Everything you Need to Know About how to Retire in Panama

If you’re thinking about spending your retirement outside of the United States, you might want to consider Panama.

Panama has become one of the most popular places for North Americans to retire in Central America. Choose to retire here and you’ll be following a well-trod expat path. 

In this article you can find everything you need to help you decide if retirement in Panama makes sense for you.

Best Places to Retire in Panama

We’ll start by looking at the best places to retire in Panama.

From the thriving metropolis of Panama City to the volcanic mountains of Boquete, and the Caribbean islands around Bocas Del Toro, Panama has something for everyone.

Read on to discover the best places to retire in Panama and an overview of their pros and cons, starting with Panama City.

Casco Viejo

Casco Viejo is the old town of Panama City and the only place in the city that still boasts colonial-style buildings. The area is home to lots of the city’s best bars and restaurants and one of the few places in Panama that is truly pedestrian-friendly.

Pros

• Easily the most architecturally attractive place to live in Panama City.
• Lots of options for food and drink.
• As a popular tourist area, you will have no trouble renting your property when you’re not there.

Cons

• Property prices are high.
• Traffic, especially during rush hour can be horrendous. 
• Bars can be noisy and stay open late. If you live near a popular night spot you could end up keeping vampire hours.

Avenida Balboa

Avenida Balboa is a long strip of high-end apartments on the waterfront. Sea-view buildings come with spectacular views across the bay. You can see small fishing boats coming and going with the day’s catch. Further out giant supertankers and cruise ships park, waiting for entry into the Panama Canal.

Close to Avenida Balboa you can find the spectacular Ocean Reef community. Built atop two man-made islands, Ocean Reef sits in the Bay of Panama and is the most exclusive address in the country. 

Pros

• Amazing views across the bay. 
• Lots of quality apartments and condos to choose from.
• Central location, lots of Panama City’s best areas are close.

Cons

• Traffic during rush hour can be bad.
• Prices are high for Panama City.
• Not a lot of restaurants or bars along Avenida Balboa itself.

El Cangrejo

El Cangrejo is one of Panama City’s leafy suburbs. There are lots of small bars, restaurants, and cafes, as well as a park which is a popular place to exercise. This is a lively up and coming part of Panama City perfect for families. There is a laid back, artsy, feel to this area, unlike the hustle and bustle you can find elsewhere.

Pros

• Still an affordable place to live.
• Everything is concentrated into a small area.
• Excellent access to public transport through Metro (trams) and buses.

Cons

• Lack of parking can be a problem.
• Another area that suffers from traffic congestion.
• Not as cheap as it used to be.

Santa Maria Golf and Country Club

Santa Maria Golf and Country Club is an exclusive master-planned community just outside the city’s downtown area. It covers 692 acres and is completely private. Only residents and invited guests are let through the gates.

Santa Maria boasts a Nicklaus Design golf course, which is regarded as the best in Panama. There’s an onsite Marriott Luxury Collection hotel with a cafe and gourmet restaurant. Other amenities include a tennis court, mini-golf, basketball court, gym, walking trails, playground, BBQ area and party room.

Pros

• Access to the best golf course in Panama.
• The convenience and security of a master-planned gated community.
• Close to schools.

Cons

• Not everyone likes golf.
• Rush hour traffic is heavy Monday-Friday
• Can feel a little cut off from the rest of the city.

Best Places Outside Panama City

Boquete (Chiriquí)  

Most expats use Boquete and Chiriquí interchangeably. For clarity, Chiriquí is the region, and Boquete the popular expat town. Set up in the volcanic mountains, close to Costa Rica, Boquete is unlike anywhere else in Panama with spectacular views and cooler weather.

Daytime highs are around 75 degrees Fahrenheit, while at night the temperatures can fall into the low 50s. Evenings around the fire pit are very popular in Boquete.

By way of comparison Panama City and other low-lying areas have daytime highs of 90 and nighttime temperatures in the low 70s.

Thanks to the volcanic soil this region is known as the garden of Panama. Boquete is perfect for people who enjoy an active outdoorsy lifestyle. It’s one of the most popular expat regions in Panama so there is a lot to do and an established expat community. It’s also easy to find houses built to U.S. standards, something that isn’t always true in other parts of Panama.

Pros

• Established expat community.
• One of the few parts of Panama where speaking Spanish isn’t essential.
• Cooler weather, spectacular mountain scenery.

Cons

• Boquete is a small town. There are some nice restaurants and bars but not much of a cultural scene.
• Can feel like a tourist town.
• Expect to pay expat prices on everything from real estate to a cup of coffee.

Coronado

Coronado is a small beach town which makes up part of the City Beaches area, about an hour outside Panama City. Thanks to its proximity to Panama City, Coronado is a popular place for Panamanians to buy a weekend home. Expats started arriving here around 20 years ago, and today it’s one of the most popular expat towns in Panama.

Living in Coronado, you can find everything you need to make life pleasant. The beaches are sheltered and ideal for swimming. There are shops, supermarkets, and any number of restaurants and bars. Coronado has a couple of health centers which can take care of all minor procedures. There’s even a cinema. 

But if you ever need something else, from a medical emergency or even just the desire to visit a big shopping mall, Panama City is just an hour up the road.

Pros

• Close to Panama City.
• Great beaches.
• All the amenities you could need.

Cons

• Prices are rising.
• Limited public transport within Coronado. You’ll need a car or golf cart to get around.
• It’s not easy to live like a local here.

Playa Caracol

Playa Caracol is a new community being built along the City Beaches area. Playa Caracol is the closest premium beachside community to Panama City, and has the best beaches. While much of this stretch of coast has black volcanic sand, Playa Caracol stands out, thanks to the golden, sugar soft sand you find here.

Playa Caracol is a collection of villas, condos, and hotel suites-built by Grupo Los Pueblos, one of the premier developers in Central America. Click here to learn more about Playa Caracol.

Pros

• The closest of the City Beach destinations to Panama City.

• The best beaches along this stretch of coast.

• High-quality buildings with top class amenities.

Cons

• The project is still in development so there aren’t many shops or restaurants yet.
• Construction work is still ongoing.
• No expat community.

Bocas Del Toro

Despite Panama having an extensive Caribbean coast, there are surprisingly few options for expats looking to live on this side of the country. Bocas Del Toro is the name of the capital and the province and located close to the Costa Rica border. It’s made up of several islands set in the clear blue waters of the Caribbean. 

Panama’s Caribbean coast gets more rainfall than the Pacific coast, which keeps everything green and vibrant throughout the year. Bocas has the tropical feel that people tend to imagine when they think of life in the Caribbean. 

The town itself is a popular surf and backpack location and can be described as a party town. Life on the smaller islands couldn’t be more different. Tropical fruits and vegetables grow abundantly and lots of expats come here to enjoy an off-grid lifestyle. With a fishing rod, and space to grow your own produce, it’s possible to live a very self-sufficient lifestyle here.

There is a big downside to Bocas del Toro though, and that’s the real estate market. A lot of land here isn’t titled which can lead to confusion about who the actual owner is. This isn’t a problem if you’re happy to rent, but if you’re looking to buy real estate, then you might want to avoid Bocas.

Pros

• Incredible Caribbean beaches.
• Lots of off-grid options.
• Caribbean living at an affordable price.

Cons

• You need a 4×4 to arrive in Bocas (or travel via plane).
• Buying real estate here is very risky.
• Party-town vibes in Bocas town aren’t for everyone.

Healthcare in Panama

Healthcare in Panama is excellent. You can find world-class hospitals and clinics and the price is far lower than in the United States. A lot of the doctors in Panama have trained in the U.S. and most speak excellent English.

The best healthcare and nearly all the major hospitals are situated in Panama City. The rest of the country is served by smaller clinics which are clean, affordable, and able to treat all but the most serious ailments. 

The standard of healthcare in Panama has made it an attractive option to retirees particularly when compared to the high prices charged in the United States.

Where to Find the Best Hospitals in Panama

The best hospitals and clinics are concentrated in Panama City. The good news for people living in other parts of Panama is that thanks to Panama’s domestic airlines, you are never more than a two-hour flight away from Panama City.

Outside of Panama City, there are big hospitals in the other major towns in Panama. For example, David, the main city in Chiriquí has Hospital Chiriquí. This is one of the top 50 hospitals in Latin America, and a big part of the reason Chiriquí is so popular with retirees.

Cost of Healthcare in Panama

The price of healthcare in Panama is rising, but it remains a lot more affordable than the United States. As a rule of thumb, you can expect to pay between 25-50% less for healthcare in Panama compared to the United States.

Medical insurance costs are also lower in Panama. Depending on your age and physical condition, you can expect to pay up to 75% less for medical insurance in Panama. Retirees will want to ensure they have medical insurance. Public hospitals are fine but little English is spoken and they can be crowded.

Retirees qualify for a 25% discount on all prescriptions. 

The Best Hospitals in Panama

Hospital Punta Pacifica 

Sometimes called Johns Hopkins Hospital, thanks to its affiliation with Johns Hopkins Medical International. It’s the leading hospital in Panama and one of the best in all Latin America. Services at Johns Hopkins include.

• Maternity
• Intensive Care
• Radiology
• Clinical Lab

Johns Hopkins has dozens of private rooms as well as a selection of suites.

San Fernando Hospital

Founded in 1949, San Fernando Hospital has the distinction of being the first private hospital in Panama. The San Fernando Hospital was the first hospital in Panama to receive an accreditation from the JCI (Joint Commission). The JCI is a US based nonprofit organization which checks the standards and qualifications of hospitals and their staff.

San Fernando has launched a private clinic in Coronado, providing quality healthcare to the City Beaches area. The City Beaches is one of the most popular retiree locations in Panama and San Fernando Clinic looks after all their healthcare needs.

Centro Medico Paitilla (Paitilla Hospital)

Centro Medico Paitilla is approaching its 50th anniversary and maintains its status as one of the leading hospitals in Panama and Latin America. There are more than 400 different consulting clinics providing expert advice on all areas of healthcare.

Centro Medico Paitilla is regarded as the best place to receive cancer treatment in Panama. The hospital also specializes in providing critical care for patients and the Oncology Centre is also highly esteemed.

It’s also a popular medical tourism destination and has a high rate of English-speaking staff.

Dental Care in Panama

Dental care in Panama is excellent and affordable. Clinics are clean, modern, and well-equipped. Dentists are highly trained and able to provide the latest treatments.

Prices are a fraction of what you would pay in the United States and you waiting times almost non-existent.

Expect to pay at least 50% less for dental work in Panama than you would pay in the United States.

Medical Insurance in Panama

If you don’t want insurance, you can still get treatment at public hospitals. They typically cost very little, and the standard of treatment is good. However, you might not be able to find many English-speaking staff. It’s not uncommon for expats to use public hospitals and save on insurance costs, but you need to go into it with your eyes open and knowing the risks.

Family Medical is probably the top medical insurer in Panama. They will pay for 100% of all emergency treatment and 70% of non-emergency treatment.

Their most recent price’s, which can be found here, are;

30-39 – $46 per month
40-49 – $63 per month
50-59 – $82 per month
60-69 – $102 per month
70-79 – $125 per month

These rates are subject to a 5% tax.

Panama Visas and Residency

Panama has positioned itself as an attractive option for retirees. The Pensionado visa is affordable, easy to obtain, and comes with a range of benefits.

If you’re still working and aren’t receiving a pension, residency can be harder to obtain. One way is to get a job offer from a Panamanian company. The other is the Friendly Nations Visa. This visa is open to people from the USA, Canada, and most of Europe. Invest $200,000 into Panamanian real estate (or deposit into a Panamanian bank account) and you can obtain the Friendly Nations Visa.

Pensionado Visa

The list below is taken from the Panamanian Embassy and lists the current benefits that come with the Pensionado visa. Best of all, Panama has promised that once you acquire a Pensionado visa with these benefits, they will be honored forever. For example, some benefits could be removed for future applicants, but your benefits will remain unchanged.

• Import tax exemption for household goods (up to $10,000).
• Import Tax exemption to import a new car every two years (please note that you will need to pay other taxes when importing your car. You will be exempt from the import tax only)
• 25% discount on utility bills.
• 25% discount on airline tickets and 30% on other transportation including the Metro.
• 15% discount on loans made in your name.
• 1% reduction on home mortgages for homes used for personal residence.
• 20% discount on doctor’s bills 15% on hospital services if no insurance applies.
• 15% off eye and dental exams.
• 10% discount on medicines.
• 20% discount on bills for professional and technical services.
• 50% discount on entrance to movie theaters, cultural and sporting events.
• 50% discount at hotels from Monday to Thursday, 30% on weekends.

Who Qualifies for a Pensionado Visa?

The visa is available to anyone who can provide proof of the following.

• A pension worth at least $1,000 per month. For each dependent you will need another $250 per month.
• A notarized Police Record Check.
• Certified Birth Certificate.

The next step is to find a Panamanian attorney. This is a requirement as you are not allowed to do the paperwork yourself. You also need to apply in person, in Panama and be in Panama when the visa is issued. Birth certificates and police checks will be needed for any dependents. 

Top Reasons to Retire in Panama

Excellent and Affordable Medical Care

Panama has superb private hospitals that offer world-class treatment at a fraction of the price you would pay in the United States. Punta Pacifica hospital (affiliated with Johns Hopkins) is considered the best hospital in Latin America. Paitilla Hospital and Hospital Nacional are two more hospitals in Panama City that offer healthcare to rival anything in the world.

While most of the top hospitals are in Panama City, Hospital Chiriquí provides quality healthcare to retirees and expats living in Boquete and the surrounding areas.

Nearly all doctors in Panama speak fluent English and many of them have studied in the United States. 

If you live in Panama City or Boquete (the two favorite expat locations) you will have easy access to quality healthcare. If you live to go off the beaten track, though, you will have to accept that you may be hours away from the type of medical facilities you want.

Warm Weather Year-Round

In the low-lying parts of Panama, such as Panama City, the average daily high is constantly in the high 80s. During the summer months (January – March) it may reach the low 90s. During the night, temperatures will fall into the mid-70s. Shoveling snow, or even wearing a jacket is unthinkable.

If you prefer a slightly cooler climate, you can live in the mountain regions such as Boquete. Here, the daily highs range from high 70s during the summer to low-70s during the winter. At night, the temperature in Boquete drops down into the high 50s. Lots of homes have wood burning fires to help with the temperature heating on the cooler nights.

Low Cost of Living

Panama isn’t the cheapest place to live in Latin America. But it’s still much more affordable than most of the United States. 

The average wage in Panama is around $1,250 per month meaning most retirees with a pension and social security will be able to live a very comfortable middle-class life here. 

If you’re on a strict budget, then you can live well in the countryside on a social security check alone. 

Options to Suit all Lifestyles

Panama has something for everyone.

Panama City is a modern city that’s expanding at a rapid rate. It boasts fine dining, huge shopping malls, world-class health care and everything else you would expect from a major city. Public transport is improving, and the new Metro system now covers much of the city. 

If your dream is to retire by the beach, then Panama fits the bill here, too. The City Beaches area, which includes Coronado and Playa Caracol is popular, and only hours’ drive from Panama City. The Pacific Sea temperature stays around 80 all year, making it perfect for swimming or just relaxing. 

On the Caribbean side, there’s Bocas Del Toro, a collection of islands close to the Costa Rican border. Thanks to the remoteness of Bocas, prices here are low and it’s popular with people looking for a quiet life or off-grid living. As we mentioned earlier, we don’t recommend buying real estate in Bocas. If your heart is set on retiring to Bocas then you should look for a long term rental.

Panama also has some good options for mountain living, although there’s no chance of skiing. Boquete is popular but pricey. With so many expats, this is one of the more expensive areas to live in Panama. If you want to live in the mountains on a budget, nearby Volcan is a good option.

Close to Panama, Cerro Azul and Altos De Maria offer mountain living with the added benefit of being close to Panama City. The mountains aren’t quite as spectacular as in Boquete and Volcan, but the proximity to the city is a decent tradeoff. 

Easy Access to North America

Panama to the United States is a short and inexpensive flight. Tocumen International Airport flies to multiple locations throughout the United States and Canada.

If you’re worried about being away from friends and family, knowing that you’re only ever a short flight away brings great peace of mind. You might even find that living in Panama means you receive more visits than before!

Established Expat Community

Panama has been attracting a significant number of expats for at least 20 years now, and you can find communities throughout the country. The most popular expat locations are Panama City, Coronado, Las Tablas, Altos De Maria and Boquete. If you move to one of these areas, there will be plenty of English-speaking expats to help you settle.

Being close to an expat community is especially helpful if you don’t speak good Spanish. Tasks such as setting up an internet provider or finding an electrician become much easier when you have someone who can point you in the right direction.

Good Residency Options

The Panama pensionado is easy, affordable, and comes with a range of great benefits. If you can prove a guaranteed income of over $1,000 per month, you are eligible to apply. If you own a property in Panama valued at over $100,000 then you’re eligible with an income of just $750 per month.

You will need a good lawyer to help you with this process and in Panama they can be a mixed bag. Speak with enough expats and you’ll get some helpful recommendations. 

Including admin costs and lawyers’ fees, you can expect to pay around $2,500 to get your Panamanian residency.

Friendly and Safe

Like everywhere else, Panama has some rough areas and places to avoid. But no more than any other major city anywhere in the world. You will have no reason to ever visit these areas.

By and large, Panama is a safe and friendly place to live. It’s no exaggeration to say that most expats feel safer here than they did in their previous countries.

A lot of that is to do with the police. There is a strong police presence in Panama City, with frequent stop checks for motorists. Areas with lots of bars and pedestrians always have a few police nearby.

The countryside is generally very laid back and welcoming. Unlike some other Latin American countries, you can drive at night in Panama without fear of hijacking. 

If you would like to learn more about real estate opportunities in Panama, you can click here to contact the Smart Money Homes team.