Central America (Belize, Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, and Panama) has become an increasingly popular destination for expatriates, particularly retirees, digital nomads, and those seeking affordable living with natural beauty and proximity to the U.S. While exact figures for all expats (including non-Americans) are hard to pinpoint due to underreporting and varying definitions, U.S. citizens form the largest expatriate group. Estimates suggest that over 300,000 American expatriates live in the region as of 2024-2025, driven by trends such as post-pandemic remote work, political shifts in the U.S., and favorable visa policies. Overall, global expat numbers have risen, with the U.S. expatriate population expected to double to around 9-10 million by 2025, and Central America capturing a growing share due to its low cost of living (often 50% cheaper than in the U.S.) and high-quality healthcare.
Key drivers include:
- Retirement appeal: Countries like Costa Rica and Panama rank highly in global retirement indices for 2024-2025.
- Post-2024 U.S. election surge: Interest in relocation spiked, with Costa Rica seeing a 300% increase in searches from Americans.
- Digital nomad visas: Introduced in Costa Rica, Panama, and other countries, attracting younger expats.
- Challenges: Rising asylum restrictions (e.g., in Costa Rica) and regional instability have slowed some flows, but expat-specific migration remains steady.
Estimated Number of American Expats by Country (2024-2025)
Data is primarily from the U.S. State Department, UN International Migrant Stock, and expat surveys (e.g., InterNations, AARO). These exclude temporary visitors and military personnel; totals are conservative estimates.
| Country | Estimated U.S. Expats | Key Notes |
|---|---|---|
| Costa Rica | 120,000 – 150,000 | Top retirement spot; 4.1% of immigrants are American (per 2022 census). 300% interest surge post-2024 election. |
| Panama | 50,000 – 80,000 | Granada’s popular pre-2018 unrest; numbers dipped but stabilized for budget expats. |
| Belize | 10,000 – 20,000 | Granada’s popular pre-2018 unrest; numbers dipped but stabilizing for budget expats. |
| Guatemala | 5,000 – 10,000 | Focus on Antigua for expats; lower numbers due to security concerns. |
| Nicaragua | 5,000 – 10,000 | English-speaking appeal; attracts divers and eco-tourists. Immigrants overall ~16% of the population, but the U.S. shares a small. |
| Honduras | 3,000 – 8,000 | Roatán island draws retirees; limited due to violence perceptions. |
| El Salvador | 2,000 – 5,000 | Emerging with Bitcoin City hype; lowest due to historical instability. |
| Total | ~300,000 | ~3-5% of global U.S. expats; up ~20% since 2020. |
Migration Trends (2023-2025)
- Overall Growth: U.S. expat numbers in the region rose ~15-20% from 2020-2024, per UN and AARO data. Globally, 1,285 Americans expatriated in Q1 2025 alone (102% increase from Q4 2024), with Central America gaining from U.S. political/economic discontent.
- By Country:
- Costa Rica: +25% in U.S. arrivals since 2023; 10% of population now migrants/refugees (mostly Nicaraguans, but U.S. expats lead non-regional inflows).
- Panama: Steady +10% annual growth; top for working expats (84% report high happiness in 2025 surveys).
- Belize: Stable but niche; U.S. expats ~5% of its 16% immigrant population.
- Northern Triangle (Guatemala, Honduras, El Salvador): Slower growth (+5-10%); focus on safer enclaves amid regional outflows to the U.S.
- Nicaragua: Flat/declining due to political issues, but +15% in eco-tourism expats.
- Demographics: ~23% are retirees (average age 60+); 40% remote workers/digital nomads. Median household income for U.S. expats: $70,000-$80,000, with many using Foreign Earned Income Exclusion (up to $120,000 tax-free in 2023).
- Non-U.S. Expats: Europeans and Canadians add ~50,000-100,000; total foreign-born in region ~2-3 million, but expats (skilled/long-term) are a subset.
Economic and Social Impacts
Expats contribute ~$2-3 billion annually in remittances, real estate, and tourism to the region. In Costa Rica and Panama, they boost healthcare (private systems rival the U.S. at 50% cost) and property markets. However, locals note gentrification in hotspots like Tamarindo (Costa Rica). Safety ranks vary: Panama (38th in the 2023 World Citizenship Index) outperforms Honduras (higher violence).