Benefits of Moving to Panama as an Expat
Last Updated on October 13, 2026 by Retire in Panama
Introduction to Panama
Panama is a country known for its rich history, diverse culture, and stunning natural beauty. With its breathtaking beaches, lush rainforests, and vibrant cities, Panama offers a unique blend of adventure and relaxation. The Panama Canal, a marvel of engineering, is one of the country’s most iconic landmarks and a testament to its significance as a global trade hub. From exploring the ancient ruins of Panama Viejo to immersing oneself in the bustling markets of Casco Viejo, there is never a shortage of things to do and see in this captivating nation.
Whether indulging in mouthwatering cuisine, discovering indigenous tribes, or taking in the picturesque landscapes,laying on Panama’s great beaches, or hiking in its mountains, Panama promises an unforgettable experience for all who visit. So pack your bags and get ready to embark on a journey of discovery in this enchanting land of diversity and wonder.
Geographical and Cultural Overview
Panama is a small country in Central America, south/east of Costa Rica and north/west of Colombia. It is only a narrow strip between the Caribbean Sea to the north and the Pacific Ocean to the south. Since the beginning of the Spanish gold exploration in the 15th century, the famous “trans-isthmus” roads were built in this strategic isthmus, linking natural harbors in the Caribbean Sea with others in the Pacific Ocean.
The most famous was the Camino Real, known as “El Camino de Cruces” near Panama City, where civilization in Panama started developing. This small country — whose language is Spanish — has a unique history and culture: it was colonized by the Spanish in the 15th century, and the Spaniards came for the potential of the country as a commercial hub to other parts of the New World. Its capital city was the first Spanish colony in Central and South America.
In 1821, Panama became independent from Spain. The new country joined Gran Colombia and then, between 1840 and 1903, it became part of Colombia. In 1903, with the help of the USA, Panama became independent from Colombia. The USA’s canal company then built the monumental Panama Canal, which allowed ships to cross from the Atlantic to the Pacific Oceans. The Canal was opened in 1914 and came under full Panamanian jurisdiction on January 1, 2000, when the US treaty expired.
The Climate
The climate is a huge factor here in Panama, and it’s a great reason to move here. The climate in Panama is tropical, and most of the country has two seasons: dry and rainy. It is hot all year round but not as hot as in some other places in nearby countries. In general, it is in the mid-80s to low 90s, in the City and beaches area, and the 70s in the mountain towns.Some places are cooler, and others are warmer, depending on their elevation.
For me, a big benefit is that Panama has no hurricanes or other extreme weather. There is rain, and the rains can be spectacular with the noise, lightning, and thunder, but on the whole, you just put up with the rain and get on with your life. There are some areas where the rains may cause the river to flood or the mud to slide, but those are local problems, and for those areas, they should be on alert all the time.
The dry session is from December 15 – April 15, then begins the progressive rainy season, with rain starting a couple times a week in the afternoon to the wettest months, in October and November, where there can be some afternoon rain most days.
Lower Cost of Living
The cost of living in Panama is generally much lower than that in the US, Canada, or most of Western Europe. Lower costs are found in almost every area. Locally produced goods, including high-quality fruits, vegetables, and seafood, as well as most meats and dairy products, are much less expensive than those found in either the US or Canada. Generally speaking, the amount to be spent is roughly a third to a half of equivalent purchases in either the US or Canada. Imported goods and those perceived as “luxury” items are priced more in line with what the expat is used to spending, and so the cost of these items is similar to their home country – primarily as high as they are due to the shipping costs from North America.
Real estate, either rental or purchased, offers another beneficial area of savings. Beautiful, comfortable houses and apartments in prime areas and locations frequently rent for half of what similar living accommodations of the same quality and size might rent for in the US. The cost to purchase a choice residence, while steadily increasing in some areas, continues to be much lower than in North America or Western Europe. You can rent in Panama starting at $400 a month in rural areas to $2500 a month for some luxury in the city, beach or any expat community.
There are some excellent properties available, across the country for less than $250,000. An increasing number of retirees are finding it practical to own a winter home in Panama in addition to their North American residence and are able to do this and still avoid taking on any additional debt. Given the choice of selling one’s home in Northern America and using a portion of the proceeds to both buy and furnish a home in Panama, being debt-free and maintaining a substantially higher standard of living with the remainder of one’s savings is a very attractive proposition.
Lower Crime Rate
The crime rate in Panama is lower than that in other countries in the region, and lower than most places in North America. The benefits of a lower general crime rate reverberate through an expat’s decision to migrate and settle in Panama. All relocation plans will face adjustment challenges as they incorporate new cultures, new traditions, and new societies. However, an expat living in comparatively safe neighborhoods can go far with the knowledge that the property, once secured, will provide a great location to live and a great price for the long term.
This does not mean you don’t need to be vigilant, as petty crime can be a problem in some areas due to an increase of “wealthy” expats into Panamanian communities.
Retire in Panama and Improve Your Quality of Life
The benefits of moving to Panama for one person may not be the same for someone else. It all depends on planning and doing your research. With the right attitude and adventurous spirit, positive thinking, and not waiting until Panama to change your life, moving to Panama can be one of the best things you will ever do because Panama opens up many doors to live a great quality of life or to retire comfortably.
Expats in Panama enjoy a lower cost of living, which allows them to stretch their pensions and experience a comfortable lifestyle without breaking the bank. The affordable housing options in Panama make it easier for expats to find their perfect home, whether it be a spacious apartment in the bustling city or a charming house in a serene rural area. Furthermore, Panama takes pride in locally produced environmentally friendly food and products, ensuring that expats can lead a sustainable and enjoyable lifestyle.
One of the most enticing aspects of living in Panama is its warm tropical climate. With few natural disasters, expats can bask in the year-round great weather and enjoy the peace of mind that comes with living in a safe environment. Additionally, Panama is renowned for its friendly hospitality, making it easy for expats to quickly feel at home and forge new friendships with both locals and fellow expats.
Safety is another compelling reason for expats to choose Panama as their new home. With very little personal violence, expats can enjoy a sense of security and tranquility in their day-to-day lives. Moreover, the country offers duty-free imports of household goods, allowing expats to furnish their homes with ease and at a reasonable cost.
Healthcare in Panama is of excellent quality, with a wide range of modern private hospitals and clinics that cater to expats’ medical needs. The country boasts many qualified doctors, the majority of whom have received their training abroad. This ensures that expats receive top-notch medical care from well trained health care professionals.
Traveling to and from Panama is incredibly convenient, thanks to direct flights to more than 15 North American cities, and direct flights to Europe. Expats can easily explore the world and maintain close connections with their loved ones scattered across different countries. Furthermore, Panama boasts a robust infrastructure, providing expats with easy access to transportation, modern amenities, and a comfortable way of life.
Leisure living in Panama is truly unparalleled. From awe-inspiring natural beauty to cultural diversity, expats have a wealth of experiences awaiting them. Whether it’s exploring pristine beaches, hiking through lush rainforests, or immersing oneself in the rich local traditions and festivals, Panama offers a multitude of activities to suit all interests and preferences.
Economic Opportunities for Those Not Retired
Although retiring to Panama is certainly popular, a considerable number of expats who come to Panama are those who are still in the workforce or entrepreneurs. There are many opportunities for economic growth in Panama. In fact, those of us who have lived in Panama for many years have already witnessed much of the economic growth. Although growth may have slowed due to recent worldly events like COVID and inflation, Panama is still a hotbed of economic activity.
As they say, Panama is open for business. One of the more exciting areas of economic growth in Panama is the tech industry. Many tech companies have decided to come to Panama in order to take advantage of the low cost of well-educated tech talent that Panama has in abundance. The country is home to 100s of multinational companies, many of which have their Latin American head offices in Panama City. Companies like Dell, HP, Procter & Gamble, LG, Maersk, Caterpillar, Hyundai, and more.
Many younger Expats move to Panama and open business. Business in tourism is popular with Hotels, Restaurants, and such. We personally have expat friends here in Panama that have opened manufacturing businesses, Solar businesses, health related products, construction companies, and more.
Visa and Residency Options
There are a number of visas an expatriate can apply for, granted they comply with the rules. The Pensionado Visa is by far the most popular. This visa is actually a permanent residency, with the requirement of receiving a life-long pension in excess of $1000 US monthly, for a single, or $1250 for a couple. The requirements are pretty simple, a clean criminal background check, and verification of the pension. The time from application to permanent residency is 4 – 6 months.
The Friendly Nations Visa is a special type of visa that allows citizens from a select 50 countries to live or work in Panama. There are three options to get this visa. 1.) Receive a job offer from an existing Panama company, with a salary in excess of $1000 a month. 2.) Invest $200,000 in a CD (term Deposit) in a Panama Bank for 2 – 3 years. 3.) Purchase real estate in Panama with a value over $200,000. The time from first application and temporary residency to permanent residency is just over 2 years.
Panama’s Professional Visa is great for younger people who have a Bachelor Degree that is not in the field of one of Panama’s protected professions. Your bachelor degree will have to be Authenticated by the University of Panama, then you can start the Visa process. The closer you are to the date of your graduation, the easier it will be to get this degree. There is no monetary investment or job offer required for this degree.
The Qualified Investors Visa is really a fast-track Visa for investors. It requires the following:
- An investment of $300,000 in new, first time sale or pre construction real estate. You must hold the real estate for 5 years.
- An investment of $500,000 for previously occupied real estate. You must hold the real estate for 5 years.
- A $500,000 in Bank CD (Certified Deposit for 5 years) in Banco National or Caja de Ahorros.
- A $750,000 in Bank CD (Certified Deposit for 5 years) in other Panama banks.
As you can see, the Benefits of Moving to Panama as an Expat are many, from great weather, lower cost of living and crime, many immigration visa options, and just a wonderful country to live in. Do your research, come with us on a relocation tour or purchase the Panama Total Access Pass so we can show you all the places expats move to, and provide you with all the trusted service providers you will need to make this move.
It’s more than a tour . . it’s an experience.
