Germany - not the UK - is the favourite destination for migrants from other European Union nations.
Almost 30% of people taking advantage of free movement within EU countries in 2012 travelled to Germany.
The figure for the UK was 7%, according to the Organisation for Economic Co-operation and Development (OECD).
The OECD said free movement migration to the UK had increased this year but still lagged behind Germany.
David Cameron has signalled he is willing to lead Britain out of the EU unless there is a compromise on free movement and announced plans last week to cut benefits for EU migrants.
Official figures show net migration rose to 260,000 in the year to June - 16,000 higher than when the Coalition came to power.
The number of foreign nationals living in the UK rose to 4.9 million in 2013, the OECD said.
This equates to 7.9% of the total UK population. More than half of those are from Poland.
Despite an increase of close to 2% since 2012, the number of permanent immigrants entering the UK remains 15% below 2007.
The OECD said 46% of the foreign-born population in the UK is highly-educated, a "stark" difference to 33% of the native population.
Native Britons are also more likely to be outside of employment, education and training.
Stefano Scarpetta, OECD director for employment, labour and social affairs, said: "Today's migrants are better educated than their predecessors.
"The number of foreign-born who are highly educated has grown by 70% over the past decade to exceed 31 million in the OECD area.
"Over that period, highly educated immigrants accounted for 45% of the increase in the foreign-born population."
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