New global rankings reveal the best places to build a life abroad – and the people who have made the move explain why.

The 2026 Expat Insider survey from InterNations has ranked 31 destinations across quality of life, ease of settling in, working abroad, personal finance and practical essentials such as housing and digital services.

For this year's winners, friendliness and affordability scores made the biggest impact. Seven of the top 10 destinations ranked among the easiest places to settle in, while five led the world for personal finance. We spoke to expats living in the five highest-ranked countries about why they moved, how they adapted and what prospective newcomers should know.

1. Panama

Panama topped the ranking for the third year in a row, placing first in both the Working Abroad and Personal Finance indices. Eighty-seven percent of expats here report being happy with life abroad, compared with 70% globally, while 90% say housing is easy to find.

Ariel Barrionuevo moved to Panama's Caribbean coast from Argentina eight years ago, and quickly found himself sleeping more deeply, waking rested and feeling more present. "I realised that wasn't because I was on holiday, it was because this place has a rhythm of its own," said Barrionuevo, now director of La Coralina Island House hotel on Isla Colón.

His typical day includes a stop by the ocean, a walk through the tropical garden and listening to the birds. "It's a simple ritual, but it reminds me every day why I chose to live here," he said. He finds life in Panama more affordable than it was in Argentina, and appreciates the stable economy, which makes planning and business more predictable.

Reza Motalebpour, who relocated to Panama City from Canada this year, says working remotely is straightforward, with reliable internet available at home and in co-working spaces. She has also found banking easy, particularly in the country's dollarised economy. While the exchange rate can make costs seem high at first for Canadians, she says Panama's relatively low utility bills, insurance costs and property taxes mean the overall cost of living still represents good value.

Life here isn't without its hurdles; Barrionuevo cites late deliveries and weather that can quickly upend plans on Isla Colón. But he says choosing a slower pace is a decision he doesn't regret – and one he thinks visitors or potential expats should embrace. He recommends visiting Bluff Beach, buying fresh fruit from a roadside stand and spending the afternoon watching surfers at Paunch Beach.

"I arrived thinking I was moving to a beautiful destination," he said. "Looking back, I was really moving towards a different way of living, one that values time over speed, experiences over possessions and connection over constant activity."

2. Mexico

Ranking first in the Ease of Settling In index, Mexico placed second overall and remains the world's easiest country for expats to feel at home. Seventy-three percent say making local friends is easy, compared to 39% globally, while twice the global average describe their social circle as mostly local.

"I've made better friends abroad than I ever had in Chicago," said Kirsten Raccuia, who writes the expat blog Sand in My Curls. She and her husband moved to Puerto Vallarta in 2022 and say the sense of community, along with the lower cost of living, has kept them there. Street tacos cost about a dollar (£0.75), she says, while a recent emergency appendectomy and hospital stay cost less than $4,000 (£2,970), a price unimaginable in the US.

To best experience the city, Raccuia recommends having breakfast at the local food markets and visiting the beach on a Sunday, when families gather. "Yes, it's touristy, but it's also what the locals do," she said.

One caveat: Mexico ranked 25th of 31 for safety and security, with 68% of expats rating their personal safety positively compared to 81% globally.

3. Thailand

Ranked third overall, Thailand is home to the world's happiest expats with 86% reporting satisfaction with life abroad. It also earned the survey's highest score for cost of living, with 85% ranking it positively – more than double the global average.