Panama Retains Expat Crown as Europe Lags in 2026 Rankings

Key points

• Panama ranked first overall for the third year in a row, with 87% of expats reporting high satisfaction levels.
• Mexico ranked second, leading in ease of settling in and social integration, with 87% of residents feeling welcome.
• Thailand ranked third overall and was identified as the destination with the happiest expats, with 86% reporting satisfaction.
• Spain was the highest-ranked European country at sixth place, excelling in quality of life due to weather and public transport.
• Norway ranked last (31st), while Germany (30th) and the UK (28th) struggled with high costs and bureaucratic hurdles.

Background

This year's rankings reflect a broader trend of expats prioritizing affordability and social integration over traditional economic powerhouses. Previous coverage has highlighted individual cases of Americans relocating to lower-cost regions like Italy for community and affordability, a sentiment echoed in the 2026 survey's emphasis on 'ease of settling in' and 'personal finance' as primary drivers for relocation. The 2026 survey continues the long-running InterNations Expat Insider series, which has consistently shown that Central American and Southeast Asian nations often outperform Western European countries in expat satisfaction metrics.

How outlets are covering it

While Euronews and UPI both rely on the InterNations Expat Insider 2026 data, they emphasize different aspects of the rankings. Euronews highlights the specific indices where Panama excels, such as 'expat essentials' and 'ease of settling in,' and notes that 33% of expats in Panama want to stay forever. UPI places greater emphasis on the financial aspects, noting that Panama ranked first for personal finances and that 37% of respondents in Panama are retired. TravelAwaits, however, presents a different perspective by citing a separate Country Navigator study focused specifically on American relocation trends. While InterNations ranks Panama first globally, Country Navigator identifies Switzerland, New Zealand, and the Republic of Ireland as top destinations for Americans, suggesting that cultural distance and labor market integration are critical factors for US citizens, even if they do not rank as high in global expat satisfaction surveys. This divergence highlights that 'best' is subjective: global expats prioritize cost and ease of settling, while Americans may prioritize cultural similarity and workforce integration.

Why it matters

The 2026 Expat Insider survey provides critical data for individuals and policymakers considering international relocation. The consistent top ranking of Panama and the low rankings of traditional Western European powers like Germany and Norway suggest a shift in global mobility patterns, where affordability and social integration are valued over high salaries or social welfare systems. For countries like Spain and Portugal, inclusion in the top 10 indicates a growing appeal to expats seeking a balance of quality of life and financial stability. Conversely, the poor performance of Norway and Germany signals that high costs of living and bureaucratic inefficiencies are significant deterrents for international talent, potentially impacting labor markets and economic growth in these nations.

What to watch

Countries ranked at the bottom of the survey, such as Norway and Germany, may need to implement reforms to improve digital infrastructure, reduce bureaucratic hurdles, and lower the cost of living to attract and retain expatriates. For expats, the data suggests that Central American and Southeast Asian countries remain the most viable options for those prioritizing affordability and social integration. Future surveys will likely continue to track the impact of global economic conditions on expat satisfaction, with a particular focus on how inflation and housing costs affect the 'personal finance' index. Additionally, the divergence between global rankings and US-specific relocation trends may lead to more targeted immigration policies in countries like Switzerland and Ireland to attract American talent.