An Overseas Dream Home Report

TABLE OF CONTENTS

• What Makes Panama So Appealing
• The Best Places to Buy Property in Panama
• Why It’s Easy to Buy Property in Panama
• Safety and Security
• Panama’s High Quality, Affordable Healthcare
• Visas and Residence Options
• Insider Tips for Living in Panama

What Makes Panama So Appealing

Nestled at the crossroads of the Americas, Panama is unique for its position connecting the Pacific Ocean with the Caribbean Sea.

This vibrant country offers a diverse range of landscapes, from tropical rainforests to pristine beaches.

On the Pacific side, you’ll find sweeping beaches like Playa Venao, perfect for surfing or simply soaking up the sun. On the Caribbean side, the San Blas Islands offer an untouched, idyllic setting with crystal-clear waters and white-sand shores.

In Panama it’s possible to wake up on the Caribbean and then have lunch overlooking the Pacific…they’re only a couple of hours apart at the country’s “skinniest” sections.

For those who love the mountains, Panama’s highland towns, like Boquete and Volcán, feature cool temperatures, lush landscapes, and an abundance of wildlife. Hiking, birdwatching, kayaking, river rafting, horseback riding, biking, golf, tennis, zip lining, and pickleball are just a few activities on offer here.

And then there’s Panama City, the country’s cosmopolitan capital. The only true First World city in Central America.

Panama City is one of the world’s most vibrant and livable destinations…

You can enjoy all the benefits of living in a major metropolis—incredible nightlife, world-class international schools and hospitals, modern airports and metros, upscale supermarkets and shopping malls…

Investing and living here is also convenient because the currency is the U.S. dollar and there are many English speakers. The hub that is Tocumen International Airport makes it easy to fly from Panama to nearly anywhere in the world…often with no layovers. (You can fly to 94 destinations non-stop in 39 different countries with 14 airlines from Tocumen.)

Panama City’s emergence as a World City is down to the country’s incredible strategic location…

Because Panama straddles the narrow isthmus, or land bridge, that connects North and South America (between Costa Rica and Colombia), it sits at a key global crossroads. The country has benefited from this key strategic location throughout its history economically and culturally. But its rise from a Spanish colonial outpost to a major global hub of trade, finance, and transportation would not have happened without the Panama Canal.

This engineering marvel, which was opened in 1914, continues to be a major driver of the country’s economy.

In fact, ever since the Canal was handed back to Panama in 1999, the country has boomed. (For some interesting facts about the Canal and a short video about its creation, go here.)

Though the canal eventually helped transform Panama, for most of the 20th century the country remained a backwater…

You see, while Panama’s economy was dependent almost entirely on the canal, the country did not oversee the waterway or its revenues. The U.S., as builder of the canal, retained control for many decades. But in 1977, the U.S. agreed to a phased handover of the canal, with Panama assuming sole control in 1999.

The handover of the canal presented an incredible economic opportunity for Panama…a chance to reposition itself as a key strategic center for global business.

Panama seized this opportunity with both hands, enacting a series of smart policies such as tax incentives and easy residence and work permits to encourage major international corporations to use the country as their regional headquarters. Scores of major global corporations rushed to take advantage.

As major multinationals like Dell, Nestle, and Procter & Gamble set up headquarters here, Panama City became one of the wealthiest cities in the Americas.

Today, it sports the world’s 25th biggest skyline, beating out LA, Miami, and Beijing to name just a few. In fact, this is the biggest skyline in Latin America, and 45 of its 50 tallest towers were built after 2000, speaking to the phenomenal rate of growth of this small global safe haven in the last two decades.

Panama’s strategic location has turned it into the economic powerhouse of Central America. And its growth has decades left to run. By owning prime real estate there, you profit from Panama’s incredible growth story…

You’ll find out more about the real estate scene later in this report. And, yes, it is perfectly legal for foreigners to own property in Panama. But, there are some country-specific guidelines to keep in mind.

In this guide, you’ll also discover the many visa options available…and the incredible benefits they offer. But, bear in mind, you don’t need a visa to buy or own real estate in Panama.

Safety and security, low-cost/high-quality healthcare, infrastructure, the vibrant local culture…it’s all in this guide.

First, let’s take a look at the top spots to own real estate in this beautiful Central American gem.

The Best Places to Buy Property in Panama

North Americans and other foreigners live throughout Panama, but there are some cities, towns, and regions that draw a larger expat population.

The Pacific Riviera

The Pacific Riviera is the stretch of coast to the west of Panama City between the beach communities of Chame and Farallon—about 50 miles or so of Pacific beaches.

It’s by far the most developed section of coast in all of Panama. Development began here as far back as the 1940s with the establishment of Coronado, the best-known community on this coast.

From then on other development popped up, gathering speed in the last 20 years or so. New hotels, new resorts, a premium golf course, and swish new residential communities. A slew of upper-middle-class housing back from the beach has brought schools, supermarkets, and services in its wake. Other towns and resort destinations on the Pacific Riviera include the beach town of Nueva Gorgona and the prestigious resort community of Buenaventura.

This development on the Pacific Riviera leapfrogged an area known as Chame, which is actually much closer to the capital, for three reasons…

1. A lack of road access. What passed for a road down Punta Chame peninsula was a car-killing bone-shaker.
2. Most of the land was owned by just a few families that didn’t want to sell.
3. Much of the land was zoned for agricultural use.

Here’s the critical thing to understand: Chame is the nicest, closest beach area to Panama City.

But, despite Chame being the most obvious place for development to start…it did not. And so, while the communities farther from Panama City boomed, Chame was left a virgin paradise…a sleeping giant. Waiting for things to fall into place.

However, by 2015, whispers were spreading that something big was set to happen in this locale. Indeed, one of Panama’s foremost developers had started work on a massive master-planned project in Chame, on a stretch of beach called Playa Caracol. He had got a paved road put in, all the way to the project and was spending serious money on infrastructure.

This was in addition to millions of dollars of government spending on a “Path of Progress.” (A path of progress is anything that makes a place easier to get to, like new roads, airports, or bridges, or more desirable, say, a 5-star resort in a place that previously only had cheap hostels).

Billions of dollars were being spent on new roads, wider roads, more roads, bigger roads…a new bridge over the Panama Canal, new metro lines…and on top of all this is a massive expansion of Tocumen International Airport close to Panama City.

All this made access easier to this once forgotten stretch. And this means that Playa Caracol is destined to become the premier beach destination on this coast.

Pedasí

Located at the tip of the Azuero Peninsula, Pedasí is a quaint unassuming beach town with a picturesque downtown area surrounded by green pastures and grazing cattle. The village center is only a five-minute drive to the Pacific Ocean and three spectacular unspoiled beaches with little development.

Pedasí is rural living at its best. And its expat community is growing as more and more prospective residents have discovered this treasured jewel

The main source of income here for locals is fishing. Considered the “Tuna Coast” of Panama, the waters are filled with an abundance of fish. Sport fishing has become a pastime here, as you are almost always guaranteed a great day’s fishing.

Not much further down the two-lane road is Playa Venao, one of Panama’s best surfing beaches. This once quiet beach town has seen big growth in the last number of years. As more and more expats discover it, additional shops, restaurants, and amenities such as co-working spaces for the increasing number of digital nomads who are coming here, are springing up.

Boquete

The district of Boquete is nestled in the highlands of western Panama, in the fertile province of Chiriquí. Home to just over 23,000 people, it’s a retirement haven for expats looking for a simpler lifestyle.

Boquete is a microcosm of bliss.

The mountain region offers breathtaking vistas, with lush greenery and flowers blanketing the hills in a kaleidoscope of colors. With elevations of 2,600 to 4,000 feet, the Boquete region’s cool climate draws Panamanians and expats alike, with 20% of the population being expats. The spring-like weather makes Boquete the ideal place for its active, outdoorsy population. It is also known for its vibrant arts scene and focus on natural health and wellness.

Boquete is only 40 minutes from David, Panama’s third largest city with a population of just under 82,000, via a well-paved four-lane road. David is the commercial hub of the region, with shopping, restaurants, and all the services you might need, from government offices to medical providers. Two top-rated private hospitals offer affordable and accessible healthcare to residents of Boquete and all of Chiriquí province.

Boquete’s privileged location is also only about an hour’s drive from the nearest beach. It’s easy to grab your swimsuit, pack up your cooler, and head out for a day of fun in the sun.

Mountains, beaches, national parks…the Chiriquí region truly has it all. And that includes acres and acres of fertile farmland. Known as Panama’s breadbasket, this province grows some 80% of the country’s produce.

Panama City

And then, of course, there’s Panama City—Central America’s only true First-World capital.

Panama City offers the perfect mix of old and new, modern and traditional. Here you can eat in a gourmet restaurant, attend a jazz festival, secure top-notch medical care, watch a movie (in English)…do just about anything you would be able to do in many of the First-World cities that we all love. But in Panama City, you can do it all without breaking the bank.

A luxury lifestyle in the “Hub of the Americas” is easy. And it is also one of the safest capitals in the Latin American region.

Panama City, with a population of 1.5 million, boasts a skyline of skyscrapers, modern office buildings, condo complexes, and hotels of shining glass and steel, with world-class views of the Bay of Panama. It’s a major international commerce and banking hub, with scores of international non-profits, and giant multi-nationals.

A metro system was built in Panama City, opening in 2014 as the first urban rail system in Central America. Vast amounts of new highways were constructed. In 2021, the biggest convention center in Central America was unveiled in Panama City. And in 2024, the country launched a new $200 million cruise ship port near the Panama Canal entrance…part of the country’s efforts to further diversify into tourism.

In Panama City you’ll also find a rich cultural tapestry—the result of a fascinating history. From the colonial buildings in Casco Viejo to the many festivals that take place in the city throughout the year, there are myriad opportunities to immerse yourself in traditional Panamanian life

When it comes to overall value, Panama City shines. It has a thriving art scene, a large roster of sporting and fitness-related activities, a scintillating nightlife, and just about anything else you’d expect from a world-class capital.

Cosmopolitan lifestyles, top healthcare, and close proximity to the U.S. have all helped transform this hub for business and trade into one of the world’s most desirable expat destinations.

One of the most fashionable districts of Panama City is Costa del Este. This is where multinational company executives and the upper echelons of Panamanian society can be found, and it’s becoming one of the most desirable neighborhoods to own in.

Costa del Este is the place where everyone wants to be in Panama City. This neighborhood is home to the regional headquarters of scores for multinational corporations. It boasts expansive shopping malls, top-rated international schools, world-class medical facilities, high-end restaurants, luxury residential communities…

Three decades ago, this neighborhood didn’t exist. The area where you’ll find it today was wetlands and a municipal dump. From this blank canvas, this neighborhood was designed to be the centerpiece of the modern, global Panama City.

The 766-acre neighborhood of Costa del Este is a masterpiece of urban planning and innovation. It’s where everyone wants to be…the business executives, the entrepreneurs, the snowbirds, the diplomats…

A palm tree-lined malecon (promenade) runs parallel to the Pacific Ocean for just over a mile, and is a popular spot for an early morning workout among the countless professionals working in the towering skyscrapers that hover overhead.

At Town Center, the neighborhood’s major commercial area, you’ll find a vast range of stores, restaurants, a gym and the luxury Cinepolis VIP cinema chain. There’s even a hospital here, the state-of-the-art Johns Hopkins-affiliated Pacifica Salud Costa del Este, which was inaugurated in 2022.

This is truly a “city within a city.” Which explains why everyone wants to be in or close to Costa del Este…

Why It’s Easy to Buy Property in Panama

Panama welcomes foreign property buyers.

And, you get a lot of choice: from cosmopolitan city living…to a cool getaway in the coffee-growing highlands…to a swish Pacific beach retreat. You’ll find that your real estate dollar gets you more bang for your buck in Panama. You can bag a luxury beachside condo…or an amazing city pad…for less than you’d expect to pay in a modern, thriving, tropical country.

As a foreigner, you have almost the same rights as Panamanians…with a few exceptions, which we’ll look at later in this section.

But first, we’ll walk through the exactly how the process of buying real estate in Panama works…

The Property Buying Process

Purchasing property in Panama is similar to buying back home…but there are some important differences. Here are the steps you need to follow:

Step 1: Agree on a Price

Panama does not have a Multiple Listing Service, where you can check listings prices by neighborhood, or a website like Zillow that allows you to check recent sold prices. You should talk with local real estate agents to get an idea of current market values. You can also look at websites such as www.encuentra24.com, where sellers, agents, and developers all list property for sale—it’s a good way to get a ballpark figure on the fair market value for the property you’re buying.

Never go in at full list price. Most of the time, there’s wiggle room in the asking price, so negotiate the best possible price (or have your real estate agent negotiate on your behalf if you’re shy about doing this).

Step 2: Confirm the Title 

Your attorney in Panama can check in the public registry to make sure that the property you’re buying has good, clean title. The attorney can also verify the size of the property, the boundaries, if there are any liens or mortgages on it, or any restrictions (such as the property being zoned as residential rather than commercial). Your attorney needs to check that the registered owner is the person selling you the property…it’s a big red flag if they’re not! And, make sure you’re getting titled (also known as fee simple) property, which is the most complete and secure form of ownership.

Step 3: Enter Into a Promise to Buy/Sell Agreement

Once you’re satisfied your property is titled and free of encumbrances, you can sign a promise to buy/sell agreement, which should lay out the terms and conditions of the sale and set a date for closing/transfer of title. At this stage it is typical to pay a deposit to the seller. Normally, the agreement calls for a penalty if either party backs out (which means forfeiting your deposit—so ask that the seller faces an equal penalty if they back out). At closing, both parties should sign a final buy/sell contract.

Step 4: Transfer the Title

For the final buy/sell contract, your attorney should conduct an additional search to ensure that no liens or mortgages have been filed since they first researched the property. The contract in final form is then drawn up as a public deed, and all parties must sign in the presence of a notary.

Step 5: Transfer the Funds

The top tip here is never pay the seller directly. There is an easy, established, and safe way to pay in Panama. It’s called an irrevocable letter of payment. You pay the funds to a local bank in Panama, and they issue a letter to the seller telling them they have the money and will release it when certain terms and conditions are met (such as title transferring and any mortgages or loans on the property being paid off). Your attorney can help you to set this up.

Step 6: Record Your Purchase at the Public Registry

This can be done in as little as 10 days if your attorney files the documents in Panama City. It can also be done even more quickly, using a next-day service, if you pay an additional fee (and provided all your documents are in order). Once the registration process is complete, your attorney will give you the registered title deed. Finally, have a copy of the deed filed with the tax records department: this is a vital step, as only then is the property transfer complete and the property truly yours.

Restrictions on Foreign Ownership

There are some restrictions on foreign ownership of waterfront and island property. And, untitled land must be owned by a citizen of Panama for a minimum of two years before it can be sold on to a foreign buyer. After the two-year period, the land can be titled and resold without restriction. (Note: Some untitled land can never be titled, so get professional advice before you decide to buy.)

Under Article 286 of the constitution, foreign ownership of property within 10 kilometers (6.2 miles) of an international border is forbidden. Panama borders Colombia and Costa Rica. You’ll see lots of property advertised (often by fellow foreigners) in these exclusion zones, in places like Puerto Armuelles, so do your homework and find out if you can legally own what you’re planning to buy.

Then, there are some issues that apply equally to foreigners and locals alike.

By law, all beachfront properties must provide a public right of way starting from the highest tide to the property line, so the public can walk along the beach.

Permits to build over the water or for a marina can take a long time, a lot of red tape, and a lot of money to get.

Getting clear title to property in some parts of Panama can be tricky, too. A good portion of the country lies in comarcas (indigenous reserves), which are independent, sovereign states. Don’t even try to buy property in these zones.

In areas like Bocas del Toro, much of the land is not titled. It’s derecho posesorio, possession rights…and many foreign buyers who have purchased this type of property have come unstuck, losing the property and the money they paid for it. Our advice: stick to titled/fee simple property.

Property Taxes in Panama

Panama’s property tax rates are among the lowest in the region. Family/primary residences pay 0.5% to 0.7%, unless valued at $120,000 or less, in which case the property is tax free.

For all others (such as vacant lots,commercial property, and vacation homes) the rates are 0.6% to 1%, unless valued at $30,000 or less, in which case the property is tax free.

Transfer Tax

Real estate transfer taxes in Panama are paid by the seller and are 2% of either the updated registered value of the property or the sale price—whichever is higher. If a property is bought by a corporation, it is customary for the shares of the company to be sold (instead of the property), thus eliminating the need to pay transfer tax.

Capital Gains Tax

Capital gains tax in Panama is a flat 10% of gross sale profit, provided you do not buy and sell real estate for a living. However, the seller may choose to pay 3% of the sale price upfront or, according to current legislation, if paying 10% over the actual capital gains is more favorable, may choose to pay 10% as the final capital gains tax by submitting an affidavit to the tax department and supporting documents prior to the signing of the title deed. If you sell more than one property a year, any profits must be included in your Panamanian tax return. In this case you would pay income tax on these profits but no additional capital gains tax.

Financing Your Property Purchase

As with many other countries around the world, it is difficult for foreigners to obtain loans in Panama, including mortgages to purchase real estate. Simply put, you don’t have a credit history in the country, and banks are very strict. Foreign residents with a temporary or permanent residence visa have better luck, but it’s still not an easy process and the terms are often unattractive.

With certain purchases, there may be alternative forms of financing available. In preconstruction projects, for instance, the developer may offer financing.

Additional Tips When Buying Property

Real Estate Agents and Their Fees

Real estate agents in Panama must be licensed by law, so check that the agent you are using has a valid, active license. The typical agent fee in Panama for a property sale/purchase is 5%. This is paid by the seller.

There is no real concept of a buyer’s agent in Panama. If you ask a real estate agent to show you some listings, they will usually first show you their own listings…and then perhaps listings from other agents (where your agent will split the 5% fee with the listing agent).

Escrow & Title Insurance

There are no escrow services in Panama, but there is a good alternative—the irrevocable letter of payment outlined in Step 5 above. Title insurance is also not available in Panama, so you really need to get a good attorney on board to ensure the title of the property you buy is good and clean.

What Is Real Estate Trend Alert?

My name is Ronan McMahon. I’m an international real estate scout. My team of researchers and analysts and I spend a small fortune on research and travel as we search out the best real estate opportunities in some of the most appealing locations around the world, including Panama. Often, what we find and the deals we make pay off with potential investment opportunities that I share with members of my Real Estate Trend Alert (RETA) group. For years I searched for a group like RETA. I wanted to join like-minded folks eager to pool our buying power and share in the best real estate deals around the world. I searched in vain. For there was no such group. So, in 2008 I founded my own. The core strength of RETA is our group buying power. It’s by acting in unison with like-minded investors—fellow RETA members—that we get the incredible deals that we do. Alone, I can’t bring much to the table when I negotiate with developers besides my charm. I might as well be some guy with an empty briefcase bluffing about what’s inside. I might not even get into their office. With RETA members at my back though, I can bend developers to our will, craft insanely good terms and prices, and leave everyone a winner. Over the years, RETA has developed a heavy-hitting reputation in the right circles. Our group buying power is highly respected and sought after. It’s how we get deals no one else gets, deals that even the most informed local real estate insiders can’t believe. And RETA members will continue to access our pipeline of incredible off-market deals from the world’s most desirable locations.

I’ve been watching Panama closely and bringing investment opportunities to RETA members for many years, focusing on an up-and-coming master-planned community on the Pacific Riviera, and deals in Panama City. First, let’s look at our track record in the capital. Santa Maria Golf and Country Club is a master-planned community just outside the city’s downtown core covering 692 acres, every inch exclusive and luxurious… Santa Maria boasts a golf course designed by Jack Nicklaus. A Marriott Luxury Collection hotel (with a chic café and great restaurant). There’s lots of landscaping and green space. And plans call for a top-notch country club, at a level that has not been seen in Panama before, with an Olympic-sized pool, bowling alley, spa, gym, running track, yoga, squash, and tennis… And yet members of our group were able to buy here at incredible, RETA-only prices.

In September 2021, six RETA members were able to buy spacious three-bedroom condos from $540,020 in a community within Santa Maria called Pinnacle. In 2024 these and similar condos are listed between $668,000 to $695,000. That’s $128,000 to $155,000 more. Now, let’s take a look at the Pacific Riviera. At RETA, one of my core strategies is to get ahead of a Path of Progress. This is an event that is opening up a location and making the real estate there more in-demand…and more valuable. And that is what is happening as we speak in Playa Caracol on the Pacific Riviera, which is a pristine white-sand beach closer to Panama City than more-popular Coronado. Our first deal in Playa Caracol was back in November 2016, with two-bedroom condos in Sanctuary from a RETA-only $174,900. These are true beachfront, beach-facing condos with panoramic ocean views. Similar condos, albeit a bit bigger, were listing recently at $284,900 and $305,000. That’s an uplift of $110,000 and $130,100, respectively. In January 2023 RETA members were able to buy ocean-view condos in Las Olas starting from $254,600. Now similar condos are listed with the developer for $355,580. That’s an uplift of $100,980.

Nobody I know does the kind of travel and first-hand research we do. Nobody I know has our contacts and ability to negotiate such incredible, off-market deals for members. And nobody I know has RETA’s track record of being ahead as destinations experience major transformations. Members of Real Estate Trend Alert are the only people who get all my research reports… the inside scoop and contact information for some of the top experts in real estate…and the hottest off market opportunities from around the world. Click this link to learn more about RETAand to join today.

Safety and Security

As a rule, Panamanians don’t like confrontation. Panama, like everywhere, does have some crime, but it is usually petty theft. Use the same due diligence and common sense that you would in any setting worldwide, and you will be fine.

It is generally safe to travel throughout Panama, whether you’re a woman or man on your own or traveling with a spouse or in a group, as it’s easy to stick to nicer areas and avoid becoming a target.

You’ll see that many Panamanians drive nice cars and wear jewelry when going out, day or night, without fear. Racially and politically motivated crime and school or random shootings are not a concern in Panama. You’ll note that travel advisories (such as those issued by the U.S. Department of State) tend to focus on remote areas near the Colombian border (expats have no reason to travel to these areas).

Panama’s High Quality, Affordable Healthcare

If you’re looking for quality healthcare you can afford, look to Panama. Clinics and hospitals are strategically located in hubs across the country. And since the country is so small, you’re unlikely to be more than an hour from a modern facility…no matter where you choose to live. It’s also not unusual to find English-speaking doctors here, as many study abroad after finishing the required training in Panama.

And, of course, you’ll find high-quality care available at a fraction of what it would cost in the U.S.

Panama’s Healthcare Hubs, Major Facilities, and Healthcare Systems

Panama City is known throughout Latin America for its excellent clinics and hospitals. Getting to Panama City from nearly anywhere in the country is quick and easy, whether you’re driving two hours from the mountain haven of El Valle, or flying an hour from the island paradise that is Bocas del Toro.

The compact, cosmopolitan capital is home to many facilities, including the Johns Hopkins International-affiliated Hospital Punta Pacifica. Known as one of the most technologically advanced medical centers in the region, Hospital Punta Pacifica is just one of many facilities in Panama with U.S. affiliations.

Accreditations offered by the likes of the Joint Commission International (JCI) also help to highlight Panama’s high standards. The San Fernando Hospital in Panama City was the first facility in Panama to obtain a JCI gold-star rating. (The San Fernando group also has a small but well-equipped satellite facility in the expat hub of Coronado, 51 miles west of the capital, in the Pacific beach region known as the Arco Seco, or Dry Arc.)

Other hub towns with hospitals, medical centers, and/or clinics include David and Chitré. These are a short drive from the retirement havens of Boquete and Pedasí, respectively.

Even in smaller towns, you will find excellent doctors, dentists, and even vets for your pets.

The equipment and doctors at clinics and hospitals across Panama are similar to what you’d find in the same facilities in the U.S. or Canada, with many expats reporting that they received more personalized care in Panama than they did back home. The same is true for dentistry in Panama—one of many fields attracting medical tourists to this country.

Pharmacies in Panama are also plentiful. You’ll also find pharmacies in hospitals and supermarkets like the Riba Smith and El Rey chains. Prices for prescription drugs can be low as well, as many are priced for the local market. Plus, some drugs that require a prescription in the U.S. are available over the counter in Panama.

Private health insurance available to expats living in Panama is generally much cheaper than insurance in the U.S. In part, this is because doctor’s fees and hospital visits are inexpensive. Also, medical malpractice costs are low because Panama’s ponderous judicial system is not conducive to money-seeking lawsuits.

Government Healthcare Systems

Panama also has government-run public healthcare systems designed to provide affordable care to all its residents.

The Caja de Seguro Social (CSS) system is for those who pay or have paid into the Social Security Fund through payroll. If you have worked in Panama, you might qualify.

Other expats can visit facilities run by the Ministerio de Salud (Ministry of Health), known as MINSA, which runs clinics and hospitals throughout the country. These facilities are quite basic, with long wait times, limited care (no physical therapy or vision care, for example) and sometimes outdated equipment. Also, the best facilities will be in the larger cities, especially the capital.

For this reason, many expats choose to use a mix of public and private healthcare, with an emphasis on private facilities and providers.

Visas and Residence Options

Panama has put together the most appealing program of special benefits for retirees you’ll find anywhere in the world today…and it’s open to foreigners. The program outlines a series of senior discounts for retiree-age members and includes a permanent residence component for foreigners with pensions.

Types of Visas

Panamanian politicians and the business community have recognized the opportunity presented by promoting the country as a world-class retirement haven. That’s led to a flurry of new visa possibilities, from the humble pensionado visa all the way to sophisticated investor permits.

Temporary Visas

Like neighboring Costa Rica, Panama has introduced a 180-day visa waiver for tourists. This applies to most European and Latin American countries as well as the U.S. and Canada. You’ll need your passport, proof of return ticket or onward journey, and proof of sufficient funds.

The short-stay visa for remote workers is for people who can work remotely for employers or clients outside Panama. You must have a minimum monthly income of $3,000 or $4,000 if you have dependents. You’ll need to prove your employment and income. The visa lasts for nine months and can be renewed once.

Long-Term Visas

Panama is unusual in that its most popular program, the pensionado visa, grants immediate permanent residency. But there are other ways to get long term residency, all of which can lead to permanent residency.

Friendly Nations Visa

Citizens of over 50 countries deemed “friendly” by Panama, including the U.S., Canada, most EU countries, and more, can acquire long-term residency rights by showing proof of economic or professional ties to Panama. This can either be through employment, business, or purchase of real estate.

This initially grants temporary residency, which can lead to permanent residency after two years.

Business Investor Visa

Entrepreneurs interested in starting or investing in a business in Panama who put in at least $160,000 and create at least five full-time jobs can get this permit. It’s temporary, but it can lead to permanent residency after two years.

Permanent Residency

There are three main routes to immediate permanent residency in Panama.

Pensionado Program

Retirees or pensioners with a lifetime pension of at least $1,000 per month qualify. If you purchase real estate in the country valued at $100,000 or more, this requirement drops to $750. The visa includes all sorts of discounts and perks, including healthcare, restaurants, transportation, and tourism.

Self-Economic Solvency Visa

Individuals with sufficient personal wealth who are prepared to deposit $300,000 in a Panamanian bank for three years, or buy Panamanian real estate worth $300,000, or a combination of the two, can get immediate permanent residency.

Qualified Investor Program

Individuals investing at least $500,000 in Panamanian real estate or $160,000 in a Panamanian business get immediate permanent residency.

Citizenship

Foreign residents of Panama can apply for citizenship after five years of continuous permanent residency. During this period, you must have lived inside the country, with “minimal time” spent outside. The law does not clearly define this.

In addition, you must show sufficient proficiency in Spanish to conduct all naturalization processes in the language. You must also show a good understanding of Panamanian history, culture, and government. Finally, you’ll have to show that you’ve established sufficient links in Panama, paid your taxes, and generally been a good resident.

Panama does not officially recognize dual citizenship, but in practice, very few people are required to give up their original citizenship.

Note that the Panamanians are quite serious about the “social integration” aspect. Some people claim that it’s almost impossible to get citizenship by naturalization, but in most cases, this appears to be because they’ve tried to skirt this aspect of the requirements. Red flags include failing to learn Spanish and spending too much time outside the country.

Requirements and Documentation

Visas

Passport: Valid passport with at least six months of validity remaining beyond the intended stay. Some visa categories may also require a copy of all pages of the passport, not just the identification page.

Application Form.

Passport-Sized Photos: 2-3.

Proof of Financial Means: Bank statements, proof of income, or a letter from an employer demonstrating the applicant’s ability to support themselves financially during their stay.

Criminal Background Check: A recent (usually within the last three to six months) criminal background check from the applicant’s home country or any country where they have resided in the last five years.

Medical Certificate: A medical certificate from a licensed physician confirming the applicant is in good health and free from contagious diseases.

Health Insurance: For short-term visas like the Digital Nomad, proof of health insurance that covers the applicant for the duration of their stay in Panama.

Proof of Employment or Business Activities: For work visas, investor visas, or other employment-related visas, proof of employment (such as a job offer or employment contract) or proof of business activities may be required. This could include company registration documents for business owners or contracts for independent contractors.

Marriage or Birth Certificates: If including dependents in the application, marriage certificates (for spouses) or birth certificates (for children) are required. These documents must be authenticated or apostilled.

Proof of Investment: For investor visas, documentation showing the required investment has been made, such as real estate purchase documents, bank statements, or business registration certificates.

Sponsor Letter: A letter from a Panamanian sponsor or employer, if the visa application is being supported by a third party.

Documents from outside Panama often need to be apostilled in the country of origin before being accepted by Panamanian authorities. Non-Spanish documents may need to be translated into Spanish by a certified translator.

Citizenship

• Passport valid for at least six months.
• A medical certificate from a Panamanian doctor.
• Clear Criminal Record from the applicant’s home country and any country where they have resided in the past five years.
• Copy of your permanent residency card.
• A valid passport.
• Proof of your legal residency in Panama for the required period.
• Birth certificate.
• A sworn statement of your intention to reside permanently in Panama.
• Letters of reference from Panamanian citizens who can vouch for your character.

Processing Time

As Panama has become increasingly popular as an expat destination, processing times have increased. Most people who have been through the program confirm that the process is vastly easier and quicker if you work through a local attorney or immigration consultant. Here are the average times for the various visa programs:

• Digital Nomad: two to three weeks.
• Pensionado: two to four months.
• Friendly Nations: three to six months.
• Investor Visa: one to three months.
• Self-Economic Solvency: Four to six months.
• Business Investor: three to six months.

Cost

Fees for Panamanian long-term visas and permanent residency visas vary depending on the individual’s circumstances. Here are the current reported ranges:

• Digital Nomad: $300 to $500.
• Pensionado: $1,000 to $1,500
• Friendly Nations: $1,000 to $1,500
• Investor Visa: $1,500 or more, depending on the investment type.
• Permanent Residency: $800 to $1,500.

If you hire an attorney, legal fees range from between $1,000 and $5,000. You’ll also need to pay to translate and authenticate documentation.

Insider Tips for Living in Panama

Currency

In Panama, the U.S. dollar is the official currency, along with the Panamanian Balboa. The Balboa is pegged to the U.S. dollar at a rate of 1:1. You’ll often see B/. next to prices in supermarkets and shops, instead of the “$” symbol.

Though Panama does mint coins (exactly the same dimensions as U.S. coins), the Balboa does not exist in paper bill format. All notes used in Panama are U.S. dollars.

Pensionado Discounts

Resident retirees can avail of many benefits and discounts, such as:

• 50% off entertainment
• 30% off bus, boat, and train fares
• 25% off domestic airline tickets as well as some international tickets.
• 20% off medication
• 10% or more off healthcare costs

Panama’s Perfect Climate

Panama has the perfect climate because it stretches from east to west getting the benefits of the trade winds coming onshore. Outside the hurricane belt further north, Panama enjoys stress-free living. Rainy season and dry season come and go without incidence. In terms of weather, predictability is Panama’s middle name.

The dry season starts off in December and lasts until April. During this time rain is mostly non-existent. Days are usually cloudless, with hot breezes, and warmer temperatures. Average day time temperatures range from 90 F to 95 F with night temperatures dipping to 75 F. Mountain areas are typically about 15 to 20 degrees cooler.

The rainy season usually starts off in May. At that point sporadic rain showers begin during the afternoon and evening hours. As the days pass the rain increases in duration, amounts, and evenings are full of wonderful thunderstorms and beautiful lightning. In the mountain areas flash flooding can suddenly occur during these months.

During the rainy season daytime temperatures are about 10 to 15 degrees cooler than the dry season but the humidity is much higher. The rainiest month is November but by mid-December the rain is completely gone in most of Panama on the Pacific side.

Panama Embraces the “Mañana” Principle

The definition for the mañana principle is, “when they say tomorrow, it just means not today.” This attitude can be one of the most frustrating things for expats to get used to in Panama until they have acclimated to a slower lifestyle. So, take a deep breath and lower your blood pressure. It will get done, but just not today.

Panamanians Love to Party and Enjoy Life

A popular motto in Panama is “work to live, don’t live to work.” That means parties are frequent and usually go into the early hours of the morning. This can be annoying, but if you become part of the group and go with the flow, you will find yourself partying and enjoying social time with your Panamanian neighbors.