Panama has been named the world’s best country for expatriates for the third consecutive year, according to the 2026 Expat Insider survey by InterNations.
Nearly 8,000 expatriates representing 162 nationalities took part in the survey, rating their experiences across five categories: working abroad, personal finance, quality of life, expat essentials and ease of settling in.
Panama ranked second in both ease of settling in and expat essentials. The categories assess factors including how friendly local residents are, how easily foreigners adapt to the culture, visa procedures and interactions with local authorities.
About 87 per cent of expats living in Panama said they were happy with their life abroad, compared with 70 per cent globally. Around one-third said they hoped to remain in the country permanently.
Mexico ranked second overall and topped the ease of settling in category. Expats praised the country for making it relatively easy to build friendships and for the welcoming attitude of local communities.
Thailand came third overall and recorded the highest level of expat happiness in the survey. About 86 per cent of respondents living there said they were happy, while 42 per cent said they wanted to stay permanently.
The country was particularly praised for its affordable cost of living and housing. About 85 per cent of expats rated the cost of living positively, while affordable and accessible accommodation was also seen as a major advantage.
Spain was the highest-ranked European country, placing sixth overall. It topped the quality of life index, with expats praising its climate, leisure opportunities, public transport and opportunities to travel.
Portugal ranked eighth and performed particularly well in personal finance, where it came fourth. It also placed seventh for ease of settling in.
Luxembourg completed the top 10, ranking fourth in the working abroad category. It was rated first for salary and job security.
Only 31 countries were included in the overall 2026 ranking, with each destination required to have at least 50 survey responses.
Several European countries performed poorly. The United Kingdom ranked 28th, Türkiye 29th, Germany 30th and Norway last.
Norway placed last for ease of settling in and ranked 30th for both quality of life and personal finance. The result contrasts with the country’s strong reputation for overall happiness among its general population.
Germany ranked last for expat essentials, with respondents pointing to difficulties involving digital services, administrative procedures, housing and the language barrier. It also placed 28th for ease of settling in and 23rd for personal finance.
The survey results show that expat satisfaction depends on more than income alone, with social connections, bureaucracy, housing, culture and everyday quality of life playing an important role in how foreigners experience their adopted countries.
