Iceland has officially taken the top spot as the best country to relocate to in 2025, according to the latest Immigration Index released by the financial company Remitly.
In this comprehensive report, 82 countries were evaluated across 24 key indicators, ranging from cost of living, job opportunities, and healthcare quality to safety and overall happiness. The findings offer a compelling picture of the most ideal global destinations for migrants.
Iceland Leads the Ranking
The North Atlantic island nation ranks first with an overall score of 58.4 out of 100.
In recent months, Iceland has frequently appeared in several global rankings, including as the world’s safest country, the third happiest nation, and one of the best destinations for female travelers. These combined factors further strengthen its reputation as a promising place to live.
Its capital, Reykjavik, is known as a compact, walkable city. All major landmarks, from the iconic Hallgrimskirkja church to the shopping district of Laugavegur, can be reached within a 20-minute walk. The city also exudes a warm sense of community, reflected in its cozy cafés, bakeries, and ‘hygge’-style restaurants.
Beyond its calm urban life, Iceland offers unparalleled natural landscapes. Newcomers can easily explore its beauty through local tours or by renting a private car.
Some of the most stunning regions include the Snaefellsnes Peninsula in the west and the famous Golden Circle route, which features waterfalls, geysers, and natural hot springs.
This year is also a particularly exciting time to live in Iceland, as the solar maximum period significantly increases the chances of witnessing the Northern Lights at their strongest level in 11 years.
Environmental Quality and High Wages as Key Attractions
Iceland also excels in environmental indicators. The country is globally recognized for its strong climate protection efforts and extensive use of renewable energy, including geothermal and hydropower.
Both the minimum wage and average annual salary in Iceland rank among the highest in the world, although this is offset by a relatively high cost of living. Average monthly rent is around USD 1,472, and food prices are generally higher than in most other countries included in the index.
European Countries Dominate the Rankings
Switzerland ranks second with a score of 55.8. It is known for its exceptional public transportation system, high wages, and consistently high quality of life—making it a top choice for professionals and families.
Luxembourg takes third place, distinguished by its strong economy and high levels of resident happiness. Norway ranks fourth due to its robust social system and strong income equality.
The United Arab Emirates (UAE) comes in fifth, supported by significant economic opportunities and a highly diverse population. With 88 percent of its residents being migrants, the country has a well-established expatriate community that is easily accessible to newcomers.
Rankings of Southeast Asian Countries
Meanwhile, popular Southeast Asian countries have varied rankings: Singapore ranks 12th, Thailand 22nd, Indonesia 47th, the Philippines 48th, and Malaysia 51st.
