Where should young expats live in Central America? A practical, personal look at the best countries for lifestyle, cost, and opportunity.
Despite the rise of remote work and digital nomads, the conventional image of those moving overseas is not young people. It’s an image is of someone older, someone who has retired from the rat race to relax in a tropical place during their twilight years. They’ve put in the time and saved the money. Their homes are now empty nests and they’re ready for a fresh start.
You’ll find no end of websites and real estate companies in Central America catering for wannabe retiree expats. That’s natural. The already retired or close-to-retiring baby-boomer is still the most likely gringo to emigrate to this part of the world. And they’re welcome. But they’re not the only ones. The young are coming too.
Working online is no longer unusual, and living abroad no longer requires a big leap of faith. The pandemic accelerated a shift that was already underway, pushing millions of people into remote jobs and proving that large parts of the workforce no longer need to be tied to a physical office. Digital nomadism is no longer a fringe lifestyle. It’s now a mainstream option for people who work in tech, marketing, design, writing, consulting, and dozens of other online industries. For many, the question is no longer if they can work remotely, but where they want to live while doing it.
And on a more philosophical note, many Gen Z-ers have realized they are unlikely to match their parents’ level of financial security. Home ownership feels out of reach, long-term stability is uncertain, and the traditional idea of climbing the career ladder doesn’t hold the same appeal it once did. So they look for alternatives. They consider quitting and starting new lives elsewhere, in places where their money goes further and daily life feels less constrained. Does this resonate with you? If so, Central America is an obvious place to start. But where in Central America? It’s a small region with seven very different countries. Which one actually works best for a young expat?
Tough question. It’s subjective and depends on your budget and interests. So let’s consider each country and figure out what works best for young people today.
Belize
Most expats who move to Belize are affluent or… um… older. Or both. Apart from some younger people who show up to dive, you’ll find the majority of the expat community is in the “socks and sandals” generation here. Nothing wrong with that at all.
The government doesn’t want people coming unless they can support themselves. If you’re young in Belize, most other young people you’ll meet will be traveling. It’s hard to make long-term friends of your own age, and you’ll be saying goodbye a lot.
Belize is workable for remote jobs, especially in popular areas like San Pedro and Placencia, but connectivity and infrastructure are still somewhat uneven compared to other countries in the region.
But that’s no reason young people can’t come to Belize. If you love adventure, diving, and a laid-back Caribbean lifestyle, a great life could be waiting.
Costa Rica
When I arrived in Costa Rica in 2000, I was a twenty-something myself (Gen X-er here). And a lot of other twenty-something people were coming too. I remember being part of a community of lots of young expats. Oh, the fun we had! Maybe it’s because I’m older now, but I can say with certainty the young are no longer coming to Costa Rica on the same scale as around the turn of the millennium. I often see posts in Costa Rica by young foreigners wondering where other young expats are. Back in the early 2000s, this was not an issue. We were everywhere.
But Costa Rica is now prohibitively expensive for your average Gen Z-er, and noticeably more expensive than the rest of Central America. Also, other countries have risen in popularity. Places like Colombia and Paraguay come to mind in Latin America as a whole, with Nicaragua and El Salvador ticking boxes in Central America. Plenty of retirees still come to Costa Rica, but mostly the wealthier ones end up staying.
That all said, it’s not impossible for young expats to make a life in the land of Pura Vida and Costa Rica still offers more than any other country in the region for young people. It’s relatively safe and easy. The internet is good by regional standards, which makes remote work straightforward. It’s a fantastic country for surfing, outdoor adventures, and overall fun.
I might be biased but for the first-timer to Latin America who’s realistic about money, Costa Rica is still a great choice. At least until you learn Spanish and get confident.
El Salvador
El Salvador attracts young expats mainly for two reasons: surf and Bitcoin.
The Pacific coast is the main draw, with places like El Zonte, El Tunco, and areas around La Libertad hosting small but active international communities. Life revolves around the beach, simple living, and social scenes that form around a handful of well-known hubs where most foreigners end up.
Bitcoin is part of the landscape here, particularly along the coast. Some people move to El Salvador specifically because of the country’s crypto-friendly stance, whether for ideological reasons, business opportunities, or simple curiosity. In practice, this mostly means being surrounded by other foreigners working online, trading, building small projects, or just experimenting with alternative financial systems.
El Salvador is small and easy to get around, but socially quite concentrated. Outside of the coastal strip and parts of San Salvador, there is little in the way of expat infrastructure or international community. Variety is limited, and long-term life can feel repetitive if you need a lot of stimulation or choice. El Salvador suits young people who want a beach-centered lifestyle, a tight-knit foreign community, and an interest in the crypto scene, rather than big cities, cultural variety, or traditional career opportunities.
Guatemala
Most expats in Guatemala live in the colonial town of Antigua or in the communities around Lake Atitlán. Not to say many don’t live elsewhere, but when they do, it’s more likely they’ll be the only gringo around (not always a bad thing).
Both Antigua and Lake Atitlán are baby-boomer central. And often these boomers are those who turned on, tuned in, and dropped out in the 1960s and 70s. Guatemala is still a country for hippies, which is no bad thing. A lot of these people have done great work over the years, helping to shape the tourist scene and give back through different social and community projects.
People still retire to Guatemala, but many of those of retirement age have been in the country for decades since they were young themselves. And Guatemala still appeals to the young.
Guatemala remains a solid staple on the backpacker trail. The relaxed hippy vibe, combined with low costs, makes it one of the easier countries in Central America for young people to visit and stay long term. Many “forget” to go home.
For the laid-back expat, Guatemala is an excellent option.
Honduras
Honduras attracts relatively few young (or even not-so-young) expats compared to the rest of Central America, with the main exception being the Bay Islands in the Caribbean Sea.
Roatán and Utila are the obvious hubs. They’re beautiful, heavily touristed, and relatively easy to settle into if you like diving and island life. Utila in particular still has a strong party scene and attracts younger travelers who end up staying longer than planned.
Outside of the Bay Islands, there is very little in the way of an established young expat community. Most foreigners you meet will either be short-term travelers or people who have been in the country for a long time and are fairly embedded in local life.
Honduras suits young people who are independent, comfortable operating without much expat infrastructure, and not looking for a big social or professional scene. It works best for people who want nature, diving, and a low-key lifestyle rather than community, variety, or convenience.
Nicaragua
Nicaragua still attracts young expats, mainly because it remains one of the cheapest countries in Central America. For people who are budget-conscious and flexible, it can make a lot of sense.
You’ll find small pockets of young foreigners setting up hostels, surf camps, cafes, yoga projects, and other lifestyle businesses, particularly in places like San Juan del Sur, León, and Granada. The foreign community is smaller than in Costa Rica or Panama, but it exists and tends to be fairly tight-knit. Talking of San Juan del Sur, it’s is probably still my favorite beach community in Central America. You can live simply, meet people from all over the world, and still feel like you’re in a real town rather than a resort bubble. For a lot of young expats, San Juan del Sur hits a rare balance between social life, affordability, and lifestyle.
The main drawbacks are infrastructure and reliability. Internet quality is inconsistent, power cuts are not unusual, and everyday life can feel slow and unpredictable. Long-term remote workers can sometimes get frustrated, especially if they’re used to more developed systems.
Nicaragua suits young people who prioritize low costs and simple living over convenience, variety, or strong digital infrastructure. It’s a place for those who are happy to adapt, keep expectations low, and focus more on lifestyle than productivity.
Panama
One could say Panama almost caters to young expats.
Panama City, with its cosmopolitan atmosphere and glittering high-rises, is a city where things are happening. A city where you make things happen. This isn’t a place to slow down or retreat from the world. It’s a place to work, socialize, and plug into something bigger. For young people who want an urban lifestyle, Panama City stands out in Central America. There are coworking spaces, international companies, a decent startup scene, and enough nightlife, culture, and variety that life doesn’t feel small or repetitive.
Outside of Panama City, however, you might as well be in another country. The pace slows down immediately. But if you like beaches, jungle, and nature, that’s part of the appeal. You can live in the capital during the week and escape somewhere quiet on the weekends.
Panama has the fastest internet in Central America and it’s easier to function in than most countries in the region. It suits young people who want opportunities, social life, and a sense of momentum, rather than a purely laid-back or low-cost lifestyle.
One tip — stay out of Boquete in the mountains of the far west. Boquete is beautiful, for sure. But most of the expats are old enough for local wits to nickname the town “God’s Waiting Room”. Although it’s also great for adventure activities like hiking, rafting, and climbing. Other than Boquete, Panama is yours for the taking.
So Which Country is Best for Young Expats?
Out of the seven countries in Central America, I rank them like this for young people wanting to live down here:
- Panama (dynamic Panama City and the strongest overall scene)
- Costa Rica (easiest overall)
- Nicaragua (still the best balance of cost and lifestyle)
- El Salvador (for the surf and crypto scene plus a sense of “new beginnings”)
- Belize (for the Caribbean lifestyle)
- Guatemala (for the vibe)
- Honduras (for diving and low-key living)
So for me, Panama is now the best country for a young expat who wants opportunity, social life, and momentum. Nicaragua and Costa Rica are close behind, just offering very different trade-offs.
At the end of the day, of course, there is no single “right” answer. Central America works precisely because each country offers a very different version of expat life, and what suits you will depend on how you want to live, work, and spend your time no matter how old you are.
