2025's Best Country For Expats Is A Central American Gem With Beautiful Beaches And Affordable Living

More Americans are moving abroad than ever, with numbers of expatriates renouncing their citizenship or permanent residency rising over 102% in early 2025 compared to the end of 2024, according to the U.S. Federal Register. And this year, expats have their sights set on one beautiful Central American destination. With its dreamy beaches and affordable cost of living, Panama is an unbeatable choice for anyone hoping to join the estimated 5.5 million Americans who already live abroad.

According to an InterNations report released earlier this year, it's actually the best country for expats in 2025 — the second year in a row topping the list. The survey evaluated over 50 different factors that impact expats, such as quality of life, ease of settling in, working abroad, personal finance, general happiness, and other expat essentials, and assessed responses from over 10,000 people living across the world. With Panama ranking high across the board, it's no surprise why 94% of expats surveyed living there reported that they're happy.

Panama is a paradise and Central American's most stunning coastal country full of pristine beaches. In Panama, you can take your pick from nearly 2,000 miles of stunning shoreline, from overlooked Pacific coast towns like Pedasi to picture-perfect gems like Cayos Zapatilla in the Bocas del Toro archipelago. Whether you're looking to base yourself in a quiet beach town or you're dreaming of a life filled with easy weekend getaways, a jaw-dropping beach is never too far away in Panama.

Even in Panama City, you're less than a couple hours away from dazzling white sand beaches like Playa El Palmar, a quiet surf beach near the town of San Carlos. Isla Grande is another easy getaway from the city, and is a secluded gem with strong Afro-Panamanian culture, sugary sand, and prime snorkeling. Speaking of snorkeling, don't skip some time in Guna Yala, also known as the San Blas Archipelago, where you can paddle island to island through vibrant waters. It's also a culture-packed destination, as it's governed by the Guna Indigenous tribe — so although you won't be able to base yourself there fully, it's more than worth a visit.

If you're dreaming of spending your days relaxing by Panama's beautiful beaches, the good news is, it doesn't have to come at a high cost. In fact, Panama has one of the world's lowest costs of living, making it a no-brainer for expats. Housing costs generally make up the bulk of living expenses, and although Panama isn't the most budget-friendly place in Central America, housing can still come out to nearly 50% less expensive than in the United States, according to Global Citizen Solutions. Rent can typically range from $350 to $750 in small towns, or $900 to $2,000 in metropolises like Panama City. For comparison's sake, the average rent in Los Angeles is $2,770, according to Zillow. 

Food costs are also significantly more cost-effective in Panama. According to Numbeo, grocery prices are around 50% lower in Panama than in the United States, while eating out at a restaurant is nearly 70% more affordable. Plus, Panama City is well-connected by affordable public transportation, with one ride on the Metro train running just $0.35. So if you're looking for an affordable place to call home with an incredible quality of life, Panama is calling your name.