Panama tops InterNations' Expat Insider 2026 rankings as the best country in the world for expats. Pictured here: the San Blas islands.gettyLooking for the best countries to live in 2026? Ask the people who’ve moved abroad: expats. InterNations, the world’s largest expat community, just published its annual Expat Insider report, a comprehensive look at life overseas. I’ve been covering the Expat Insider report since 2018.The results come from one of the world’s largest surveys of people living abroad. Nearly 7,800 expats representing 162 nationalities rated everything from healthcare and housing to work-life balance, safety, finances and how easy it is to make friends. Those responses were combined into five major categories (quality of life, working abroad, ease of settling in, personal finance and expat essentials) to determine the overall rankings. Unlike many global quality-of-life indexes, these rankings measure how expats actually feel about their daily lives rather than objective statistics such as crime rates or tax policies.Panama has a relatively affordable cost of living, helping the country earn the top spot in InterNations' Expat Insider 2026 rankings. Pictured here: a view of Panama City.gettyPanama—The Best Country To Live In 2026For the third year in a row, Panama has been named the best country to live in 2026 (you can see the 2025 results here and the 2024 results here). What propelled it to the top? Panama delivers something many expats value more than gorgeous scenery: an easy everyday life.The Central American country ranks first for both working abroad and personal finance, second for ease of settling in and expat essentials and sixth for quality of life.Financially, Panama stands out. Nine in 10 expats say they earn enough disposable income to live comfortably, more than three-quarters are satisfied with their financial situation and nearly 70% give the country’s cost of living positive marks. Respondents also praise Panama’s work-life balance, friendly residents, straightforward visa process and easy housing market. Panama is also popular with retirees. More than one-third of respondents are already retired, and nearly one in five say retirement was their primary reason for relocating. Even among those who still work, Panama ranks first worldwide for work-life balance.Mexico ranks No. 2 in InterNations' Expat Insider 2026 report, with expats praising the country's welcoming culture and ease of settling in. Pictured here: downtown Mexico City.gettyMexico—Where Expats Feel At HomeMexico comes in No. 2 on the overall list. It’s also the easiest place in the world for expats to settle in.The country finishes first in all three categories measuring social integration: local friendliness, making friends and feeling welcome. Nearly three-quarters of expats say making local friends is easy (almost double the global average) and more than one-third say most of their friends are local residents rather than other expats.Mexico also earns high marks for personal finances and career opportunities, although concerns about safety and environmental quality prevented it from challenging Panama for the top spot.Thailand is home to the world's happiest expats, according to InterNations' Expat Insider 2026 report. Pictured here: Khao Sok National Park.gettyThailand—The World’s Happiest ExpatsThailand rounds out the top three overall, but it claims one distinction no other country can match. According to the report, Thailand is home to the happiest expats in the world: 86% say they are happy with life abroad, and 42% plan to stay there forever.Expats praise Thailand’s affordable cost of living, inexpensive housing, welcoming locals and high-quality healthcare. The country’s biggest drawbacks are environmental concerns and bureaucratic headaches, including difficulty opening bank accounts and navigating administrative services.The United States ranks third in the world for career prospects in InterNations' Expat Insider 2026 report but finishes last for overall quality of life. Pictured here: downtown Chicago.gettyThe U.S.—Good For Careers, Bad For Quality Of LifeThe United States presents one of the survey’s most fascinating contradictions. Overall, it ranks 20th out of 31 countries.Expats rate the U.S. third in the world for career prospects, saing the country offers a healthy job market and good opportunities for professional advancement. But the country finishes dead last for quality of life.The biggest weakness? Healthcare. The U.S. ranks last for healthcare affordability and equal access to medical care. Expats also criticize work-life balance, public transportation and political stability. The lone bright spot is leisure. Expats say they appreciate the country’s dining scene and recreational opportunities.Many European countries score well for healthcare, safety and infrastructure in InterNations' Expat Insider 2026 report, but expats say they find it harder to make friends and feel at home. Pictured here: Paris.gettyEurope’s Expat ProblemPerhaps the biggest surprise in this year’s report is Europe’s dramatic fall from grace. Eight of the survey’s 10 lowest-ranked destinations are European. While many of these countries score well for healthcare, safety, infrastructure and environmental quality, expats say they struggle with something less tangible: building a life.“It’s not the destination that disappoints—it’s how hard it is to build a life and a social circle there,” write the report's authors.Countries including Norway, Germany, Sweden, Austria and Switzerland perform well on many objective measures of quality of life, yet rank poorly overall because newcomers find it difficult to make friends, integrate into local communities and feel at home. Ultimately, the results are a reminder that moving abroad isn’t just about finding a beautiful place to live. You need to find a place to live where you feel like you belong.The TakeawayOne of the biggest lessons from this year’s report is that the best countries to live in aren’t necessarily the richest or the most famous. Instead, expats consistently rewarded places where everyday life feels easier, where housing is attainable, finances stretch further, bureaucracy is manageable and it’s possible to build friendships and feel part of a community.It’s also a reminder that relocating abroad isn’t a one-size-fits-all decision. Some countries excel for career opportunities, others for quality of life or retirement. When you’re searching for the best countries to live in, it ultimately depends on what matters most to you. But according to the people already living overseas, countries that combine affordability with a welcoming culture come out on top.The United Arab Emirates ranks No. 4 in InterNations' Expat Insider 2026 report, with expats giving high marks for personal finance, safety and digital services. Pictured here: Dubai.gettyRanked: The Best Countries To Live In 2026PanamaMexicoThailandUnited Arab EmiratesBrazilSpainSingaporePortugalMalaysiaLuxembourgAustraliaSaudi ArabiaSouth AfricaFranceBelgiumDenmarkPolandIrelandJapanUnited StatesNetherlandsSwitzerlandAustriaItalyCzechiaSwedenCanadaUnited KingdomTürkiyeGermanyNorwayMORE FROM FORBES:ForbesThe Best Cities To Live In The World In 2026—According To The Global Liveability IndexBy Laura Begley BloomForbesThe 36 Best Places For Solo Female Travel, Chosen By ExpertsBy Laura Begley BloomForbesThe 30 Most Walkable Cities In The World—According To A 2026 GuruWalk ReportBy Laura Begley Bloom