Expats say Panama is the best place for expats in 2025

For the second consecutive year, Panama has been named the best country for expats in 2025, according to the InterNations Expat Insider report.

This extensive survey, which gathers insights from over 10,000 people who have left their home country. Panama’s enduring appeal in lifestyle, work opportunities, and affordability are what make Panama shine in their eyes. 

The survey evaluates 46 countries based on factors including: Quality of Life, Ease of Settling In, Working Abroad, Personal Finance, and the Expat Essentials Index. Panama excelled across all indices, with a remarkable 94% of expats expressing happiness with their life there.

Kathrin Chudoba, editor-in-chief of InterNations, attributes Panama’s charm to its balanced mix of affordable infrastructure, a pleasant climate, and an open, friendly culture that facilitates integration. The study notes that 35% of expats in Panama are retirees with a high gross yearly income, many of whom plan to stay indefinitely.

Panama’s success is part of a broader trend in Latin America. Colombia has surged to second place, praised for financial satisfaction and social life, while Mexico, known for its welcoming culture, secured third place. 

Meanwhile, Asia’s top 10 representatives include Thailand, Vietnam, China, Indonesia, and Malaysia. 

Conversely, the United States slipped to 36th place, facing criticism over public transportation, healthcare, and safety. Europe also faced challenges, with countries like Italy and Finland ranking low due to high costs.

The findings highlight a key trend: financial stability increasingly influences expat satisfaction. 

Source: Forbes

Countries excelling in the Personal Finance Index also see high happiness levels, illustrating that economic realities often outweigh postcard-perfect landscapes.

As Panama continues to captivate expats globally, it stands as a testament to the growing emphasis on practical, day-to-day living conditions in determining the best places to live abroad.