Guide - Retiring to Panama
Thinking about retirement in Panama? While its famous canal often steals the spotlight, Panama is also a sunny paradise with a friendly vibe, a low cost of living, and a fantastic lifestyle for those looking to make the most of their retirement years. For many women, Panama’s easy-going pace and affordable living make it a perfect place to stretch retirement savings a bit further, all while enjoying the warm climate and welcoming culture. Plus, with the local currency pegged to the U.S. dollar, managing your budget can feel a little simpler.
Why Panama?
Panama offers an exceptional quality of life, often higher than in many other parts of Latin America, North America, and Europe. For those relocating, one major perk is the tax advantages for retirees. Once you’ve been a permanent resident for at least five years, there’s no tax on foreign income, which can include pensions or rental income from properties outside the country. This can be a huge financial advantage, especially when paired with Panama’s already affordable lifestyle. (It’s always wise to consult with a local attorney and your accountant for detailed advice on taxes and budgeting before you make the big move.)
A Land of Natural Wonders
Geographically, Panama is a stunning isthmus that links North and South America. Though compact at around 29,000 square miles, it’s packed with beauty. From UNESCO World Heritage sites like the Coffee Cultural Landscape and Talamanca Range-La Amistad Reserves to lush rainforests filled with toucans and sloths, Panama offers plenty for nature lovers and adventure seekers. Whether it’s hiking through vibrant jungles or white-water rafting, there’s no shortage of ways to stay active and connected to nature.
Where to Settle
Panama has a variety of welcoming communities suited to different lifestyles and budgets. Whether you’re looking for a quiet, coastal village or a bustling, expat-friendly town, there’s something here for everyone. Explore a few of the top spots in Panama to find the one that best suits your retirement dreams.
Boca Chica
For retirees seeking a peaceful retreat, Boca Chica is the perfect spot to unwind and soak in the coastal breezes. This tiny fishing village, about 70 miles from the Costa Rican border, offers a laid-back beach-town lifestyle and plenty of ways to enjoy the water. With activities like snorkeling, scuba diving, fishing, kayaking, and paddleboarding, Boca Chica is a water sports haven. Known for its stunning coral reefs and easy boat access to nearby islands like Boca Brava, this cozy village of around 500 people provides a relaxed, charming lifestyle for retirees looking to escape the hustle.
Boquete
Tucked near the majestic Volcán Barú, Boquete is a serene town with breathtaking mountain views and a crisp, breezy climate. Home to about 23,000 residents, Boquete is famous for its coffee culture, with beans grown locally that make for delicious cups to enjoy while taking in the views of the Caldera River. The town’s landscape is dotted with orange and pineapple trees, adding to its charm. Just an hour away from the Gulf of Chiriquí and its beautiful beaches, Boquete offers both tranquility and easy access to the coast.
Chitré
Nestled on the Pacific in Panama’s picturesque Azuero Peninsula, Chitré is one of Panama’s best-kept secrets. It’s close to Panama City and filled with local markets selling fresh produce, a variety of dining spots, and plenty of bars for an easygoing night out. Golf lovers will be thrilled with the local championship course, perfect for regular practice. With daily flights to Panama City and proximity to the Pan-American highway, Chitré is both accessible and laid-back, offering retirees a slice of authentic Panamanian life.
Coronado
Coronado, set on Panama’s stunning Pacific coast, offers a unique experience where you can swim in both the Pacific and Atlantic on the same day. Known for its jungle charm, Coronado provides access to supermarkets, medical facilities, and year-round activities like hiking, golf, and scenic beach walks. U.S. retirees with a Pensionado Visa enjoy discounts on medical services and entertainment. With little rainfall and steady sunshine, Coronado boasts a warm climate, beautiful landscapes, and a vibrant community vibe—plus, it’s just an hour’s drive from Panama City.
David
For a more urban experience, David, Panama’s third-largest city, offers the perfect mix of amenities and a slower pace. Located in Chiriquí province near the Costa Rican border, David has a welcoming expat community, bustling markets, family-owned eateries, and entertainment options like cinemas and casinos. Temperatures here are warm during the day but pleasantly cool at night. David has an international airport and a range of healthcare facilities, making it an appealing option for those who prefer the convenience of city life with a friendly, small-town feel.
Panama City
Panama City, the Southern Caribbean hub, is the heart of Panama’s finance and culture. This vibrant city of over 430,000 offers retirees an exciting mix of urban and tropical life, with everything from bustling markets to jungle hikes close by. Panama City welcomes retirees with open arms, and no visa is required for scouting trips. Retirees enjoy a high quality of life, with world-class amenities and a diverse culture. Panama’s top airport connects you to major cities across the Americas, making it easy for retirees to explore or host visiting family and friends.
El Valle de Antón
Imagine living in the crater of an ancient volcano—that’s El Valle de Antón, where lush forests, cool temperatures, and mountainous surroundings create a natural paradise. Located about an hour from Coronado’s beaches and just 75 miles from Panama City, this charming town sits 2,000 feet above sea level, which keeps the weather mild. Expats enjoy the area’s scenic views, hiking trails, and relaxed lifestyle. With a strong sense of community and a tranquil atmosphere, El Valle is perfect for retirees seeking a cool, serene escape in Panama’s highlands.
Puerto Armuelles
If you’re drawn to a more laid-back, beachy vibe, Puerto Armuelles might just feel like home. Located at the southern tip of Western Panama, this town of about 20,000 residents has a small-town feel with a distinctive history as a former banana hub. Oceanfront properties and a tight-knit community make it a great choice for retirees who don’t mind a slower pace. Spanish language skills are a plus here, as is a love for the relaxed, rural lifestyle.
Volcán
Volcán, known for the towering Volcán Barú, offers retirees striking views and a cozy mountain town atmosphere. This town of about 15,000 has everything from local markets and floral shops to health clinics and charming eateries. With year-round mild temperatures, this cooler climate is a favorite among expats. Volcán’s community-oriented lifestyle and breathtaking landscapes create a peaceful retreat in the mountains, perfect for retirees looking to unwind in Panama’s natural beauty.
Medical Care in Panama
Panama offers a variety of excellent healthcare options, from top-quality medical centers in the city to accessible rural clinics, and even affordable house calls. With transparent, upfront pricing, you’ll know exactly what to expect, and if you hold a Pensionado visa or are retirement age, you’ll enjoy discounts on prescriptions and doctor visits.
Panama’s healthcare system includes three main components:
CSS (Caja de Seguro Social) – This government-funded insurance covers citizens who pay into it through payroll.
MINSA (Ministerio de Salud) – Provides low-cost clinics throughout Panama for those not covered by CSS.
Private Hospitals – Known for high-quality care, some are affiliated with respected U.S. medical institutions.
Expats will likely use all three at some point. In rural areas, private facilities are limited, but overall, you’ll find quicker and more comfortable care through private services.
Medical Insurance Options for Foreigners
Expats have various insurance options in Panama:
CSS: If you’re employed in Panama with a work permit, you can pay into the CSS system for national coverage. Public healthcare facilities are available, but you may experience longer wait times and fewer amenities than private clinics.
MINSA Clinics: These are pay-as-you-go clinics available to all, with general practitioner visits around $10, and specialists often costing a bit more. MINSA’s clinics are especially important for expats in rural areas without access to private hospitals.
Local Health Insurance: Some options, like local hospital coverage and HMOs, allow you to pay a monthly or yearly fee to receive partial coverage or discounts on healthcare. These plans are great for basic, in-country needs, but may not cover pre-existing conditions and are best suited for those in good health.
International Health Insurance: Many expats prefer international plans, which offer flexibility, quality of care, and coverage across multiple countries. These plans are typically purchased before moving and give you access to Panama’s private hospitals, often with English-speaking staff and connections to institutions like Johns Hopkins and the Cleveland Clinic.
Considering Retirement in Panama?
Before deciding to retire in Panama, consider visiting for an extended stay to get a feel for the country’s lifestyle, healthcare options, and climate variations by region. Panama offers multiple residency paths, including the popular Pensionado visa for retirees. This visa requires proof of a lifetime income or pension and opens up a host of benefits, such as discounts on everyday items, medical services, and even airfare.
Pensionado Visa Benefits
With a Pensionado visa, you’re eligible for various discounts:
Healthcare: Savings on prescriptions, dental exams, and medical services.
Entertainment and Dining: Discounts on restaurants, movies, concerts, and sporting events.
Utilities and Travel: Reduced rates for water, electricity, and public transportation.
Housing and Financial: Discounts on home loans and closing fees, as well as a one-time tax exemption on importing personal goods and a car every two years.
Living in Panama comes with many advantages, but some things to consider include the language barrier—Spanish is essential for daily tasks like shopping or visiting public hospitals. Additionally, securing a visa usually requires an immigration attorney’s assistance. Getting connected with local expat groups and learning Spanish are great ways to ease your transition and make the most of your time in Panama.
MORE INFORMATION
Check out the interview we did with Donna, who moved from the USA to Panama.
PANAMA: Minimum Income Required: US$1000 per month or a deposit of $170,000 for a five-year fixed term in a local bank account.
Official page: https://www.embassyofpanama.org/visas-1
