The world has become increasingly expensive, and many people find themselves struggling to maintain their quality of life in their home countries. Stress levels are at an all-time high, work-life balance feels like a distant dream, and simple pleasures seem increasingly out of reach.
Yet thousands of expats have discovered something remarkable. By relocating to certain countries, they’ve found a way to live better for less money while embracing a slower, more fulfilling pace of life. Recent surveys reveal the exact destinations where foreigners are thriving financially and emotionally.
Vietnam – Where Your Dollar Goes Five Times Further
For the fifth consecutive year, Vietnam ranks as the most affordable country in the world for expats. Out of surveyed expats living in Vietnam, 86% rate its cost of living favorably – that’s more than twice the global average of 40%. The numbers tell an incredible story of financial freedom.
Vietnam is widely regarded as one of the cheapest places to live in the world, with costs reportedly significantly lower than in the United States. Housing stands out as particularly affordable, with Vietnam ranking second globally for housing satisfaction among expats. Monthly expenses for comfortable living can be as low as five hundred to eight hundred dollars.
Generally, “work-life balance trumps career advancement” in Vietnam, according to the report. Notably, less than half (46%) of the country’s expat population works full-time, compared to the global average of 57%. One British expat captured the sentiment perfectly: “Life here is stress-free for me, it’s a wonderful change from my work life, which was very consuming and hectic”.
Panama – The Retirement Paradise With American Amenities
Panama is frequently cited as one of the top countries for expats in recent surveys. According to the survey, 94% of expats are happy with their life abroad and found that Panama is the place to be for retirees. The country offers something truly unique: Panama uses the US dollar (eliminating currency exchange complications for Americans), while the cost of living remains significantly lower than in the United States or Western Europe.
For about $800 to $1,500 per month, you can live comfortably in small towns, villages, and farming communities, according to the Global Citizen Solutions. Those looking to live in the Panamanian capital, Panama City, will require a higher monthly budget of up to $2,500. The overall cost of living in Panama for a single person is 36.3% lower than in the U.S.
35% of respondents are already retired and 18% say their primary motivation for moving was to retire there. The administrative processes are remarkably straightforward, and 35% plan to stay forever.
Colombia – South American Charm Meets Financial Freedom
Colombia has emerged as one of the top-ranked countries for expats in recent surveys. The survey found that 81% of respondents are satisfied with their financial situation in Colombia. The financial advantages are staggering in this vibrant South American nation.
In Colombia, the majority of survey respondents said their disposable income was enough to live comfortably – 92% compared with 69% globally. Also, no expat in the country flagged cost of living as a major concern before moving, a stark contrast to the global average of 21%. This reveals how genuinely affordable daily life becomes.
Respondents noted the country’s low cost of living. Colombia is also highly rated for ease of settling in and local friendliness. The combination of financial benefits and cultural warmth creates an environment where expats genuinely thrive rather than merely survive.
Thailand – Tropical Living With First-World Infrastructure
Thailand, long known as a favourite destination for expats, ranks 8th in the Personal Finance Index. The country’s combination of low living costs and high quality of life continues to attract expats from around the world. The government has embraced this trend by actively promoting digital nomad visas and infrastructure improvements.
Housing is a significant advantage in these countries, with Thailand, Vietnam, the Philippines, and Indonesia all receiving positive ratings for housing affordability and availability. Most expats agree that it’s easy to find housing, and they are happy with how affordable it is. This housing advantage translates into significant monthly savings that can be redirected toward experiences and quality of life improvements.
Thailand is among the friendliest countries, making it easy for expats to settle in. Respondents placed Thailand in the top ten in terms of feeling welcome and at home, finding friends, and getting used to the country’s culture. The social integration aspect proves crucial for long-term happiness and reducing the isolation that sometimes accompanies international moves.
Portugal – European Sophistication at a Fraction of the Cost
Portugal offers the lowest cost of living in Western Europe, where a couple can live nicely on $2,500 to $3,000 a month outside of the major cities. For Americans specifically, North Americans who choose Portugal as their home can expect to spend one-third to one-half less than they do now in their home countries. If you live in an expensive U.S. or Canadian city, Portugal will offer you significantly more bang for your buck.
Portugal offers the lowest cost of living in Western Europe. On average, the cost of living in Portugal is 30% lower than in the United States. Housing remains the largest expense, but even in Lisbon, it may be possible to find a furnished one-bedroom for under $1,000 close to amenities and public transport.
Healthcare in Portugal is highly regarded internationally and consistently ranks well in global assessments. All residents of Portugal have access to both the public healthcare system and the low-cost, private system, where many medical professionals speak English. This healthcare advantage provides both financial savings and peace of mind that proves invaluable for long-term residents.
Mexico – Familiar Culture With Extraordinary Value
A family of four spends an average of $2,402 USD monthly living in Mexico, according to Numbeo. A single person can live comfortably on a budget of $664 USD. The proximity to the United States makes Mexico particularly appealing for those wanting to maintain connections to home while dramatically reducing living expenses.
Recent expatriate surveys reveal that many North Americans are discovering the financial benefits of living in Mexico, often enjoying a cost reduction of 50-70% compared to their home countries. This translates to potentially lowering monthly expenses from $4,000 in a US city to around $1,500-$2,000 in popular Mexican destinations like Puerto Vallarta or San Miguel de Allende.
My baseline (and total) costs to live in Mexico came in under $745 every month. I lived in a beach town, San Pancho, and Oaxaca – Oaxaca was more affordable of the two locations – I spent well under $700 per month. Healthcare costs prove particularly attractive, with a typical doctor’s visit costing between $30-$50 out of pocket, compared to $150-$300 in the US. Prescription medications can be 50-70% cheaper.
The dream of living better for less isn’t just a fantasy anymore. These six countries prove that with the right choice of destination, you can dramatically improve your financial situation while embracing a calmer, more balanced lifestyle. The data consistently shows that thousands of expats have already made this transition successfully, finding not just cheaper living costs but a genuinely better quality of life. What would it mean for your future if you could cut your expenses in half while gaining more time for the things that truly matter?