Economic Conditions and Cost of Living

Economic factors and living costs in destination countries play a significant role in expat relocation trends. On one hand, strong economies with abundant jobs attract expats, but on the other, high inflation and living costs can deter them. 

Recent high inflation has squeezed expat budgets globally – 67% of expats say rising cost of living has significantly affected their finances. In early 2023, global inflation hit ~11%, the highest in decades, driving up prices for housing, food, and fuel. 

Expats are responding by seeking more affordable locales or negotiating higher compensation. In fact, expats in low-cost countries (e.g. Mexico, Thailand, Vietnam) tend to stay abroad longer, whereas expensive hubs like Switzerland and Hong Kong see more short-term stints due to cost pressures (Rader, 2025). 

This suggests that a high cost of living can shorten the duration of assignments or prompt relocations to cheaper regions. Economic downturns or recessions also influence mobility: if job prospects weaken in one country or improve in another, expat flows adjust accordingly. 

Overall, favorable economic conditions and reasonable living costs in destinations encourage more expat moves, while economic uncertainty and high expenses can temper mobility.

Changes in Visa Policies and Immigration Regulations 

Shifting visa and immigration policies have materially influenced expat relocation in recent years. Many countries, eager to attract foreign talent and remote workers, have introduced more expat-friendly visa schemes. 

For example, over 50 countries now offer “digital nomad” visas, providing remote workers temporary residency to live abroad while working online (Rader, 2025). This has lowered barriers for expats who aren’t tied to a local employer. 

Likewise, several nations with labor shortages (like Germany, Canada, and Australia) are actively recruiting skilled foreign workers and streamlining work visa processes (Rader, 2025). Countries such as Portugal, Spain, and Canada offer clear pathways to permanent residency or citizenship, encouraging expats to put down roots long-term. 

By contrast, some traditional expat destinations have maintained stricter visa regimes – for instance, the UAE and Singapore impose tough visa rules that make extended stays difficult without ongoing employment sponsorship (Rader, 2025). Changes in immigration laws also play a role: Brexit, for example, ended free movement between the UK and EU, complicating relocations for Brits and Europeans. 

Overall, policies that lower visa hurdles (special work visas, fast-track residency, etc.) tend to boost expat mobility, while restrictive policies or political shifts can slow it. The proliferation of remote work visas and talent-attraction schemes in recent years has generally made cross-border moves easier for many expats.