More Americans are leaving the country than at any point in recent memory. Rising housing costs, expensive healthcare, and a general sense of restlessness have pushed over 8 million Americans to live abroad, and that number keeps climbing. The reasons vary – some want to retire early, some want their dollar to go further, and some simply want a change in rhythm.
Choosing where to land, though, is where things get genuinely complicated. Not every country that looks appealing on paper actually feels that way once you’re living there. Some places wrap around American expats like a second home. Others, despite being beautiful or fascinating, can leave people exhausted, isolated, or navigating a wall of bureaucratic confusion. Here’s a close look at both sides of that picture.
1. Portugal: Affordable, Safe, and Surprisingly Easy to Settle Into
Portugal has become one of the most popular destinations for Americans seeking affordability, safety, and a relaxed lifestyle in Europe. The numbers back this up clearly. On average, the cost of living in Portugal is about 45% lower than in the US, with housing, groceries, and key expenses all significantly cheaper, making it easier for Americans to save or stretch their budgets.
Portugal has one of the highest English proficiency rates among non-English-speaking countries, especially in cities and tourist areas, and the Portuguese are known for being warm, friendly, and helpful, making it easy for newcomers to integrate into the community. Safety is another genuine draw. Portugal ranked 7th in the 2025 Global Peace Index, which for Americans used to worrying about public safety feels like a genuine exhale. Healthcare in Portugal is ranked among the world’s best, and all residents have access to both the public system and the low-cost private sector, where many medical professionals speak English.
2. Panama: The Dollar Works Here, and So Does the Lifestyle
After taking first place in 2024, Panama has again been voted the best country to live and work in abroad, according to InterNations’ annual Expat Insider survey, with a cool 94 percent of expats happy living there, thanks to the country’s beautiful natural environment, affordable cost of living, and the ease of settling in. One practical advantage stands above most others: Panama uses the U.S. dollar, which makes finances easier to compute and removes the anxiety of currency fluctuation entirely.
Panama is also one of the best places to retire abroad, with a cost of living roughly 25% lower than the US, allowing retirees to make their dollar stretch considerably. Panama’s pensionado visa program makes it particularly easy for retirees to relocate to the country, and the modern infrastructure of Panama City – including high-speed internet throughout most of the country – means daily life doesn’t require major sacrifices in comfort.
3. Mexico: The Easiest Transition for Most Americans
Mexico is the country with the most Americans living abroad, with more than 1.5 million Americans having chosen it as their permanent home. That number alone tells you something. Expats in Mexico are more likely to have local friends than almost anywhere else in the world, and places like San Miguel de Allende have thriving American communities that make the transition feel less like uprooting your life and more like upgrading it.
A single person can live in Mexico City for less than USD 1,000 a month, though many expats choose smaller cities or coastal towns where quality of life is high and costs are even more manageable. Mexico has consistently been in the top five of the best places for expats since the survey started in 2014, known for its affordable cost of living, great weather, stunning beaches, amazing food, and a friendliness that makes it easy for expats to settle in and make friends even while still learning Spanish.
4. Spain: European Quality of Life Without European Pricing (Mostly)
With excellent weather, high-quality healthcare, a relatively low cost of living, and world-famous gastronomy, Spain has been a perennially popular spot among expats for decades, and in InterNations’ 2024 Expat City Ranking, Spanish cities captured the top three spots out of 53 cities ranked. Valencia topped quality-of-life rankings, while Malaga and Alicante rounded out the podium. There’s much to love: modern cities and quaint small towns, high-quality universal healthcare, and a world-renowned dining and nightlife scene.
Madrid, Barcelona, Seville, and Bilbao all boast large English-speaking expat communities, while Valencia is quickly gaining traction as a coveted spot. For those who want warmth, walkability, and a slower pace without giving up proper city amenities, Spain delivers. Spain also offers a digital nomad visa and an entrepreneur visa, and in November 2024 the Spanish government extended its job-seeking visa from three months to a full year.
5. Costa Rica: The “Pura Vida” Effect Is Real
Costa Rica won across all categories as the place with the most ease of settling in, the friendliest locals, and the most welcoming culture, according to InterNations rankings. The national philosophy, “Pura Vida,” isn’t just a tourism slogan. It’s the reigning philosophy that allows you to slow down, enjoy life, and relax, and it’s probably the reason why Costa Rica is voted as one of the happiest countries in the world and the reason so many Americans love to live there.
The country’s biodiversity, stable democracy, and well-established expat infrastructure make it particularly appealing for retirees and remote workers alike. Costa Rica is known for a combination of great weather, a very friendly culture, and an affordable cost of living that allows Americans to maintain a genuinely comfortable standard of living without the stress of managing an unfamiliar bureaucracy. Healthcare quality has also improved substantially in recent years, with both public and private systems accessible to legal residents.
Now the Other Side: Countries That Can Feel Overwhelming
Thrilling, yes. Deeply rewarding, often. Easy to settle into as an American? That’s a different question. The two countries below consistently draw Americans in with their appeal, then challenge them in ways that catch many people off guard. None of them are bad choices – but going in without realistic expectations tends to create real difficulties.
The gap between what a country looks like on a travel itinerary and what it actually feels like to live there is sometimes significant. Knowing where that gap tends to be widest is useful information before signing a lease.
6. Japan: Fascinating but Quietly Exhausting to Navigate
Relocating to Japan can be an exhilarating experience, but it also comes with its own set of challenges, as Japan’s culture can feel vastly different from what Americans are used to, leading to what is often termed “culture shock.” Society leans more reserved, friendships develop slowly, and social norms can feel formal. Simple tasks like opening a bank account or registering residency often require multiple visits and paperwork, and many places still prefer cash, which can feel outdated.
As the initial excitement wears off, cultural differences become more apparent, and what was once intriguing may start to feel frustrating. Many expats find themselves mentally exhausted from trying to navigate the new culture and language, with small challenges such as misunderstandings or communication difficulties starting to feel overwhelming. Japan remains one of the most admired countries in the world, and plenty of Americans build deeply fulfilling lives there. The adjustment curve, though, is among the steepest of any developed nation.
7. Germany: Great on Paper, Tricky in Practice
Germany ranks at the very bottom in expat surveys for digital services, the bureaucracy is slow in ways that feel almost intentional, and opening a bank account can feel like a multi-week odyssey. Americans who arrive expecting efficiency often find the opposite when it comes to administrative processes. Paperwork for residency, health insurance registration, and even internet setup can stretch across months.
Germans are famously reserved, and expats there consistently say that making friends is one of the hardest parts of living in the country. The difficulty that expats encounter in settling down due to the inability to make friends with locals and have a social life is a significant challenge, making Germany one of the harder countries for expats overall. The quality of life is genuinely high once you’re settled, but the road to getting there demands patience that many Americans simply don’t anticipate needing.