Best Countries for American Expats (2026): Where to Move
Short answer: the best country depends on what you want. For a path to EU residency, Portugal and Spain lead; for low cost near home, Mexico; for retirees and territorial tax, Panama; for nature and easy entry, Costa Rica. In InterNations' 2026 survey, Panama ranked #1 overall, Mexico #3, and Spain was the only European country in the top ten. A comfortable budget for a couple runs ~$1,500–$2,500/month in Latin America and Asia, and ~$2,500–$3,200 in Western Europe. Whatever you pick, you'll still file US taxes.
What makes a country good for American expats?
Five things decide it. "Best" is personal, but the same factors come up for every American weighing a move:
- Visa access: can you actually get residency on your income or savings?
- Cost of living: how far your dollars go versus a US city.
- Healthcare: quality and affordability of public and private care.
- Tax: whether the country taxes worldwide income, and any expat breaks.
- Community & ease: English use, an established expat base, and how easy it is to settle.
Best countries for American expats, ranked (2026)
Eight destinations that score well across those factors. Monthly costs are a comfortable budget for a couple and vary a lot by city — treat them as a starting point.
| Country | Best for | Cost (couple/mo) | Main visa route | Tax on foreign income (resident) |
|---|---|---|---|---|
| Portugal | Best overall & EU residency | ~$2,500–3,000 | D7 / D8 | Yes (IFICI breaks) |
| Spain | Lifestyle + Beckham tax | ~$2,500–3,200 | DNV / Non-Lucrative | Yes (Beckham 24%) |
| Mexico | Value close to the US | ~$1,800–2,500 | Temporary Resident | Yes (RESICO low) |
| Panama | Retirees & territorial tax | ~$2,000–2,800 | Pensionado / Friendly Nations | No (territorial) |
| Costa Rica | Nature & easy entry | ~$2,000–2,800 | Rentista / Nomad | No (foreign income) |
| Italy | Culture & food | ~$2,300–3,000 | Elective Residence / DNV | Yes (flat-tax options) |
| Colombia | Emerging value | ~$1,500–2,200 | Migrant (M) visa | Mostly local-source |
| Thailand | Best in Asia | ~$1,500–2,500 | DTV | On remitted income |
The picks, by priority
🥇 Best overall: Portugal
Mild climate, a large English-speaking expat community, strong healthcare and a clear five-year path to residency make Portugal the default choice for many Americans — even as Lisbon and Porto get pricier. See the cost of living and tax details.
☀️ Best lifestyle: Spain
Spain pairs world-class cities and healthcare with the Beckham Law, which can cap an employee's tax at a flat 24%. It was the only European country in InterNations' 2026 top ten.
💸 Best value near home: Mexico
Mexico keeps you in a US time zone with a low cost of living and a four-year temporary resident visa — InterNations ranked it #3 worldwide for expats in 2026.
🏦 Best for retirees: Panama
Panama topped the 2026 survey overall, helped by its famous Pensionado program and territorial tax system, under which foreign income is generally not taxed locally. The US dollar is legal tender, easing the transition.
🌿 Best for nature: Costa Rica
Costa Rica offers a relaxed, English-friendly life, a renewable nomad/rentista visa, and no local tax on foreign income — with the trade-off of higher import costs.
Which country is cheapest for American expats?
Mexico, Colombia and Thailand are the most affordable. A couple can live comfortably for roughly $1,500–$2,500 a month in any of the three, well under half the cost of a major US metro. Portugal and Spain run higher — about $2,500–$3,200 — but still beat cities like New York, San Francisco or Boston while adding EU residency. Cross-check live city costs on Numbeo, then compare exact corridors with our Expat Affordability Index.
Where is healthcare best for expats?
Portugal, Spain and Costa Rica lead on affordable quality care, and Colombia's system is rated among the best in Latin America. In every country, Americans usually rely on private international health insurance until they qualify for the local public system as residents — and most residency visas require a qualifying policy at application.
Do American expats still pay US taxes abroad?
Yes — but usually little or nothing. The US taxes citizens on worldwide income everywhere, so you keep filing. The Foreign Earned Income Exclusion (up to $132,900 in 2026) and the Foreign Tax Credit typically erase the US bill, while local tax depends on the country and your residency. Full detail in our US expat taxes guide.
Every move starts with two things: a visa and insurance
Almost every residency visa requires proof of health cover. SafetyWing's Nomad Insurance is the common first step — worldwide, month to month, and accepted for visa applications while you settle on a country.
See SafetyWing cover →Disclosure: the SafetyWing link is an affiliate link — we may earn a commission at no extra cost to you. See our affiliate disclosure. Rankings and figures are independent research, not sponsored.
How to start your move
- Shortlist 2–3 countries using the table above and your top priority.
- Check the visa income bar with our visa income calculator and the nomad visa comparison.
- Price the move against the Affordability Index.
- Sort insurance and US taxes — the two things every American gets wrong.
Frequently asked questions
What is the best country for American expats in 2026?
It depends on your priority. Portugal and Spain lead for EU residency, Mexico for low cost near home, Panama for retirees. InterNations ranked Panama #1 overall and Mexico #3 in 2026.
What is the cheapest country to move to?
Mexico, Colombia and Thailand — a couple can live well on roughly $1,500–$2,500 a month. Portugal and Spain cost more (~$2,500–$3,200) but add EU residency.
Where is healthcare best and most affordable?
Portugal, Spain and Costa Rica, with Colombia strong in Latin America. Americans usually need private international insurance until they qualify for the local system.
Will I still owe US taxes if I move abroad?
You'll keep filing, but the Foreign Earned Income Exclusion ($132,900 in 2026) and Foreign Tax Credit usually drop the bill to zero. Local tax depends on the country.
Related guides
Sources
- InterNations Expat Insider 2026 (via CNBC): best countries for expats
- US tax on citizens abroad: IRS — FEIE
- Territorial taxation explained: Wikipedia
- InterNations Expat Insider survey: internations.org
- Cost-of-living comparisons: Numbeo
- Best countries for US expats (analysis): Going