Every year, countless people dream of trading their familiar surroundings for charming cobblestone streets, golden beaches, and the promise of a fresh start in a foreign land. The global expat population continues to grow, with over 280 million people now living outside their birth countries. What makes certain small towns magnetic for expats isn’t just their picture-perfect facades – it’s the thriving international communities that have taken root there, creating networks of support, friendship, and shared adventure.
From Portuguese fishing villages where English is spoken as fluently as the local tongue, to Mexican colonial gems that house thousands of North American retirees, these destinations offer something remarkable: the intimacy of small-town life combined with the cosmopolitan energy of established expat populations. So let’s dive into these extraordinary places where new beginnings feel like coming home.
Valencia, Spain – The Mediterranean Dream That Actually Delivers
Valencia ranked first in InterNations’ 2024 Quality of Life Index, and also topped the annual index by Live and Invest Overseas for 2024. The Mediterranean climate creates practical advantages beyond simple comfort, with year-round outdoor accessibility that expands both business and leisure opportunities.
The expat community here is both substantial and sophisticated. Madrid, Barcelona, Seville and Bilbao all boast large English-speaking expat communities, while the coastal city of Valencia is quickly gaining traction as a coveted spot. Housing remains accessible compared to other European investment destinations, though prices are trending upward at a seventeen percent increase from last year, indicating strong growth potential for investors.
The city’s transformation of its former riverbed into the expansive Jardín del Turia urban park exemplifies its commitment to livability and sustainable development. This isn’t just urban planning – it’s creating spaces where international residents can build lasting connections. The combination of modern infrastructure, cultural richness, and an established international community makes Valencia feel like Europe’s best-kept secret that’s finally been discovered.
Tavira, Portugal – Where Roman Bridges Meet Modern Expat Dreams
Stroll across the picturesque Roman Bridge that spans the slow-moving River Gilão and cherish the view. Whitewashed houses with terracotta roofs, cobbled lanes lined with cafes and shops, and the sound of a violinist playing nearby set a romantic scene. Yet beneath this postcard beauty lies something more valuable – a thriving international community that has discovered Portugal’s most charming secret.
Expats are drawn to Tavira for its authentic charm, with modern conveniences like the Gran Plaza shopping center and easy access to the beaches of Tavira Island, reachable by ferry. Towns like Lagos, Albufeira, and Tavira are home to large expat communities, including many retirees from the U.S. and UK. The Algarve’s mild climate, golf courses, and active social scene make it easy to build new friendships. This isn’t just a retirement haven – it’s a place where people of all ages are building new chapters.
The surrounding infrastructure supports this international lifestyle beautifully. The nearby cities of Faro and Loulé provide additional healthcare options, including private hospitals and specialized clinics. What sets Tavira apart is how it maintains its Portuguese soul while embracing its global residents, creating a community where Sunday market days feel like international festivals and local festivals welcome newcomers with open arms.
San Miguel de Allende, Mexico – Colonial Charm With 10,000 International Friends
Considered one of the prettiest small towns in Mexico, San Miguel is a Spanish-colonial jewel glowing in pastel colors. With a rich arts-and-crafts tradition, San Miguel has small shops a-plenty where you can spend hours admiring pottery, painting, sculptures, hammered-tin mirrors and lamps. However, what truly makes this UNESCO World Heritage site special isn’t just its Instagram-worthy streets – it’s the community of souls who’ve made it home.
Like Puerto Vallarta, San Miguel is home to thousands of expats from all over the world. Here you can get by in English if you want, or speak Spanish if you prefer. Of approximately 175,000 people living in the metropolitan area, it is estimated that around 10,000 are expats. This means nearly eight percent of the population consists of international residents – a remarkable concentration that creates a truly global village atmosphere.
San Miguel has a thriving community of over 10,000 expats, one of the largest expat communities in Mexico. Living in a town with American communities in Mexico can help with homesickness. They know what you are going through, and that can be comforting. The high-desert climate provides warm days and cool nights most of the year, while the cost of living ranges from roughly $1,200 to $1,800 per month, making it accessible for various budgets.
Cascais, Portugal – Where Portuguese Presidents and Expats Vacation
Cascais, a scenic coastal town just west of Lisbon, has been enchanting the Portuguese since the Royal Family made it their September residence in the 1870s. It has been a popular seaside resort ever since and now serves as a haven for wealthy retirees looking to enjoy the relaxing shoreline. Its pristine beaches, upscale marina, and laid-back atmosphere make it a favorite destination.
The international community here operates at a sophisticated level. Cascais is a picturesque coastal town located 30 km west of Lisbon. Known for its beautiful beaches and marina, it’s an upscale area popular with expats and wealthy Portuguese. There’s a thriving international community with many expat social groups. The current President of Portugal, Marcelo Rebelo de Sousa, has his private home in Cascais and even Portugal’s most famous footballer, Cristiano Ronaldo, has commissioned the most expensive house in Portugal, his future €20 million mansion in Quinta da Marina.
Healthcare in Cascais is excellent, with facilities like Hospital CUF Cascais, Hospital de Cascais Dr. José de Almeida providing top-tier medical services. Many expats also utilize private clinics like Joaquim Chaves Cascais, which is known for its personalized care and English-speaking staff. Retirees in Cascais can enjoy creative workshops at the Cascais Cultural Centre, join social events organized by the International Women in Portugal, or participate in the Rotary Club Cascais-Estoril or the Expats Cascais Facebook group. This level of infrastructure and community organization makes integration remarkably smooth.
Lagos, Portugal – The Algarve’s Golden Child
In the western Algarve, Lagos sits along the banks of the Bensafrim River. The venerable 17th-century fort that once protected the port stands as a reminder of days gone by. The city of 19,000 is a favorite among expats and visitors, so English speakers are easy to find. The golden sands of Praia da Batata lure visitors to dip their toes in the water.
Expats in Lagos enjoy access to both public and private hospitals, clinics, a retail park, and numerous smaller shops and restaurants. The town has a large international expat community, and Faro International Airport is just an hour away. Towns like Lagos and Albufeira offer English-speaking communities, making integration easier. The infrastructure here has evolved specifically to support international residents, creating a seamless blend of Portuguese culture and global convenience.
What makes Lagos particularly appealing is its size – large enough to offer substantial amenities but small enough to maintain that intimate community feel. The dramatic coastline, with its famous rock formations and hidden beaches, provides a stunning backdrop for a lifestyle that combines relaxation with adventure. Monthly living costs remain reasonable compared to northern European alternatives, while the year-round sunshine and established social networks create an environment where friendships form naturally.
Mérida, Mexico – The Cultural Capital That Embraces the World
Unlike small-town San Miguel, Mérida is a metropolis of almost a million people, with universities, major corporations, museums, and its own international airport with direct flights back to the U.S. In addition, Mérida is in the semi-tropical Yucatán Peninsula, at the opposite end of the country from San Miguel. It’s just half an hour from the Yucatán Gulf Coast, where the white-sand beaches are punctuated by little beach towns.
Mérida is one of the safest cities in Mexico. Mérida’s expat community numbers about 4,000, but that’s a drop in the bucket for a city this size. If you’re concerned about crime rates and want a foreigner-friendly city, make Merida your first stop. Merida is the capital of the Yucatan region and is often touted as one of the safest cities to live in Mexico. There is already an established community of expats from the U.S., Canada, and Europe.
Merida has cycling-friendly streets, excellent healthcare services, and a walkable layout. There are also plenty of co-working spaces. The WiFi is fast and reliable. It is home to museums, colleges, large enterprises, and an international airport that offers direct flights to the United States. Merida is known as the cultural capital of Yucatan for good reason and the Mayan Culture thrives here and is on full display. The city hosts dozens of cultural events throughout the year where you will encounter large festivals, folk music, dancing and incredible Mayan food.
Lake Chapala, Mexico – North America’s Retirement Paradise
In the little towns along the north shore of Mexico’s largest freshwater lake, you’ll find the largest community of U.S. retirees outside the U.S. This lakeside area in the country’s central highlands, just 45 minutes south of Guadalajara, is already home to about 10,000 full-time expatriates from the U.S. and Canada. The towns on the lake are comfortable enclaves with cobblestone streets, Spanish-colonial architecture, and some of the world’s best weather. The average year-round temperature is a spring-like 68° F, and a tight-knit expatriate community provides all manner of comfortable amenities and support to retirees.
On the north side of Lake Chapala, villages combine charm with an increasing amount of sophistication. The town of Chapala itself is the largest, and along its cobblestone streets are taverns, shops, cafés, street vendors, and high-quality restaurants. Ajijic and Chapala are havens for artists and writers. Expats and locals often get together on Wednesdays, when Ajijic’s huge outdoor market is open. It’s a great place to shop for hand-made carvings and jewelry, not to mention clothes, flowers, fruits, vegetables, cooked food, and household items.
Lake Chapala is the most popular destination for retirees from Mexico, offering well-kept facilities, local markets, cafés, high-quality restaurants, street vendors, and golf courses. With over 55,000 people residing in Lake Chapala town, this region is home to a thriving expat population. North and South Americans, Brits, and Mexicans all flock to the area as well, making it a rich multicultural community. The proximity to Guadalajara means urban amenities are never far away, while the lakeside setting provides tranquility and natural beauty.
Tulum, Mexico – Bohemian Paradise With Ancient Roots
Tulum’s reputation as a spectacular vacation destination and a growing expat community is well-deserved. With a tropical climate – temperatures averaging in the 80s F – Tulúm offers a Caribbean lifestyle without the need to travel to and from an island. Residents enjoy warm, turquoise Caribbean waters, a sparkling, perfect beach, and an offshore reef that provides plentiful opportunities for fishing, scuba diving, and snorkeling. With the introduction of new, modern homes and condos, the population is estimated to be around 30,000.
On the southern tip of Mexico’s world-famous Riviera Maya lies Tulum’s picturesque and rapidly developing resort town. This expanding neighborhood stays true to its backpacker origins with its noticeable bohemian atmosphere and an abundance of yoga studios and therapeutic massage centers. The ancient Maya civilization, which ruled this area more than a thousand years ago, is still very much alive and well and the influence is felt throughout the community.
The current population projection for Tulum in the year 2024 was approximately 30,000 people making it a small town but with many amenities and opportunities. Tulum has a very unique vibe and while some people absolutely love it, others prefer something with a less laid-back vibe and more amenities. Several foreigners fall in love with Tulum and never look back after relocating here. The combination of ancient Mayan ruins, pristine beaches, and a thriving wellness community creates an atmosphere unlike anywhere else in the world.
Águeda, Portugal – The Umbrella City That Colored the World
Nicknamed “the umbrella city,” Águeda, with a population of around 12,000, is just a one-hour drive south of Porto. Virtually unknown until 2011, the Umbrella Sky Project transformed the town into a kaleidoscope of color. Some 3,000 multicolored umbrellas are suspended almost magically from the sky, and when illuminated by the sun, they cast a whimsical glow on everything. The project encouraged local artists to paint the town, leaving their mark on lamp posts, walls, stairs, trash cans, benches, electrical boxes, and more.
In towns like Águeda and Vila Real de Santo Antonio, the cost of living is significantly lower than in Portugal’s larger cities. Renting a comfortable home can be surprisingly affordable, leaving more of your budget available for enjoying the local lifestyle and attractions. The expat communities in these towns are known for being welcoming and active, offering newcomers a sense of belonging from day one.
These towns are equipped with modern amenities such as high-speed internet, which is essential for those who work from home. The presence of international and private healthcare facilities ensures that residents have access to quality medical care. With English widely spoken, especially in towns with established expat populations, integrating into the local culture is a breeze. Participate in community events and forge strong connections that transform these towns into more than just a place to live. The artistic transformation has attracted creative souls from around the world, building a unique international community around shared appreciation for beauty and innovation.
Puerto Vallarta, Mexico – Six Decades of Expat Excellence
Puerto Vallarta has been an expat haven for over 60 years. What was once a small village on Mexico’s Pacific Coast is now a major international resort, with an urban area that runs for nearly 30 miles along the shore of Banderas Bay. This region – from Puerto Vallarta up to the bay’s northern point at Punta de Mita, in the state of Nayarit and beyond, including towns like Bucerias, San Pancho, and Sayulita, is referred to as the Riviera Nayarit.
When Liz Taylor and Richard Burton famously came here in the early 1960s, Puerto Vallarta wasn’t much more than a sleepy fishing village. A place where misty tropical mountains wrap arms around the crescent moon-shaped Banderas Bay. Today, it is one of the world’s top tourist destinations, with an international airport, pro-tourney golf courses, designer shopping, world-class restaurants and beautiful people from around the world. Vallarta’s expat community is vibrant, too…you’ll find many activities to keep you busy, from outdoor activities to art galleries and charitable events to volunteer options and more.
With its proximity to the U.S., affordable living costs, and vibrant culture, Mexico is a top choice for American expats. Cities like Puerto Vallarta and San Miguel de Allende are particularly popular for their expat-friendly communities. The infrastructure here has evolved over six decades to perfectly serve international residents, creating a seamless blend of Mexican authenticity and global convenience that few destinations can match.
These ten remarkable destinations prove that you don’t have to choose between small-town charm and an international community. Each offers something precious: the opportunity to slow down without feeling isolated, to experience authentic local culture while maintaining connections to home, and to build new friendships with people who understand the courage it takes to start over in a foreign land. From Portugal’s artistic villages to Mexico’s colonial treasures, these communities represent the best of both worlds – intimate enough to feel like home, yet cosmopolitan enough to keep life interesting.
What strikes me most about these places is how they’ve managed to grow their expat populations while preserving their essential character. They’ve become bridges between cultures rather than foreign enclaves, creating spaces where locals and internationals enrich each other’s lives. Whether you’re drawn to Valencia’s Mediterranean sophistication or Tulum’s bohemian beach vibes, each destination offers not just a change of scenery, but a chance to join a community of dreamers who have dared to make their dreams a reality.