Canadians Living in Panama and Moving to Panama
Last Updated on August 16, 2025 by Retire in Panama
Let me start with a bit of background about myself. Yes, I am Canadian. I was born in Regina, SK, Canada, in the mid-sixties. I lived there until my late 20s, when I moved to Vancouver, BC, for business opportunities. I was a partner in a business in Vancouver in the general merchandise import/export trade until 2006. Then, I went off on my own and started an online business, with which I had a lot of success.
In 2008, I began thinking about moving abroad and started doing some research. My reasons were that I was looking for a place with good weather all year, a lower cost of living, lower government controls, and lower taxes.
Since I have been in Panama and am working with my business partner, Oscar, in Panama in an expat relocation business, I have discovered that every country expats come from has their thoughts and concerns about moving to Panama. For Canadians, the reasons for moving to Panama seem to revolve around my reasoning above and a few others:
– Year-round nice weather
Who likes Canadian Winters? I moved to Vancouver to ease the Canadian winter; still, that was not enough for me. When I moved to Panama, I discovered many climates, from the hot beaches, which were not for me, to the very temperate mountain climate I chose. Where I live in Boquete, Panama, we have temperatures between 15°C evenings and 25°C daytime highs every day of the year.
– Lower cost of living
This is a big one; even with the Canadian dollar, your cost of living could be half what you have in Canada, depending on where you are moving from. For example, I will compare my hometown of Regina, SK, and my cost of living here in Panama (Updated May 2025). Remember, these are my expenses; you may live differently. I live in the mountains, so my electrical cost is low, and no A/C or heat is needed. Your most significant savings in Boquete will be on utilities. My electricity is $25 U.S. a month, gas is $5, water/trash is $7, the cellphone is $22, and high-speed internet is $33. This total is $84 USD or $128 CAD a month. Regina’s average yearly cost for these utilities in a similar-sized home is well over $600 CAD a month.
The below chart is my actual monthly expenses living in Boquete, compared to Regina. My sources in Regina are family and friends living there now.
– Fewer government regulations or taxes
This was also a big one for me. I was still in my income-producing years and paying close to a 50% effective tax rate on my self-employed income when you include federal, provincial, local, HST, and all the other taxes Canada has. I will discuss how Panama could reduce or eliminate several of your taxes below.
– Looking for a new adventure
Adventure can be for anyone, whether young or in retirement. Change is good for the soul and keeps us young. Moving to Panama could undoubtedly be the adventure you are looking for.
-Ease of obtaining residency
Panama is probably the most accessible country in the world for obtaining residency with its Pensionado Visa and Friendly Nation’s Visa, both offered to Canadians. For the Pensionado Visa, if you have a combined lifetime pension from the government or private company you worked for of more than $1,000 US (single), $1,250 US (married couple) monthly, you qualify for this Visa, which leads to permanent residency. The program is straightforward, will take about four or five months to get your permanent residency, and legal and government fees will be between $2,000 and $3,000.
The Friendly Nation’s Visa has three options for someone without a pension—#1. Get a job offer and work contract from an existing Panamanian company. #2 Invest $200,000 in real estate. #3 Deposit $200,000 in a Panama bank. To read more about these Visas, click here.
– How will the exchange rate affect my cost of living in Panama?
Panama’s currency is the Balboa, which has been pegged to the U.S. Dollar since its inception in Panama in 1903. Panama mints its coins in the same denomination as Canada’s, except there is no Toonie yet. The paper bills in circulation are old U.S. Treasury bills. An interesting fact is that the Royal Mint of Canada is currently minting Panama’s coins.
The Canadian exchange rate with the U.S. dollar has fluctuated throughout the last ten years and averaged at 0.753, so you must understand that it could go up or down. One good thing is that once you have attained your Pensionado Visa at the required U.S. amount, if the Canadian dollar drops against the U.S. dollar, you will always retain your residency. Still, you have to be prepared to have enough money to live.
The big thing to remember is that if you have a fixed income and plan to retire in Panama, you must consider and prepare for this exchange rate. Historically, the Canadian dollar has been as strong as $0.94 and as weak as $1.60, with a 65-year average of $1.30.
– Should I become a non-resident of Canada for taxation purposes?
Suppose you plan to live permanently in Panama. In that case, non-residency in Canada is an option for you, but it is only needed for some. Non-residency may be for people still in their income-producing years or with more extensive investment portfolios. Retirees moving to Panama with their primary income pensions and some savings usually keep Canadian residency and file taxes back in Canada annually. If you file for non-residency, there will be a 25% non-resident withholding tax on your pensions; you must look at your entire financial position before making this decision. Please ask a qualified international accountant about non-residence to see how it will affect you.
Be careful researching your move to Panama on social media, as there is a lot of false information. The other day, I saw a post where the person was determined that if you move out of Canada, you lose your Canada Pension. This is just not true. You will want to keep a Canadian bank open to receive direct pension deposits, as a Canadian cheque is useless to you in Panama. Please read about it here. So, stay off social media for questions like this; talk to your tax accountant and the government.
The most significant advantage of non-residency will be taxes if you have investments anywhere in the world. Canada calculates taxes on worldwide income for its residents. Panama is a territorial tax system that only calculates taxes for its residents on Panama-sourced income. After your first full year outside of Canada and having permanent residence in Panama, you must have your Canadian accountant file non-residency papers with the Canadian government when you no longer have a primary place in Canada. You no longer have to file taxes with Canada.
– How will my taxes be affected if I still work or want to open a business?
Panama is one of about 12 countries with territorial tax systems. This is why many young people in their income-producing years, especially those working from home online, move to Panama.
One of the extra expenses that a Canadian will have in Panama is health care. For people up to 75 years old, you can enroll in an international plan with costs from $150 to $450 US a month, depending on your desired coverage. Once enrolled, you will have health insurance for life, as long as you keep paying your premiums. For those arriving in Panama over the age of 75, the international plans will no longer accept you. Still, there are some decent hospital co-pay plans available. Read more about Healthcare in Panama here.
Now, remember, Panama is NOT Canada, and you will have many things back home that you will not have here. You will have to survive without seven months of winter, Timmies and double-doubles, crispy crunch, ketchup chips, real maple syrup, and Molson beer.
So, is Panama right for you? Well, you will know once you get here. It is imperative to one of our Small Group Relocation Tours, where we take you to every location in the country where you may want to live and introduce you to the best people for immigration lawyers, insurance people, bankers, and rental and real estate people, so you have the contacts you will need and the information you need to decide to move to or retire in Panama.
If you cannot make a group tour, check out our Panama Total Access Pass. It is the best way to move to Panama with all the information and contacts you need without the tour.
Remember, if you decide to become a permanent resident of Panama, you are still Canadian. You can still be proud of that with all your Canadian friends who have journeyed before you. There are Canadian expat groups throughout Panama, and we all know one thing . . .
Great information as am Canadian and wondering about tax implications re moving to Panams and supplementing retirement income in a few years.
Hi Dianna, here is an interesting article about working in Panama as a Canadian. I hope you enjoy. Also you may enjoy this article about Worldwide Tax Systems.
thank you for this complet article,
Your welcome, we are glad you liked it. As a Canadian myself (Rod), I enjoyed writing the article.
We love Canada. This is our home but we are becoming increasingly impatient with the weather 6 months in a year. Are there options to live 6 months in each country? Our daughter will be in Canada. Another is reason for us to not leave the country for good. Please advice. Thank you in advance
Hi there, I also am a Canadian, but I now live in panama full time. But, there are many Canadians and people from the USA, that live here part time. You are allowed to stay in Panama for 180 days at a time, without any official residency, which makes “snowbirds” quite popular here.
Thanks for the information. My husband and I are Canadian and are desperately trying to escape the cold weather. We are exploring various options and Panama keeps popping up. My husband is an online trader so he can pretty much work from anywhere in the world. Your article is very interesting and we will explore it further. We would like to spend some time in Panama to explore the different areas and see what would work best for us.
I am an RN, do you know what I would need to do if I wanted to work a bit in Panama? Just wondering for the future :)
Hello Mary, nursing is a protected profession in Panama, reserved for Panama Citizens. Most of the healthcare system is like that, and other areas also. below is a list of protected professions.
– Dentist
– Dental assistant
– Lawyer
– Veterinarian
– Chiropractors
– Medical, including
Doctor
Nurse
Medical Assistant
Medical Radiologist
Laboratory technician
Pharmacist
Nutritionist
– Therapists, such as
Sociologist
Psychologist
Physiotherapist
Speech therapy
– Social worker
– Accounting
– Hairdressing and Cosmetology
– Chemist
– Engineering and Architecture
– Agricultural Sciences
– Journalism
– Public Relations
– Economist
Thank you for the outstanding article. I am in Calgary and considering moving to Panama. Just begin to prepare my home for sale, and my question is how people prioritize home sale or Visa application. Should I apply for Visa first or sell my home first? What if the home sells before the Visa approved or sells moths after the Visa approved?
My other question is, I am 62, not collection OAC and CPP yet, but if I apply for Pensionado Visa, can I use income from my savings toward the minimum requirement income for a single Pensionado Visa?
My income from CPP and OAC will be very little. Can I use my saving to supplement my retirement income?
Hi Gizelle, he process of getting the Visa and selling your home will be different for everyone, and it is a bit hard to advise, with out know more details. Why not schedule a 30 minute call with us, so we can discuss more. You can do that Here. The Pensionado Visa applications requires that you are receiving a Pension over $1000 USD at the time of application, you cannot use any other income for or savings for this application. You could, however, come to Panama with the Friendly Nations Visa, which is a little more expensive, but also give you permanent residency. You do not need the Pensionado Visa to receive the Pensionado Discounts, all women over 55 years and men over 60 who are permanent residents in Panama, receive those discounts, no matter which visa you have. Thanks.
Hi, I’m Kelly and living in N.B. Canada. What is the cost to move to Panama? From start to finish? We are now looking and trying to plain and check out the cost of moving. We have 3 small dogs and 2 cats that will be coming with. We where thinking off renting when we first get there and than buying a small place 2 – 5 acres. Just want to see area first. Around Boquete area.
Hi Kelly, we wopuld need much more details about your situation to discuss what a move would cost you. Please Contact Us, so we can discuss further.
Is it possible to live in Canada part time and still get the tax benefits of Panama?
Hi Luke, to get the tax benefits here, you would have to become a permanent resident of Panama, then file non-residency in Canada, or Canada will remain your tax jurisdiction.
Are your trips all inclusive.
Hello Ron. Everything is included except your international flights here and alcoholic beverages. From the moment you land in Panama City, the Thursday night before the tour begins, to the flight back to Panama City on the following Thursday morning, we take care of everything. Airport Pickup, Hotels, three meals a day (entrees), transportation, and any entry fees to places we may be visiting.
Hello, I was wondering if you have information about the introduction of your household good into the country. Do you have any tax exemptions? If you have vehicles do you have to pay taxes on them? Or is it better to sell in Canada and buy vehicles in Panama?
Hello Ricardo, if you come to panama and get residency with the Pensionado Visa, then you will receive a $10,000 personal duty exemption on personal goods, and duty exemption on a car. There will still be about 12% taxes owed on these items. Everyone’s situation is different, we find that 70% of people do not ship cars or containers of goods, and 30% do.
Is it possible to give up Canadian Residency, permanent resident in Panama, and then go back to live in Canada for 4 months every year? Living in Panama and a snowbird going to Canada for June to October?
Hello Kimberley. If you do that the thing you have to remember, is that you will no longer be covered under Canada’s health care system. You will have to purchase a world wide health care policy in panama, that can be used when you are in Canada, or purchase travel insurance when you travel to Canada. I have been a non-resident Canadian for 8 years, and travle back often to visit family and friends.
Hi. My wife and I are thinking of early retirement in Panama. Probably live there permanently but come back home a couple times a year. We have property in Nova Scotia. We both have a pension plus RRSPs. Curious what monthly costs would be for a modest place. Maybe 2 bedroom 2 bath house or condo type living arrangements. Also, thinking of working part time somewhere if possible. Handyman, bartender etc
Hey Chris, if you come to Panama and get the Pensionado Visa, you cannot get a work visa, as this visa is designed for people who are retired, and the government does not want people taking Panamanian jobs. A couple can comfortably live on $2000 USD a month here.
How is the process to purchase a home in Panama? Are there areas recommended? Are there regions where mostly canadians are living?
A home purchase is pretty simple with titled property and a reputable broker preferable a member of Panama MLS. Canadians seem to converge around the Coronado area and Boquete. But make sure you come here, and spend a few months in each area to make sure you like it before taking the plunges and buying something. it is easy to buy, may not be that easy to sell.
Hello, great article. Do you have info on long-term rentals agencies other than VRBO and Airbnb for winter snowbirds
Hello Danielle, long term is considered 6 months or more, and depending on the area you are looking for, we can find you an agent for that area. Contact Us here.
Hello. I am a relatively new Pensionado visa resident in Panama and was wondering if it is possible to set up direct deposits of my Canadian CPP and OAS benefits to my Panamanian bank account. I have a savings account with Banistmo and would like to arrange for my government pensions to be directly deposited rather than through very expensive wire trasfers as I have been doing. My American expat friends tell me they are able to have their government pensions direct deposited, but I have not been able to determine if Canadians are able to do the same. Can this be done, and if so, how?
Thank you, Arthur
Hello Arthur, sorry this is not available yet in Panama for Canadians. I highly recommend setting up a Wize or OFX account, and transfer from Canadian bank to them, then to your Panama bank. This can cut your wire fees in half.
Hi,
I just find out today that the CPP & OAS can be direct deposited into a Panamanian bank account, to do that you have to fill up the “ Foreign Direct Deposit Enrolment Form” PWGSC-TPSGC-8002-50 q(2004-02) from the Public Works and Government Services Canada.
Sorry, not yet in Panama. Here is the list of countries: https://www.tpsgc-pwgsc.gc.ca/recgen/dd/etranger-abroad-eng.html
Hi there really enjoyed reading your article. I am visiting Panama in Dec and it will be my third time. I am contemplating living there a few months when it’s cold in Canada. I am retired but looking for work. In order to work in Panama what do you need to do? Also I am wanting to develop a network and wondering if you can recommend some social clubs in Panama City for people in their mid 50’s.
Thanks
Does both CPP and OAS count for the pensiando visa? Can both spouse’s CPP be combined to meet the $1,000 US requirement?
Hello Ray, yes to both of your questions, if you are applying as a Couple, the total of all you pensions must be at least $1,250 USD a month for both of you.
Hey there. I am a professional in Canada that works 100% remotely. My profession requires provincial licensing, insurance, etc. Would this prohibit me from becoming a non-resident? I am hoping to continue running my business and have no problem opening a new corporation in another country to do so. Is this possible?
Hello Warren, you would have to ask a professional tax advisor, which you will need anyways, if you want to go the non-residency way.
Hello, i am a retired Canadian aged 72 and my wife is from the Philippines aged 40 and has a Philippine passport. The requirements for Philippine people is different from Canadian requirements. If we want to move to Panama, can she come without going through all the procedures for a person from the Philippines, as I will be supporting her?
Hello Richard. If your wife is a Canadian resident, living in Canada with you, and you have a marriage license, then she can be added to your Pensionado Visa as a dependent, and it will not as simple as she was Canadian. If she is still living in the Philippines, it can still be done, but she will need some documentation from there. To be connected to an excellent immigration lawyer in Panama to assist with this, click HERE.
Do I understand correctly that if you become permanent resident of Panama that your. Canadian Pension are not taxed in Canada but then taxed in Panama??
Panama will never tax your pensions, Panama only taxes income that is Panama sourced.
I would like to learn about living in Panama as a Canadian retiree and the price of real state?
Thank you,
Hi Fariba, here is an good start your research: https://www.retireinpanamatours.com/post/canadians-living-in-panama-and-moving-to-panama/