We're already seeing distinct trends in where expats choose to relocate in 2025. To better understand the driving forces behind these choices, we'll look at how elements such as hospitality, culture, economic stability, and legal environments are influencing decisions for both current and potential expats. What key developments in these countries are impacting expatriate preferences? Join us as we explore the dynamics shaping the global mobility landscape.
Expats' preferred destinations in 2025
A recent study by William Russell, a leader in expat insurance, reveals Australia as the top destination for prospective expats, leading the list with 132,500 searches from August 2023 to July 2024, according to Google search data. Canada and New Zealand follow closely, with 127,800 and 83,700 searches, respectively. Despite the recent tightening of immigration policies, these countries continue to be popular among expats, with Canada and Australia particularly favored for their long-standing appeal.
Just below the top three, Spain garners 75,400 searches, closely followed by Portugal with 66,700. Switzerland and Ireland also make the list with 64,400 and 62,200 searches respectively. Notably, the United States, often regarded as a favored expat destination, ranks lower than expected with only 60,800 searches. Similarly, the United Kingdom, another historically popular choice, records only 58,000 searches. Rounding out the top ten is Japan, the only Asian country featured, with 56,000 searches.
What makes these destinations attractive to expats?
Australia consistently attracts a diverse group of expatriates, including students, workers, those on working holiday visas, and retirees. Students are particularly drawn to Australia's high-quality universities, which offer more affordable education than their American or British counterparts. Workers enjoy a robust job market despite labor shortages, with a low unemployment rate of 4.2%. Additionally, the number of working holiday visa holders has increased, encouraged by Australia's recent expansion of this program to include citizens from India, Vietnam, and China, allowing more young people to explore and work there. Overall, expatriates in Australia praise the high quality of life and the warm, relaxed welcome they receive from locals.
Despite these factors, Australia's strict immigration policies have been a concern. Since 2023, the government has implemented quotas for international students, increased income requirements, and intensified language proficiency tests. Canada has seen similar restrictions since 2024, aimed at reducing the number of temporary residents, which has sparked student protests. Yet, both countries remain highly favored destinations.
In Spain and Portugal, both popular for their tourist appeal, efforts continue to balance expat-friendly policies with environmental conservation. These countries attract digital nomads, foreign workers, and retirees with their sunny weather, rich culture, and lifestyle, plus career opportunities.
Ireland is also emerging as an attractive destination for expatriates, particularly with its strong tech sector presence, including companies like Google, Apple, and Facebook. In response to this demand, Ireland launched a new initiative in 2023 to attract more qualified foreigners and introduced more flexible work permit rules in September 2024 to retain foreign talent more effectively and simplify their procedures.
The return of expats in Japan
Japan's stringent management of the health crisis initially diminished its popularity among expatriates, many of whom faced barriers entering the country, were forced into online education, or were left uncertain about their employment prospects. However, Japan has recently regained its appeal, initially among tourists and students and increasingly among foreign workers. Facing a demographic decline and labor shortages, Japan has opened its doors wider to immigration. In 2023, the country surpassed two million foreign workers for the first time. Despite challenges like stagnant wages, which newly elected Prime Minister Shigeru Ishiba plans to increase by 40% within the next decade, Japan continues to attract expatriates. They are drawn by the nation's renowned hospitality, exquisite cuisine, breathtaking landscapes, and rich arts culture.
The United States and the United Kingdom lose their appeal
Recent data suggests a diminishing allure of the "American Dream." Despite a resilient economy with a growth of 2.5% in 2023 and an acceleration to 2.8% by the second quarter of 2024, along with a low unemployment rate mirroring Australia's at 4.2% and persistent labor shortages, the appeal for potential expatriates may be tempered. The United States has seen significant layoffs in the tech sector between 2022 and 2023, although recruitment activities persist. Moreover, the complexities involved in securing a U.S. visa continue to pose significant challenges.
In the United Kingdom, the decline in popularity can be traced back to stringent immigration policies introduced by the government under former Prime Minister Sunak following post-Brexit adjustments. These include a points-based permit system and increased tuition fees for international students, particularly impacting Europeans now classified as third-country nationals, alongside other measures to reduce net immigration.
Interestingly, despite Brexit's intention to curb immigration, the UK has witnessed unprecedented immigration levels since its departure from the EU, recording +745,000 arrivals from December 2021 to December 2022 and +682,000 from June 2022 to June 2023. The majority of these new arrivals are legally residing in the UK, serving vital roles in addressing the nation's labor shortages.
Global mobility trends for 2025: Choosing the right destination
As we look to 2025, the choice of where to expatriate can vary greatly depending on whether one is a student, worker, or retiree.
In Japan, the Working Holiday Visa (WHV) is particularly popular among the youth, allowing them to explore the country for a year. Meanwhile, Australian and Canadian destinations continue to attract Japanese students and young professionals, driven away by stagnant wages at home and skeptical of the Prime Minister's optimistic proposals, as well as what they perceive as a rigid cultural environment.
Australia remains a prime destination for expatriates in 2025, with Luxembourg, the Netherlands, and Belgium also emerging as attractive options due to their appeal to foreign investors and skilled workers.
Unexpectedly, Saudi Arabia is gaining traction as a favorable destination for expatriates in 2025, particularly among highly skilled workers who find the working conditions comparable to those in Denmark. Riyadh is actively competing with Dubai by launching initiatives to draw foreign talent. Noteworthy is the state's offer in December 2023 of a 30-year tax exemption for multinationals that relocate their headquarters to the capital. Additionally, in May of the same year, Saudi Arabia proposed salary increases of 10 to 20% to attract bankers, underscoring its ambition to become a global hub for expatriate workers.
Meanwhile, retirees continue to favor traditional locales like Spain, Portugal, and Thailand, drawn by their pleasant climates, affordable living costs, and vibrant cultures.
