The Happiest Places To Live In The World In 2025

If you’re thinking of moving abroad to enjoy a higher quality of life, make sure to start your search with our list of the happiest countries in the world.

Moving abroad is a life-changing experience, and one that can come with a whole host of challenges, such as culture shock. But by choosing to live and work in one of the happiest countries in the world, you could settle into your new life abroad while enjoying everything from brighter opportunities, to a greater sense of community, and even improved mental health.

How we’ve ranked the happiest countries in the world

Defining happiness isn’t easy, since it can be very subjective. Don’t be upset if your favourite country doesn’t appear in our list – the place you feel happiest is as good as any of these countries!

But when it comes to factors that can impact your quality of life and well-being, there are many measures we can use. By building an average across these metrics, we’ve decided our own rankings for the top five happiest countries in the world.

In order to do this, we’ve combined our expertise as a provider of international health insurance with research from the World Happiness Report 2024, Numbeo’s Quality of Life Index, US News’ Quality of Life Index, CEOWORLD Magazine’s Quality of Life Report and the Institute for Quality of Life’s Happy City Index. We’ve also considered other factors that impact happiness, such as GDP per capita and average life expectancy. We’ve created a weighted average across all of this research to determine the countries we believe are among the happiest in the world in 2025.

How have things changed since 2024?

Last year, our top 5 happiest countries in the world were:

1. Denmark
2. Sweden
3. Canada
4. Australia
5. New Zealand

Let’s see how the list has changed in 2025.

The happiest countries in the world in 2025

1/ Switzerland

• Happiest City: Zurich
• Quality Of Life Index: 204
• Average Life Evaluation: 7.060

Regular readers of the William Russell blog will not be surprised to see Switzerland top our list of the happiest countries in 2025. We recently named Switzerland the best country to live in the world, as well as one of the top 10 healthiest countries and one of the best for healthcare.

It’s therefore easy to see why Switzerland tops our list of the happiest countries. With its incredibly high standard of living, high-quality healthcare, healthy lifestyle, stable political system and of course its world-famous natural landscapes, Switzerland has all the ingredients needed to make a happy country.

Living in Switzerland

Switzerland is widely recognised as one of the wealthiest countries on earth, and ranks among the top five countries for average annual salaries. In 2023, Swiss workers earned an average of US$79,204 per year. Of course, these high salaries are offset by a high cost of living – the average rent in Switzerland is nearly double what it is in the UK, and the cost of day-to-day life is around 64% higher.

Still, the Swiss seem to observe the mantra that the best things in life are free. With stunning natural beauty all around them, from the staggering Matterhorn to Lake Lucerne, and idyllic towns such as Interlaken and Stein am Rhein, the Swiss gladly spend their free time exploring the country and engaging in outdoor pursuits such as hiking, skiing and even paragliding.

Working in Switzerland

Working conditions in Switzerland are among the best in the world. We’ve already mentioned the astronomical salaries, but Swiss workers benefit in many other ways too. With strong worker protections in place, they enjoy a legal limit on working hours (45 hours for industrial workers, 50 for commercial employees), a minimum of four weeks vacation time (not including Switzerland’s nine public holidays, plus additional regional public holidays), and a 25% premium when working overtime. Employers are also legally obliged to provide a safe and healthy workplace and 98 days of maternity leave.

Culture in Switzerland

Swiss culture is centred around shared values of honesty, hard work, studiousness and respect – both for other people and for nature. The Swiss also value formality in social interactions, and are always ready to greet you with a handshake. As a business-minded nation, the Swiss also put a lot of emphasis on punctuality, politeness, good manners and directness – the Swiss like to get down to business without any distractions. Famously neutral in global affairs, the Swiss are also keen to promote a message of world peace, and this also means they value stability and security over disruption.

2/ Australia

• Happiest City: Brisbane
• Quality Of Life Index: 185.5
• Average Life Evaluation: 7.057

Another regular feature across the William Russell blog, we’ve previously named Australia as the ninth best country to work, the seventh healthiest and (although Brisbane takes the title for happiest city) we named Melbourne the friendliest city in the world. Australia also dominated the competition in our most recent expat index, taking the title as the best place for expats to live.

When it comes to happiness, Australia ranks consistently highly across all the major metrics. Whether it’s quality of life, life satisfaction, or even life expectancy, Australia can always be found near the top of the leaderboards – and it’s this holistic approach to happiness that earns it the silver medal in our 2025 rankings.

Living in Australia

Not only is Australia the cultural epicentre for Oceania, it also sits at the cultural crossroads of the Eastern and Western worlds and benefits immensely from its connections to Europe, Asia and the Americas. Already a highly developed country, the Australian economy has been growing at a consistently high rate for many decades with the average worker in Australia earning around US$68,000 per year.

Living in Australia, you will find yourself gravitating towards one of its major coastal cities. Indeed, Australia is one of the world’s most urbanised countries, with around 90% of its 27 million population living in cities. The cost of living can be high in these metropolitan environments – indeed the average cost of living in Australia is around 4% higher than the UK. But with so much to see and do, from surfing on Bondi Beach to exploring the Outback, Australia offers everything an intrepid expat could ever ask for.

Working in Australia

Australia’s main industries include finance, professional services and iron ore mining. Working conditions in Australia are highly regulated by a legal framework called the Fair Work Act 2009, which stipulates a maximum of 38 working hours per week, 4 weeks of paid time off and a minimum wage of AUS$23.23 per hour. The framework also allows workers to request flexible working conditions, especially if they are parents, carers, aged 55 or over or have a disability.

A new amendment to this law in 2024 also gives Australian employees the ‘right to disconnect’. This means workers cannot be expected to answer work calls or emails outside of their usual working hours, and may be able to claim compensation if they perform these duties in their free time.

Culture in Australia

A former British colony, Australia is a predominantly Western society, although it also incorporates a strong mix of migrant and indigenous influences to create a diverse and vibrant tapestry. The core values of Australia include individual liberty, respect and fairness, which materialises in the form of good manners, warmness to one another and equality of opportunity.

Australians also observe a ‘work hard, play hard’ approach to life – studious and hard-working during the working week, they are always keen to kick back at evenings and weekends, which is when you can usually expect to find the Australian suburbs filled with barbecue smoke and music. One more thing to note is that Australians are big fans of wine and beer, which has led to the emergence of a strong drinking culture.

3/ Sweden

• Happiest City: Gothenburg
• Quality Of Life Index: 186.7
• Average Life Evaluation: 7.344

Slipping one place from last year but retaining its position in the top three, Sweden remains one of the happiest countries in the world in 2025. In 2023 and 2024, Sweden was our number one country in the world for mental health, so it should come as no surprise to see it on our list of the happiest countries too. We’ve also recognised Sweden in our list of the least stressed countries in the world, the healthiest countries, and we included the Swedish capital Stockholm as one of the best places to start a family. All of this added together paints a very positive picture of Sweden, and demonstrates some of the reasons Sweden ranks as one of the happiest nations on earth.

Combining a high standard of living with a balanced and equitable society, not to mention beautiful cities and nature alike, Sweden scores consistently high in all the major metrics of happiness. The Happy City Index even awards its Gold standard to an unprecedented four Swedish cities (Gothenburg, Stockholm, Eskilstuna and Jonkoping).

Living in Sweden

A storied Scandinavian nation with a proud history of industry, Sweden strikes the perfect balance between tradition and modernism, perfectly encapsulated in the national psyche of “Lagom”. Translated to “just the right amount”, it encourages balance and moderation in all aspects of life – and it’s this approach to work and life that makes Sweden so happy, as it tempers determination and hard work with a peaceful and holistic lifestyle.

With a strong welfare state providing free healthcare, a world-leading approach to equality (Sweden has the highest score for gender equality in the EU), and an emphasis on work-life balance, Sweden provides a strong social safety net beneath a blossoming commercial and industrial sector. This ensures people in Sweden are free to pursue their dreams, knowing that the state will always be there to support them when times get tough.

Working in Sweden

The case for Sweden’s strong employment laws and temperate working culture is borne out by the fact it boasts one of the highest rates of productivity in the world. As an employee in Sweden, you will find your relationship with your employer to be very equal, while any disputes are usually referred to one of many trade unions. Swedish employers face a long list of anti-discrimination laws, and must also take extra steps to ensure the safety and well-being of everyone in the company.

The average salary in Sweden is fairly good, at US$38,310. Income tax is also high, reaching between 32–45%, although Swedish citizens are well cared-for by their tax money, receiving state-funded healthcare, a strong social security system, fantastic education for children and competitive pensions.

Culture in Sweden

As one of the most egalitarian societies in the world, Sweden is notable for its commitment to ensure total fairness for all people – no matter their age, gender, ethnic background, religion or skin colour. The Swedes are also well known for their humility and humbleness, preferring to live a life of quiet tranquility rather than one of flashiness. The Swedes value individualism and personal liberty, believing in the sanctity of the individual – although that’s not to say they won’t step in when someone needs help.

That the Swedes are so happy is evident in their mannerisms. They are soft spoken, mellow and easily trusting. Nothing embodies the Swedish mentality more than “Fika”, the daily ritual of taking oneself out of the office to enjoy a coffee and a snack with friends and colleagues.

4/ Norway

• Happiest City: Ålesund
• Quality Of Life Index: 189
• Average Life Evaluation: 7.302

So integral is happiness to the Norwegian way of life, the national tourist board even runs with the slogan ‘Find your Happy Place’. Indeed, Norway has become a mainstay on any list of the happiest countries in the world, alongside its Scandinavian neighbours, with commentators highlighting its ample wealth, cosy lifestyle and pioneering social model that promotes individual freedom and social equality alongside economic growth.

Norway was already one of our best countries in the world for expats to work, one of our healthiest countries, one of the best for mental health, one of the best to raise a family, and one of the best for working conditions. As if that wasn’t enough to recommend it, now we welcome Norway to our list of the happiest countries.

Living in Norway

Norway became an oil-rich nation in the late 1960s, and has since used that sovereign wealth for the betterment of its society. Thus, Norwegians today benefit from having one of the smallest income inequality gaps in the world, an enormous budget surplus supporting public spending and one of the highest GDPs per capita in the world. The average salary in Norway is a substantial US$63,900, although be warned – the cost of living is also substantial, being around 18% higher than the UK.

All of this contributes to a very high quality of life in Norway. Striking the perfect balance between personal autonomy to build wealth and public expenditure to support a social safety net and provide services, Norway has created a remarkable society that supports individual happiness across every conceivable metric.

Working in Norway

Norway is the most productive nation on earth by gross national income, generating over US$119 for every hour worked. This is because of – or some would argue, in spite of – its strict workplace policies, which dictates the maximum number of working hours to be 37.5 hours per week. Norwegian employers have an obligation to provide a clean and safe working environment and must pay a 40% supplement to any employees working overtime. Workers must also receive at least one break for every 5.5 hours worked. Norway is also particularly generous with time off, ensuring every employee is entitled to 25 days’ holiday (five weeks) per year.

Culture in Norway

Like its neighbour Sweden, Norwegian culture is highly egalitarian and based on the shared values of equality, humility and openness. In Norway, being part of society is a participatory act, requiring everyone to chip in and contribute. This is encapsulated in the national belief of “Dugnad”, i.e. everyone participating in a shared goal, which extends to all walks of life – whether it’s caring for your neighbours and relatives, achieving your goals at work, or just wearing a smile to make the outside world seem more friendly.

The sum of all Norwegian values creates another national mindset, “Janteloven”, i.e. the feeling of being Norwegian. True Janteloven is when you are willing to put society before your own needs. It means staying humble, always acting in the best interest of others, and avoiding jealousy. If you were to ask a Norwegian what makes their country one of the happiest in the world, they would point to this shared value, saying that it helps them believe they could trust any of their fellow countrymen to support them.

5/ The Netherlands

• Happiest City: Amsterdam
• Quality Of Life Index: 207.5
• Average Life Evaluation: 7.319

The Netherlands has soared up the table of happiest countries in recent years, boosted by its ever-increasing quality of life, exceptional work-life balance (we named it the best country in the world for work-life balance) and strong social support systems. These aren’t the only reasons the Dutch are some of the happiest people in the world: with a culture of collective responsibility crossed with personal autonomy, and strong belief in their political institutions, the Dutch stereotypes of being relaxed, optimistic and wise seem to have some truth.

We’ve previously named the Netherlands one of the best countries in the world to raise a family and one of the best countries for both secondary education and university education. Now we’re pleased to give Netherlands the recognition it deserves for being one of the happiest countries in the world.

Living in The Netherlands

While it may be small, the Netherlands is one of the world’s most influential countries, being a legal, financial and political hub for the European Union. Ranking in the top 10 countries in the world for GDP, the Netherlands is a prosperous country with ample opportunities in its thriving service industries sector. While the cost of living may be high, at around 3% higher than the UK, the Dutch use their funds well, enjoying clean cities and exceptional public transport.

The Dutch lifestyle is all about balance. As well as achieving the perfect work-life balance, the Dutch go to great lengths to ensure they get appropriate amounts of outdoor exercise, enjoy cultural activities and partake in lifelong learning. With a child-centred culture, the Dutch place great importance on the family, and parents will find exceptional childcare options available throughout the country.

Working in The Netherlands

With a competitive working culture, the Dutch enjoy salaries higher than the EU average, with a national average of around US$46,000. Having said that, the Dutch pay higher taxes than many of their EU neighbours too, although this money goes towards funding a fantastic healthcare system, state education, policing and emergency services, and municipal funds to cover local services.

The Netherlands is a predominantly service-based economy, providing a range of professional services for their EU neighbours. Working in the Netherlands, you can usually expect to land in the financial services, creative, and technology sectors, trading with countries like France and Germany. These essential services have transformed the physical landscape of the Netherlands, making it a largely urbanised environment – and it is within these cities that you will find all the ingredients needed for a happy and fulfilling social life.

Culture in The Netherlands

The culture of the Netherlands is shaped by its constitution, which proclaims the individual freedoms and rights of Dutch citizens and centres around equality, democracy, individual liberty and justice. As such, the Dutch are known to have a strong moral compass, combining the pursuit of individual liberty with a collective responsibility to uphold the law of the land.

The Dutch use these individual freedoms to engage in cultural and academic pursuits that enrich their lives. They are known to be big lovers of art, literature and history. The Dutch uphold many of their cultural traditions, and living in the Netherlands you will enjoy frequent festivals throughout the country. While the Dutch are proud of their country’s history and traditions, they also extend brotherly love to their European neighbours, and frequently travel to countries like France and Germany on cultural excursions.

Enjoy a happy life abroad

If you’re thinking of moving abroad for a happier way of life, don’t forget to take out international health insurance.

At William Russell, we have over 30 years’ experience providing international health insurance, life insurance and income protection to expats like you. Our flexible policies give you access to the highest-quality healthcare all over the world, with optional extras to suit your needs and medical evacuation insurance included as standard.

Find out more about our international health insurance policies – speak to our friendly, award-winning team today to see how we can help you.