Emigrate for less outside Europe? These 3 countries stand out

A spacious apartment, regular meals out, affordable groceries and enough money left at the end of the month. For many people, that sounds like an appealing alternative to life in the Netherlands or England. This is especially true when rent, energy, insurance and everyday shopping take an increasing share of household income.

However, moving to a cheaper country is more complicated than comparing supermarket prices. A country may be inexpensive for groceries but become costly when your children need an international school. A good private clinic may seem affordable until you need comprehensive insurance. And a pleasant climate says little about whether you can legally live and work there.

Anyone considering a move outside Europe needs more than low prices. You want a safe place to live, reliable healthcare, good education, political stability and a realistic route to residency. The possibility of finding work or continuing to work remotely also matters.

This comparison focuses on three countries: Malaysia, Panama and Thailand. They have not been selected because they score perfectly in every category. They are interesting because each offers a different combination of costs, services, culture and opportunities for foreign residents.

The comparison considers two very different situations. First, a retired couple who want affordable, comfortable living and good healthcare. Second, a family with two children that must consider education, work, housing and the transition to a new culture.

The conclusion is not that everyone should pack their bags immediately. It is that there are financially attractive options outside Europe, provided you research the total costs and conditions carefully.

1. Affordable living requires an honest comparison

The biggest mistake in relocation research is comparing individual prices. A cheap lunch or low rent does not tell you what a household will actually need. Total monthly expenses are what matter.

Consider housing. In many countries, you can live considerably more cheaply outside major cities. But a home close to a good hospital, an international school or a business district often costs more. A cheap property in a remote location may eventually mean higher transport costs and longer journeys.

Healthcare also requires a realistic comparison. The Netherlands and England have public healthcare systems with broad services. Abroad, private hospitals may offer excellent treatment, but foreign residents may have to pay directly or arrange private insurance.

Education is another major expense. Local schools may be inexpensive or publicly accessible in some countries. That does not automatically mean they follow the Dutch or British education system. Parents who want their children to continue later at a European school or university may therefore choose international education.

What does that mean? A country may save a retired couple thousands of euros a year, while a family with two children saves far less because of school fees and insurance.

For a fair comparison, we use two example households:

A retired couple rents a comfortable apartment, owns a car or uses local transport, cooks at home regularly and eats out occasionally. They want access to good medical care and allow for private insurance.

A family consists of two adults and two school aged children. They rent a home with enough space, have transport costs and want education that supports an international future. We primarily consider local schools, but also explain the financial impact of international schools.

The monthly budgets mentioned here are indicative scenarios. They are not official averages or guaranteed prices. Location, age, health, lifestyle, exchange rates and school choices can change the figures considerably. Moving expenses, taxes, pension rules and major medical procedures are also not included in every example.

2. Malaysia combines affordable living with strong services

Malaysia may not be the first country that comes to mind when people in the Netherlands consider moving outside Europe. Yet it deserves serious consideration. The country combines modern cities, relatively low everyday costs, an international population and an established private healthcare sector.

Kuala Lumpur and Penang are particularly interesting. Kuala Lumpur has a large selection of shops, businesses, hospitals and international schools. Penang is quieter and is known for its medical facilities, coastal areas and international community.

One major advantage is that English is useful in many urban and business environments. This makes the first years easier for people who do not yet speak Malay. Everyday life also brings together different cultural and religious communities. Malaysia has Malay, Chinese and Indian influences. These can be seen in its food, festivals, architecture and streets.

Everyday costs are lower

Food, local transport, services and certain types of housing can be cheaper than in the Netherlands or England. People who eat locally and do not insist on living in a luxury expatriate neighbourhood can reduce their monthly expenses considerably.

In parts of Penang, for example, indicative monthly rents of around RM 2,500 to RM 5,000 have been reported for two bedroom apartments in popular areas. These are market indications, not national rental averages. The neighbourhood, condition of the property and facilities make a significant difference.

Groceries can also be inexpensive when you buy local products. Imported European goods, on the other hand, are often more expensive. Anyone who wants Dutch cheese, wine, specific brands or other imported products every day will lose some of the cost advantage.

For a retired couple, a comfortable lifestyle outside the most expensive neighbourhoods can be attractive. An indicative budget might include rent, groceries, transport, utilities, leisure and a reserve for medical costs. The biggest uncertainty is not the price of a meal, but insurance and potential healthcare needs later in life.

Healthcare is an important advantage

Malaysia has an established private healthcare sector. Modern hospitals and specialist clinics can be found in Kuala Lumpur and Penang. The country also attracts patients from other countries for medical treatment.

That does not mean every foreign resident automatically has the same access as a Malaysian employee. Foreign residents need to check their immigration status, insurance terms and coverage. Private insurance can also become more expensive with age. Existing medical conditions may be excluded or lead to higher premiums.

Anyone moving at an older age should obtain written confirmation in advance of which treatments are covered. Look beyond hospital admission to specialist consultations, medication, diagnostics, emergency treatment and possible repatriation.

Watch out: Having a good hospital nearby is not the same as being able to afford treatment there. Check whether your insurer pays the hospital directly and which exclusions apply.

Education can be good, but international schools cost money

Malaysia is interesting for families because of its international school options. British, American and international programmes are available, including the International Baccalaureate. This can make a later move to another country or an overseas university easier.

Fees vary considerably. Penang has schools with relatively affordable fees, but well known international schools can still cost tens of thousands of ringgit per year. In Kuala Lumpur, the most expensive schools can charge considerably more. Registration fees, deposits, transport, uniforms, meals and school activities may be additional.

A family choosing local education can save a great deal. However, the language, curriculum and transition to a European education system need attention. Parents should investigate which school fits their children's ages, language skills and future plans.

Residency is the biggest financial hurdle

Malaysia has a programme called Malaysia My Second Home, usually abbreviated to MM2H. It is designed for foreign nationals who want to stay in the country for an extended period. Several categories exist, with different financial requirements.

It is important not to treat this programme as a simple, inexpensive retirement visa. The official conditions include a fixed deposit with a Malaysian bank. Depending on the category, there may also be property purchase requirements and minimum stay periods. Applications go through an approved MM2H organisation, while the immigration authorities make the final decision.

One important detail is that participation in MM2H does not automatically lead to permanent residency or Malaysian citizenship. The programme grants residency for a specified period and has its own renewal conditions.

Anyone who wants to work must also check whether their chosen category allows employment. A long stay residence pass does not automatically give you permission to take a local job.

Who is Malaysia suitable for?

Malaysia is particularly interesting for retirees with sufficient financial resources, people with international income and families able to set aside a school budget. It is less straightforward for people who depend on a local salary or want a residency route without financial requirements.

The combination of English, private healthcare, modern facilities and relatively low everyday costs makes Malaysia a strong candidate. The downside is that the visa programme and international education can make the initial costs higher than the first price comparison suggests.

3. Panama offers an attractive route for retirees

Panama is in Central America and has a very different appeal from Malaysia. The US dollar is legal tender alongside the local balboa, which is pegged at the same value as the dollar. This makes prices and financial commitments relatively easy to compare with US dollar amounts.

Panama has an international economy, a large expatriate community and an important role as a financial and logistics centre. The capital, Panama City, offers modern facilities, private hospitals, shopping centres and international schools. Outside the capital, there are smaller cities, mountain areas and coastal towns where life is quieter.

The well known Pensionado programme is particularly relevant to retirees. This residency route makes Panama attractive to people with a lifetime pension. The official conditions require a lifetime pension of at least 1,000 dollars per month. If the applicant purchases a property above a specified value, the required pension income may be lower.

On paper, this can make Panama more accessible to certain retirees than countries where a large amount of money must be held in a bank account. However, you must still allow for legal fees, documents, translations, apostilles and an application through a lawyer.

Not all of Panama is cheap

Panama is sometimes presented as an inexpensive paradise. That picture is too simple. Panama City can be quite expensive, especially if you live in modern neighbourhoods, buy many imported products or maintain an international lifestyle.

Costs can be lower outside the capital. Towns in the interior or smaller coastal communities often offer a different balance between living space and price. However, specialist healthcare, international schools and certain services may be less accessible.

A retired couple living outside the most expensive neighbourhoods, shopping locally and maintaining a modest lifestyle may find the finances attractive. A family looking for a modern home in Panama City and sending two children to an international school faces a very different budget.

The use of the US dollar is a practical advantage. You do not have to constantly calculate prices using a highly fluctuating local currency. This does not remove exchange rate risk entirely, especially if your income is paid in euros or British pounds.

Healthcare varies considerably by region

Panama has public and private healthcare facilities. The Social Security Fund, known as CSS, is particularly relevant to people who pay contributions through employment or another eligible arrangement. Simply holding a residence permit does not automatically mean you have access to all services provided by the social security system.

There is also healthcare through the Ministry of Health and a private sector. Modern private hospitals and clinics are available in Panama City. Outside the capital, specialist treatment may involve longer journeys.

For foreign retirees and people who do not contribute through employment, private insurance is often an important part of the financial plan. Premiums depend on age, health, coverage and excess. A policy with a low monthly premium does not necessarily provide sufficient coverage.

Anyone with a chronic condition should investigate in advance whether the required specialist treatment is available in the chosen region. Ask about medication prices and follow up treatment as well.

Education requires a deliberate choice

Panama has public and private schools. The capital has international schools offering different curricula. This can be attractive for families who may later return to Europe or want their children to attend an international university.

However, international education can increase the budget considerably. School location matters too. A home close to a suitable school may cost more, while daily transport through heavy traffic adds time and money.

Local schools can be more affordable. Parents should carefully assess teaching quality, language, the school environment and how well the curriculum matches what their children are used to. Experiences can differ considerably between schools.

Safety and stability are not the same everywhere

Panama is internationally oriented and has an important financial and logistics sector. However, you should not assume every region offers the same level of safety, infrastructure or public services.

The capital has modern neighbourhoods, but also significant differences between districts. Smaller towns may offer a quieter lifestyle, but services can be more limited. Visiting at different times of day and speaking to local residents is therefore important.

You should also follow the political and economic situation. The dollar system offers financial familiarity, but it does not protect you from local price increases, regulatory changes or labour market problems.

Who is Panama suitable for?

Panama is particularly interesting for retirees with a documented lifetime pension and people with international income. The Pensionado route is a clear advantage. Families can also find a good living environment, but they should calculate school fees, insurance and the cost of living in the capital carefully.

Panama is therefore not automatically the cheapest country in this comparison. It can, however, offer an attractive combination of residency, dollar stability, private healthcare and an international environment.

4. Thailand has low everyday costs, but important conditions apply

Thailand has been a popular destination for foreign residents for many years. It has strong tourism infrastructure, large cities, beaches, mountain areas and a wide range of restaurants and services.

Bangkok is modern, international and busy. Chiang Mai is popular with people who want a quieter lifestyle while retaining access to hospitals, shops and international facilities. Coastal towns also attract foreign residents.

Everyday life can be considerably cheaper than in the Netherlands or England. Local meals, public transport, household services and rent outside the most expensive areas are often affordable. People who adapt to local life can live comfortably on a more modest budget.

However, Thailand is not an inexpensive solution for everyone. Costs rise quickly if you live in a luxury expatriate neighbourhood, buy many imported products or send children to an international school.

Everyday spending is attractive

Eating a local meal, ordering a taxi or using certain services often costs less than in Western Europe. Rents outside the most sought after areas can also be attractive.

This can make a major difference for retirees. A couple who do not depend on local employment and receive a pension from Europe may be able to live relatively comfortably in a carefully chosen location.

Nevertheless, you need to include air conditioning, electricity, transport, visas, insurance and trips to Europe. In hot areas, air conditioning can be a significant fixed expense. People who want to live close to a good hospital or international community often pay more rent.

Private healthcare is strong, but insurance is essential

Thailand has large private hospitals with modern equipment and international departments. Bangkok and several other major cities offer a broad range of medical specialities.

Foreign residents do not automatically have access to the public healthcare system in the same way as local employees. Anyone without suitable insurance or another valid arrangement may have to pay medical costs directly. Private insurance is therefore an important part of a long term budget.

Some visas also have specific medical coverage requirements. Conditions vary by visa type and can change. An O A retirement visa and certain other long stay routes have insurance conditions. Other routes may not formally require a policy, but that does not make living without insurance sensible.

Check age limits, exclusions for pre existing conditions, maximum benefits and whether the insurer pays hospitals directly. A cheap policy may not provide enough cover for a long hospital stay or specialist treatment.

Tip: Before leaving, request written quotations from several insurers based on your age, medical history and intended location. Do not use a general comparison website premium as your final budget.

International schools can reduce the cost advantage

Thailand has a large selection of international schools. British, American and IB programmes are available. Bangkok has the widest choice. Chiang Mai and other cities also have international schools.

Fees vary significantly. Published tuition for the 2026/27 school year at the schools reviewed ranges from approximately 340,000 baht per year for a preschool place in Chiang Mai to around 1.2 million baht for secondary education at the upper end of the Bangkok market. One time entry and registration fees may be added.

For a family with two children, this is an important consideration. Even if rent and groceries are much cheaper, school fees can consume a large part of the savings.

Local schools are generally less expensive, but language and curriculum require attention. Parents must decide whether their children can enter Thai education or whether international education is necessary.

Residency requires planning

Thailand has several visa routes. The right route depends on age, employment, income, assets and the purpose of the stay. A retirement visa is not the same as a work visa. A visa for digital nomads does not automatically give the same rights as a standard work permit.

For families, it is important to consider more than the main applicant's visa. The residence status of the partner and children must also be arranged. Children may qualify for an education visa or dependent status under certain conditions. The accompanying parent must also have a valid route to stay.

Anyone who wants to work locally must check Thai work permit rules and restricted occupations. Tourist status is not a substitute for a work permit.

Culture and everyday life require adaptation

Thailand has its own language, customs and social expectations. English is often sufficient in tourist areas and international companies. Outside those environments, knowing Thai is a major advantage.

The climate is hot and includes a rainy season. Air pollution is a concern during certain periods in parts of northern Thailand. This may be an important consideration for people with respiratory conditions or families with young children.

Thailand can therefore be financially attractive, but a trial stay is sensible. Rent temporarily, experience the climate and daily routine, and investigate schools and hospitals before making a permanent decision.

Who is Thailand suitable for?

Thailand is particularly suitable for retirees with stable foreign income, people who can work remotely and families who have found an appropriate school and residency route. It scores well on everyday affordability and private healthcare in major cities.

The main disadvantages are visa rules, insurance costs, international school fees and the need to adapt to the language and culture.

5. What does it cost for a retired couple?

A retired couple often has different priorities from a young family. There are usually no school fees and there may be no need to earn a local salary. This makes countries with affordable housing and everyday expenses particularly attractive.

However, medical costs are a greater risk. Age can affect insurance premiums, acceptance and coverage. A couple who leave in good health may still face higher costs later.

A realistic budget should therefore include several items:

• Rent for a home in a safe neighbourhood.
• Groceries and household expenses.
• Electricity, water, internet and mobile phones.
• Transport, including any car and maintenance.
• Private health insurance and excess payments.
• Visas, renewals and legal fees.
• Travel to visit family in Europe.
• A reserve for unexpected medical or household expenses.

Malaysia can be attractive if the couple lives in Penang or outside central Kuala Lumpur. Private healthcare and the usefulness of English are important advantages. However, MM2H costs and any property conditions need to be financed separately.

Panama can be interesting if the couple qualifies for the Pensionado programme. The dollar system makes budgeting straightforward. Location is important: living in Panama City can significantly increase monthly expenses, while smaller towns may be less expensive.

Thailand may offer the lowest everyday spending. A couple that eats locally and rents outside the most expensive areas may see a significant difference. However, private health insurance and the conditions of the chosen visa need careful calculation.

An example budget should not simply show a comfortable monthly amount. It should also include an annual reserve for visas, travel and healthcare. A couple that looks only at rent may end up with an overly optimistic picture.

In numbers: Imagine a couple saves 500 euros per month on housing and everyday expenses in another country. That adds up to 6,000 euros a year. If private health insurance and visa costs together add 3,000 euros per year, the actual saving is 3,000 euros. This is an illustration, not a quotation for any of the three countries.

The most important question is therefore not which country has the cheapest lunch. It is how much money remains after all fixed expenses, insurance and essential services have been paid.

6. What does it cost for a family with two children?

For families, the comparison is more complicated. Two adults and two children need more living space. Education, childcare, transport and healthcare also carry more weight.

The first decision is the education system. Choosing local schools can save a great deal in all three countries. But it requires a bigger adjustment for the children. They need to learn a new language, adapt to a different curriculum and build a new social network.

International education can make the transition easier. Children often follow British, American or international programmes. This is particularly useful if the family may return to Europe later. However, the fees can be high.

Malaysia has a relatively broad selection of international schools. Penang offers schools at different price levels. Kuala Lumpur has more choice, but also more expensive institutions. School selection can therefore be a decisive factor when choosing where to live.

Panama has international schools, particularly in the capital. This makes Panama City more attractive to families who consider international education important. However, the combination of rent, transport and school fees may make the country less affordable for a family than everyday prices suggest.

Thailand has a large international school sector. Fees vary significantly and can rise sharply in the senior years. A family should therefore look at the full education pathway, not just the cost of the first year.

There are other expenses beyond tuition. These include registration, uniforms, school buses, meals, excursions, sport and learning materials. Schools may also require a deposit. These costs are often overlooked in simple comparisons.

The labour market is also important for families. A country may be inexpensive, but if both parents need local jobs and salaries are much lower, the financial advantage may disappear. People who retain income from the Netherlands, England or an international employer may be in a different position.

A family working remotely must check whether its residence status allows this. Tax residency, social security and the tax treatment of foreign income also require professional advice in advance.

The best approach is to prepare two budgets with different school scenarios. First calculate the costs with local schools, then with international schools. If the plan is only financially viable with a school that does not suit the children, the country may not be the right choice.

7. Work, income and taxes determine whether the move is realistic

A country may be inexpensive, but you still need to be legally allowed to live there and retain your income. This is one of the biggest differences between retirees and families of working age.

Retirees usually have stable income from pensions or assets. They do not always need access to the local labour market. Residency conditions, healthcare and taxation are often more important to them than local job vacancies.

For families, the labour market is much more important. Anyone planning to work locally should look at sectors, salary levels, language requirements and whether foreign workers are permitted. In some countries, certain professions are reserved for local residents. A European qualification is not automatically recognised.

Remote work may seem like an easy solution, but it is not always straightforward. A visa may restrict paid work, even when the employer is based in another country. Tax rules may also determine where your income is taxed.

The Netherlands and the United Kingdom do not treat emigration as a simple change of address either. The tax consequences depend on personal circumstances, income, assets, pensions and any businesses. Before leaving, obtain professional advice on where you will become tax resident and which obligations will remain.

An inexpensive home abroad is of little value if you unexpectedly face double taxation, insurance problems or an invalid work status.

8. Which of the three countries performs best?

There is no universal winner. The three countries have different strengths, and the result depends largely on your stage of life.

Malaysia stands out as an overall package. It offers modern facilities, an English friendly environment in many cities, private healthcare and a wide selection of international schools. This can be a major advantage for families. However, the financial conditions of MM2H deserve serious attention.

Panama is particularly interesting for retirees. The Pensionado programme offers a clear residency route for people with a lifetime pension. The dollar system is practical and Panama City has modern private healthcare. For families, school fees and living in the capital can increase costs.

Thailand is attractive for people who mainly want to reduce everyday spending. Private hospitals in major cities are well established and there are many international schools. Insurance conditions, visa rules and school costs must be investigated carefully.

At a high level, the comparison looks like this:

Category	Malaysia	Panama	Thailand
Everyday costs	Often low	Varies significantly by region	Often low
Private healthcare	Strong in major cities	Strong in the capital	Strong in major cities
International schools	Wide choice	Mainly in Panama City	Wide choice in major cities
English in daily life	Relatively useful in cities	Spanish matters, English in international sectors	Mainly in cities and tourist areas
Retirement route	MM2H with financial conditions	Clear Pensionado route	Several retirement visas
Families	Interesting, school choice matters	Capital offers most facilities	Interesting, school fees can be high
Main consideration	MM2H conditions	Regional differences and school costs	Insurance, visas and school fees

This table summarises issues to consider. It is not an official ranking. Healthcare and education quality vary between institutions. A national average cannot tell you whether a particular hospital or school is right for you.

9. How to avoid making emigration more expensive than staying home

Anyone seriously considering a move should start with a trial budget. Do not rely only on prices from expatriate websites. Request rental prices from local agents, contact schools and ask insurers for quotations based on your own circumstances.

Visit your chosen region outside the holiday season as well. A destination may seem ideal during a short holiday, but everyday life is different. You need to shop, visit doctors, take children to school and deal with administration.

Make a list of services that are non negotiable for you. For a retired couple, this might be a hospital with certain specialities. For a family, it might be a school with a familiar curriculum. Your choice of location should follow from these requirements.

A practical preparation plan includes the following steps:

1. Prepare a complete budget for at least a year.
2. Check current residency conditions with the official immigration authority.
3. Request written quotations for private health insurance.
4. Visit several schools and check their recognition and curriculum.
5. Research the local labour market or remote work conditions.
6. Have tax residency and pension consequences assessed professionally.
7. Rent temporarily before buying a property.
8. Keep a financial reserve for unexpected expenses and a possible return.

Watch out: Do not buy a property because a visa agent tells you that it guarantees residency. Check the conditions directly with the government and have contracts reviewed independently by a lawyer.

It is also sensible to prepare a return plan. Not every move works out, and that does not have to mean failure. Good preparation also means knowing how you could return, which assets you should retain and how to arrange healthcare and insurance during a transition.

10. The best choice depends on your priorities

Anyone looking only for the lowest everyday costs may find Thailand particularly attractive. Anyone looking for a combination of modern facilities, English and private healthcare may put Malaysia higher. Anyone moving with a lifetime pension and looking for a clear residency route should seriously consider Panama.

For families, Malaysia looks like a strong candidate on paper, particularly because of its school options and international environment. But school fees remain a major expense. Thailand can also be interesting, but school choices and visas need to be arranged in advance. Panama is most attractive when the family finds a suitable school outside the most expensive residential areas.

For retirees, all three countries may be financially interesting. However, health and insurability can completely change the result. A couple with significant medical needs may be better off in a country with a higher cost of everyday life but better access to the treatment they require.

The most important lesson is that emigration does not start by choosing a country. It starts by choosing a lifestyle that is financially and practically realistic. You then look for the country that best supports it.

Conclusion: Malaysia, Panama and Thailand all deserve a place on the shortlist for people who want to live more affordably outside Europe. Malaysia offers the most balanced combination of facilities and international orientation. Panama has a strong retirement route. Thailand is attractive because of its low everyday costs. None is automatically cheaper in every category. Healthcare, education and residency rights determine whether the savings will hold up in real life.

Questions to ask

• Can I legally live in this country on my current pension or income?
• Which health insurer will accept me, and what is excluded?
• Which schools suit my children and what does the full school year cost?
• How much money will remain each month after rent, transport, insurance and taxes?
• Can I imagine living here during illness, old age or a difficult period?

This article provides general information to help compare countries and key considerations. It is not personal financial, tax, legal or medical advice.

Sources

• Ministry of Tourism, Arts and Culture Malaysia, MM2H Guidelines
• Ministry of Tourism, Arts and Culture Malaysia, MM2H FAQ
• Panamá Digital, Permanent Residence as Retired or Pensioned Person
• Visit Thailand, International Schools in Thailand, 2026/27
• Visit Thailand, Health Insurance for Expats and Retirees
• Visit Penang, Living in Penang, 2026
• ExpatMove, International School Fees Malaysia, 2026
• Utrecht University, Costs of Living in the Netherlands
• Office for National Statistics, Household Costs Indices, April to June 2026
• Office for National Statistics, Family Spending in the UK, 2024 to 2025