This small European country named best place to live in the world: Almost no one would guess which one

Estonia, a small Baltic nation, has been recognized as the world's best place to live and relocate in 2026, outperforming established destinations like Singapore and Portugal. This recognition comes from the Rumavi Global Relocation Index, which highlights Estonia's unique combination of digital innovation and a high quality of life.

The index analyzed 192 countries based on 24 criteria, including cost of living, tax system, healthcare quality, safety, employment opportunities, ease of starting a business, and social integration. Estonia secured the top spot, followed by Singapore in second place and Malaysia in third. Portugal, a long-time favorite among expatriates, ranked fourth.

Estonia's leading position is largely attributed to its status as one of the most digitized countries globally. Its e-Residency program allows entrepreneurs to establish and manage EU-registered companies entirely online. Furthermore, the country was among the first in Europe to introduce a dedicated digital nomad visa, attracting remote workers. The nation also boasts a developed digital infrastructure, a high-quality healthcare system, a low crime rate, and a relatively straightforward path to permanent residency.

While personal priorities vary, the index suggests that smaller, technologically advanced nations are increasingly becoming the preferred choice for individuals seeking a new home. The rankings also provide tailored assessments for different profiles, such as families, retirees, entrepreneurs, and digital nomads, further emphasizing Estonia's broad appeal.