Why Spain Keeps Winning Over Expats While Panama Stuns the World

Jan de Vries · 2026-09-23

Every year, the Expat Insider survey drops its ranking of the best places to live abroad. And every year, millions of people scroll through the results wondering: could I actually do this? In 2026, the answer for Spain is a resounding yes. For the third year running, Panama holds the global crown, but Spain is the undisputed champion of Europe. So what's behind this? Let's dig in. ### Spain: Europe's Expat Magnet Spain has long been a favorite for sun-seekers, but the 2026 ranking shows it's more than just beaches and tapas. Expats consistently rate Spain highly for quality of life, healthcare, and cost of living relative to other Western European countries. According to the survey, over 80% of expats in Spain say they're happy with their daily lives – a figure that outpaces most of the continent. Take healthcare. Spain's public system is often ranked among the best in the world, and expats can access it after registering with social security. For many Americans used to sky-high insurance premiums, that's a game-changer. A routine doctor's visit might cost $0 out-of-pocket, compared to $150 or more back home. Then there's the lifestyle. Whether you're in Madrid, Barcelona, or a small town in Andalusia, the pace is slower. Meals stretch for hours. Neighbors actually know each other. It's the kind of thing you can't put a price on – though if you did, you'd probably find it's cheaper than living in New York or San Francisco. ### Panama: The Global Champion But while Spain leads Europe, Panama leads the world. For the third consecutive year, it tops the Expat Insider ranking. Why? Expats cite ease of settling in, financial incentives, and a welcoming culture. Panama uses the US dollar, which removes currency headaches for Americans. And its pensionado program offers discounts on everything from healthcare to entertainment. One expat quoted in the survey put it simply: "I came for a year and stayed for ten." That kind of sentiment is hard to argue with. ### What This Means for You If you're considering a move abroad, these rankings aren't just trivia. They're a signal. Spain and Panama both offer something increasingly rare: a high quality of life without a six-figure salary. That doesn't mean it's easy – visas, taxes, and cultural adjustments are real. But it does mean it's possible. So ask yourself: what's stopping you? Maybe it's time to find out. *This article is based on the 2026 Expat Insider survey.*