Ask ten rankings which country is the best place to live and you’ll get several different answers. One puts Sweden on top, another picks Finland, and a crowdsourced database names the Netherlands. The differences come down to what each list chooses to count.
Over the same stretch, more Americans have been looking at the exits than at any point in recent memory. Residency offices from Lisbon to Montevideo are logging the change in their paperwork. The two stories overlap, though not quite in the way you might expect.
Why Every Ranking Gives a Different Winner
Sweden ranks first in the 2026 Best Countries quality of life rankings, ahead of Denmark and Canada.[1] That index is built on 85 countries that met benchmarks for GDP, foreign direct investment, tourism, or human development.[1] U.S. News, which publishes its own quality of life list, puts Finland first[2], followed by Iceland and Norway.
Numbeo reads the question differently. It names the Netherlands as the best in 2026[3], and its data covers purchasing power, cost of living, housing affordability, healthcare quality, safety, pollution, commute times, and climate.[3] A relocation site called WhereNext, which leaves cost out of its score, puts Malta first.[4]
The Nordic Countries Keep Winning on Happiness
The World Happiness Report is the most widely quoted measure of how people feel about their own lives. In the 2026 edition, Finland is the happiest country for the ninth year in a row, with a life evaluation score of 7.764 out of 10.[5] The report relies mainly on data from the Gallup World Poll.[6]
Iceland ranks second, edging past Denmark by just 0.001 points.[5] Sweden and Norway complete the top six.[7] The Nordic lead isn’t only about money. The report links high scores to social support, health, freedom, trust, and strong community connections.[8]
Switzerland, the Netherlands and Luxembourg Round Out Europe’s Strong Showing
Beyond Scandinavia, a handful of small, wealthy European countries keep turning up near the top. Switzerland ranks fourth in the Best Countries index[1], and the Netherlands comes seventh.[9] Overall, Europe accounts for 20 of the world’s top 30 countries.[1]
In the happiness report, the Netherlands, Israel, Luxembourg and Switzerland round out the top 10.[7] Luxembourg’s placement is tied to one of the highest standards of living anywhere in the world.[5] For Americans, these are not the cheapest options, which matters when we get to where people are actually moving.
Costa Rica and Mexico Are the Surprise Overachievers
The happiness rankings hold a result that wealth alone can’t explain. Costa Rica reached fourth place, the highest ever ranking for a Latin American country.[10] Its score sits above Sweden’s.
Mexico also does well, ranking twelfth in this year’s top 20.[10] Both countries rank ahead of many wealthier nations.[11] That helps explain why they appeal to Americans who want a good life without a Swiss price tag.
Canada, Australia and Ireland Offer a Familiar Landing
English speaking countries tend to be the first stop for people who aren’t ready for a language switch. Canada comes third in the Best Countries index[1], and Australia places eighth.[9] On the WhereNext index, Ireland and New Zealand both score near the top[4] alongside Switzerland.
Ireland’s draw has a particular route. Its rise has been sudden rather than gradual, and it is largely tied to ancestry based citizenship.[12] Anyone with Irish roots can sometimes claim a passport that opens the whole European Union.
Where the United States Stands
The comparison with home is part of the story. In the Best Countries quality of life index, the U.S. ranks 27th overall, placing last among G7 economies.[1] Rankings like this are built on selected measures and shouldn’t be read as a verdict on daily life.
On happiness, the picture is less severe but still telling. The U.S. ranks 23rd, continuing a long term decline from its peak of 11th in 2011.[13] That slide has been gradual rather than sudden.
How Many Americans Are Actually Leaving
The honest answer is that nobody knows exactly. One analysis estimates that between 4.4 and 5.5 million US citizens live abroad, and the often quoted nine million figure was retired by the State Department.[14] Interest is a separate matter. A Harris Poll survey from early 2025 found that 42% of Americans had considered or planned to move abroad in the next two years[15], which is roughly two in five.
Wealthier households are moving fastest on paperwork. Henley & Partners reported that applications for residency and citizenship by investment programs from US nationals doubled in 2025[16], and that the level stayed elevated in 2026. Only a small share of those applications come from Americans already living abroad[16], so the demand is coming mostly from people still in the United States.
Portugal and Spain, the European Favorites
Portugal has the clearest data trail. Its immigration agency counted 19,258 U.S. citizens living in Portugal in 2024, up sharply from 14,126 in 2023.[12] A Boston Globe report put the American population there at more than 26,000 in 2025, up from fewer than 5,000 in 2019.[17] Counts differ between sources, so the exact figure depends on who is doing the counting.
Spain is growing more steadily. The number of Americans residing there was approximately 40,000 in 2019 and 60,000 in 2025, according to the Spanish Statistical Office.[17] In one survey of Americans weighing a move, Spain ranked second only to Portugal in both stated interest and algorithmic recommendation.[12]
Mexico Still Leads in Real Numbers
Surveys favor Portugal, but residence data favors Mexico. The top destinations split into aspirational survey data and actual residence permit numbers, with Portugal topping one and Mexico the other.[18] United Nations migrant data counts 823,502 U.S. born residents in Mexico[19], which is close to a quarter of all U.S. expats.[19]
Other estimates run much higher, with some putting the American population in Mexico as high as 1.6 million.[19] Proximity and cost explain a lot of it. Researchers also point to a long established retirement community and an income tax treaty with the U.S.[19]
Smaller Destinations Are Seeing Sharp Jumps
Some of the fastest percentage growth is happening in countries that rarely make the headlines. In Uruguay, Americans filed 616 residency applications in 2025, more than double the 303 filed in 2024.[20] The base is small, but the direction is clear.
Paraguay tells a similar story, though with a caveat. Its residency applications hit a record 47,687 in 2025[21], but the agency only breaks applications down by nationality at year end[21], so the American share isn’t yet known. Those numbers show a regional surge rather than an American one specifically.
What Is Really Driving the Move
Politics gets most of the attention, but the evidence points to money and daily life as well. One analysis concludes that cost of living and lifestyle drive the move more than politics[19], with housing and medical care costing a fraction of U.S. prices in Mexico and Latin America. A relocation firm quoted by the Boston Globe described three recurring reasons for Spain: low cost of living, cheaper health care, and outdoor living.[17]
Political uncertainty is real too. Henley & Partners reported that inquiries from wealthy Americans seeking residency and citizenship abroad jumped 183% between the first quarter of 2024 and the first quarter of 2025[22], which is nearly a tripling. Still, one tracker notes that search interest in moving abroad spikes around major political events and then fades.[15]
Where the Evidence Points
Nordic countries, Switzerland and the Netherlands lead most quality of life and happiness rankings, while Costa Rica and Mexico stand out for what they deliver at lower cost. Portugal, Spain and Mexico draw the largest and fastest growing American communities.
The exact number of Americans abroad remains uncertain, and the figures vary by source. What the data does agree on is direction: residency applications and relocation interest from the U.S. have risen sharply since 2024.
