While many people may opt to stay in their home country when they retire, plenty of others decide to move to another country that offers cheaper living, better weather, or any number of other benefits.
One country that’s growing increasingly more popular as a retirement destination for retirees and expats is Panama. If you’ve ever considered retiring there, this guide is for you. Read on to learn more about why Panama is a great place to retire, the communities to consider, the cost of living, the health system, and the requirements for retiring in Panama.
Is Panama a Good Place to Retire?
If you’re wondering is Panama a good place to retire?”, the answer is a resounding yes. There are several Panama retirement benefits that make it a wonderful place to spend your golden years.
Climate
First of all, the tropical climate of Panama is a major selling point for retirees. The weather is warm all year long, and there’s no need to worry about snow, cold temperatures, or other things that come with living further north. No matter what time of year it is, you’re able to head to the beach, go for a swim either in the Caribbean or in the Pacific as they are just few hours away from each other, and enjoy the great outdoors.
Things To Do
Another benefit of retiring in Panama is that there are many exciting activities to do around the country. This includes surfing, biking, hiking, fishing, swimming, whale watching, ziplining, parasailing, going for nature walks, and dozens of other outstanding activities.
Of course, many places also have amenities like golf courses, movie theaters, malls, sports teams, and many other things you’re used to doing in the USA.
Scenery
In addition to the variety of things to do in Panama, there are just as many things to see. The country is home to some of the most beautiful landscapes and scenery in the world. There are sprawling beaches full of waves, surfers, and wildlife. For lovers of diving or snorkeling, there is a paradise to enjoy marine fauna called Coiba National Park, where there are 37 islands. Coiba is the largest island in Central America with an area of 194 square miles, and is located in the Gulf of Chiriqui. It is an underwater wonderland that is home to many marine species, some of them in danger of extinction.
There are also forests and jungles to explore, mountains to climb or hike, small towns to take walks through, and even fully developed and modern cities to check out. No matter what sorts of places you like to visit and things you like to see, Panama has something for everyone.
Safety
Panama is also a safe place to live and is already home to thousands of expats who happily reside there. It’s often seen as one of the safest nations in Central America, and many communities around Panama are also private and gated for even more protection and peace of mind that you’re safe.
Amazing Food Options
Panama also has some truly amazing cuisine and is well-known for its incredible fresh fruit, seafood, tacos, rice dishes, and many other options. Of course, you can still also find many familiar American foods, restaurants, and diners if you’re a little less adventurous when it comes to your food and prefer things that remind you of home.
Cost of Living as a Retiree in Panama
Another one of the major benefits of making the move to Panama is the cost of living. It’s generally much more affordable than living in most places in the United States. For example, according to Numbeo the cost of living in the USA is around 50% or more than it is in Panama.
As a result, your retirement funds will go a lot further in Panama than they will in the USA in most cases. However, the exact cost of living in Panama depends on a number of factors like where you live, the size and type of your home, the places you shop at, what you eat, and the hobbies you have.
While the costs are rising in some parts of Panama, most of the country still offers major savings compared to living in many other countries around the world.
Not only are the costs low, but many parts of Panama have the infrastructure and modern amenities that most people from the USA are familiar with, such as reliable internet, paved roads, gyms, movie theatres, local sports, public transportation, and many others.
Requirements for Retiring in Panama
If you like these benefits and are considering Panama as a place to retire, it’s important to be aware of the requirements of moving and retiring in Panama. The good news is that it’s relatively easy to get a Panama retirement visa through the Panama Pensionado Program, which is considered one of the best retirement visas on the planet. This goes for whether you’re single or married.
The Panama retirement visa requirements include:
- Being at least 18 years old
- Having a monthly retirement income of at least $1,000 per month (or $750 if you’ve invested at least $100,000 into Panamanian property). If you have any dependents, you’ll need to make an additional $250 per month for each dependent.
- Having a clean criminal record
If you satisfy all of these requirements, you’re able to apply for the Panama Pensionado Program. Not only are the requirements easy, but the Panama Pensionado Program also offers numerous incentives and discounts on things like utilities, medication, healthcare, hotels, loans, transportation, and more.
The actual application process is also streamlined and begins with authenticating and submitting various documents, including your passport, birth certificate, police record check, proof of income, and photographs, through a Consulate of Panama.
Next, travel to Panama and have a medical exam with a Panamanian doctor who will issue you a health certificate if all is good.
While in Panama, speak to a Panamanian attorney who will apply for your pension program. You’ll also need to work with a lawyer in Panama to issue a sworn statement about your background, as well. Once all of these steps and completed and your forms have been filled out, submit the application via a Panamanian immigration lawyer.
After waiting for a while, if your application is successful, you’ll receive your Pensionado ID card and officially be able to retire in Panama. Having this visa also means you’re a permanent resident of the country, and after you live in Panama as a permanent resident for five years, you’re able to apply for Panamanian citizenship.
Health System in Panama
Panama has what’s called a 2-tier healthcare system, with both public and private options. Two government agencies operate the public system, which are the Social Security Fund and the Ministry of Health (MINSA).
If you’re an employee or business owner in Panama who pays into the public system fund through your taxes, you’re able to get free public healthcare. But as a retiree, you’re still able to use this system on a pay-per-use basis, and it’s still incredibly affordable.
However, there are also private health insurance policies that are generally more expensive, but still far less than what’s generally offered in the USA. For this added cost, you generally get better amenities and quicker care with much fewer delays between appointments and less waiting time.
Whichever way you go, getting healthcare in Panama is generally much more affordable than in the USA. Not only that, but Panama also offers high-quality healthcare services, and things like the standards, techniques, equipment, and training are often on par with the services offered in the USA, without the sky-high costs.
Taxes in Panama
You’ll also need to know about the taxes for Americans who retire in Panama if you want to make the tropical country your home. In Panama, none of your foreign-earned income is taxed, only the income you earn in the country.
So if the only income you have in retirement comes from sources in the USA (such as Social Security, an American pension, or other retirement accounts), you won’t have to pay Panamanian taxes on it. Keep in mind that US citizens are taxed on their worldwide income, so you may still be subject to taxation in the USA, as well.
There are also tax benefits that expats living in Panama enjoy, including an import tax exemption on many household goods and an import tax exemption once every two years to import a new car.
Best Cities to Retire in Panama
Now that you’re aware of the many benefits of retiring in Panama and what to expect, how can you decide where to retire in Panama? There are several Panama retirement communities worth considering across the country, however, here are ten of our favorite cities to retire in.
Pedasi
Pedasi is a small fishing town of around 2,000 people that is near the southeastern tip of Panama. It’s a great option for retirees who want quiet, peaceful, and remote living with easy access to fishing and beaches. The coastal location also keeps the temperature a little cooler and it’s relatively affordable, too.
Since many expatriates have decided to retire in Pedasi for years and even some young people from all over the world have chosen Pedasi as their home, this has brought positive results, as they have opened new concepts of restaurants, bakeries, and service stores that were not previously found in Pedasi.
This place is fascinating for its tranquility and for the beautiful beaches that are very close, such as for example from the center of Pedasi, there is El Arenal beach from where you can take a boat to cross to Isla Iguana.
Playa Venao
If you’re into surfing or want to spend a lot of time on the beach by the water during retirement, consider Playa Venao. Home to about 800 people, this tiny beachfront community consists mainly of expats who live here for the stunning scenery, surfing lifestyle, and easy access to the water. While the area is remote and not overly packed, it offers a ton of different things to see and do from surfing, to fishing, to hiking, to horseback riding, to yoga, and several more.
Cañas
People who love variety in their lives may want to consider retiring in Canas. It’s a quiet community of around 900 people and truly has something for everyone. It’s close to the water, has jungles nearby, offers mountain views, and has plenty of fields and hills, as well.
It also has many amenities, and fun adventures nearby such as ziplines. The community is also incredibly close to Isla Canas, which is a wildlife reserve brimming with different species and is a very important site for sea turtles to nest.
Boquete
Another great choice for people looking for the best cities to retire in Panama is Boquete. It’s located amongst the mountains in the western part of the country and is home to around 25,000 residents, many of which are expats. It has a cooler climate than many other parts of Panama and is perfect for the retiree who loves the outdoors.
It is a stunning place to live that provides peaceful living but is very close to recreational activities like hiking, And if you are a hiking lover, we suggest you visit the top of the Baru volcano, birdwatching, mountain biking, and more. The city also has many modern amenities, several places to shop or grab a bite to eat, and is full of beautiful parks, too.
It is worth noting that Boquete has been considered for years the first community of preference for retired expatriates.
Bocas del Toro
Bocas del Toro (also known as Bocas Town) is a small island community on the southern part of an island located just off the northwestern tip of Panama. Around 13,000 people call the community home, and it’s the capital of the Panamanian province of Bocas del Toro.
The remote location and hot climate of this town make it a tropical paradise for people who love sandy beaches, clear water, and island life. It’s a very laid-back place to live in, with Caribbean-inspired architecture and homes. Many other nearby islands are worth exploring, too.
Bocas del Toro is a border province bordering Costa Rica (Puerto Viejo) and which occupies both the mainland and the archipelago that bears the same name, the Bocas del Toro archipelago, with its largest islands: Isla Colon, which is the main island of the archipelago, Isla Popa, Isla Bastimentos, Isla de San Cristobal, Isla Cayo Agua, Isla Solarte, Isla Carenero, in addition to a large number of small islands and keys.
The archipelago is characterized by its crystal-clear turquoise waters.
It has an airport, the Bocas del Toro International Airport, located on Isla Colon (IATA: BOC)
The archipelago has several protected natural areas under parks, reserves, forests, and wetlands.
Coronado
Located in central Panama on the Pacific coast, Coronado is another popular option for retirees. The town is a versatile place to live, as it offers a laid-back lifestyle with plenty of beautiful beaches and resorts, but also provides every amenity you could ever need, including supermarkets, shopping, and restaurants.
Coronado has been considered the second favorite community for retired expatriates for years, Since it has infrastructure that allows its inhabitants to have the comforts they are accustomed to in their countries and all this in a beach community, this is what makes Coronado incredible.
The area is also home to many stunning parks and beautiful golf courses. It’s also relatively close to Panama City and many other small communities worth visiting.
Gorgona
Just to the north of Coronado sites Gorgona, is another wonderful option for retired expats. It’s very similar to Coronado, as it also offers various important amenities and services, while also providing plenty of natural beauty and access to beaches, lush jungles, and parks.
However, Gorgona is a little quieter and less crowded than Coronado, with many describing it as what Coronado was like before it got popular.
El Valle
El Valle is another popular choice for those who love mountain living and want to escape the heat that many other parts of Panama have. Its location among the mountains offers great hiking and biking, and the sightseeing nearby is truly spectacular. It also offers an affordable cost of living and access to many important amenities.
Despite the remote mountain town feel of this community, it’s located only a short trip away from Panama City for optimal convenience.
Altos del Maria
Altos del Maria is a stunning and peaceful destination that gives residents beautiful mountain views, alongside lush green valleys and plenty of pretty scenery. Living here truly feels like you’re in a fairytale with its rolling hills and nearby forests. It’s a wonderful choice if you love the outdoors and prefer peace and tranquility over a bustling and active city.
Panama City
Last but not least, Panama City is a good choice for retirees who love big-city vibes, but also want the hot climate and tropical feel that Panama has to offer. The city has over a million residents and offers every amenity you could ever want.
It has great culture, plenty of world-class restaurants, markets, and a nearly endless list of things to do and see. In addition to that, it’s very affordable compared to most of the major cities and population centers in the USA.
Pros and Cons of Retiring in Panama
To give an honest look, we’ve decided to include a section on some retiring in Panama pros and cons to help you make an educated decision.
Pros of Retiring in Panama
- Great weather: The weather in Panama is warm and beautiful all year, with plenty of sunny days.
- Affordability: Panama is a much more affordable place to live than most places in the USA and many other countries. This goes for everything from real estate, to groceries, to healthcare, and more.
- Beautiful scenery: Panama contains several gorgeous natural landscapes like beaches, mountains, forests, jungles, waterfalls, and plenty of stunning architecture in the towns and cities.
- Safety: Panama is among the safest countries in Central America and there are many gated communities available for expats and retirees to live in.
- Simple visa process: The process for applying for a retirement visa is straightforward, and Panama has one of the best retirement programs on the planet thanks to its many incentives and discounts.
- A life without natural disasters If you are worried every year about the hurricane and tornado season, in Panama we are blessed to not have these natural phenomena hitting us and it is the same thing that happens when we talk about earthquakes or forest fires.
Cons of Retiring in Panama
- Tropical climate may be overwhelming for some: While many people may love the hot and tropical weather, it may be too hot and humid for some people who are used to cold weather.
- Some areas have become more crowded: With some parts of the country becoming more and more popular, you may encounter plenty of crowds. However, there are still several places that remain hidden gems that won’t have nearly as many people.
- Some places may lack amenities or infrastructure: Some smaller communities may not have the specific amenities and infrastructure that you’re used to back in your home country, and this may take some getting used to.
- Language barrier: While plenty of people in Panama speak English, if you don’t speak Spanish at least a conversational level, you may struggle to communicate with others in some situations.
We hope this article has provided you with important and relevant information about retiring in Panama.
