Japan’s capital Tokyo has topped the list as the world’s best city for a “workcation,” according to a 2025 report by International Workplace Group (IWG), a flexible and hybrid workspace operator.
The results are part of IWG’s third annual “Work from Anywhere Barometer,” which ranks the top workcation cities globally — or where travelers can combine work and leisure.
Tokyo took the No. 1 spot because of its “exceptional” broadband speed, transport infrastructure, safety, culture and its newly launched digital nomad visa, according to the report.
In addition, the city “also benefits from proximity to mountains, coastal regions, and national parks – ideal for hybrid workers seeking an exciting urban atmosphere alongside natural escapes,” according to IWG.
IWG ranked 40 countries on a scale of one to 10 based on the following 12 criteria:
- Climate
- Accommodation
- Food
- Transport
- Subsistence (average price of a cappuccino in the expat area of the city)
- Broadband speed
- Happiness
- Availability of flexible workspaces
- Cultural quality
- Availability/price of digital nomad visa
- Proximity to beaches, mountains or national parks
The digital nomad visa — which gives workers the legal right to work remotely while residing away from their country of permanent residence — is a new criterion, along with proximity to beaches, mountains or national parks.
In this year’s report, 86% of hybrid workers cited the availability of flexible workspaces as a major determinant in their choice of destination.
“Thanks to hybrid working and cloud technology, employees now have the freedom to work wherever and whenever suits them best”, said Mark Dixon, founder and CEO of International Workplace Group.
These are the top 10 cities for workcations in 2025, according to IWG:
- Tokyo
- Rio De Janeiro
- Budapest
- Seoul
- Barcelona
- Beijing
- Lisbon
- Rome
- Paris
- Valletta
Tokyo, Seoul, Rome, Paris and Valletta are new entrants to the list. Seoul made the list because of its “ultra-fast internet, efficient public transport, and a thriving digital nomad community supported by South Korea’s digital nomad visa,” according to the report.
Budapest dropped from first to third place, but remains a favored choice for its food and happiness index.
The report also lists the top 10 Asian workcation cities, including Singapore, Jakarta, Manila, Mumbai and Hong Kong.
Singapore remains a favorite for hybrid workers because of its high scores in areas such as food, happiness, broadband speed and sustainability. The report cited its “island-wide 5G network coverage and seamless urban mobility” and its green spaces.
Barcelona, Beijing and Lisbon, although popular choices, fell in this year’s list.
Mexico City, Cape Town, Prague, Melbourne, Orlando and Reykjavik were among the report’s emerging workcation destinations. They scored high on criteria like digital nomad visas and proximity to nature.
“This trend is here to stay with many companies adopting flexible working and work from anywhere policies, particularly over the summer months for the long-term, which not only improves work-life balance and reduces burnout but also delivers significant productivity gains,” Dixon said.
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