Amid rising living costs and global economic challenges, some countries continue to offer expats financial relief. According to the 2025 Expat Insider survey by InterNations, Indonesia remains one of the most affordable destinations worldwide, ranking 6th out of 46 countries. Although it slipped from 3rd place in 2024, Indonesia continues to be a favorite for expats seeking a balance of affordability, lifestyle, and cultural richness.
With average monthly expenses around $583, the country provides budget-friendly living compared to many Western nations. Food, transport, and housing remain inexpensive, especially in cities like Jakarta, Yogyakarta, and Surabaya, while Bali attracts digital nomads with its mix of culture, coworking spaces, and natural beauty.
In the 2024 survey, Indonesia ranked third, praised by 69% of expats for its cost of living and by 86% who said their income was sufficient for a comfortable lifestyle. While challenges like healthcare quality and infrastructure persist, Indonesia’s affordable lifestyle and warm culture continue to draw international residents.
Top 10 Cheapest Countries for Expats in 2025
Here are the 10 most affordable countries for expats this year:
- Vietnam – Still the world’s most affordable, with satisfied expats and vibrant culture.
- Colombia – 92% of expats report enough income to live comfortably.
- Panama – Popular with retirees, offering low living costs and strong expat networks.
- China – Rising in the ranks with affordable urban living and cultural opportunities.
- Thailand – A Southeast Asian favorite for lifestyle, food, and budget living.
- Indonesia – Low daily expenses and a diverse culture attract professionals and nomads.
- Philippines – Affordable living combined with stunning islands and friendly locals.
- Mexico – Vibrant culture and affordable cities draw retirees and digital nomads.
- Malaysia – New to the top 10 in 2025, with modern amenities and low costs.
- Brazil – Affordable housing and lively culture despite slipping one spot.
Notably, Southeast Asia dominates the ranking with five countries—Vietnam, Thailand, Indonesia, the Philippines, and Malaysia—highlighting the region’s appeal for expats seeking value for money.
The Least Affordable Countries in 2025
On the flip side, the survey identified the 10 least affordable destinations. Canada ranked as the most expensive, with over 60% of expats dissatisfied with the cost of living. Other high-cost nations include the UK, Finland, Singapore, Australia, and South Korea. The United States also performed poorly, ranking 35th out of 46, just outside the bottom 10.
Why Affordability Matters for Expats
The survey underscores a growing trend: many expats are not only seeking career opportunities abroad but also a better quality of life at lower costs. Countries like Indonesia, Vietnam, and Colombia continue to attract global talent, retirees, and digital nomads thanks to their budget-friendly lifestyles, cultural richness, and welcoming communities.
For anyone considering relocation, the 2025 rankings serve as a useful guide—highlighting where expats can make their money stretch further without compromising on lifestyle.
Source: CNBC, International Insurance, Expat Indonesia
Special Photo Credit: abrokenbackpack.com
