Cash-strapped Americans looking to get more bang for their buck are flocking to tax-friendly, pocket-size countries where the living is easy, revealed a new study.
Remote work and rising costs drove more than 180,000 Americans to relocate in 2025, according to international insurance firm William Russell, which pegged Panama as the best country for those seeking financial freedom.
Panama had a winning mix of low taxes and affordable daily living that landed it with a top score of 7.01 in the company’s ranking, which looked at taxes, average take-home salaries, cheapest flights, average property prices, monthly utilities, average monthly salary and estimated costs for a single person, along with the cheapest one-way flights.
William Russell then crunched the numbers and gave each destination a score from one to 10 based on how well it balances low or no taxes with affordable living.
Property prices in Panama average around $219 per square foot, while renting a one-bedroom apartment costs about $879 a month. Utilities stay fairly average too, averaging about $112 monthly.
While average salaries are lower than in some of the other countries to choose from, at around $862 a month, the lower cost of housing and daily life helps former Americans stretch their dollars.
Bahrain landed in second place with a score of 6.93, by combining zero personal income tax with strong salaries. This archipelago, situated in the Persian Gulf between Qatar and Saudi Arabia, is made up of 33 islands.
Property prices average $203 per square foot, while a one-bedroom apartment rents for around $743 per month — one of the cheapest in the report’s top 10.
Utilities in Bahrain average $132 monthly, and estimated living costs for one person sit at about $820 per month.
The real standout for Bahrain is the salaries.
Average take-home pay in Bahrain is roughly $2,256 a month, which gives expats more spending power than many other tax-friendly destinations.
Coming in third is Andorra, a landlocked country between France and Spain, with bargain basement taxes that got them a score of 6.67.
Property prices average $501 per square foot, while renting a one-bedroom apartment costs around $1,157 per month.
The take-home salaries hit upwards of $3,017 per month, making it one of the highest-paying destinations in the world.
Rounding out the top five are Mauritius for its combination of political stability, safety, tax advantages and a high-quality of living, and Qatar for its tax-free salaries, high earning potential and exceptional standard of living.
The remainder of the top 10 included Malta, Cyprus, Seychelles, United Arab Emirates and Ireland — if you’re lucky.
