The retiring in Panama pros and cons include affordability, ease of acquiring residency, and geographical diversity as pros, and language barrier, a slower lifestyle, and climate as cons. However, some of these cons may also be pros for some retirees.
Quick Facts
- Many parts of Panama are much more affordable than the USA and Canada. This goes for real estate, public transit, activities, groceries, and more.
- The Panama Pensionado visa that earns you residency is very easy to get, isn’t expensive, and comes with a variety of deals and discounts.
- The nation is full of a variety of beautiful landscapes, including beaches, mountains, rivers, rainforests, and several others.
- While there are many upsides to retiring in Panama, some people may not enjoy the language barrier, the slower lifestyle, and the climate.
What are the Pros of Retiring in Panama?
While there are many benefits of retiring in Panama, here are some of the best reasons to consider spending your retirement in the country.
Affordability
Compared to the USA and Canada, many places in Panama are very affordable to live in. In addition to cheaper real estate options, the country also offers affordable utilities, groceries, transportation, and healthcare.
This means that your retirement income can generally go a lot further and afford you a more luxurious life in Panama than it would in many other places. Sure, there are still some expensive homes and items/activities that are costly, but most things are affordable enough for almost any budget.
Also, while the country has its own currency (called the Panamanian Balboa), the US dollar is also an official currency of the nation and is widely used across the country. As a result, you won’t need to worry about becoming familiar with another type of currency and learning the exchange rate when you move from the USA.
Residency is Easy to Obtain
Another major benefit is the ease of obtaining residency. If you want to become a resident of Panama, all you have to do is apply for the Panama Pensionado Visa program. The only requirements are that you’re 18+ years old, have a clean criminal record, be able to demonstrate that you’re healthy, and have a monthly retirement income of over $1,000 a month.
The process is also simple and just requires:
- Gathering and submitting some documents
- Traveling to Panama
- Providing a sworn statement about your background
- Going through a medical exam with a Panamanian doctor to get a health certificate
- Working with a Panamanian lawyer to complete the forms and send in your application
It’s also affordable to apply, as it only costs most people around $1,000 to $1,500. Not only do you become a permanent resident, but the Pensionado visa also comes with discounts on a variety of things, including utilities, travel, events, healthcare, and even food.
Full of Diverse Landscapes
Panama is a truly stunning place to live, and it has a diverse variety of landscapes to enjoy. It has lush rainforests, giant mountains, beautiful beaches, gorgeous rivers, breathtaking islands, and many others.
No matter what types of geography you like to live around or visit, Panama has something for everyone. It’s also a very small country compared to the USA and Canada, so visiting different parts of the nation to experience these majestic landscapes is easy.
What are the Cons of Retiring in Panama?
However, there are also some potential drawbacks of retiring in Panama that it’s important to be aware of.
Language Barrier
While some people speak English in Panama, or at least can hold a conversation in the language, a majority of people living here speak Spanish. If you don’t already know Spanish, or don’t plan on learning it, you may struggle to communicate in some parts of the country.
This language barrier could impact you at the grocery store, at the mall, on the beach, or anywhere else where you may need to communicate with someone else.
Slower Lifestyle
If you live in a big city in the USA, you’re likely used to a fast-paced lifestyle where things get done quickly. In Panama, many residents have the “Mañana mentality” that translates to “Tomorrow Mentality ” in English, which is a cultural attitude where people are more relaxed when it comes to time and deadlines.
It’s all about maintaining a less stressful life and embracing the present. Due to this attitude, some things in Panama may take more time than some expats are used to, such as appointments running late or not hearing back on calls or emails for a while.
This can be frustrating to some retirees, who are used to prompt responses and deadlines always being met. However, while this type of living may be annoying for some, others may embrace it and truly appreciate the slower-paced and relaxing lifestyle that this attitude provides.
Very Hot Climate (Along With a Rainy Season)
While many people love the heat and sunny weather in Panama, others may find it uncomfortable at times. It’s very hot in Panama all year, with temperatures almost always somewhere between 75 degrees and 90 degrees F (around 24 and 32 degrees C). There’s also plenty of humidity to contend with.
You’ll eventually adjust to it from living in Panama, but the high heat and humidity can be a major shock if you’re not prepared for a tropical climate. This is especially true for people from colder climates or those who don’t handle heat particularly well.
In addition to the heat and humidity, the rainy season (which generally goes from April to December) may bring consistent and heavy rain that you’re not accustomed to, either.
FAQs: Retiring in Panama Pros and Cons
Here are a few common questions about the pros and cons of retiring in Panama, along with their answers.
How much money is needed to retire in Panama?
While it depends on where you live and the things you buy, a single retiree could often get by on around $1,400 to $1,700 per month, while a retired couple may need somewhere between $2,000 and $3,000.
Is Panama a good place for Canadians to retire?
Yes, Panama is a great destination for Canadians to retire. It provides a tropical escape from those long and cold Canadian winters, and is much more affordable than many parts of Canada.
Is Panama a safe place to retire?
While some areas are safer than others, much like any country, Panama is generally a safe place to retire. It’s among the safest countries in Central America and has a very friendly population that is welcoming to expats. If you’re worried about safety, there are plenty of gated expat communities with 24/7 security, as well.
Which part of Panama do most expats retire to?
You can find expats in many different communities across the country, but some of the most popular places for expats to retire are Panama City, Boquete, Coronado, Bocas del Toro, and El Valle.
How is healthcare in Panama?
Despite its affordability, Panama offers high-quality healthcare. It has both public and private options, and has qualified doctors and specialists. There are modern facilities and equipment, and many of the doctors in the country receive their training in the United States or Europe.
Is Panama tax-friendly for retired expats?
Yes, Panama is tax-friendly for retired expats, as it only taxes income that’s earned within its borders. So your pension or retirement income that you earned in the USA, Canada, or Europe won’t be taxed here. The Pensionado Visa also offers tax breaks and discounts that make it more financially friendly, as well.
Want to Learn More About the Pros and Cons of Retiring in Panama?
If you have more questions or curiosities about the benefits and drawbacks of retiring in Panama, don’t hesitate to contact our expert team at Metro Realty Panama for advice, guidance, and assistance.
