When many people retire, they have the idea of moving somewhere tropical to relax on a beach and enjoy their golden years. One country that’s frequently brought up as an option is Panama. But is Panama a good place to retire? Well, according to several online rankings, the answer is yes. The country frequently appears within the top 10 countries to retire in, even coming in at the number one spot on numerous occasions.
However, why is Panama a good place to retire? Well, there are several reasons that range from affordability, to climate, to healthcare. Keep reading to learn more about some of the many reasons to consider retiring in Panama.
Great Weather and Climate
Firstly, you can’t ignore the role that the great weather and climate in Panama have in attracting retirees. It has a tropical climate that stays warm throughout most of the year, so you’ll never need to worry about snow or sub-zero temperatures ever again.
Whether you like to lay on the beach, go surfing, go hiking, or even just go for a walk in the park, you’ll generally never need to bundle up or worry if it’s going to be too cold out.
While there’s a rainy season that generally lasts from May to December, most of the year is full of sun and the country is perfect for those who love to spend time outside. Also, the rainy season doesn’t have continuous rain and there are plenty of gorgeous and sunny days throughout the season, as well.
Affordable Cost of Living
The affordability of Panama compared to many cities across the USA also makes it a popular retirement destination. Whether you’re renting or buying, you can often find incredible deals on homes and apartments in many cities and towns throughout Panama. Your retirement funds stretch further, and you can enjoy a quality of life in Panama that you may not be able to afford in the USA.
Of course, the exact price you pay depends on the lifestyle you want to live. If you want to live in a mansion in Panama City, it’ll certainly cost more than if you want a modest home in a smaller community.
In addition to the real estate, other things like food, entertainment, and even public transportation are likely much cheaper than you’re used to paying in the USA. For example, you can enjoy cold beverages on the beach for a fraction of the price you’d pay in the USA, and things like having a delicious dinner or riding the train are relatively inexpensive.
Well-Established Expat Communities
Those who ask “Is Panama a good place for US citizens to retire” will be delighted to hear that the country has a large and very well-established expat community. There are thousands of expats spread throughout the many cities and towns across the country.
As a result, you’ll have plenty of like-minded people around you, who can relate to you and may even help you navigate through the challenges of adapting to a Panamanian lifestyle.
While many communities throughout Panama are going to have people from other countries living there, some cities and towns with especially large expat populations include Panama City, Boquete, Coronado, El Valle, and Bocas Del Toro.
The locals around Panama are also welcoming and familiar with expats, so it’s not like you’d be living somewhere where you feel incredibly left out, isolated, and judged.
Of course, many people in Panama speak Spanish, and learning the language to some degree is a good idea if you live here, but there are also tons of English speakers around, too. Many locals have even gained some familiarity with the language, often due to the large population of expats.
Various Lifestyle and Housing Options
When many people picture living in Panama, they likely visualize living in a small beachfront community with lots of surfing, swimming, and fishing. While that’s certainly an option, the truth is that there are several different lifestyle and housing options that Panama offers.
There are large cities, such as Panama City, that have a modern infrastructure and offer every amenity under the sun. These have apartment buildings, mansions, townhouses, condos, and various other housing options to choose from. These cities often provide a bustling downtown, several options for entertainment, and have a vibe similar to cosmopolitan cities throughout the USA.
Of course, there are also small surfing and fishing villages for those who want to retire in peace and quiet, and there are even mountain towns surrounded by stunning natural landscapes and adventures at every corner for retirees who want exciting things to do every day.
No matter how you want to spend your days during retirement, Panama truly has something for everyone.
An Incredibly Valuable Retirement Visa Program
One of the highlights of retiring in Panama is the Pensionado Visa Program. This permanent residency program is incredibly easy to join and was created back in 1987 to attract more retirees from other countries to come to Panama.
To qualify for a Pensionado retirement visa, all you need is to:
- Have a clean criminal record.
- Be at least 18 years old.
- Have a monthly retirement income of at least $1,000 for the rest of your life, or $750 monthly if you invest $100,000 in Panamanian real estate. If you have any dependents, you’ll need an additional $250 per month per dependent.
The application process and registration form are straightforward, and if you’re approved, you get your permanent resident card and are legally able to live and retire in the country. After being a permanent resident in Panama for five years, you’re also able to apply for citizenship.
In addition to being easy to qualify for and relatively simple and straightforward to apply for, it also comes with several discounts and deals, including:
- 15% discount on loans in your name
- 25% discount on airline tickets and 30% discount on other transportation types
- 25% discount on utilities
- 50% discount on your entrance to films, sports games, and other kind of cultural events
- 15% discount on eye and dental exams
- 10% discount on all medicine
- 20% discount on doctor bills and 15% discount on hospital services
- 1% discount on your mortgage, as long as the home is used as your residence
- 20% discount on technical/professional services
- 50% discount on hotels from Monday to Thursday, and a 30% discount on Friday, Saturday, and Sunday
- Import tax exemption for household goods
- Import tax exemption for a new car (once every two years)
While this is a popular option to get permanent residency for people retiring in Panama, it’s not the only one. You can also achieve immediate permanent residency by getting a Self-Economic Solvency Visa or being a member of the Qualified Investor Program.
To get a Self-Economic Solvency Visa, you need to either purchase Panamanian property worth at least $300,000, or be prepared to deposit $300,000 into a Panamanian bank for three years. To be a part of the Qualified Investor Program, you need to invest at least $500,000 into Panamanian real estate or $160,000 into a Panamanian business.
High-Quality Healthcare at a Lower Cost
The healthcare in Panama is another reason that many people are happy to retire there. The quality is similar to what’s available throughout many parts of the USA, and many of the Panamanian doctors and other medical professionals speak English and were even trained and educated in the United States.
Not only that, but the facilities are modern, standards are high, and the equipment and techniques used are generally the same as you’d find in the USA. But despite being high-quality and very similar to what you might have grown to expect in the USA, the associated costs of healthcare are much lower, often 50% less or more.
Similarly, medication and insurance are also affordable compared to American standards, saving you even more money throughout your retirement.
Safety
Safety is always a major concern when people decide to move somewhere new. Thankfully, Panama is a very safe nation. In fact, it often ranks as one of the safest countries in Central America.
It has low crime compared to many other nations nearby, a stable political environment, and police there often take their duties seriously to ensure people are safe.
And Panamanians are generally friendly, cheerful, and kind, and always willing to help you out, even if you’re a foreigner. If it wasn’t a safe or pleasant place to live as an expat, there likely wouldn’t be so many of them living throughout the country.
Of course, nowhere is crime-free, but as long as you use common sense and keep your wits about you as you would anywhere else in the world, Panama is generally a safe place to live. If you’re still a bit uneasy, there are plenty of gated communities where you can live to give you peace of mind that you’re safe.
Convenient Location
Last but not least, the location of Panama ensures that it’s a wonderful retirement choice for many American expats, as it is relatively close to the USA. This makes it easy to travel back to visit friends and family often.
Flying into Miami takes just over three hours from Panama City, and the airport in Panama City has direct flights to many cities across the USA. Not only that, but it also has direct flights to Europe, Mexico, the Caribbean, and South America.
