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There are new reasons every day for Americans to plan their exit. In recent years Latin America has emerged as a safe respite filled with great cities and welcoming people. Particularly, I am going to discuss Americans moving to Panama if that’s of interest to you.
There is a comfort among people leaving the United States to stay within arm’s length. Specifically, my clients request countries like Panama or South America because staying in the same time zone somehow feels less extreme.
Plus, destinations like Panama attract American family members to tourist areas making it easy to stay connected to loved ones.
Skip to:
- Retire in Panama
- Family Life in Panama
- Pros & Cons of Living in Panama
- Best Areas of Panama for Americans
- Visa Options for US Citizens
- Cost of Living in Panama
- Life in Panama as an Expat
- Plan Your Move to Panama
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Why Panama Is A Popular Destination For American Expats
Panama has become a top choice for Americans looking to relocate. The country offers a mix of natural beauty and modern conveniences. With a residency visa in Panama, you could be living steps away from stunning beaches on the Pacific Ocean and lush national parks.
One of the major attractions is the affordable cost of living. Many expats find it significantly cheaper than in the United States. Housing, food, and healthcare are all reasonably priced, attracting many retirees and families.
Panama has set up favorable tax laws plus, a retirement visa coupon book that’s extremely attractive to those looking to pinch pennies. As long as Donald Trump doesn’t decide to wage war on the Panama Canal then U.S. citizens should have a lovely life in this beautiful country.
Who I Am & How I Can Help You Move Abroad
I’m Veronica, an American expat who left the grind behind and built a life of global freedom. If you’re ready to move abroad but feel stuck on where to go, how to qualify for a visa, or what to do next, I can help.
My Exit Plan Coaching Call is designed to give you a clear, step-by-step plan to make your move happen—whether you’re a digital nomad, retiree, or relocating with family. We’ll map out the best visa options, discuss affordable living, and create a strategy tailored to your financial situation and goals.
Don’t let uncertainty hold you back—book your Exit Plan Call today and start your journey abroad with confidence. [Schedule your call here →]
Retiring In Panama
Thinking of retiring in Panama? This country is a popular choice for many looking to enjoy a peaceful retirement.
Cost of Living
Panama offers a low cost of living. Many retirees find they can live comfortably on about $1,400 to $1,700 per month. The cost savings are appealing, especially when compared to North American cities.
Beautiful Places to Live
You have many options for places to live in Panama. Whether you prefer a lush highland community or a sunny beach area, there’s a spot for everyone. Some like Boquete for its beautiful scenery and friendly expat community.
Safety
Safety is an important consideration. In some areas, you might notice extra security measures like barred windows and iron gates. Staying informed about local safety conditions can help you feel more at ease.
“Coupon Book” for Retirees
• Import tax exemption for household goods.
• Import Tax exemption to import a new car every two years (please not that you will need to pay other taxes when importing your car. You will be exempt from the import tax only)
• 25% discounts on utility bills.
• 25% discount on airline tickets and 30% on other transportation.
• 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 dental and eye 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 during Monday to Thursday, 30% on weekends.
Retirement visas like these are why many North Americans have realized Central America is a much better choice than staying stateside.
Panama For Families
Panama offers a welcoming environment for families, making it a popular choice for Americans moving to Panama. The country is known for its friendly communities and diverse culture.
Many international schools provide quality education. These schools often follow American or international curricula, ensuring a smooth transition for your kids. A few well-known options include Balboa Academy and International School of Panama.
For families with remote workers or digital nomads, Panama provides good internet infrastructure. This makes it easy to work from home or a local café. It’s a great option if you enjoy flexibility in your work hours.
Living in Panama also means enjoying the outdoors. National parks, beaches, and mountains offer plenty of family-friendly activities. From hiking to surfing, there’s something for everyone. The weather is warm throughout the year, making it perfect for outdoor adventures.
Immigrating to Panama as a family is not as easy as it is for retirees. Check out the visa section below for details on the two possible paths for parents looking to take up temporary residence in Panama.
Pros Of Moving To Panama
Moving to Panama offers many advantages, making it an appealing choice for Americans. One of the main benefits is the tropical climate. You can enjoy warm weather and sunshine all year round. This is perfect if you love outdoor activities or just want to relax on the beach.
Panama is also known for its lower cost of living. Many find that housing, food, and transportation are more affordable there than in the United States. This means your money can go further, allowing you to enjoy a higher quality of life.
The country’s natural beauty is stunning, with mountains, beaches, and rainforests. Living in such a beautiful setting can be a wonderful experience. You’ll have plenty of opportunities for hiking, swimming, and exploring nature.
Tax benefits are another perk for Americans moving to Panama. The country has low taxes and allows U.S. citizens to leverage the Foreign Earned Income Exclusion, which can help reduce your tax burden. This makes managing finances much easier.
Panama boasts modern infrastructure that includes good roads, reliable power, and clean water. You’ll find it easy to access services and amenities. Additionally, excellent healthcare is available at reasonable prices, ensuring that you and your family can receive quality medical care.
Travel is convenient with easy access to North America. Frequent flights make it simple to visit family or friends back home.
Cons Of Moving To Panama
Moving to Panama offers many appeals, but there are some downsides to consider. One concern is the language barrier, especially if you plan to live in rural areas. Many locals speak only Spanish, which can cause difficulties if you are not fluent.
Living in remote areas might present challenges such as limited access to healthcare and services. The infrastructure in these places may not be as developed, making travel and daily life more complicated.
Panama City has a high cost of living compared to other parts of Panama. If you are used to affordable living costs, especially in rural areas of the U.S, you might find this to be a surprise.
International companies and banks are not be as abundant in Panama as in more urbanized countries. This can make it harder to find work opportunities and manage finances as seamlessly as you might hope.
Weather can also be a factor. Panama’s climate is hot and humid, which might be uncomfortable if you prefer cooler conditions. Be prepared for heavy rainfalls during the rainy season, which can affect daily activities.
Crime, though generally low, is still a concern in some areas. Petty theft is something you need to be cautious of, especially in more populated places. Good awareness and vigilance can help you stay safe.
For Americans moving to Panama, it’s crucial to weigh these factors and decide if the lifestyle aligns with what you are seeking.
Best Places To Live In Panama For U.S. Expats
Panama City is vibrant and full of life. It’s one of the major cities and a favorite for many expats. Here, you’ll find a mix of modern skyscrapers and historic areas like Casco Viejo. The city also has amenities and comforts that Americans moving to Panama will appreciate.
For a more laid-back vibe, consider Bocas del Toro. It’s perfect for those who love beaches and outdoor activities. This area is lively and attracts a younger crowd. It’s a unique place with a Caribbean atmosphere.
If you prefer smaller towns, Boquete might be the right choice. Located in the highlands, it’s known for its cooler climate and stunning landscapes. Many U.S. expats enjoy the peaceful life and friendly community here.
Along the Pacific Coast, you’ll find towns like Coronado. It’s popular for retirement and known for its beaches and golf courses. Coronado is just a short drive from Panama City, offering a great blend of beach and city life.
Another interesting location is Las Tablas. Known for its cultural festivals, it gives you a taste of traditional Panamanian life. It’s a quieter option but still offers a warm and welcoming atmosphere.
These locations offer a mix of big city conveniences and smaller town charm. With options to suit every lifestyle and preference, Panama has something for everyone.
Americans In Panama
Thinking about joining the growing number of American expats in Panama? You’re not alone. Out of Panama’s 4.4 million residents, there are an estimated 20,000 to 30,000 Americans living across the country.
It’s a bit tough for governments to track the exact number of foreigners residing there because many people conceal their intended living situation for tax reasons from their home country.
Expat Communities
Panama City is popular among US expats. You’ll find vibrant expat communities here. They often connect through expat forums, sharing tips and advice.
Cost of Living
Living in Panama City can be pricey. Yet, outside the city offers a more affordable lifestyle. Consider your budget when planning your move.
Language and Culture
Spanish is the official language, though many Panamanians speak English. America’s cultural influence is visible, making it easier for American expats to adjust.
Engaging with local culture increases the sense of belonging. Making local friends or joining community events enriches your experience as an expat.
If you’re considering moving, seek advice from those who have already made the leap — they can offer firsthand insights.
Visas And Residency Options For U.S. Citizens
The Panama retirement visa is called the Pensionado visa. You only need to be 18 years old to apply for the Pensionado visa, but the type of income is very limited to retirement and pension-type lifetime income. Reports about trying to use passive income for this visa come back with a hard no. Your retirement income only needs to be $1,000 per month and increases by $250 for each dependent.
There are two options for allowing families to arrive in Panama. You can select from a self-sufficiency visa or a self-sponsored professional visa.
Panama’s self-sufficiency visa is really similar to golden visas in other countries. You are required to purchase $300,000 of real estate or government investments. Clearly, this option is very cost-prohibitive for many families looking to escape America.
Your other option for bringing a family to Panama is a self-sponsored professional visa. This route is quite unique because it doesn’t have any financial checks or income requirements. Instead, Americans holding college degrees can check the Panama protected professions list, and if your major is NOT listed, you may qualify for residency. The gist is that only Panama citizens are allowed to do the professions on this list, but anyone who could (but is not required to) is welcomed to round out society.
Following Panamanian Laws
There is another more complicated option called the Friendly Nations visa which a lot of blogs refer to. The name makes it seems a lot easier to obtain than it actually is. I generally don’t advise about visas that require you to start businesses in order to qualify, this is such a case. The visa requirements include starting a company or being hired by a company in order to qualify.
For those planning to work, a work permit is essential. Having a job offer or contract from a Panamanian company usually helps in obtaining this permit.
Tourists can stay up to 180 days without a visa. However, this requires departing Panama before re-entering. Longer stays require applying for a different type of visa.
Understanding these options can make your move to Panama smoother. Each visa has its own set of requirements, so it’s important to choose the one that best fits your needs. Always stay updated on any changes to avoid complications.
Cost Of Living In Panama For Expats
If you’re thinking about moving to Panama, you’ll be happy to learn that the cost of living can be quite affordable for expats. Retirees find that their social security payments go further here.
Rent is often the biggest expense. For a furnished one-bedroom apartment, you can expect to pay anywhere from $300 to $1,500 per month. It depends on the location and type of apartment.
Utilities like electricity cost around $60 per month. Internet is typically about $40. Many expats also choose to have domestic help, which is quite affordable.
Groceries and everyday items are reasonably priced. You can buy local fruits and vegetables at lower prices in markets.
Transportation is another low-cost benefit. Buses and taxis are cheap and reliable. If you prefer owning a car, gas prices are moderate.
Using the U.S. dollar makes it easier for you to manage finances. Many expats living in Panama with a modest income find they can have a comfortable lifestyle.
For a single person, the monthly living expenses, including rent, utilities, and groceries, can range from $1,000 to $2,500. It largely depends on lifestyle choices and location.
Americans moving to Panama appreciate the balance of affordable living and vibrant culture. The country offers an appealing blend of city life and coastal tranquility.
Real Estate And Renting In Panama
Are you thinking about moving to Panama? Real estate in Panama offers various options for newcomers like you. Rentals can be less costly than in major cities in the U.S., making it attractive for those considering relocation.
When renting, you should look at apartments in popular areas like Panama City or charming homes near the beach. Prices and locations can vary, so explore different options. It’s common to find both long-term and short-term rental agreements.
The real estate market is growing, offering good opportunities for investment. When purchasing, always work with a local real estate agent who knows the market well.
Americans moving to Panama are often drawn to regions known for their beauty and amenities. There are many reasons to enjoy life in Panama, including a big cities and a pleasant climate.
Everyday Life In Panama As An Expat
As an expat in Panama, you’ll find that grocery stores offer a mix of local and imported items. Prices can vary, but local fruits and vegetables are often affordable and fresh. While imported items might cost more, you’ll discover new flavors to enjoy.
Opening a bank account in Panama is relatively straightforward. Many banks are used to serving expats, so you’ll find bilingual staff in major branches. Make sure to bring all necessary documents to avoid multiple trips.
During the rainy season, you may need to adjust your activities. Expect sudden downpours, which can impact outdoor events. However, the rain also brings lush, green landscapes, making it a great time to explore the natural beauty.
Public transportation is widely available and affordable. Buses and the metro are common choices, but taxis and ride-sharing apps are also at your disposal. Using public transport is a great way to navigate the city and explore different areas.
You’ll discover that Panamanian culture is rich and welcoming. Music and dance are popular, especially loud music played during festivals and celebrations. Embrace these moments to connect with locals and experience their traditions.
For entertainment, you can visit a nearby movie theater. Many offer films in English with Spanish subtitles. It’s a fun way to unwind and meet new friends.
High temperatures are common, so dress lightly and stay hydrated. Some homes and workplaces have air conditioning, providing relief from the heat.
Don’t be surprised to see American influences in Panama. A new car or a golf course might be familiar sights. Cell phones are a staple here, making it easy to stay connected. Your first year as an expat will be full of new experiences and opportunities as you adjust to life in Panama.
Access To Healthcare In Panama
Healthcare in Panama has a mix of public and private options. Public hospitals offer affordable care to everyone, including Americans moving to Panama. These facilities provide basic medical care and operate under Panama’s social security system.
For more comprehensive care, consider the private healthcare system. Private hospitals in Panama often have newer equipment and shorter wait times. It’s advisable for expats to obtain private health insurance. This ensures access to better facilities and specialists. Sometimes, language isn’t a barrier, as many doctors have trained outside Panama and speak English.
Doctor visits in Panama are more affordable than in the U.S. Even without insurance, a visit to a private clinic may only cost you around $50 to $60. If you have insurance, these costs are usually covered, making it easier to manage your expenses.
For foreigners, Panama’s state health insurance is an option if you contribute to the system and have the correct visa. This program is managed by the CSS (Caja de Seguro Social) and covers a wide range of medical services.
Panama City, the capital, offers the best access to healthcare. Many Americans moving to Panama choose to live here for the excellent medical facilities. Rural areas might have fewer facilities, so it’s something to consider when choosing where to live.
Safety In Panama
Panama is generally considered a safe place, especially for expats. Many Americans moving to Panama appreciate the comfort and security. Areas with strong expat communities often feel welcoming and secure.
Tips for Staying Safe:
- Be mindful of your surroundings.
- Avoid areas known for higher crime rates, like parts of Colón.
- Keep your belongings secure, just like you would back home.
Local Insights
Panamanians tend to be friendly and avoid confrontation. This makes daily interactions pleasant and helps create a safe atmosphere. Still, being aware and cautious is always wise.
Legal Matters
Panamanian law is in place to protect residents and visitors. Learn the local laws and respect them to ensure a smooth experience. If you plan to open a foreign company, understanding legal requirements is crucial.
Extra Caution
Some areas might have travel advisories, so it’s smart to stay informed. Check any advisories regularly, especially if you plan on traveling around the country.
Challenges Of Living In Panama
For Americans moving to Panama, there are several challenges to consider.
One of the main issues is the bureaucracy. From applying for a driver’s license or dealing with paperwork for a health certificate, the process can be slow. You will need patience as things may not move as quickly as you are used to.
Language barriers can also be an issue. Many people speak Spanish, and while some know English, learning Spanish will help you communicate more easily with locals.
Documents like birth certificates or a marriage certificate might need translation or extra processes to be recognized. It’s best to plan for this when moving, so you’re not caught off guard.
Cultural differences also play a role. Life in Panama moves at a slower pace. This relaxed lifestyle might require adjustment, especially if you’re used to a fast-paced environment.
While there’s no shortage of beautiful places, city living may come with crime concerns. Staying aware of your surroundings and taking preventive measures will help.
By being prepared for these challenges, you’ll have an easier time making Panama your new home.
How To Move To Panama From The U.S.
Thinking of moving to Panama? Start by organizing your visa. Following Panama’s immigration laws allows you to take up permanent residency in a wonderful country that is happy to welcome you.
You’ll also need a national criminal report. US citizens should get an FBI report. This is important for legal residency applications.
Don’t forget to manage your finances. Panama uses the US dollar, which makes things easier. You’ll want a local bank account for daily transactions, so consider opening one upon arrival.
Healthcare is another crucial factor. Panama offers both public and private options. Private healthcare is usually faster and more reliable. Check that your insurance covers international services.
Secure housing before you move. Rent first, so you can explore neighborhoods. Online listings and local real estate agents will help in finding a place.
Finally, get familiar with the cultural differences. Learning some Spanish can be helpful. Embrace the local lifestyle and you’ll soon feel at home.
By following these steps, you’ll find the process of Americans moving to Panama smoother and more enjoyable.
Is Moving To Panama Right For You?
Thinking about a new life in Panama? It’s an exciting idea! Americans moving to Panama can find a welcoming environment with an affordable cost of living. A couple can live comfortably on around $2,600 a month, including rent.
Panama offers a mix of modern infrastructure and natural beauty. If you’re looking for a new home, Panama could be a comfortable choice.
Consider what you want in a new place to call home. Panama’s warm climate, vibrant culture, and friendly locals could make it the right place for you.
