Panama has been ranked the number one country for expats in 2025, marking the second consecutive year the Central American nation tops the global list, according to the prestigious InterNations Expat Insider survey.
The annual report, which gathered responses from more than 10,000 expats across 172 nationalities, evaluated 46 destinations worldwide. Panama outshined its peers across multiple categories, reinforcing its reputation as one of the most welcoming and retirement-friendly countries on the planet.
High Satisfaction Among Expats
An impressive 94% of expats in Panama reported being satisfied with their life abroad, far exceeding the global average of 68%. The survey highlights Panama as a country where foreigners not only relocate but thrive, thanks to a combination of affordability, quality services, and ease of integration.
Kathrin Chudoba, Chief Marketing Officer at InterNations, told CNBC Make It that Panama offers “a perfect mix of decent infrastructure at affordable prices in combination with a pleasant climate and, most importantly, a culture that’s open, friendly, and easy to integrate with.”
Retirement-Friendly Appeal
Panama’s dominance in this ranking is partly driven by its popularity among retirees. The study revealed that 35% of expats in Panama are already retired – more than three times the global average of 11% – and another 18% moved specifically to enjoy retirement.
Several factors contribute to this trend:
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The Pensionado Visa Program, which requires proof of just $1,000 in monthly income, offers retirees residency along with discounts on healthcare, entertainment, and travel.
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Affordable living costs: Monthly expenses can range from $800 to $1,500 in smaller towns, while Panama City living averages $2,000 to $2,500 – still significantly lower than in many North American or European capitals.
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Strong purchasing power, with 74% of expats stating their disposable income allows for a comfortable lifestyle.
Quality of Life and Security
Panama also secured the third position worldwide for quality of life. Expats praised its year-round tropical climate, diverse landscapes, and opportunities for outdoor recreation. Infrastructure in major cities is modern, internet connectivity is reliable, and healthcare is widely regarded as high-quality yet affordable.
Safety is another area where Panama scored well. Expats noted stable political conditions, low crime rates in expat-centered areas, and respect for property rights as key advantages.
Work-Life Balance and Expat Essentials
The report placed Panama third globally for work-life balance, with expats averaging a 41-hour work week – shorter than in the U.S. or much of Asia. This allows more time for leisure, cultural exploration, and family life.
Additionally, 71% of expats said it was easy to find affordable housing in Panama, compared to a global average of just 34%. The use of the U.S. dollar also simplifies financial transactions for American expats.
A Place to Call Home
Perhaps most strikingly, 35% of surveyed expats in Panama said they plan to stay permanently – one of the highest figures globally.
The survey results reinforce Panama’s growing reputation as a top destination for those seeking both a retirement haven and a dynamic international lifestyle.
Written on September 26, 2025
