Moving abroad sounds like the ultimate dream. A fresh start, lower costs, warmer weather, maybe a slower pace of life that actually lets you breathe. Millions of people do it every year. The number of people living outside their country of birth has steadily increased, reaching between 300 and 304 million in mid-2024. That is a staggering slice of humanity packing up their lives and betting on somewhere new.
Here is the thing though: not every move turns out the way people imagined. Some expats absolutely thrive. Others quietly count down the days until they can go home. The difference often comes down to one simple choice: which country. So which destinations consistently deliver happiness, and which ones regularly break hearts? The answers might genuinely surprise you. Let’s dive in.
Happy Country #1: Panama – The Undisputed Champion
Let’s be real. Panama keeps winning these rankings for a reason, and the data is nearly impossible to argue with. For the second consecutive year, Panama ranked as the best country for expats, and a remarkable 94 percent of expats are happy with their life abroad there. That number is extraordinary when you stop to think about it. Nine out of ten people who moved there are satisfied. When does that ever happen in real life?
InterNations’ Expat Insider survey found that roughly three quarters of expats in Panama are satisfied with their financial situation, compared to the global average of just over half, putting the country at number three globally for financial satisfaction. The ease of finding affordable housing also makes it particularly attractive. Housing ranks as especially affordable, with a strong majority of expats reporting satisfaction, a figure that stands out at a time when housing costs are creating pressure for expats globally.
Around 35 percent of respondents in Panama are already retired, and nearly one in five say their primary motivation for moving was to retire there. Think of Panama like that reliable friend who always shows up. Not flashy, but consistently delivering exactly what it promises. The combination of tropical climate, modern infrastructure, and a genuinely welcoming environment is hard to beat.
Happy Country #2: Colombia – The Rising Star Nobody Expected
Honestly, Colombia’s rise in expat rankings is one of the more exciting stories in global relocation right now. Rising from fifth place in 2024 to second overall in 2026, Colombia has become one of the top destinations for expats, with personal finance as its strongest area, driven by a low cost of living and high financial satisfaction. Most expats report that their income allows for a genuinely comfortable lifestyle there.
Interestingly, money isn’t the main motivation for moving: expats are equally drawn by the promise of a better quality of life, personal relationships, and lifestyle choices. Colombia also scores highly for its welcoming culture, social life, and accessible housing, making it easy for newcomers to settle in.
Colombia offers something rare: a high-quality lifestyle without a high price tag. Expats love that you can live comfortably, travel often, enjoy a vibrant social life, and still spend less than you would in the U.S., Canada, or Europe. That said, challenges remain, including limited digital government services, the need for Spanish to get by, and ongoing concerns about safety and political stability. No country is perfect, but Colombia is making a strong case for itself right now.
Happy Country #3: Mexico – The Perennial Crowd Favourite
Mexico has been a top destination for expats for so long it almost goes without saying. Almost. Mexico ranks as the number one expat destination for happiness, with roughly nine in ten expats satisfied with their quality of life. The country offers affordable living for those earning in strong currencies like the US dollar, British pound, or euro, rich culture, world-renowned cuisine, and famously warm locals.
To put numbers into perspective, rents in Mexico City are about 70 percent lower compared to San Francisco, while groceries in Mexico City are 47 percent lower. That kind of financial breathing room changes your entire relationship with daily life. Imagine not feeling anxious every time you open a grocery bill.
Mexico has been in the top three since 2014, and the welcoming atmosphere helps roughly 78 percent of expats feel at home. It is worth noting though that safety concerns do require thoughtful consideration, particularly in certain areas, and some expats have reported a pushback from locals due to the influx of newcomers. Choose your neighbourhood wisely and Mexico delivers incredibly well.
Happy Country #4: Spain – Europe’s Overachieving Jewel
Spain holds a special place in the expat world. It is the only European country to consistently make the top ten in global expat satisfaction rankings, which says a lot about a continent full of genuinely nice places to live. A strong majority of expats in Spain say they are happy there, significantly above the global average of around two thirds.
Spain ranked first for good weather, culture, and nightlife, as well as recreational sports opportunities, and the country has an affordable, accessible, and high-quality healthcare system. A 2025 annual report from real estate and economic development consulting group Resonance ranked both Madrid and Barcelona among the top ten cities in Europe to visit or live in.
Think of Spain as Western Europe’s secret value proposition, a Mediterranean lifestyle without Scandinavian price tags. Rental prices in Madrid are 62 percent lower than in San Francisco and over 60 percent lower in Barcelona. It is not all sunshine and flamenco, though. Spain updated its immigration laws in May 2025, and while the reforms simplify things for most expats, navigating Spanish administration without local help can still drain you.
Happy Country #5: Portugal – Quiet, Affordable, Reliably Good
Portugal does not shout about itself the way some destinations do. It does not need to. According to the 2025 Global Retirement Index, Portugal is the second-best place in the world for retirement. For retirees especially, that kind of ranking matters enormously when making a life-altering decision.
Living in Portugal provides a significant advantage in affordability compared to many other European countries. Essential expenses such as food, groceries, utilities, healthcare, childcare, and education are generally more budget-friendly, allowing residents to maintain a high quality of life without the financial strain often found elsewhere in Europe.
According to the 2024 Expat Insider survey by InterNations, Portugal placed 15th out of 53 countries. Expats highlight the friendliness of locals, the simplicity of integrating into the community, and the laid-back lifestyle. It is not a perfect destination, and Lisbon in particular has become noticeably pricier in recent years. Portugal ranks high for its warm climate, excellent healthcare, and work-life balance. That combination is difficult to replicate elsewhere in Europe at a similar price point.
Regret Country #1: Kuwait – Last Place, Again and Again
Here is where the gallery shifts tone. If you are considering Kuwait for the lifestyle, be very careful. Kuwait is the worst country for expatriates to live and work in among 53 destinations, according to the report that gauges performance based on quality of life, ease of settling in, working abroad, personal finance, and expat essentials. It has been a pattern, not an accident.
Only 43 percent of expats in Kuwait are happy with their lives, significantly lower than the global average of 72 percent. Bottom three rankings in local friendliness, finding friends, and culture and welcome lead to a last-place spot in the ease of settling index. More than one in three expats find it hard to get used to the local culture, and only 37 percent are happy with their social life in Kuwait, compared to 56 percent globally.
Although most expats move for work and are employed full time, dissatisfaction with job security, work-life balance, and fair pay is widespread, while financial comfort is far from guaranteed. Extreme heat, limited leisure and cultural options, poor air quality, and a challenging social environment further dampen the experience, leaving many expats planning an early exit. Many people report the only reason they stayed was for their job. They were in golden handcuffs, compensated so highly that they couldn’t leave, even though they didn’t love their lives there.
Regret Country #2: Germany – Great on Paper, Tough in Practice
Germany is the kind of destination that sounds like an objectively brilliant idea. Strong economy, world-class infrastructure, safe cities, efficient trains. What could possibly go wrong? Apparently, quite a lot. Germany comes in 50th out of 53 countries in the Expat Insider 2024 survey, and expats in Germany seem to be among some of the unhappiest and loneliest in the world.
Germany slipped one spot from 49th to 50th in 2024. Expats generally complain about the country’s digital services, facing problems with cashless payment options and access to high-speed internet. Germany also ranks poorly in terms of ease of settling in, with expats noting that locals seem less welcoming towards foreign residents.
People leaving Canada, the UK, and Australia mentioned struggling with making friendships the most. Expats leaving Australia, Canada, and Germany mentioned cost of living struggles the most in the dataset. It is a cruel irony. Germany recruits heavily for skilled workers, then makes the social integration so difficult that many of those workers feel isolated and eventually leave. I think Germany needs to do some serious self-reflection on that gap between recruitment and retention.
Regret Country #3: Turkey – Beautiful Trap
Turkey is genuinely seductive. Incredible history, extraordinary food, breathtaking landscapes, and a cost of living that sounds too good to be true. For some expats, it is. In the Expat Insider 2024 survey, Turkey was ranked as the second worst place for expats to move to. That is a jarring contrast to how the country is so often marketed online.
The core issue is economic instability. Turkey’s economic environment in 2025 remains shaped by high inflation, with consumer prices still rising rapidly, although somewhat less dramatically than in previous years. InterNations rates the country last regarding working abroad due to limited career opportunities, a lack of job security, and unfavorable working hours. The language barrier is another significant issue, as Turkish is considered a moderately difficult language to learn.
Turkey places 45th overall, with many expats unhappy and considering leaving within a year. While the climate and public transportation are highlights, and making local friends can be relatively easy, language barriers significantly complicate daily life, bureaucracy, and housing. Here’s the thing: if you earn in a strong foreign currency like dollars or euros, Turkey can actually feel like a bargain. The key word there is “can.” The volatility makes long-term planning almost impossible.
Regret Country #4: The Broader Trap – When Even “Good” Countries Disappoint
It is hard to say for sure which single country breaks the most expat hearts, because the data points to a broader pattern of regret that spans even celebrated destinations. Being homesick at nearly a third, difficulty finding work at just over a quarter, and struggling with the cost of living at roughly a quarter are the top three reasons people move back home. Expats also reported struggling to make friends and a strong pull to return to be with existing friends and family.
According to research from AXA Global Healthcare, as of June 2024, the vast majority of expats reported feeling isolated after leaving their country, with almost half saying the main reason was missing their family and friends. This isolation can strike even in countries that rank well overall. It is not always about the destination. Sometimes it is about the person and whether they are truly ready for what living abroad actually means.
Expats who expected stability found themselves caught between shifting political winds, uncertain tax regimes, and communities that didn’t always welcome them. Many expats discovered they were filing multiple tax returns, paying advisors in two countries, and navigating dense international reporting requirements. The idea that a move would slash their tax bill turned into a costly compliance headache. The lesson here is simple: do not romanticize the move. Research it.
Moving abroad can be one of the most rewarding decisions of your life or one of the most expensive mistakes you will ever make. The data from InterNations, Gallup, and AXA shows clearly that some countries consistently deliver joy, while others consistently disappoint. Panama, Colombia, Mexico, Spain, and Portugal have earned their happy reputations through consistent, verifiable results across thousands of respondents. Kuwait, Germany, and Turkey keep landing at the bottom for reasons that are structural, not just situational. The question is not whether to move, but where, and whether you have done the homework first. What would you have guessed before reading this?