Panama Ranked Best Country for Expats in 2026

According to the 2026 Expat Insider survey conducted by InterNations, Panama has been ranked as the best country for expats for the third consecutive year. The survey evaluates various factors, including cost of living, ease of settling in, and overall life satisfaction among expatriates.

Why Panama is the Top Choice

Panama's strong performance in the survey is largely attributed to its dollarized economy, which simplifies financial planning for newcomers, particularly those from North America. Expats report high levels of satisfaction, with 87% expressing happiness living in Panama, compared to a global average of 70%. Additionally, 90% of respondents found it easy to secure housing.

Cost of Living and Lifestyle

While some may perceive initial costs as high, many expats find that low utility bills, insurance premiums, and property taxes help keep the overall cost of living manageable. Life outside the capital, Panama City, offers a slower pace, with many residents enjoying the natural beauty and community-oriented lifestyle in areas like Bocas del Toro.

Comparison with Other Countries

Following Panama in the rankings are Mexico, Thailand, and the United Arab Emirates. Mexico is noted for its social integration, with a high percentage of expats easily making local friends. Thailand boasts the highest happiness scores among expats, while the UAE is recognized for its strong career prospects and efficient administrative processes.

For those considering a move to Panama or any of the other top-ranked countries, understanding local customs, visa requirements, and living conditions will be essential for a successful transition.