Your Friends and Family will Probably Say “Are You Crazy? Move to Panama?

You know, when I first decided to move to Panama and told some of my friends and family back in Canada, they thought I was crazy. Some of them even believed that panama was a country embroiled in a rebel war. I knew that was not true, as I, like you, have been doing research on Panama for quite some time, and I realize that it is known as the best place to retire in the world right now.

Well, that does not make the decision any easier. It will be a courageous move if you decide to go. There are, however, some things you can do now that will make the move much easier. I had to figure some of these things out when I got here, but with Oscar and me and our almost 20 years combined experience in Panama, and 12 years total experience dealing with expats moving here, these are the top concerns we always hear.

Communication: How will I talk to my friends and family back home

Well, believe it or not, Panama’s communication system, including phones and internet, is 1st world. 98% of the country has cell phone access, from 4 competing carriers, and high-speed internet at speeds of up to 1000 Mbps is available in most cities and towns.

WhatsApp is the most used means of communication in Panama. Cell texting is rarely used. WhatsApp is a text, Voice, and Video app for your phone used by over 2 billion people worldwide, yet many North Americans have never heard of it. I suggest downloading it and giving it a try; it’s free.

The best thing about WhatsApp is that it stays registered to your phone, even when you travel back and forth to other countries or change your SIM card. People can always get hold of you. Voice and Video quality are excellent on WIFI, and voice even works on 3G/4G. Try it out with some friends and family, and you will see how easy it is to communicate.

Now, there is still another option for a “Land Line” local number from your country, in Panama. It’s called VIOP (voice over IP). Many companies offer VoIP services that allow you to plug a real house phone into them (like a cordless phone), connect the VoIP unit to the internet, and make and receive calls in Panama using a number from your home country. Retire in Panama’s main line, 1-786-232-3916, is a VOIP service from Google Voice.

Banking and Money

There are many options here for you, and it will depend on your circumstances. We do, however, recommend you keep your home bank in your country if you move here, at least for a while. I still have bank accounts in the USA and Canada that I keep active.

Once you move here and get your residency, you will have the option to open a Panamanian bank account. Panamanian banks are very secure and solvent. The requirements for cash on hand relative to money loaned here are significantly higher than in the rest of the world. The part I like best is that the banks here pay 3% – 5% interest on savings accounts, and even higher on CDs.

To open a Bank Account in Panama, you will need your Residence Card (or a letter from your lawyer stating that you are in the process of residency) and a bank reference letter from your current bank in your country. On our tours, we will discuss the best banks here, which offer services in person and online in English.

Most retirees keep their home bank, have their pension check directly deposited into it, and use a Visa debit card to spend here in Panama or withdraw cash from ATMs. Withdrawing from an ATM in Panama will cost you an additional $5.50 plus any charges from your bank.

I don’t like the extra charges, so I opened a bank account here, transferred some money from my home bank, and earn a nice interest on my savings account. (instead of .00025% that North American banks pay)

Health Care in Panama

This is one of the most talked-about things for expats in Panama. What do I do about health care? Medicare from North America is not accepted here. The cost of medical treatment here is a fraction of the price in the USA, and much cheaper than in places like Europe. Let me give you some examples, just using the private medical system.

I live in the town of Boquete, where there are several Doctor offices (most of which speak English) and multiple labs. Here are some costs I have incurred: There is a 15% additional discount for anyone with a Pensionado Visa.

Doctors Visit $15 – $20
Blood Test at lab ($10)
X-ray $18
Complete physical with Blood, Urine, X-ray, EKG . . etc., a total of 15 tests ordered – $135 (this was for medical insurance qualification, which I will get into later)

Panama has a 2-tiered medical system, Comprising Private pay-for-service and private insurance, as well as a public hospital. The Private system is world-class, with Johns Hopkins’ affiliate hospitals like Punta Pacifica. The public (regional) hospitals are very inexpensive, great for general care, and available to all residents. If you work in Panama, like some of you who may be coming here on a Friendly Nations Visa, a small amount is taken from your paycheck monthly, and you can use the Regional Public system at no cost.

For people under 70 years old, private medical insurance is a good thing, and is much more affordable here than in North America, especially if you keep your worldwide deductible high. Let me give you an example, actually, my example. I am 54 years old and in good health. I pay $108 per month for one million dollars of annual 100% coverage, with a $1000 annual deductible in Central America, including Panama and Colombia, and a $10,000 deductible worldwide.

If I travel to the USA or Europe, I purchase GAP insurance, which is very inexpensive to insure my deductible.

For individuals aged 75 and over, certain private hospitals offer co-pay insurance options. To learn more about health insurance options in Panama, fill in this form to be connected to a trusted Panama health insurance agent.

What Residency Visa Should I Get and Do I Qualify For?

This is the second most asked question, and again there are many options. The three most popular are the Pensionado Program, the Friendly Nations Visa, and the Qualified Investers Visa. I will discuss each below.

Pensionado Visa
Panama is known worldwide for its visa as the easiest residency visa to obtain. To qualify as a single or couple for this visa, you must have a permanent pension of $1000 or more. With this visa, there are a lot of discounts from 5 – 50% that you get in every day of life in Panama. (link below to see all the discounts) This visa will not lead to a work visa or to nationalization. (Passport)

Friendly Nations Visa
This is a very popular visa with a list of 50 countries where their citizens can qualify. The Friendly Nations Visa process is just over two years long. It starts with the application and a temporary Visa, then a work permit for option 1 below. After two years of holding a temporary Visa, you apply for your permanent Visa. 

There are three ways now to qualify for a Friendly Nations Visa.

1. Receive a Job offer from an Existing Panamanian company with a current government profile, then receive a work permit to work at the company.
2. Invest $200,000 in real estate in Panama. Real estate can be purchased with cash or a mortgage with a Panamanian bank. 
3. Deposit $200,000 in a Panama Bank CD (Certified Deposit) locked in for two years.

At the time of the second application for your Permanent Visa, you must still have a job, real estate, or a bank CD to qualify for permanent residency.

One thing to remember, though, in choosing this visa or the Pensionado Visa, if you ever want to work in Panama or open a business, you will want to get the Friendly Nations Visa. You will still get the discounts when a woman is 55 and a man is 60.

Qualified Investors Visa

– 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.

There are about 30 more visa options that you can choose from. Go here to learn more about these visas.

Please choose the correct visa, as it is essential. We recommend consulting a reputable lawyer for assistance. Retire in Panama Tours recommends one law firm, as both Oscar and I have used them personally, and referred them to dozens of clients, all with 100% satisfactory results. If you want to connect with them, Go Here.

Is it Safe in Panama?

Another good question, I know when I told people I was moving there, I had family members who still thought there was a gorilla war far in the jungle. Of course, that is not true. Panama is probably the safest country in Latin America, and safer than most US and Canadian cities. Of course, there are problem areas in Panama City, but there are also safe neighborhoods. In the country, it is very secure.

During my research on Panama, I discovered a site called Nation Master, which tracks and compares crime rates across all countries. You can look at all the stats, but I think the most important one to compare is the total crime rate per 1,000 people.

Well, that completes the most asked questions that people are trying to answer to get the courage to take the plunge and move to Panama or retire here. Our Retire in Panama Tours are the best way to see the country and decide if you want to live in Panama, where you want to live, what visa to get to lead to residency in Panama, and what to do about your health insurance, For 6 days and 7 nights, we will show you all you need to know about panama, retiring in Panama and relive any fears you may have. Visit our itinerary here and book your tour here.

Retire in Panama Tours
It’s more than a tour . . it’s an experience.