This Gorgeous Central American Country Is The Best Destination In The World For Expats

Emigrating to another country in search of warmer weather, a better quality of life, or just to make your savings go further has been a popular option for people around the world for years, including many retirees keen on finding the perfect place to enjoy their retirement. But as professional life has changed, the number of people swapping the traditional nine-to-five grind for life as an expat has increased drastically. Remote work and an increasingly connected world mean that living on a paradise beach doesn't have to mean uprooting your life and finding a new career anymore.

As a result, many countries have embraced expats and digital nomads, investing in infrastructure and offering a variety of packages, visas, and tax breaks to encourage them to live, work, and play there. Countries like Mexico, Thailand, and Spain are renowned as being excellent destinations for expats, whether those retiring or working abroad. But the winner of a recent expat insider surveyv by expat community InterNations might surprise you. According to their research, the best international destination for remote workers and expats is the small Central American country of Panama.

Panama is the southernmost country in Central America, between Costa Rica and Colombia. It is perhaps most famous for its eponymous canal, which links the Atlantic and Pacific Oceans and is one of the world's most extraordinary feats of engineering, as well as being the conduit for maritime trade between the eastern and western hemispheres. Most arrivals to the country land in Tocumen International Airport in the capital, Panama City, or fly to the Enrique Malek International Airport in the city of David near the Costa Rican border.

Panama is one of the safest countries in Central America, and 2025 is actually the second year in a row that it reached the top of InterNations' expat satisfaction survey. The survey looks at five aspects of expat life: quality of life, ease of settling in, working abroad, personal finance, and expat essentials, as well as asking respondents about their overall levels of happiness. Panama crushed it across the board, placing in the top three for all five aspects of life, with 94% of expats saying they are happy with their life there.

Unlike some expat havens, Panama seems to work equally well for retirees and remote workers. Among those who responded to the survey, 35% expats in Panama are already retired (compared to 11% globally), and 18% specifically moved to the country to retire. It's also a popular place to work remotely, with excellent internet connectivity and plenty of amenities like co-working spaces.

Panama is also friendly and welcoming, with affordable public transport, great travel opportunities, fabulous natural beauty, and a vibrant and warm community life. It isn't all plain sailing, of course, and the bureaucracy in the country, as well as the infrastructure for cars, both get marked down by expats. But neither of these issues has a significant impact on how expats feel about life in Panama, particularly given how easy it is to take care of essentials like applying for an expat visa and finding somewhere to live.

While elements like visas, rentals, and co-working spaces are all the foundations of a great expat destination, many people move abroad in part so they can explore stunning places and enjoy new experiences in their spare time. And this is where Panama is such an underrated gem. It is a small country, so it is relatively easy to get around, but there is so much to love, from incredible surf breaks and deep, lush jungles to breathtaking historical ruins and lively nightlife, not to mention the remarkable Panama Canal.

Expats living in Panama City can enjoy the charm and ambiance of Casco Antiguo, a UNESCO-listed historic district brimming with winding cobbled streets and colonial squares. When night falls, the city heads up to the roof, with a wide array of rooftop bars and restaurants to choose from, boasting enviable views across the city skyline. There are some excellent hiking trails within a few minutes of the city center, like the summit of Cerro Ancon and the Metropolitan Natural Park, while Soberania National Park is just a half-hour drive away.

Panama is also an underrated beach vacation spot, with beautiful stretches of sand all over the country. Playa El Tuco is a quiet beach backed by Casco Antiguo, and although the water isn't really clean enough to swim in, it's a wonderful place to watch the sunset. Slightly further afield, Coronado's black and white sands make it an eye-catching day out, while serious beach lovers will enjoy a longer trip to the more off-grid Guna Yala on the north coast. For surf lovers, El Palmar, Punta Chame, and Bocas del Toro are all close enough to the city for a day trip.