Panama: The Hidden Gem Expats Call the Best Place to Live in the World in 2025 — Here’s Why

Discover Why Expats are Flocking to Panama in 2025

When it comes to choosing the best place to live abroad, most people think of Europe, Canada, or Australia. But in 2025, the happiest expats are flocking to a surprising Central American gem: Panama. According to InterNations’ Expat Insider Report, this country is rapidly becoming the top choice for those seeking the perfect balance of comfort, adventure, and quality of life.

For the second year in a row, Panama has been crowned the best country to live in for expats. Based on a survey of more than 10,000 expats from 172 nationalities, it not only tops overall rankings but consistently performs among the top three in categories like Quality of Life, Ease of Settling In, Working Abroad, Personal Finance, and Expat Essentials—making it the ultimate destination for anyone looking to live abroad in comfort, adventure, and happiness.

From retirees sipping coffee with panoramic ocean views to professionals enjoying a relaxed, low-stress work environment, and thrill-seekers exploring lush rainforests and pristine beaches, Panama has something for everyone. With over 94% of expats reporting satisfaction with life abroad, it’s clear why so many are choosing to call this vibrant nation home.

Panama (Image: Canva)

Why Panama Wins the Hearts of Expats

Panama’s appeal goes far beyond its stunning landscapes and sunny weather. From affordable living and vibrant culture to endless opportunities for adventure and wellness, it’s no wonder expats are falling in love with this Central American gem. Here’s why Panama continues to win the hearts of those who choose to call it home.

• Retirement Destination: With 35% of expats retired and 18% moving primarily to retire, Panama is perfect for those seeking a slower pace of life in paradise. Many retirees even say they plan to stay forever.
• Affordability Meets Lifestyle: Housing is reasonably priced, public transport is accessible, and dining options abound—from local seafood to international cuisine.
• Nature Lover’s Dream: Ranked 2nd for its natural environment, Panama offers tropical beaches, misty mountains, and endless opportunities for outdoor activities like hiking, kayaking, and golfing.
• Adventure and Travel: Its strategic location allows for easy travel across Central and South America, while domestic travel options rank 3rd in convenience.
• Active and Healthy Living: Expats enjoy recreational sports (4th globally) and wellness-oriented communities, making it easier than ever to maintain a healthy, active lifestyle.
• Culture and Community: Expats praise Panama’s warm, welcoming culture, vibrant arts scene, and multicultural neighborhoods. Locals are friendly, and the country has a strong sense of community for newcomers.

Panama isn’t just a top destination for expats—it’s a playground for explorers, beach lovers, and culture enthusiasts alike. From bustling cities and historic towns to pristine islands and lush rainforests, the country offers a wealth of experiences for every type of traveler. Here are some of the must-visit places and activities in Panama that showcase its natural beauty, history, and vibrant culture.

Casco Viejo, Panama (Image: Canva)

1. Panama City & Casco Viejo: The cosmopolitan capital blends modern skyscrapers with colonial charm. Casco Viejo, the old town, offers cobblestone streets, vibrant nightlife, boutique hotels, and historic architecture.

2. Panama Canal & Miraflores Locks: Witness one of the greatest engineering feats in the world. Visitors can watch ships traverse the canal and learn about its history at the visitor center.

3. Bocas del Toro Archipelago: A tropical paradise of turquoise waters, coral reefs, and sandy beaches. Perfect for surfing, snorkeling, and island hopping.

4. Boquete & Highlands: Known for coffee plantations, hiking trails, and cool mountain air, Boquete is ideal for retirees and nature lovers alike.

San Blas Islands, Panama (Image: Canva)

5. San Blas Islands: Home to the indigenous Guna people, these islands offer white sand beaches, crystal-clear waters, and a truly off-the-beaten-path experience.

6. Darien National Park: For adventure seekers, this UNESCO World Heritage Site offers rainforests, wildlife spotting, and eco-tourism experiences.

7. Taboga Island: Just a short ferry ride from Panama City, this “Island of Flowers” is perfect for weekend getaways, beaches, and historical sites.

Minor Concerns, Major Happiness

No country is perfect. Some expats note limited availability of green goods and services, car infrastructure, and online administrative options as minor frustrations. Yet, happiness levels remain the highest globally, proving that the positives far outweigh the negatives.

Panama (Image: Canva)

Panama: A Top Choice for Retirees and Young Professionals Alike

Whether you’re planning a career move, a quiet retirement, or a bold lifestyle change, Panama offers affordable luxury, natural beauty, and a vibrant expat community. From bustling city life to serene islands, from adventurous mountains to pristine beaches, Panama has something for everyone. More than a third of its residents plan to never leave, confirming that this Central American gem isn’t just a temporary stop—it’s a place to call home.