Best Countries for a New Life Abroad in 2026: Low Costs, Higher Income and Better Quality of Life

LONDON: A new global ranking has identified the best destinations for expatriates looking to start a new life abroad, with affordability, quality of life, ease of settling in, employment opportunities, income, housing and digital services among the key factors.

The ranking, based on a survey conducted by global research project InterNations, evaluated 31 destinations through the experiences and opinions of people living abroad. Friendly communities and relatively low living costs emerged as some of the strongest factors behind the success of the top-ranked countries.

Seven of the top 10 destinations were ranked among the easiest places in the world for expatriates to settle in, while five performed particularly strongly in terms of income.

Panama

Panama retained the top position in the overall ranking for the third consecutive year. It also ranked first in the Working Abroad and Income indices.

Around 87% of expatriates said they were happy with their lives in Panama, while 90% said finding accommodation was easy.

Ariel Barionovo, who moved from Argentina to Panama’s Caribbean coast eight years ago, said the slower pace of life had significantly improved his well-being. He now works as a hotel director on Colón Island and says his daily routine includes spending time by the sea, walking in the garden and listening to birds.

He believes life in Panama is more affordable than in Argentina and that the country’s stable economy makes business and long-term planning more predictable.

Another expatriate, who recently moved from Canada to Panama City, said working remotely was convenient because of reliable internet access in homes and coworking spaces. She also highlighted the convenience of Panama’s US dollar-based economy.

Although some costs can initially appear high for Canadians because of exchange rates, lower utility bills, insurance costs and property taxes can make overall living expenses more manageable.

However, expatriates also pointed to challenges, including delays in deliveries on Colón Island and sudden changes in weather.

Mexico

Mexico ranked second overall and topped the Ease of Settling In index, continuing to be one of the easiest countries in the world for expatriates to feel at home.

Around 73% of respondents said making local friends was easy.

Kristen Rakochia, author of “Sand in My Curls,” moved to Puerto Vallarta with her husband in 2022. She said a strong sense of community and relatively low costs encouraged them to remain in the country.

She highlighted the affordability of local food and healthcare compared with the United States. However, safety remains a concern, with Mexico ranking 25th out of 31 destinations for personal security. About 68% of expatriates expressed positive views about their personal safety.

Thailand

Thailand ranked third overall and emerged as the home of some of the happiest expatriates in the world. Around 86% said they were satisfied with their lives abroad.

The country also received the highest score for affordable living, with 85% of respondents giving it a positive rating.

British expatriate Bethan Janty Praphet moved to Thailand with her Thai husband and two children in 2024, initially planning to stay for just one year. She said she quickly decided that she did not want to return.

She praised Thailand’s education system and said respect is an important part of Thai culture. Long-term expatriate Aaron Henry, who moved from Los Angeles 11 years ago, said Bangkok had embraced modern development while preserving its cultural identity.

Newcomers are advised to understand and respect local customs, including removing shoes before entering homes and observing the national anthem played in public places.

United Arab Emirates

The United Arab Emirates also featured among the top destinations for expatriates. The InterNations survey was conducted during February and March, before and around the beginning of the Iran conflict, meaning its results only partially reflect any impact from the subsequent regional developments.

Expatriates living in the UAE said daily life has largely continued as normal despite some changes.

London-based expatriate Nikita Orogunty, who moved to Dubai earlier this year to work in the communications sector, said the country’s welcoming environment remained one of its major attractions.

She also praised the authorities’ handling of security and information during uncertain circumstances.

British expatriate Sharon McKernan, who has lived in Ras Al Khaimah for eight years, said she had never regretted moving to the UAE. She highlighted the slower pace of life, lighter traffic and opportunities to spend more time with family at beaches, pools and mountains.

She also praised the country’s healthcare services and said it was easy to make friends with people from different nationalities.

Brazil

Brazil entered the top five for the first time this year, scoring highly in happiness, ease of settling in, friendliness of local people and culture.

Many expatriates said the warmth of Brazilian people was the main reason they felt at home.

Clint Manning, who moved from Barbados to São Paulo for business, said it was possible to meet someone for the first time on a Thursday and be invited to their home for a barbecue by the weekend.

He described the lifestyle as welcoming and home-like. Manning also viewed the limited use of English in everyday life as a positive factor because it encouraged greater engagement with Brazilian culture.

Other expatriates said that beyond Brazil’s scenery and tourist attractions, it was the friendliness of local people that created the strongest sense of belonging.

The 2026 ranking suggests that affordability, social connection, economic opportunities and quality of life are increasingly important factors for people considering a permanent move abroad.