Best Countries for Expats 2026: Spain Wins

Short answer: Spain offers expats the best quality of life in the world, for the fourth year in a row (InterNations Expat Insider 2025). But in the “best country overall” ranking, Panama comes first and Spain sits only in ninth. Want sunshine and top-tier healthcare? Spain. Want low costs and retirement in the tropics? Look at Panama.

Moving abroad is no longer a retirement fantasy. More Americans and Brits than ever are planning a fresh start overseas, driven by cost of living, politics, or simply the weather. The only real question is where. The InterNations Expat Insider 2025 gives the most honest answer, because the scores come from expats themselves, not from governments.

What does the Expat Insider 2025 actually measure?

InterNations surveyed more than 10,000 expats from 172 nationalities across 46 countries. They rated up to 53 factors on a scale from 1 to 7, covering everything from healthcare and housing costs to how welcome people felt.

One thing matters before the rankings. The study runs two separate lists. The Quality-of-Life Index measures pure day-to-day living. The “best country overall” ranking also folds in jobs, finances, and settling in. Spain wins quality of life. Panama wins the overall score. Both are true. They simply measure different things.

Why does Spain lead on quality of life?

Spain takes first place in the Quality-of-Life Index, and it does so for the fourth year running. Behind that sit two more top spots: number one for healthcare and number one for leisure. No other country pulls off that combination.

The numbers are striking. 84 percent of expats in Spain call themselves happy with life, against a global average of 67 percent. On weather, 58 percent say “very good,” more than double the global figure. For anyone escaping a grey British winter, that alone can seal the deal.

Healthcare holds up under scrutiny. 83 percent find it affordable, 82 percent say it is easy to access, and 81 percent rate the quality as high. Americans used to high premiums and Brits used to NHS waiting lists both find something to like: real quality without the price tag or the queue.

The most popular expat cities are not Madrid or Barcelona. They are Valencia, Malaga, and Alicante, which even claim global top-three spots in the city comparison. Milder than Madrid, cheaper than Barcelona, right on the coast.

Panama wins the overall ranking

Panama lands first in the overall ranking, making it the “best country overall.” The reason has less to do with quality of life and more with a strong all-round package of cost, climate, and easy settling in.

Living in Panama is roughly a third cheaper than the United States. The climate stays warm all year. Several residency options make the legal side of the move easier. One detail stands out: more than 25 percent of expats in Panama are retirees, against just 11 percent worldwide. Panama is a clear retirement destination.

For Americans and Brits, that means an honest trade-off. Panama is far from home and culturally less familiar. In return you get low costs and a tropical climate. If proximity to family in Europe or the US matters, Spain or Portugal tend to win instead.

Which other countries stand out?

The Quality-of-Life Index has more than two winners. Five more countries deserve a close look, especially for anyone weighing a European base.

Austria (4th): Safety, excellent public transport, and top healthcare. Mountains and lakes on the doorstep, Vienna as a highly livable capital. A polished, orderly European life.
Luxembourg (5th): High safety and wealth. 99 percent of people are covered by the public health system. Small and expensive, but extremely stable.
Czech Republic (8th): The best value for money in Europe. Prague offers big-city living at moderate cost, and the country ranks second in the world for travel and transit.
Japan (9th): Safety, efficiency, strong healthcare, dense public transport, and remarkable cleanliness. The biggest cultural shift on this list, and a rewarding one.
Portugal (10th): Mild climate, Atlantic beaches, and a slower pace of life. Cheaper than Western Europe and a long-time favorite. Our look at a workation in Portugal and Spain shows what daily life really costs.

Who should pick which country?

No single country suits every life. This grid helps with a first read.

Spain, if you want sun, sea, and strong healthcare without leaving Europe behind. Ideal for families and active retirees.
Panama, if low costs and a tropical climate matter more than being close to home. Especially appealing as a retirement base.
Portugal, if you love the Spanish lifestyle but want it even slower and slightly cheaper. Strongest along the Atlantic coast.
Austria or Luxembourg, if safety, order, and a short trip home beat year-round warmth for you.
Czech Republic, if you want to stay in Europe while spending far less.
Japan, if you are ready for a genuine cultural reinvention and love efficiency.

How do you plan the move properly?

The best advice is simple: go there first. A scouting trip teaches you more in a week than any survey can. Rent a place in the neighborhood you are eyeing and test the daily routine. The fastest way to compare flights is Aviasales, especially when your dates are flexible.

Once you land, you need internet before the local SIM or bank account exists. An eSIM from Airalo is active in minutes and bridges those first days without any roaming shock. After that you can set up a local plan at your own pace.

Sort the paperwork early. Spain, Portugal, and many others have dedicated routes for retirees, freelancers, and remote workers. If you work location-independent, our guide to digital nomad visas 2026 is worth a read. And anyone leaving the US or UK should confirm their tax situation with an adviser before the move, not after.

Zercy helps you plan the scouting trip to your dream country: flights, a place for the first few weeks, and the right local connections. Save the shortlist in your Zercy Logbook so you have all options handy when booking.

Frequently Asked Questions

Which country has the best expat quality of life in 2026?

Spain tops the Quality-of-Life Index in the Expat Insider 2025, for the fourth year in a row. It also takes first place for healthcare and leisure. 84 percent of expats there say they are happy with life. You can read more about the study at CNBC.

Why does Panama rank above Spain overall?

The study separates quality of life from the overall score. Panama wins the overall ranking thanks to low costs, a warm climate, and easy settling in. Spain sits only ninth there, yet still leads pure quality of life. The two numbers measure different things.

How expensive is life in Spain for expats?

Spain is noticeably cheaper than the US or UK, especially for healthcare and housing outside Madrid and Barcelona. 83 percent of expats call healthcare affordable. Cities like Valencia, Malaga, and Alicante offer coastal living at moderate prices.

Where do most expats choose to live in Spain?

Valencia, Malaga, and Alicante are the favorites and even claim global top-three spots in the city comparison. They combine mild weather, good infrastructure, and lower costs than the big metros. Right on the sea and well connected.

Best Countries for Expats 2026: Spain Leads Quality of Life