In this article, we will list and explore the 20 best countries to live outside the US. You can skip our detailed discussion and see the 5 Best Countries to Live Outside the US.
Americans Living Abroad
Estimating the number of Americans living abroad is complex due to differing methodologies and data sources. The U.S. Department of State estimates that around 9 million Americans live overseas. However, this figure likely includes tourists and short-term travelers, potentially leading to an overestimate. More detailed research by the Association of Americans Resident Overseas (AARO) suggests a more conservative figure. Based on updated data and comprehensive analysis, AARO estimates that at least 5.4 million Americans will be living abroad in 2023. This figure is derived from studies like the Federal Voting Assistance Program (FVAP), which estimated about 4.8 million Americans living overseas in 2018, excluding military personnel and their families. Given these varied estimates, calculating the exact number of Americans residing abroad remains a challenge. The discrepancies in the data highlight the need for more precise mechanisms and uniform standards in tracking expatriate populations. Nonetheless, AARO’s figure provides a more realistic approximation, emphasizing the significant presence of Americans globally.
As confidence in the American dream wanes, more US citizens are seeking better opportunities abroad, driven by affordability and flexibility that seem increasingly out of reach in the US Recent surveys reveal significant concerns about the decline of the American dream, with only 36% of respondents in a WSJ/NORC Research believing that “if you work hard, you’ll get ahead.” This marks a substantial drop from previous years.
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Why More Americans Are Choosing to Live Overseas
An increasing number of Americans are choosing to relocate abroad, driven by various factors such as the escalating cost of living, intense political polarization, and the allure of diverse cultural experiences. Many are drawn to destinations offering lower taxes and living expenses, robust social programs such as universal healthcare, and more politically stable environments. A national survey by Harris Poll reveals that many Americans want to escape high healthcare costs, and hefty taxes, and find better education systems. Millennials are leading the charge, with over 55% considering relocating internationally. Some are planning to do this when they retire, but a good number are eyeing a move within the next five years.
While a variety of reasons prompt Americans to move abroad, there’s a less obvious but equally important factor that eases the transition to a new country: the presence of familiar consumer products. Companies such as Procter & Gamble Co (NYSE:PG), Unilever PLC (NYSE:UL), and Colgate-Palmolive Company (NYSE:CL) serve as unsung heroes in this narrative, providing a taste of home and a touch of the familiar in foreign lands.
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With this backdrop, let’s proceed to our list of 20 best countries to live outside the US.
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Methodology
To compile our ranking of the best countries for living outside the US, we employed a detailed methodology that emphasized two principal factors: Personal Income Tax (PIT) rate and Human Development Index (HDI)/Quality of Living. We sourced PIT data for the years 2022-2024 from reputable platforms such as Trading Economics and PwC Tax Summaries. For HDI and Quality of Living metrics, we relied on data from the Human Development Reports. Our selection process focused on nations with a PIT rate below 37%, the benchmark in the US, and an HDI threshold of at least 0.8. We also considered the cost of living data from livingcost.org for each country. After normalizing these metrics, we computed a composite score for each country and ranked them accordingly, from the highest to the lowest scores.
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20 Best Countries to Live Outside the US
20. Saudi Arabia
HDI Value: 0.875
Tax Percentage: 0%
Cost of Living: $1,244
Insider Monkey Score: 0.03
Saudi Arabia stands out as an enticing destination for those considering a move outside the US, offering a tax-free income environment and a high standard of living. With no personal income tax, expats in Saudi Arabia can enjoy their full earnings. From the modernity of Riyadh and Jeddah to the rich cultural heritage and expanding opportunities, Saudi Arabia provides a vibrant and welcoming environment for expats seeking a prosperous and dynamic new home.
19. Bahrain
HDI Value: 0.888
Tax Percentage: 0%
Cost of Living: $1,334
Insider Monkey Score: 0.097
Bahrain is a top-tier destination for expats, offering a tax-free income, exceptional quality of life, and a welcoming community. With no personal income tax, Bahrain ensures you keep more of your earnings while enjoying excellent healthcare and education. The cost of living is also favorable, allowing for a comfortable lifestyle. From the bustling city life of Manama to its beautiful beaches and rich cultural heritage, Bahrain offers an exciting and rewarding expat experience. Discover your new home in Bahrain, where modernity meets tradition.
18. Qatar
HDI Value: 0.875
Tax Percentage: 0%
Cost of Living: $1,870
Insider Monkey Score: 0.138
Qatar emerges as an exceptional choice for those looking to relocate outside the US, offering a unique blend of tax-free living, luxury, and modern amenities. With no personal income tax, Qatar provides expats the rare opportunity to enjoy their full earnings. Qatar maintains a relatively low cost of living compared to many Western countries. From the futuristic skyline of Doha to the rich cultural heritage and vibrant expat community, Qatar offers a dynamic and prosperous environment for those seeking an exciting new chapter abroad.
17. Slovakia
HDI Value: 0.855
Tax Percentage: 25%
Cost of Living: $1,142
Insider Monkey Score: 0.171
Slovakia shines as a premier destination for those seeking a new life outside the US, combining financial benefits with a high standard of living and stunning natural beauty. With a lower personal income tax rate than the US, Slovakia allows expats to maximize their income. Slovakia offers excellent healthcare, education, and quality of life. The cost of living is also notably lower, ensuring a comfortable and affordable lifestyle. From the charming streets of Bratislava to the breathtaking landscapes of the High Tatras, Slovakia offers a rich cultural experience and a welcoming community, making it an ideal place for expats to call home.
16. Estonia
HDI Value: 0.899
Tax Percentage: 20%
Cost of Living: $1,204
Insider Monkey Score: 0.309
Estonia is an excellent choice for US expats seeking a fresh start abroad. With its efficient digital infrastructure, including e-residency programs that simplify business operations, Estonia offers a streamlined path to entrepreneurship. Beyond its tech-savvy allure, Estonia boasts stunning landscapes, a high quality of life, and a welcoming atmosphere for foreigners. Whether you’re drawn to its vibrant cultural scene or its progressive attitudes, Estonia promises a blend of opportunity and charm that’s hard to resist.
15. Czech Republic
HDI Value: 0.895
Tax Percentage: 23%
Cost of Living: $1,199
Insider Monkey Score: 0.321
The Czech Republic is a captivating destination for expats, offering an excellent quality of life, affordability, and rich cultural experiences. The cost of living is significantly lower, enabling a comfortable and budget-friendly lifestyle. Picture yourself strolling through the historic streets of Prague or enjoying the scenic beauty of Bohemian landscapes. The Czech Republic is where your vibrant and fulfilling new life begins!
14. Croatia
HDI Value: 0.878
Tax Percentage: 30%
Cost of Living: $1,140
Insider Monkey Score: 0.31
Croatia offers stunning Adriatic coastlines and historic cities. It’s a blend of old-world charm and modern living. The warm climate and welcoming people make it a fantastic spot for expats looking for a Mediterranean vibe. The widespread use of English in this country helps Americans settle in quickly. English is a common second language, and many locals speak it well. Plus, the country is very affordable, making it easy to stretch your income.
13. Latvia
HDI Value: 0.879
Tax Percentage: 31%
Cost of Living: $1,069
Insider Monkey Score: 0.311
Latvia shines as a prime destination for those looking to relocate outside the US, offering a harmonious blend of affordability, quality of life, and scenic beauty. The cost of living in Latvia is significantly lower, allowing expats to enjoy a comfortable lifestyle without straining their finances. From the historic charm of Riga to the stunning landscapes of its countryside, Latvia provides a culturally rich and welcoming environment for expats seeking a fulfilling and cost-effective new home.
12. Lithuania
HDI Value: 0.879
Tax Percentage: 32%
Cost of Living: $1,107
Insider Monkey Score: 0.327
Lithuania emerges as an attractive destination for those seeking to live outside the US, combining financial advantages with a high quality of life and rich cultural experiences. From the vibrant city life in Vilnius to the picturesque countryside, Lithuania provides a welcoming environment and a strong sense of community for expats. This Baltic gem offers the perfect balance of modern amenities and historical charm, making it an ideal new home for those looking to relocate abroad.
11. United Arab Emirates
HDI Value: 0.937
Tax Percentage: 0%
Cost of Living: $1,906
Insider Monkey Score: 0.391
The UAE is a hub of luxury and innovation. With its futuristic cities like Dubai and Abu Dhabi, it offers a unique lifestyle. The expat community is large and diverse, and there’s no shortage of things to do. The UAE offers a tax-free income and a luxurious lifestyle for US expats. Its large, diverse expat community ensures you’ll feel at home quickly.
10. Poland
HDI Value: 0.881
Tax Percentage: 32%
Cost of Living: $1,137
Insider Monkey Score: 0.34
Poland is a hidden gem for expats, offering a perfect mix of affordability, vibrant culture, and modern amenities. With a lower personal income tax rate, a strong HDI, and a cost of living that’s easy on the wallet, Poland ensures you live well without breaking the bank. Imagine life in the dynamic cities of Warsaw and Kraków, surrounded by rich history and stunning landscapes. Poland is where your new adventure begins!
9. Sweden
HDI Value: 0.952
Tax Percentage: 20%
Cost of Living: $1,578
Insider Monkey Score: 0.584
Sweden is a leader in sustainability and quality of life. With stunning natural landscapes and modern cities, it’s perfect for outdoor enthusiasts and city lovers alike. The Swedes are friendly and speak English fluently. Sweden’s focus on sustainability is great for environmentally-conscious US expats.
8. Cyprus
HDI Value: 0.907
Tax Percentage: 35%
Cost of Living: $1,531
Insider Monkey Score: 0.54
Cyprus is all about sunny beaches and rich history. With a Mediterranean climate and friendly locals, it’s a great place to relax and enjoy life. Plus, English is widely spoken, making it easy for expats to settle in.
7. Malta
HDI Value: 0.915
Tax Percentage: 35%
Cost of Living: $1,504
Insider Monkey Score: 0.567
Malta offers beautiful coastlines and a vibrant expat community. This island nation boasts a warm climate, historic sites, and a lively culture. English is an official language, making it super convenient for newcomers.
6. Liechtenstein
HDI Value: 0.942
Tax Percentage: 22.4%
Cost of Living: $2,315
Insider Monkey Score: 0.694
Nestled in the heart of Europe, this tiny principality offers a unique blend of picturesque landscapes, a stable economy, and a high standard of living. With low taxes, excellent healthcare, and a safe environment, Liechtenstein provides a welcoming atmosphere for individuals and families alike. Liechtenstein presents a compelling opportunity for those seeking a fresh start in a charming and prosperous setting.
5. Hong Kong
HDI Value: 0.956
Tax Percentage: 15%
Cost of Living: $2,614
Insider Monkey Score: 0.731
Renowned as a global financial hub, Hong Kong offers a fast-paced lifestyle amidst stunning skyscrapers and picturesque harbors. Whether you’re drawn to its culinary delights, bustling markets, or career prospects in finance and commerce, Hong Kong promises an exciting and cosmopolitan environment for expats seeking new adventures and professional growth.
4. Canada
HDI Value: 0.935
Tax Percentage: 33%
Cost of Living: $2,042
Insider Monkey Score: 0.72
Canada is a dream for nature lovers and urbanites alike. With stunning landscapes and vibrant cities, there’s something for everyone. The friendly locals and high quality of life make it a fantastic place for expats. Canada offers a seamless cultural transition and easy access to US family and friends. Its healthcare system and high quality of life are major pluses for expats.
3. Switzerland
HDI Value: 0.967
Tax Percentage: 11.5%
Cost of Living: $2,896
Insider Monkey Score: 0.79
Switzerland is a top pick for US expats seeking a mix of mountain beauty and precision living. Nestled in the Alps, it offers a serene lifestyle with efficient infrastructure like punctual trains and stunning ski resorts. With a strong economy, excellent healthcare, and a multilingual environment, it’s perfect for career growth and family life. Switzerland promises a unique blend of natural beauty and sophistication for expats looking to live exceptionally abroad.
2. Singapore
HDI Value: 0.949
Tax Percentage: 24%
Cost of Living: $3,000
Insider Monkey Score: 0.856
Known for its efficiency, safety, and multicultural vibrancy, Singapore offers a world-class standard of living and a thriving expat community. Whether you’re captivated by its modern skyline, diverse culinary scene, or efficient public transport, Singapore promises an enriching experience for expats looking to thrive in a dynamic and cosmopolitan city-state.
1. Iceland
HDI Value: 0.959
Tax Percentage: 35%
Cost of Living: $2,518
Insider Monkey Score: 0.917
Iceland is a fantastic choice for US expats seeking a unique blend of natural beauty and cultural richness. Beyond its natural wonders, Iceland boasts a high standard of living, excellent healthcare, and a strong sense of community. Whether you’re enchanted by its geothermal hot springs, Northern Lights, or vibrant arts scene, Iceland promises a peaceful yet adventurous lifestyle for expats looking to embrace a close-knit society in a truly spectacular setting.
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Disclosure: none. 20 Best Countries to Live Outside the US is originally published on Insider Monkey.
