Visa & Residency Program

Panama has become one of the world’s top retirement havens. Beautiful beaches, lush mountains, rich biodiversity and a capital city that rivals many U.S. and European cities in terms of culture, atmosphere, and conveniences entice expats from around the world in search of new experiences and a change of scenery during retirement. International Living ranked Panama the world's best retirement haven on its 2019 annual list.1

KEY TAKEAWAYS

• Like any country that may be on your radar for retirement, Panama has its pluses and minuses.

• Before making a decision to move there, assess the advantages and disadvantages and what it will be like to live in a foreign country for the long-term, rather than visiting as a tourist.

• The low cost of living, the perks for retirees (discounts on flights, restaurants, entertainment, public transportation, and utilities), and affordable healthcare are all among the benefits of retiring in Panama.

• The risk of contracting certain diseases not common in America, the slow pace of life and the tough driving conditions—such as areas where there are no signs or signals—are among the challenges of living in Panama.

Low cost of living

Similar to other Latin American countries, Panama has a low cost of living. Just how low depends on your lifestyle and preferences. It may be possible to squeak by on $500 a month, for example, but it probably won’t be the standard of living you’re looking forward to in retirement. At the other end of the spectrum, you could easily drop $10,000 a month living in a posh beachfront home. A realistic starting point for a retired couple would be about $2,000 per month to cover basic housing and living costs.

Retirement Visas: Perks Panama offers special benefits for retirees—including those from abroad. The Pensionado Visa is available to anyone over age 18 who has a lifetime pension, Social Security or annuity income of at least $1,000 per month (married couples can combine their incomes to meet the requirement). If you buy Panama real estate valued at $100,000 or more, the minimum monthly drops to $750. The Pensionado Visa comes with discounts:

25% off flights (domestic and international)

50% off entertainment

30% off public transportation

25% off restaurants

25% off utilities (electrical, telephone and water)

You can also import up to $10,000 worth of household goods tax-free.

Good, Affordable Healthcare

While Panama has both public and private healthcare systems, most expats prefer private facilities since they generally provide better services. Medical costs are typically a fraction of what they are in the U.S., even at top private providers in Panama City. A local health insurance plan costs about $145 a month for a couple in their 60s and pays between 50% and 70% of most healthcare expenses.

Most medications can be purchased without a prescription (with the exception of antibiotics, controlled substances, and certain pain meds). If you are a resident retiree, you’ll also qualify for discounts on meds, healthcare services, and fees.

The U.S. dollar is the currency in Panama, making it very convenient for expats from the United States.

Source: https://www.investopedia.com/articles/personal-finance/020116/retiring-panama-pros-cons.asp