With inflation, housing shortages, and rising global living costs dominating headlines, affordability has become one of the top concerns for expats worldwide. Yet while some countries offer financial relief and long-term security, others remain financially challenging despite their global appeal.
According to the 2025 Expat Insider Study by InterNations, Vietnam has once again been crowned the most affordable country in the world for expats — the fifth year in a row. At the other end of the spectrum, Canada ranks as the least affordable destination in terms of personal finances.
The report, which surveyed over 10,000 expats across 46 destinations, asked respondents to rate their financial situation, cost of living, and whether their disposable household income was sufficient for a comfortable life.
Top 10 Most Affordable Countries for Expats (2025)
| Rank | Country | % Satisfied with Cost of Living | % Saying Income Is Enough | Notable Insights |
|---|---|---|---|---|
| 1 | Vietnam | 89% | 87% | 54% have lived there 5+ years; 30% want to stay permanently |
| 2 | Colombia | 88% | 92% | No expat flagged cost of living as a concern before moving |
| 3 | Panama | 84% | 85% | 35% of expats are retirees (vs. 11% global average) |
| 4 | China | 78% | 81% | Affordable healthcare and dining cited as advantages |
| 5 | Thailand | 85% | 83% | Popular with digital nomads and retirees |
| 6 | Indonesia | 82% | 80% | Low housing and daily expenses reported |
| 7 | Philippines | 83% | 79% | High expat satisfaction with community integration |
| 8 | Mexico | 80% | 77% | A long-time favorite for U.S. retirees |
| 9 | Malaysia | 81% | 78% | Moved up from 11th place in 2024 |
| 10 | Brazil | 76% | 74% | Affordable lifestyle despite economic fluctuations |
Key Takeaway:
Five out of the top 10 countries are in Southeast Asia, highlighting the region’s continued dominance in affordability. Lower healthcare costs, cheaper housing, and inexpensive dining make these destinations attractive for both younger professionals and retirees.
According to the OECD, expats in Southeast Asia spend up to 40% less on average housing and utilities compared to Europe and North America.
Why Vietnam Leads the Pack
Vietnam is not only cheap, it’s comfortable. Nearly 9 in 10 expats are satisfied with the cost of living, compared with the global average of just 40%.
-
Housing affordability: Apartments in major cities like Ho Chi Minh City and Hanoi cost significantly less than Western equivalents.
-
Food and transportation: Street food, local markets, and efficient motorbike transport keep daily expenses low.
-
Community integration: 54% of expats have lived in Vietnam for more than five years, with 30% planning to stay indefinitely.
This financial breathing room explains why Vietnam remains a top long-term choice.
Colombia and Panama: Latin America’s Expat Magnets
Colombia ranked second overall thanks to overwhelmingly positive feedback on disposable income. A stunning 92% of expats said their income is sufficient to live comfortably, compared with the global average of 69%.
Panama, meanwhile, continues to attract retirees. One in three expats there is already retired, triple the global average. The country’s “Pensionado Program”, which grants discounts to retirees on healthcare, transport, and entertainment, further cements its appeal.
Top 10 Least Affordable Countries for Expats (2025)
| Rank (Global) | Country | % Dissatisfied with Cost of Living | Key Insights |
|---|---|---|---|
| 37 | Norway | 58% | High taxes, expensive housing |
| 38 | Australia | 60% | Rising property prices in Sydney & Melbourne |
| 39 | Ireland | 59% | Housing shortage and high rents |
| 40 | South Korea | 63% | Dropped 25 places from 2024; Seoul rents soared |
| 41 | Singapore | 62% | Among the world’s most expensive cities |
| 42 | Qatar | 61% | Rapid decline in affordability vs. 2024 |
| 43 | Türkiye | 57% | Inflation remains a persistent challenge |
| 44 | Finland | 60% | High taxation offsets social benefits |
| 45 | United Kingdom | 61% | Expensive housing, utilities, and childcare |
| 46 | Canada | 62% | Least affordable; cost of living dissatisfaction highest |
Why Canada and the UK Rank at the Bottom
Despite their global reputation as desirable destinations, Canada and the United Kingdom rank as the least affordable countries for expats in 2025.
-
Canada: 62% of expats reported being unhappy with the cost of living, particularly housing in cities like Toronto and Vancouver. According to a 2024 CMHC report, Canadian housing affordability has reached a 30-year low.
-
United Kingdom: 61% of expats voiced dissatisfaction, citing soaring rental costs in London and utility expenses nationwide.
For comparison, the global dissatisfaction rate with cost of living is only 40%, showing just how severe affordability challenges are in these countries.
Global Trends and Regional Patterns
The survey reveals several important trends:
-
Southeast Asia dominates affordability — with Vietnam, Thailand, Indonesia, Philippines, and Malaysia offering high satisfaction rates.
-
Europe struggles — no European country appeared in the top 10 most affordable list. Instead, several European nations rank among the least affordable.
-
Middle East mixed picture — while Qatar slid into the bottom 10, other Gulf countries remain outside the extremes.
-
North America challenging — both the U.S. (ranked 35th) and Canada (46th) scored poorly, reflecting inflationary pressures.
Supporting Research on Expat Affordability
-
Mercer’s 2024 Cost of Living Survey also ranked Singapore, Zurich, and Hong Kong as among the world’s most expensive cities for expats.
-
Numbeo’s Global Cost of Living Index shows that housing affordability is the biggest driver of dissatisfaction among expats, particularly in developed economies.
-
A 2025 OECD report highlighted that affordability is increasingly dictating migration decisions, with digital nomads opting for low-cost hubs in Asia and Latin America.
Final Thoughts
The 2025 Expat Insider Report confirms what many global citizens already know: the search for affordability is reshaping where expats choose to live, work, and retire.
-
Winners: Southeast Asia and parts of Latin America remain the best bets for financial comfort, with Vietnam and Colombia leading the way.
-
Losers: Wealthy nations like Canada, the UK, and Singapore offer high salaries but erase the advantage with crippling costs.
For expats weighing their options, affordability is more than just a perk — it’s the foundation of long-term stability and lifestyle satisfaction.
Also read: Top 10 U.S. Cities for Affordable First-Time Home Buying Under $250,000
