Panama is the best country for American expats — here are the other top picks

A rising wave of expats from the U.S. say the new American dream is to leave. 

Driven by high living costs, politics, and a desire for work-life balance, many Americans are going abroad. An estimated  5.5 million Americans already live somewhere else, according to the Association of Americans Resident Overseas (AARO). And the number is expected to soar. More than 1,200 U.S. citizens expatriated in the first quarter of 2025 alone — a 102% increase compared to the same period a year ago, according to a report from CS Global Partners.

But where's the best place to go?

InterNations, an expat networking site, surveyed more than 10,000 people across 172 nations to find the answers

Continue reading to see which made the list and why.

Deborah Kearns contributed to this article.

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Vietnam scored high on the list, thanks to its affordable cost of living for those moving from places like the U.S. and Europe, and its high overall happiness score.

"Life here moves fast, there's so much growth everywhere and people are incredibly warm and helpful," Bertha Pesik, who moved from Indonesia to Vietnam, told BBC News.

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Thailand ranked fourth. Like Vietnam, it scored high for happiness and affordability. 

"I do not know any other country that is as welcoming, safe, and beautiful to travel around in,” expat Natasha Eldred told BBC. 

But travel blogger Amy Poulton, who lived in Thailand as an expat, points to the disparities between foreigners and locals. 

"My Thai friends found it annoying when expats would talk about how amazing Thailand is when local people have a very different experience," Poulton told BBC. "Keep yourself informed and aware that your experience is very different to local people."

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Mexico ranked third on InterNations’ list and has been home to a large expat community — particularly of Americans — for years

"The people, the culture, the food, the amazing beauty, the cost of living, the healthcare all are great reasons to live here," David B. Wright, an American living in Playa del Carmen, told BBC.

Wright said learning Spanish is a must if you choose to live in Mexico. "If you live here for 5, 10, 20 years and don't bother to learn anything beyond the very basics, you're expecting others to accommodate you but aren't showing the desire to accommodate others."

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Colombia ranked second, with high scores for cost of living and ease of settling in. According to InterNations, “81% are satisfied with their financial situation in Colombia (vs. 54% globally).”

"Colombians are warm, welcoming, and curious, which makes them wonderful [neighbors] and friends," expat Portia Hart told BBC. "Colombia's complex modern history means there is a tangible spirit of hope and collective effort toward a better future.”

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Panama ranked first on InterNations’ list, with high scores for quality of life, ease of settling in, and cost-of-living. “A whopping 94% of expats there are happy with their life abroad,” InterNations said, also noting Panama ranked first on its list for the best place for retirees.

“I love beyond words being surrounded by this lush jungle landscape where we see toucans, monkeys, iguanas, agoutis, birds, butterflies every day," American Cari Mackey, who owns a resort there, told BBC. "Our area is so remote that we rarely see anyone else on our beach other than our own guests of the resort so, the waves are never crowded and the vibes are always nice."