. It ranked first globally for social integration, with 73% of foreign residents saying it is very easy to make local friends and 87% reporting they feel completely welcome.
This country also ranked third worldwide for personal finances because of its affordable cost of living. The survey found that 81% of expatriates said their income is more than enough to live comfortably.
Mexico also ranked first globally for entertainment options, food and climate, offering a quality of daily life that respondents said outweighs challenges related to infrastructure and urban safety.
Thailand ranked third overall and was identified as the country with the happiest expatriates, with 86% reporting overall satisfaction. It also led the survey for affordable housing.
The report found Thailand ranked first for housing affordability, with 79% of respondents giving housing costs a positive rating. It also placed third worldwide for ease of integration because of the friendliness of local residents, ranking first globally for local friendliness, and fourth for health care because of the quality of medical services.
Although Thailand scored lower for air quality and the difficulty of opening bank accounts, the report said it remains a preferred destination for retirees because of its low daily cost of living.
The remaining countries in the top 10 were the United Arab Emirates, recognized for career opportunities and efficient bureaucracy; Brazil, noted for its open culture and high levels of happiness; and Spain, ranked as Europe's top destination because of its quality of life.
They were followed by Singapore, praised for its infrastructure and safety; Portugal, recognized for strong personal finances; and Malaysia, valued for its relaxed lifestyle and affordability.
Luxembourg rounded out the top 10, supported by high salaries and a stable labor market.
At the bottom of the 2026 Expat Insider ranking were Canada, which placed 27th after recording the weakest results for personal finances because of its high cost of living; the United Kingdom in 28th, affected by high inflation and low personal satisfaction; and Turkey in 29th, weighed down by economic instability and less favorable working conditions.
Also, Germany in 30th, which received the lowest global scores for digitalization, language barriers and bureaucracy; and Norway in 31st, where expatriates reported the greatest difficulty integrating socially and building friendships.