Leaving New Zealand: Where Kiwis Are Actually Moving in 2026

55% of Kiwis think NZ is on the wrong track. We've met dozens of them here in Panama. Here's what they told us — and what the data actually says about where to go.

If you're a Kiwi in 2026, you're probably feeling that familiar exhaustion. Polling shows 55% of New Zealanders believe the country is on the "wrong track" — a sentiment that has historically spelled trouble for governments. And it's driving record numbers of departures, with 127,800 people leaving New Zealand in the year ending November 2024.

People aren't really leaving their country; they're leaving a system that keeps taking small pieces of them. Every new law that limits choice, every regulation that takes time, every tax that takes income — that's a chip off your life. A chip off the time you wanted with your family. A chip off the experiences you wanted to have. A chip off the freedom you thought adulthood would give you.

We're Australian. We hit that wall in 2024, feeling the same pressures. Most Kiwis we meet here in Panama have already done a stop in Australia. They tell us the same thing — same treadmill, different colour bus going past it. We started researching leaving New Zealand, where to go, to find a different way. Here's what we figured out.

Why Are So Many Leaving New Zealand?

1. The Cost of Living Squeeze

The financial pressure in New Zealand has been relentless. Inflation has driven up the cost of everyday essentials, and wages haven't kept pace. The cost of groceries, utilities, and transport has squeezed household budgets to the breaking point.

2. The Housing Crisis

Housing affordability is a massive issue. Whether you're trying to buy your first home or just keep up with rising rent, the housing market in New Zealand is punishing. Many families feel like they are working just to pay for a roof over their heads, with little left over to actually live.

3. Public Services Strain

There is a growing frustration with the state of public services. Healthcare wait times are long, and infrastructure often feels stretched thin. When you're paying high taxes but not seeing the return in the quality of services, it breeds resentment.

4. The Cross-Tasman Trap

When Kiwis decide they've had enough, the obvious first move is Australia. But here's the reality we hear from Kiwis who made that move: Australia doesn't fix the underlying problems. Yes, you might earn a bit more, but you're stepping into the exact same systemic pressures. Australia is a lateral move, not a solution.

Quick Comparison: 5 Countries Kiwis Are Moving To

Country Deep Dives

🇵🇦 Panama

Panama is rapidly becoming a top choice for expats looking to build businesses and keep more of what they earn. The country operates on a territorial tax system, meaning foreign-sourced income is generally not taxed locally.

Cost Breakdown: For a family of four, monthly living costs range from $2,855 to $4,148 USD. Renting a 3-bedroom in Panama City averages $1,665–$2,151 USD, and in Boquete, where we live, furnished 3-bedroom houses run $800–$1,600 USD per month.

Visa Options: The Friendly Nations Visa grants a 2-year provisional residency, leading to permanent residency. It requires an economic tie — such as a $200,000 USD real estate investment or incorporating a Panama company — plus government fees of $1,050 USD per applicant.

Honest Downside: Spanish is the primary language. While English is widely spoken in expat hubs, daily life outside those areas requires basic Spanish.

🇵🇹 Portugal

Cost Breakdown: Monthly costs for a family of four run $2,857–$3,148 USD.

Visa Options: The D7 Passive Income Visa and the Digital Nomad Visa are the most accessible routes.

Honest Downside: Portugal's NHR tax regime has been significantly reformed. If tax efficiency is your primary driver, Portugal is no longer the obvious choice it once was.

🇲🇽 Mexico

Cost Breakdown: Monthly costs for a family of four run around $3,029 USD in popular expat destinations.

Visa Options: The Temporary Resident Visa requires proof of income of around $2,600 USD per month. After four years, you can apply for permanent residency.

Honest Downside: Security varies wildly by region. While expat hubs are generally safe, cartel violence in other states requires constant situational awareness.

🇬🇧 United Kingdom

Cost Breakdown: Monthly costs for a family of four in the UK run $3,500–$4,500 USD, depending on location.

Visa Options: New Zealanders with a UK-born grandparent can apply for the Ancestry Visa, granting 5 years of work rights. The Skilled Worker Visa requires a job offer from a UK employer.

Honest Downside: The UK has its own cost of living crisis, NHS pressures, and post-Brexit restrictions. For many Kiwis, this is a lateral move rather than a genuine improvement.

🇹🇭 Thailand

Cost Breakdown: A family of four can live comfortably on $2,226 USD per month in Chiang Mai.

Visa Options: The Long-Term Resident (LTR) Visa is the best option for those with passive income or remote work.

Honest Downside: The "burning season" in northern Thailand (February to April) creates severe air pollution, often forcing expats to leave the region for months at a time.

Why We Chose Panama

We literally had to Google Panama to work out where it was. It was that country we'd heard mentioned in movies. That was the full extent of our knowledge.

We'd always assumed we'd end up somewhere in Europe. But the more we travelled through it, the more we realised it wasn't the right fit for us. There was a language barrier almost everywhere, and more than that, we just never fully relaxed. Beautiful moments, yes. But nowhere we pulled up and thought, "We could actually build here." Because that's the thing: we're not in retirement phase. We're in build phase. We needed people around us who were on the same path.

We seriously considered Portugal, Thailand, Bali, and Mexico. Each one got ruled out for its own reason. Bali made it nearly impossible to bring our dogs. Portugal has some tax laws that can catch you out badly if you're not careful. Cyprus had the energy of a country that didn't quite know what it wanted to be, and homeschooling is illegal there, which was a dealbreaker for us. Safety was a big factor too — especially with an 18-year-old who wants to stretch his wings.

Panama kept rising to the top. Tax efficiency, a genuine expat community of people who are building things (not just retired and waiting for the sun), and a country that actually welcomes homeschooling families.

The moment that confirmed it was Boquete. I'd been dreaming of a town with energy but still that country feeling: coffee plantations, little cafes, and the kids walking down to a freshwater stream and just sitting on the edge. That was it. That was the moment for our whole family.

What We Got Wrong

We made the decision to not go back to Australia while we were already overseas in Italy. Which sounds great in theory. In practice, it meant we were trying to sell a house, sort our self-managed super fund, relocate a shipping container, and figure out our dogs' paperwork. All from the other side of the world.

The single biggest thing we'd do differently: fix everything in your home country while you can still walk into a bank or a solicitor's office in person. Panama visa documents must be no older than six months. We did not know this. We hit Panama on our feet and went, "What's next now?" — and there was a lot of "next."

We're still tidying up loose ends in Australia to this day. That's the whole reason Pathway to Panama exists: so you don't have to reverse-engineer it like we did.

What Surprised Us Most

Honestly, I'm not sure I would have believed this before we left. We'd travelled to Bali, Fiji, all over Australia, but we'd never actually lived somewhere permanently in a new country. Visas, cars, setting up a life from scratch.

What surprised us most was how much less red tape there was. We came from Australia expecting friction everywhere. Instead, our biggest stresses were still coming from Australia — not from Panama. Someone should have told us: "I know how Australia is, but when you cross that border, it's a different experience." We're not very good at small talk. Ask us about goals, dreams, or travel and we'll talk all day — but we'll also talk about bureaucracy, and Panama wins that comparison easily.

Ready to Explore Panama Deeper?

If you're that person that wants to create multiple sources of income, that wants to live a life of choice, and you're not scared of doing the work and recalibrating how you think, we built something for you.

Or, if you're on Instagram, comment PATHWAY on our latest post and we'll send the link straight to your DMs.

Frequently Asked Questions

Can New Zealand citizens legally homeschool in Panama?

Yes. In 2021, Panama passed a law officially recognising homeschooling as a legal exemption to compulsory school attendance. You must notify the Ministry of Education and complete annual assessments.

How does the Friendly Nations Visa work for Kiwis?

New Zealand is on Panama's Friendly Nations list. The visa grants a 2-year provisional residency, leading to permanent residency. You need an economic tie — the most common route for Kiwis is incorporating a Panama company (around $1,000–$1,500 USD) or purchasing real estate worth $200,000 USD or more.

Is Panama safe for families with children?

Yes. Panama is consistently ranked as one of the safest countries in Latin America. Boquete, where we live, has an extremely low crime rate. Panama City has areas that require the same awareness you'd apply in any major city, but the expat hubs are very safe.