Moving Abroad to Panama: The Complete Expat Guide

Panama has become one of the most popular destinations for North American and European expats. With its use of the US dollar, world-class healthcare, excellent infrastructure, and welcoming attitude toward foreigners, it's easy to see why. Here's everything you need to know about making Panama your new home.

Why Panama?

Key Advantages

• US Dollar economy: No currency exchange concerns
• Tax benefits: Territorial tax system—foreign income not taxed
• Pensionado discounts: Best retiree benefits in the world
• Modern infrastructure: First-world in many aspects
• Geographic diversity: Mountains, beaches, city life
• No hurricanes: Below the hurricane belt
• Friendly to expats: Large established community

Potential Challenges

• Bureaucracy can be slow and frustrating
• Traffic in Panama City is severe
• Humidity is intense in most areas
• Some areas have limited English speakers
• Cost of living in Panama City rivals US cities

Visa Options

Pensionado Visa (Retirement Visa)

Panama's famous retirement program:

• Requirement: $1,000/month pension from government source
• No minimum age requirement
• Social Security, military pension, etc. qualify
• Spouse can be included
• Permanent residency from day one
• Discounts include: 25% electricity/phone, 25% restaurants, 30% public transport, 15% loans, 20% medical consultations, and more

Friendly Nations Visa

For citizens of 50 "friendly" countries:

• USA, Canada, UK, most EU countries qualify
• Requires economic ties (job offer, business, or bank deposit)
• $5,000 bank deposit option most common
• Leads to permanent residency
• Work permit included

Self Economic Solvency Visa

• Deposit $300,000 in Panamanian bank, or
• Purchase $300,000 in real estate
• Good for those who don't qualify for other visas

Investor Visa

• Minimum $160,000 investment
• Various qualifying investments
• Includes work permit

Popular Expat Destinations

Boquete

The most popular expat destination:

• Cool mountain climate (eternal spring)
• Large English-speaking community
• Excellent restaurants and amenities
• Coffee country—stunning scenery
• Active social scene for retirees
• Cost of living: Moderate to high

Coronado

Beach community 1 hour from Panama City:

• Gated community with full amenities
• Golf courses, beach clubs, restaurants
• Easy access to city services
• More Americanized feel
• Cost of living: Higher end

Panama City

Modern, cosmopolitan capital:

• World-class restaurants and shopping
• Excellent healthcare
• Active nightlife and culture
• High-rise apartment living
• Traffic is challenging
• Cost of living: High (comparable to US cities)

Pedasí

Small coastal town on Azuero Peninsula:

• Authentic Panamanian culture
• Beautiful beaches
• Growing expat community
• More affordable than other areas
• Less infrastructure and amenities
• Cost of living: Lower

Cost of Living

Monthly Budget Estimates (Single Person)

Expense	Budget	Comfortable	Luxury
Rent (1BR)	$500-800	$800-1,500	$1,500-3,000+
Utilities	$100-150	$150-250	$250-400
Food	$300-400	$400-600	$600-1,000
Transport	$100-200	$200-400	$400+
Healthcare	$100-150	$150-300	$300-500
Entertainment	$100-200	$200-400	$400+
Total	$1,200-1,900	$1,900-3,450	$3,450-5,300+

Healthcare

Quality

• Panama City has excellent hospitals
• Many doctors trained in US or Europe
• Johns Hopkins affiliated hospital
• Dental and medical tourism is common
• Rural areas have limited facilities

Costs

• Significantly lower than USA (50-70% less)
• Pensionado discounts apply to medical
• Private insurance: $100-400/month depending on age
• Many expats pay out of pocket for routine care

Insurance Options

• International health insurance (Cigna, Aetna Global)
• Local insurance (ASSA, Mapfre)
• Self-insure for routine, catastrophic coverage for emergencies

Banking and Finance

Opening a Bank Account

• Residency makes this much easier
• Some banks accept tourists with references
• Required: passport, residency proof, reference letter from home bank
• Major banks: Banco General, BAC, Banistmo

Using US Banking

• Dollar economy means US cards work easily
• ATMs dispense US dollars
• Wire transfers straightforward
• Many maintain US accounts alongside local

Real Estate

Buying Property

• Foreigners can own property with same rights as citizens
• Title insurance recommended
• Use a reputable attorney
• Beware of "Rights of Possession" (ROP) properties
• Titled property is more secure

Renting

• Rent before buying—test the area
• Most rentals are furnished
• 1-2 year leases common
• Deposits typically one month's rent

Getting Around

Driving

• Use foreign license for 90 days as tourist
• Panamanian license required with residency
• Traffic in Panama City is notorious
• Outside city, roads are generally good
• Gas prices reasonable

Public Transportation

• Metro in Panama City (modern, efficient)
• Buses throughout the country
• Uber operates in Panama City
• Taxis are affordable (negotiate or use meter)

Practical Considerations

Shipping Household Goods

• Container shipping from US: $4,000-8,000
• Consider selling and replacing locally
• Electronics are more expensive in Panama
• Furniture can be found locally

Pets

• Panama accepts pets from most countries
• Health certificate required
• Rabies vaccination (valid, not too recent)
• USDA endorsement for US pets
• Pet-friendly rental harder to find

Internet and Communications

• Good internet in urban areas
• Rural/mountain areas can be limited
• Starlink now available
• Cell coverage from Cable & Wireless, Claro, Movistar

Taxes

Income Tax

• Territorial system: Only Panama-source income taxed
• Foreign pensions and investments: Not taxed in Panama
• US citizens still must file (and potentially pay) US taxes

Property Tax

• Exemptions for primary residence (up to $120,000 value)
• New construction exemptions available
• Overall property tax burden is low

The Relocation Process

Expat Resources

• Online communities: Panama Forum, Facebook expat groups
• Immigration attorneys: Essential for visa process
• Relocation services: Can handle logistics
• Real estate agents: Look for expat-experienced agents
• Embassy: Register with your home country's embassy

Final Advice

1. Visit first: Spend at least 2-4 weeks exploring
2. Rent before buying: Test different areas
3. Learn Spanish: Life is easier with basic Spanish
4. Be patient: Bureaucracy moves slowly
5. Connect with community: Other expats are your best resource
6. Keep realistic expectations: Panama is wonderful, but it's not perfect

Panama offers an exceptional quality of life for expats willing to embrace a new culture. With its modern infrastructure, welcoming attitude, and attractive benefits for retirees, it's no wonder thousands of North Americans call it home. Take your time planning, do your research, and you'll be enjoying the "pura vida" Panamanian style before you know it.