Advantages of Living and Retiring in Panama

Panama Called the #1 Place to Retire Overseas by Top USA Publications

Old couple relaxing on beach

Numerous USA publications have called Panama one of the best places in the world to retire.
Some examples:
"Panama is the world's top retirement haven. Panama City no longer qualifies as cheap, but other spots in this country certainly do. Panama continues to offer the world's gold standard program of special benefits for retirees. The currency is the U.S. dollar, so there is no exchange rate risk if your retirement savings and income is in dollars. The climate in Panama City and on the coasts is tropical, hot, and humid. However, the climate in the highlands can be temperate and tempting. Panama is the hub of the Americas, meaning it's easily accessible from anywhere in North and South America and Europe." U.S. News, March 2012

"Panama One of the Top Ten Places in the World for Retirement
If you're a sun-worshiper determined to protect your assets from overreaching Western governments, consider countries like Panama." Forbes Magazine,October 2009

For a more complete list see: The Press: What They're Saying about Panama as a Second Home and Retirement Destination.

Why Panama?

1. Panama: One of the Lowest Costs of Living for Foreigners in the World

U.S. currency

A 2012 report by the Economist's Intelligence Unit on the cost of living in cities around the world found Panama to be one of the ten least expensive cities for foreigners. For retirees it is even cheaper- Panama has the best Retired Persons discount program in the world. See #3 for details.

2. The Dollar as Currency

Panama has the US dollar as its currency, a great convenience. This makes daily life more hassle free- no need to calculate how much that meal just cost. The dollar as currency contributes to Panama's low inflation rate and its status as the most stable economy in Latin America.

3. The Best Retiree Benefit Program in the World

The Panamanian government encourages retirees to retire here with one of the world's most generous programs with many benefits and discounts. To qualify for a retiree visa the only requirements are a proven monthly income of $1000 (plus $250 for each dependent), a health certificate, and a police report.

Retired Couple

Some of the benefits for retirees:

  • 50% off entertainment including movies, concerts, theater etc. (a regular movie ticket costs $4 - the retiree price is $2.)
  • 25% off restaurants
  • 50% off hotel accommodations from Monday-Thursday
  • 30% off bus, boat and train fares
  • 25% off domestic and international airline tickets
  • 10% off prescription medicines (much cheaper than US prices to begin with)
  • 15% off dental and eye exams
  • 50% off closing costs for home loans

Plus, Panama's pensionado law is set up so that anyone who joins this program is guaranteed their status for as long as they reside in Panama. So even if the laws change in the future you will still enjoy the same discounts and advantages originally afforded to you by the pensionado program.

4. Panama is Safe: Lowest Crime Rate Against Tourists in the Region/Panama: Hurricane and Earthquake Free

Man relaxing on beach

Panama is the safest country in the region for tourists. You don't have to be constantly on your guard for pick-pockets or purse snatchers like in other countries in the region. Like every big city, there are some neighborhoods to avoid, but in general, you can go about Panama City without worry.
Foreign residents will tell you how safe they feel in Panama compared to other countries in the region and it is only getting better-measures are being taken that have already reduced crimes in general by 28%.
In addition, you won't experience any of the hurricanes and earthquakes that other countries in the region suffer from. Dozens of top US and international companies are moving their regional headquaters from other Latin American capitals primarily because Panama is safest country in the region.

5. With So Much to Do You"ll Never Get Bored

San Blas Island

Although Panama is a small country, about the size of South Carolina, it has a great variety of world-class attractions: exotic tropical rainforests, beautiful mountain refuges, two coasts for both Caribbean and Pacific type beaches, more than a 1000 islands, seven living indigenous cultures, a fun Miami-style sophisticated capital city, a vibrant nightlife, full service resorts, exotic off-the-beaten-path getaways, scads of Spanish colonial historical sites, world class golfing, diving, sport fishing, and surfing, not to mention that 8th wonder of the world and engineering marvel, the Panama Canal. It is hard to think of any other destination in the world that has such a variety of attractions so close by and easy to get to.

6. An American-Style Infrastructure, a by-product of an Important Historical Relationship

Panama City at Night

In Panama, you'll never feel too far from home. When you stay for extended periods of time in another country, you want to feel away from it all, but not totally. Its important to have the familiar services and comforts of home within easy reach—no other country in the world fits that bill better than Panama. Panama has an American-style infrastructure and a people who know how to get along with Americans and foreigners-the by-product of an the American community ( the Canal Zone) for 80 years.

Panama took control of the Panama Canal region in 1999 but it has left it's mark. 50,000 Americans still live in Panama (some of are Panamanians with American citizenship). Panama also has a long history as a crossroads for Europe beginning from Spanish colonial times. The culture has a distinct, delightful Latin-Caribbean culture, but you feel at home because American and foreign influences abound.

7. A Foreign Investor and Retiree-Friendly Government

investor's shake hands

Panama is also has an relatively investor and foreigner friendly government. Panama is about business. President Martinelli, one of the countries most successful businessmen is implementing changes needed to attract investors and retirees. His goals is to make Panama "the best place to do business in Latin America", with Singapore as a model. You'll find many in the entrepreneurial class are US-educated and understand and know how to work with foreigners.

8. Panama: fastest growing economy in the America's

Panama Canal Transit

Panama's economy has been growing as an impressive rate in the wake of the worldss economic turmoil. Panama's GDP has been growing between 7-10% since 2009. It's Law 41, modeled on Singapore's law that gives tax breaks, hiring privileges and other incentives, has convinced many corporations to make their regional headquarters in Panama. Add to that the expansion of the Canal which will double its capacity, a new city subway system and one of the most secure financial systems in the world- this is an economy that's predicted by experts to keep growing for years to come.

airplane taking off

9. Panama is Close

Located in Central America, Panama is easy to get to. It's just 3-5 hours by plane from the States. There are non-stop flights from: Miami, Atlanta, Houston, Dallas, Newark, Los Angeles, New York, Washington D.C., Orlando, Chicago, Fort Lauderdale and Toronto served by Delta, Continental, American, Copa and Spirit Airlines. From Europe, KLM and Iberia have direct weekly flights.

10. The Panamanian People are "Globalized", Peaceful, Friendly and Fun-Loving

Panama City Carnival Pollera

Another reason why Panama is a great place to live is because of the Panamanian people -one of the friendliest peoples in the world. Due to Panama's position as a world business and transportation crossroads there's a long history of living and working with foreigners. Panamanians actually enjoy foreigners. There's a saying that Panama was "born globalized". Historically a crossroads, Panama is home to immigrants the world over. Different nationalities and peoples get along. Most common are "mestizos" or persons who are a combination of Spanish and native Indian and blacks. There's also sizable European, American, Chinese, Jewish, Hindu and Arabic communities.

Panamanians are a fun loving people-parties are a national pastime-evident in their carnival celebrations and lively nightlife. They also have a predilection for beauty and elegance, visible in the delicacy of their Indigenous handicrafts, their beautifully groomed women and Panama City's many attractive neighborhoods, most especially the current restoration of the Casco Viejo historic sector.

11. Dependable Travel in Panama-Roads, Highways and Public Transportation

taxi in panama

Travel within Panama is dependable and inexpensive. Taxis in Panama City are cheap and reliable. You can go just about anywhere in Panama City for less than $7. If this is your first trip we don't recommend driving in Panama City because of the lack of signage and all the traffic jams due to the current subway construction.

Outside Panama City, the highway system and the feeder roads off the main highways are excellent. If you are renting a car you can easily take the Interamerican highway that goes from the border of Costa Rica to Panama City- a four-lane highway all the way.
If you aren't driving, for $16 or less you can travel from Panama City to any city on a bus from the Albrook Bus Terminal.

12. Inexpensive First Class Health Services and Medical care

doctor checkup

One of the reasons many Americans of retirement age are deciding to live in Panama is because both health insurance and health care are inexpensive and good quality. More than any place in Latin America, you can readily find English speaking trained doctors and dentists. Several hospitals are equipped with the latest in diagnostic testing and services. Prescriptions and over-the-counter medication are cheap. Full coverage health insurance policies are very reasonably priced for any age, as low as $250 for a couple.

Another big health plus is that you can drink the tap water, a rarity in Latin America. Sanitation is good as well, the "Montezumas revenge" illnesses that tourists are prone to in other countries of Latin America are almost unheard of in Panama.

13. Shopping

Panama Shopping

Panama has the best shopping in Latin America. Starting with the supermarkets- Riba Smith, El Rey and Super 99 stock just about everything you would find in an American supermarket but at lower prices. There are three Price Costcos in Panama City and one in David in Chiriqui (they're called Pricesmart here).
Panama City has four major shopping malls: Multiplaza in Punta Pacifica, Albrook Mall, Multicentro on Balboa Ave and Metro Mall near the international airport. There are large electronic, appliance, computer and furniture stores with familiar brands and prices that are either similar or better than in the USA in each mall.

14. High Speed Internet and Services

Panama is a so-called developing country but the high-speed internet access is better than in the US. Phone service and other basic services are also cheaper than the USA (a cell phone data plan is only $12 and is reliable—unusual for Latin America.

15. Great Restaurants

Panama City Restaurant

Foreign residents really enjoy the restaurant scene. As an international crossroads, Panama City has many fine, reasonably priced restaurants with a wide variety of cuisines. It's fun just trying to decide where you're going to dine. If you're homesick, American restaurants and fast food joints are everywhere including TGIF, Bennigans, Wendys, Pizza Hut, KFC, Subway, McDonalds, Burger King, Taco Bell, Domino's, Dunkin Donuts, and there's even a Hooters.

16. Banking Conveniences and a Strong Financial Services Sector

ATM machines providing access to your USA bank account are located throughout Panama City and in locations outside Panama City. Panama has a sophisticated banking sector with over a hundred banks. We recommend Scotia Bank of Canada, which caters to foreigners. If you are looking for offshore activities there are specialists who can provide personal or corporate services with strong financial privacy laws and no taxes on offshore profits.

back to school

17. Schools

Families with children will find a number of excellent private schools to choose from. Most foreign capitals have just one American accredited school, but Panama has three: The International School of Panama, Balboa Academy and the Oxford International School.

See our Schools page here:

18. Variety of Residential Venues to Choose From

Tucan Country Club Real Estate Panama

The three most popular places to live are Panama City, the beach areas near Coronado and mountains near Panama City, in Chiriqui province and the rural town of Pedasi. On the beaches, choose from beachfront lots, homes and condos on both the Pacific Ocean and the Caribbean. Panama's mountain areas like Boquete, Volcan, Sora and El Valle offer perfect all-year-round spring weather. Bargain basement deals are a thing of the past, but prices are still pretty good and remember that you are investing and living in a country with one of the best futures anywhere.

19. Architectural Variety

Unlike any other country in Latin America, Panama has refreshing variety of architecture styles. In the rest of Latin America Spanish colonial styles dominate, while in Panama there's a refreshing variety of modern, Spanish colonial, American, French and English styles.

20. Foreigners who purchase property in Panama enjoy all the same rights as Panamanians

Unlike other countries, in Panama foreigners who buy property enjoy all the same rights and protections as Panamanians.

Some Caveats About Living in Panama:

Living in Panama is not for everyone. If you are coming here because your company has set up here- you're lucky- for international families, there's simply no better place to live in Latin America and the Caribbean.
If you are coming here to retire or start a business, you should consider whether you have the temperament to enjoy a foreign culture that is not yet first-world. Panama is still a third world country in some ways i.e. at times things don't go smoothly. You need to be able to enjoy cultural differences and be able to put up with third world bureaucratic hassles and glitches.
Also, if you are on a very low budget- say less than $1500.00 a month- Panama may not the place for you. It costs much less to live here in style than in the States, but you still need an income of at least $1500.00 a month to live comfortably, including rent in a good area and utilities, maid service, groceries and services like cable etc.
Finally, if you are not willing to learn at least some basic Spanish, think twice also about living here. Yes- the most educated classes speak English- but the majority of people speak only a little English. How will you communicate with your maid, plumber, car dealer etc. if you don't learn some Spanish?

Take Advantage of the Many Ex-Pat Organizations

Panama City has both young and Baby Boomer Expat groups, and groups are in beach area near Panama City, Boquete and Pedasi. These meetings are the best place to get tips on buying real estate, reliable lawyers, realtors and services etc.

Beware: When Buying Property Do Your Homework about the Developer, Your Realtor and Your Lawyer

When buying property, condos or homes, it is important that you ask around about the reputation of the builder-some who don't have a good track record and people are unhappy with the final product. Also, only hire a lawyer from a recognized firm or one with impeccable recommendations from people you know well personally. Stories of people have been cheated by a "wonderful Panamanian that is opening doors for me and showing me everything" are not uncommon. We also recommend you rent a house or apartment in the place you want to live first to test out whether Panama is right for you.