In this article, we will take a look at the 25 most LGBTQ-friendly countries in the world. If you want to skip our detailed analysis, you can go directly to the 10 Most LGBTQ-Friendly Countries in the World.
Economic Costs of LGBTQ Exclusion
Homophobia and anti-LGBTQ (lesbian, gay, bisexual, transgender, and questioning) laws are costing the economy billions of dollars worldwide. North Carolina alone suffers from $3.76 billion in lost businesses due to limitations in LGBT+ protection laws; $31 billion are lost in India, while the rest of the economy shares similar figures.
According to the LGBT+ Pride 2021 Global Survey, 4% of Generation Z, 2% of Millennials, 1% of Generation X, and less than 1% of Baby Boomers identify themselves as non-binary, gender-fluid, non-confirming, transgender, or in a way that is other than male or female. Visibility of these non-binary individuals is low, albeit growing at a significant pace since the past decade.
A conservative estimate on efforts to change the sexual orientation and gender identities states that the U.S. is losing out more than $9 billion each year. At least 700,000 LGBT adults have been subject to conversion therapies at some point in their lives for gender affirmation. Gender dysphoria, on the other hand, has led more than 80% of non-binary and trans youth to consider suicide, according to data from the US. Economies around the world are losing out on human capital and future economic developments due to the exclusion of the LGBTQ+ community.
In fact, Open for Business, a global companies’ coalition formed to promote LGBTQ+ inclusion, notes that more inclusive cities tend to have a higher GDP per capita. Their global ranking based on 500 cities confirms that the most innovative cities in the world, such as London, New York, Toronto, Paris, and even Vienna are more so because they are more LGBTQ-inclusive. Companies that have anti-discrimination laws against sexual orientation and gender identity report greater levels of innovation too.
Furthermore, a survey of 60,000 corporations reveals that inclusive companies register 8% more patents and receive 11% more patent citations comparatively. On the other hand, economies that tend to be anti-LGBTQ+ drive talent away from them and suffer from "brain drain." Even a one-standard deviation rise stemming from city immigrant diversity has been associated with a 5.8% rise in productivity, implying the same for economies which attract such talent towards them.
Open for Business, and Euro News further discover that economies can raise their levels of Foreign Direct Investment 4.5 times by creating an all-inclusive community. This is because international workforce and investments are generally directed towards countries that are more "tolerant" and "inclusive." Societal acceptance of homosexuality positively correlates with inward FDI flows when correlating PEW Global Attitudes Survey with Foreign Direct Investment data.
LGBT and Business Performance
Proud Ventures reveals that at least 75% of LGBT founders, along with 79% of investors, hide their sexual orientation and/or identity to avoid discrimination. A report on the economic opportunity for the LGBTQ+ community states that 32% of LGBT individuals have an income of less than $24,000. 44% are either unemployed or under-employed, while they are six times more likely to suffer from food shortages. This community is also more likely to face homelessness as a result of discriminatory behavior demonstrated by governments and the public alike.
Consequently, many businesses are embracing equality in the workspace, as reported by Boston Consulting Group. As such, these companies are in a better position to benefit from the increasing spending power of LGBT+ consumers. As of 2019, LGBT capital notes that the purchasing power of this community stood at $3.9 trillion globally.
A Credit Suisse study further notes that companies who have open memberships to LGBT+ business networks or were LGBT-leading companies had better performances in global stocks and benchmarks. Since 2010, the LGBT index has outperformed MSCI AWCI by 3%.
In this context, many top-rated companies such as Apple Inc. (NASDAQ:AAPL), The Coca-Cola Company (NYSE:KO), Hewlett Packard Enterprise Company (NYSE:HPE), Alphabet Inc. (NASDAQ:GOOG), and even Walt Disney have openly pledged support to sexual minorities. Alphabet Inc. (NASDAQ:GOOG) has been donating more than $1.2 million to LGBT organizations from around the world. Meanwhile, Apple Inc. (NASDAQ:APPL) and The Coca-Cola Company (NYSE:KO) regularly donate to such communities and even support same-sex marriages. Apple Inc. (NASDAQ:APPL) has even released Pride Watch to support the work of LGBT organizations. LGBT-inclusive spaces can also be found on Google Maps and Search, a feature released by Alphabet Inc. (NASDAQ:GOOG). Similarly, The Coca-Cola Company (NYSE:KO) has been praised for its anti-discriminatory policies for this community.
At least 67 countries, primarily developing economies, have laws that criminalize same-sex marriages and certain forms of gender expression. These countries have their own views and beliefs strongly upheld by most of the population. As such, minority communities can better thrive in more LGBT-friendly countries.
25 Most LGBTQ-Friendly Countries in the World
Pixabay/Public Domain
Methodology
In order to compile the list of the 25 most LGBT-friendly countries in the world, we have adopted the LGBT Equality Index by Equaldex. It combines the scores based on the legal rights and freedoms of people as well as how the general public feels about LGBTQ+ community in each country.
Countries are then ranked in ascending order of high scores on their equality index. The scores vary from 1-100, with higher scores implying higher levels of equality for LGBTQ+ community in these countries.
25. Austria
Equality Score: 76
Austria started becoming LGBTQ-friendly in 1971 when it passed laws regarding LGBT. Minority groups have become more protected over the years, and the country welcomes this community openly. Vienna, Austria, is a popular destination for gays and lesbians in particular. “Wien ist Andersrum” (Vienna is Queer) is a cultural festival featuring LGBT artists and topics.
24. South Africa
Equality Score: 76
South Africa’s government outlaws any discrimination made on the basis of sexual orientation. It is a welcoming country with many gay-friendly destinations throughout the country. Cape Town and Johannesburg have both communities and scenes for this minority. Pretoria and Durban are homes to smaller communities as well.
23. Belgium
Equality Score: 77
LGBTQ+ rights in Belgium are considered as among the most progressive in comparison to most of the world. The country has jumped to the forefront of LGBTQ+ rights in recent years. Same-sex marriages and adoption are both legal in the country. Brussels even has its own bridge named after the iconic gay rights activist called Suzan Daniel.
22. New Zealand
Equality Score: 78
New Zealand boasts some of the most comprehensive LGBTQ+ rights in the world. The country has legalized same-sex marriages and adoption and even has a fertility clinic for lesbian and gay men wanting to have children. 10% of MPs in the country are gay, and the government is categorized as the most rainbow parliament in the world.
21. France
Equality Score: 78
France has been pro-LGBT since the 1900s. It has even passed a law that criminalizes conversion therapies that attempt to change the sexual orientations of individuals from LGBT+ community to hetero. Same-sex marriages and adoption are also accepted in the country. However, adoption and artificial insemination are restricted to PACS partners.
20. Switzerland
Equality Score: 78
Switzerland is also accepting of the LGBT community, with very few incidents reported of homophobic crime and discrimination. Same-sex marriages have also become legalized as of 2021, along with adoption by same-sex couples and assisted reproduction technology. Moreover, conversion therapy in the country is banned.
19. Mexico
Equality Score: 78
Mexico broadly protects LGBTQ+ rights and prohibits any form of discrimination based on sexual orientation. 27 of its 31 states have equal marriage rights and also adoption rights for same-sex couples. Some of the states have introduced laws that permit rights to legal gender recognition.
18. Chile
Equality Score: 79
Since March 2022, same-sex marriages and adoption have become legal in Chile. Chile is the 31st country to do so, and the public is generally accepting of the community. 2019 also saw the passing of a comprehensive legal gender recognition laws, and a third sex option is also available for intersex children on birth certificates.
17. Cuba
Equality Score: 81
The 21st century saw significant advancements in LGBT+ equality in Cuba. In 2022, Cuba voted to legalize same-sex marriages in a national referendum. 79.5% of the community believes that the LGBT+ community deserves the same civil rights as other individuals.
16. Andorra
Equality Score: 81
It is constitutionally banned in Andorra to discriminate on the basis of sexual orientation. Civil unions for same-sex couples have been legalized since 2014; the general public seems tolerant of the community. As a result, more such people are coming out knowing they can associate freely with other citizens.
15. Argentina
Equality Score: 82
LGBT+ rights in Argentina are some of the most prominent and comprehensive in the world. Same-sex marriages were legalized in 2010, the same year when same-sex adoption was legalized. The country is now going a step further and introducing a quota for transgender people that hold public sector jobs.
14. Brazil
Equality Score: 82
Brazil is also one of the countries that have legalized same-sex marriages and same-sex adoption. This community enjoys legal protection in the country, and discrimination on the basis of sexual orientation or gender identity has been criminalized since 2019.
13. Sweden
Equality Score: 82
Sweden has been a pioneer of LGBT+ rights. The country has made it illegal to discriminate on the basis of sexual orientation or gender identity. Same-sex couples can legally get married as well as adopt children. Many people refer to the country as gay Mecca, considering its openness to the gay community.
12. United Kingdom
Equality Score: 82
The rights of the LGBT+ community in the United Kingdom are considered advanced and progressive. Discrimination on the basis of gender identity and sexual orientation is considered illegal. Gender change is legal.
11. Malta
Equality Score: 83
Malta has been the first European country to outlaw conversion therapies. It is by far few of the most advanced countries in terms of LGBT+ rights. Discrimination on the basis of gender identity and sexual orientation is illegal, and conversion therapies are also banned. Non-binary genders are recognized in the country, while adoption and marriages are legal too.
