If you are looking for a happy place to live, we'd point you towards Europe. Norway has replaced Denmark as the happiest country in the world for the year 2017, according to the United Nations' World Happiness Report. The other three countries in the top five of the list are also in Europe.

India drops one rank in World Happiness report; placed after Pakistan, Iraq, China

Norway was ranked fourth in last year's report. It has now jumped three spots to become the happiest country in the world. The UN report, released on Monday to coincide with International Day of Happiness, ranks 155 countries by their happiness levels -- caring, freedom to make life decisions, generosity, good governance, honesty, health and income.

Other factors considered by the UN included employment, income inequality, life expectancy, GDP per capita, public trust (i.e., a lack of corruption in government and business), and social support.

Denmark, which was the happiest country last year, stood at second place this year, followed by Iceland and Switzerland. Other countries in the top 10 include Finland, Netherlands, Canada, New Zealand, Australia and Sweden.

The bottom five countries in the list included Rwanda, Syria, Tanzania, Burundi and Central African Republic.

The director of the Sustainable Development Solutions Network and a co-author of the report, Jeffrey Sachs, said that creating sound policy for what matters most to the people (their well being) should be given attention for a country to be happy.

"As demonstrated by many countries, this report gives evidence that happiness is a result of creating strong social foundations. It's time to build social trust and healthy lives, not guns or walls. Let's hold our leaders to this fact," Sachs said.