Low taxes, safety and quality of life: The world’s best places to live in 2026

Monaco has been named the world’s top destination for people considering to move abroad, followed by Andorra and the United Arab Emirates, according to Nomad Lifestyle Index.

The index, produced by Nomad Capitalist, assessed 63 destinations in five categories: nature and climate; taxation; residence and access; safety and freedom; and quality of life and infrastructure.

The assessment considered factors including air quality, exposure to extreme weather, pathways to residency and citizenship, peace and security, life expectancy, living costs and broadband speeds.

Monaco secured first place after earning a perfect score of 100 in the quality of life and infrastructure category. It also performed strongly in safety and freedom.

Andorra came second, leading the safety and freedom category and recording the best air quality among the European destinations assessed. However, its ranking was affected by strict citizenship requirements, including 20 years of residence and passing language and history tests.

The top three destinations — Monaco, Andorra and the UAE — were separated by just 0.74 points.

Malta ranked fourth, benefiting from its strong passport and a pathway to naturalisation after five years. Its tax performance and quality of life and infrastructure scores, however, limited its overall position.

Portugal, a popular choice among digital nomads, took fifth place. It scored well for safety and freedom, residency options and taxation, but its exposure to extreme weather linked to climate change affected its performance in the nature category.

Cyprus ranked sixth, placing second in the residence and access category. Its passport strength and seven-year naturalisation pathway helped its score, while air quality and infrastructure-related factors weighed on its overall position.

Switzerland also made the top 10, with its performance in safety and freedom contributing to its ranking.

The index assigned each destination a score out of 100 in all five categories before combining the results to determine its overall position.