Which Countries Are Welcoming Most Expats — And Which Are Closing Their Doors?

Mexico Leads the Global Expat Happiness Index

The land of tacos and tequila has officially claimed the top spot as the most welcoming country for expats worldwide. Mexico – Ranked #1 for expat happiness, thanks to affordability and friendly communities.

Mexico is frequently cited for its affordable cost of living. From 2019 to 2022, visa applications by Americans rose from about 18,000 to over 30,000.

What makes Mexico so appealing isn't just the stunning beaches or vibrant culture – it's the genuine warmth of local communities that embrace foreigners with open arms. The numbers tell a compelling story.

Mexico is frequently cited for its affordable cost of living. For American expats especially, the peso's favorable exchange rate means your dollar stretches significantly further than back home.

Its 2024 index saw Valencia, Spain, top the list, followed by Braga, Portugal, and Mazatlán, Mexico. Cities like Puerto Vallarta and Mazatlán have become magnets for retirees and digital nomads alike, offering excellent healthcare, stunning natural beauty, and a surprisingly robust expat infrastructure.

Spain and Portugal Dominate European Expat Destinations

Southern Europe continues to be a powerhouse for expat relocation, with Spain and Portugal leading the charge. Spain, Portugal, and Mexico are especially popular among digital nomads.

Spain continues to attract foreigners, too -- according to the National Institute of Statistics (INE), the country saw a 10.5% increase in foreign residents in 2023 (out of 48 million inhabitants). Valencia specifically has emerged as a crown jewel, ranking first in retirement destination indexes and offering an unbeatable combination of Mediterranean climate, cultural richness, and reasonable living costs.

Portugal's appeal goes beyond just sunny weather and excellent wine. Portugal is also sought after by digital nomads, investors, and retirees.

The country's D7 visa program has revolutionized how people think about European residency, offering a clear path to permanent status for those with passive income sources. Portugal offers two residency options ideal for remote workers: the Temporary-Stay Visa (D8 Digital Nomad Visa) and the D7 Passive Income Visa.

The D8 is tailored for freelancers and remote employees earning active income from abroad, while the D7 is designed for those with passive income like pensions, rental income, or dividends. Both visas allow access to Portugal's high quality of life, healthcare, and the broader Schengen Area, with a clear path to permanent residency and citizenship after five years.

Nordic Countries Set New Standards for Quality of Life

The Nordic region continues to attract expats seeking the perfect work-life balance, despite challenging winters and high living costs. It's Finland of course, with an ultra-high happiness score of 7.7 out of 10.

Finnish happiness has been beaming the brightest for years now, with the country revealed as the happiest nation in the world for seven consecutive years, since 2018. Nordic neighbors Denmark and Iceland follow in second and third spots, with Europe dominating much of the top ten, with Sweden, the Netherlands, Norway, Luxembourg, and Switzerland all ranking as places immigrants should consider for a happier life.

Norway deserves special mention for its impressive expat appeal. Famed for its majestic fjords, Norway ranks in fourth position as one of the most desirable destinations for immigrants in 2025, scoring 53.7 out of 100.

Scoring impressively for overall safety, happiness levels, and public transport availability, Norway offers a high quality of living for those who don't mind the dark winters in the nation. The country excels in income equality and boasts one of the highest minimum annual wages globally, alongside an average income exceeding $102,000.

While the cost of living can also be steep, Norway's robust welfare system, exceptional healthcare, and emphasis on renewable energy make it an attractive option for those seeking a high quality of life and sustainability-minded living.

The Netherlands Emerges as a Cycling Paradise for Expats

The Netherlands has quietly become one of Europe's most attractive destinations for international professionals, combining excellent infrastructure with a remarkably high quality of life. This bicycling-obsessed nation ranked sixth in Gallup's 2024 World Happiness Report, which assesses various indicators across life satisfaction and social and economic well-being.

It also topped Numbeo's 2023 survey for quality of life. As of 2022, almost 31,000 immigrants from the Americas lived in the Netherlands, according to official data.

The capital of Amsterdam is especially popular, with its picturesque canals, historic architecture and relaxed vibe drawing a large international crowd, but robust expat communities also exist in larger cities such as Rotterdam and Utrecht. What truly sets the Netherlands apart is its incredible infrastructure and cultural openness.

For active types, it's hard to beat the Netherlands' world-class cycling infrastructure and culture – in fact, the country is said to have more bikes (fietsen) than people. The Netherlands also is known for its strong education system, with most education at all levels funded at least in part by the government.

The fact that The vast majority of Dutch people speak English. There are low crime rates even in the cities.

makes the transition significantly smoother for English-speaking expats.

Digital Nomad Visas Transform Remote Work Landscapes

The digital nomad revolution has fundamentally changed how countries compete for international talent, with over 70 nations now offering specialized visas for remote workers. The number of digital nomad visas is rapidly expanding, with over 40 countries offering remote work visas in 2025, particularly in Europe and other regions recognizing the economic benefits of global mobility.

Turkey has introduced an official Digital Nomad Visa in April 2024 for remote workers aged 21–55 from 36 eligible countries (including the US, Canada, EU, UK, etc.). Applicants must work for foreign employers or be self-employed abroad, hold a university degree, and earn a minimum monthly income of $3,000 USD ($36,000 annually).

Italy's recent entry into the digital nomad space has been particularly noteworthy. Launched in April 2024, Italy's Digital Nomad Visa targets highly skilled professionals employed outside Italy.

It grants a one-year renewable permit, requires a minimum annual income (~€30,000), and suits workers seeking a Mediterranean lifestyle with flexible residency options. After much anticipation, Italy officially launched its Digital Nomad Visa in April 2024.

This visa allows remote workers to stay in the country for up to 1 year, with the option for renewal, and provides travel access within the Schengen Area without the need for additional visas.

Germany and Japan Buck the Restrictive Trend

While many developed nations are tightening their immigration policies, Germany and Japan have taken the opposite approach, actively courting international talent. Conversely, Germany and Japan are relaxing their policies to attract more foreign talent.

In January, the German Parliament passed a law making it easier for non-European foreigners residing in Germany to gain citizenship. Naturalization is now possible after five years of residence, down from eight.

Dual nationality is recognized, and children born to foreign parents can obtain German nationality at birth if one parent has legally lived in Germany for at least five years. This nationality reform aims to attract and retain foreign workers, potentially benefiting 10 million people.

Germany's strategic approach goes beyond just citizenship reforms. Germany's new skilled worker immigration law also simplifies the process to attract more foreigners.

According to the latest study conducted in 2019, Germany is the best country for expats. This nation stands out for career progression, work/life balance, work culture, and job security.

Meanwhile, Japan is more discreet in relaxing its immigration rules. The country has increased the categories of workers eligible for the specified skilled worker visa program and introduced two new visas: J-Skip (for highly qualified professionals) and other specialized programs.

The UAE and Saudi Arabia Lead Middle Eastern Expat Growth

The Gulf region has experienced remarkable growth in expat populations, with both the UAE and Saudi Arabia implementing ambitious strategies to attract foreign talent. The UAE attracts both workers and foreign investors.

Rounding off the top five is the United Arab Emirates (UAE), a nation known for offering incredible opportunities for expats around the world. The UAE's success stems from its tax-free income structure, world-class infrastructure, and strategic location between Europe and Asia.

Saudi Arabia's transformation has been particularly striking. Immigration to Saudi Arabia is also on the rise, especially among British nationals, with over 30,000 currently attracted by high incomes and the government's "expat-friendly" policies.

In Saudi Arabia, 76% of the workforce consists of foreign-born workers. In Qatar, 95% of the workforce is expatriate.

The Kingdom's Vision 2030 initiative has fundamentally reshaped its approach to international talent, offering attractive packages that include housing allowances, education support, and lucrative tax-free salaries.

Canada Pumps the Brakes on Immigration

Canada's recent policy reversals represent one of the most significant shifts in global immigration patterns, as the traditionally welcoming nation implements substantial restrictions. Canada witnessed significant immigration policy changes in 2024.

On January 22, Immigration Minister Marc Miller announced a temporary reduction in the issuance of study permits, setting the cap at 364,000 for 2024, which marks a 35% decrease from the previous year. Although the actual number issued rose to 485,000, future allocations will shrink to 437,000 in 2025, a further 10% cut.

The housing crisis has become the primary driver behind these policy changes. In Canada, housing is less affordable than at any point since 1990; meanwhile, the government had embarked on a plan to admit nearly 1.5 million new immigrants—accounting for about 4 percent of the country's population—from 2023 to 2025.

The public bristled at the possibility that new arrivals might push up home prices even higher, ultimately forcing the Trudeau government to backtrack on its prior commitment. The brake on immigration will reduce the demand for new housing by hundreds of thousands of units by 2027, the government said.

Australia Implements Sweeping Immigration Cuts

Australia's immigration system has undergone dramatic changes, with the government implementing some of the most aggressive restrictions seen in decades. On December 11, 2023, Australia's Labor government announced a strategic plan to scale back immigration levels, noting a significant post-pandemic surge with over 500,000 temporary migrants arriving in 2022 alone.

The plan targets a reduction by half for the 2024-2025 period, largely in response to public concerns over skyrocketing real estate prices—a challenge also faced by Canada and the United Kingdom. The financial barriers have been significantly raised for prospective immigrants.

On May 10, the income threshold for study permits was raised from 24,505 to 29,710 Australian dollars (AUD). Starting July 1, the government abolished "visa hopping"—the practice of switching from one visa type to another—and increased student visa fees significantly from 710 AUD to 1,600 AUD.

Additionally, on September 23, a cap was set to limit foreign student enrollments to 270,000 by 2025, a sharp decline from the 577,000 recorded in the 2022-2023 period.

The United States Faces Trump-Era Restrictions

The United States has implemented sweeping immigration restrictions under the Trump administration, dramatically altering America's traditional role as a global immigration destination. Immigration was a central campaign issue during the 2024 Presidential election with President-elect Trump vowing to take strict action to restrict both lawful and unlawful immigration into the U.S.

Such actions would have stark impacts on the health and well-being of immigrant families as well as major economic consequences for the nation. The new travel restrictions are particularly extensive.

On January 20, 2025, President Donald Trump signed Executive Order 14161 titled "Protecting the United States from Foreign Terrorists and Other National Security and Public Safety Threats". The order seeks to protect Americans "from aliens who intend to commit terrorist attacks, threaten [U.S.] national security, espouse hateful ideologies, or otherwise exploit immigration laws for malevolent purposes." On March 14, 2025, The New York Times reported that the Trump administration released a draft list of 43 countries that could be affected under EO 14161.

It lists three tiers of countries (red, orange and yellow) whose citizens may face restrictions on entering the United States.

The UK Tightens Its Immigration Grip

The United Kingdom has implemented comprehensive immigration reforms designed to reduce overall migration numbers while maintaining skilled worker pathways. On 12 May 2025 the government published a white paper policy document called Restoring control over the immigration system.

The document proposed some changes to make it harder to move to and settle in the UK, with a view to reducing immigration. The standard qualifying period for permanent residence will be increased under the government's proposals.

The default will be settlement after ten years, rather than five years at present, but some people will be able to qualify earlier. The changes specifically target skilled workers and their dependents.

An initial reduction to the list of jobs eligible for a new Skilled Worker visa will take effect on 22 July 2025. The revised list will be in place until the end of 2026; the Migration Advisory Committee is reviewing which medium-skilled jobs should be on the list beyond that.

The end of overseas recruitment of care workers is also confirmed for 22 July 2025. People already sponsored for a social care visa by that date will not be affected.

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