Thinking about moving to Panama? It’s an exciting adventure! Panama offers warm weather, beautiful beaches, and a lower cost of living. The country is also home to a friendly expat community and excellent healthcare. But before you pack your bags, there are important things to know. From visas to banking to daily life, planning ahead is key. This guide will walk you through everything you need to make your move smooth and stress-free!
In this guide, you’ll also learn:
Why Move to Panama From the US?
Panama ranks 12th in the Retirement Index for U.S. Retirees by the Global Intelligence Unit. It is considered one of the safer countries in Central America, with a cost of living that’s significantly lower than in the U.S. Additionally, Panama operates on a territorial tax system, meaning residents are only taxed on income earned within the country. Why Panama is a good place for Americans to move to:
1. Lower Cost of Living: Panama offers a high quality of life at a fraction of the cost compared to the U.S. Rent, utilities, groceries, and dining out are significantly cheaper. You can live comfortably on a modest budget, especially outside of Panama City.
2. Tax Benefits: Panama does not tax foreign-earned income, meaning U.S. retirees, remote workers, and business owners can keep more of their earnings. The country also has no estate or inheritance taxes.
3. Warm Climate Year-Round: No more harsh winters! Panama has a tropical climate with warm temperatures all year, though you can find cooler weather in the highlands, like Boquete.
4. Stunning Natural Beauty: Panama is home to beautiful beaches, lush rainforests, and breathtaking mountains. Whether you love hiking, surfing, or just relaxing by the ocean, there’s something for everyone.
5. Easy Residency & Visa Programs: Panama offers various visa options, including the Pensionado (Retiree) Visa, which grants discounts on medical care, entertainment, and travel.
6. Established Expat Community: Thousands of U.S. expats live in Panama, making it easy to find a support network. Popular expat areas include Boquete, Coronado, and Panama City.
7. Close proximity to the U.S.: Flights to Miami, Houston, and other U.S. cities are short and frequent, making it easy to visit family or return when needed.
How to Move to Panama from the US
Moving to Panama requires careful planning. The first step is to obtain a visa, such as the Friendly Nations Visa or Pensionado Visa. Securing housing, opening a local bank account, and registering with immigration are also crucial steps.
In the section below, we’ll break down the top visas for Panama and outline their requirements, criteria, and costs.
Visa Requirements for Panama
If you’re moving to Panama from the US, you’ll need the correct visa to stay long-term. Many people enter on a tourist visa, which allows stays of up to 180 days but doesn’t permit work.
Panama offers several visa options. Many retirees opt for the Pensionado Visa, which requires proof of retirement income and comes with significant discounts on healthcare, travel, and entertainment.
Getting the right visa can be complex, so it’s a good idea to consult an immigration lawyer, the Panamanian embassy, or a Global Citizen Solutions consultant. Proper planning will help ensure a smooth transition to living in Panama.
Here are some visas that are useful to know about:
Panama Friendly Nations Visa
The Panama Friendly Nations Visa is a popular residency program designed to attract citizens from specific countries with strong economic, professional, or cultural ties to Panama. This visa allows individuals and their families to live, work, and invest in Panama with a straightforward application process and a path to permanent residency.
To qualify, applicants must demonstrate economic or professional ties to Panama, such as starting a business, investing in real estate, or securing local employment. The program is particularly appealing to entrepreneurs, remote workers, and retirees seeking an environment with a high quality of life.
Panama Pensionado Visa
The Panama Pensionado Visa is a retirement visa designed to attract retirees by offering a straightforward path to residency and a host of attractive benefits. To qualify, applicants must demonstrate a lifetime pension or retirement income of at least $1,000
monthly (or $1,250 for a couple), making it accessible for many retirees seeking a comfortable lifestyle in Panama.
Transportation in Panama
In Panama City, public transportation is reliable, with a modern metro system, affordable buses, and plenty of taxis. Ride-sharing apps like Uber are also available and often preferred by many expats for convenience and safety.
If you plan to explore beyond the capital, the Pan-American Highway connects major cities and towns, making road trips smooth. Public transport is less frequent in rural areas, so owning a car can be helpful. Driving in Central America’s busiest areas, like Panama City, can be hectic due to traffic and aggressive drivers.
Tocumen International Airport is the country’s busiest airport for international travel, offering flights to other countries across the Western Hemisphere. Panama offers plenty of transportation options to fit your lifestyle, whether you’re commuting locally or traveling abroad.
Safety in Panama
Panama is generally safe, especially in areas with strong expat communities. Many expats feel comfortable living in Panama City, popular beach towns, and peaceful mountain regions. However, like anywhere, it’s important to stay aware of your surroundings and use common sense to avoid petty crime.
Tourist areas and major cities have a visible police presence, but some neighborhoods are best avoided, especially at night. Crimes like pickpocketing can happen in crowded places, so keeping valuables secure is a good habit. Crime rates are typically lower in rural areas, but it’s wise to lock doors and be cautious.
Panama is outside the hurricane belt, making it safer from extreme weather than other Central American countries. The rainy season can bring heavy storms and flooding in some areas. Many expats find Panama safe and welcoming, especially when they take basic precautions and choose the right place to live.
The Cost of Living in Panama
One of the biggest reasons many expats choose to live in Panama is the lower cost of living compared to the US. However, costs vary depending on location. Rent and dining out in Panama City can be pricey, especially in upscale neighborhoods. On the other hand, smaller mountain towns and beach towns offer more affordable housing and day-to-day expenses.
Health insurance and medical care are also more affordable than in the US, with high-quality private hospitals available in major cities. Utilities like air conditioning can add to monthly expenses, especially in hot coastal areas. With careful planning, many retirees and remote workers find Panama a budget-friendly place to live without sacrificing modern comforts.
Expenditure | Average Cost |
Rent (one-bedroom apartment) | $700 to $1,500 |
Water | $12 to $25 |
Electricity | $60 to $200 |
Gas | $10 |
Cell phone | $15 to $45 |
Groceries | $30 to $200 |
Transportation | $30 to $200 |
Entertainment (restaurants, shopping, and other activities) | $280 to $400 |
*Numbers are a general estimate and can vary by city or town.
Opening a Bank Account in Panama
Opening a bank account as a foreigner can take time due to strict regulations. It’s best to bring necessary documents like proof of residency and income. US dollars are used in Panama, making financial transitions easier for American expats.
Working in Panama
Finding a job in Panama can be challenging since local labor laws prioritize hiring Panamanians. If you plan on working in Panama, you’ll need both a residency visa and a
work permit. The Friendly Nations Visa makes this process easier for US citizens, while employer-sponsored work permits can be harder to secure.
Many expats in Panama work remotely, start their own businesses, or find jobs in industries where foreign expertise is needed. Teaching English, tourism, and international business are some of the more accessible fields. However, salaries are generally lower than in the US, so it’s important to plan your finances accordingly.
If you’re a retiree on the Pensionado Visa, keep in mind that this visa doesn’t allow you to work. Expats who want to do business in Panama should also research local tax laws and Panama’s immigration laws to ensure compliance. With the right planning, living in Panama while working can be a great experience, especially for remote workers and entrepreneurs.
Healthcare in Panama
Panama has a high-quality healthcare system, with private and public medical facilities available. In major cities like Panama City, you’ll find modern clinics, well-trained doctors, and many doctors who speak English. Medical care in private hospitals is affordable compared to the US, and many expats choose to get health insurance for additional coverage.
Outside the cities, medical facilities in rural areas may be more limited, with fewer specialists and longer wait times. However, general care is still accessible, and many expats travel to larger cities for treatments.
If you’re moving with prescriptions, checking availability in Panama is a good idea. Some medications are cheaper, while others may require a local prescription. Many retirees on the Pensionado Visa benefit from discounts on medical care, making healthcare costs even more manageable.
Overall, Panama offers reliable healthcare for expats, with high standards in private hospitals and affordable treatment options. Having a solid health insurance plan and knowing where to find the best care will make living in Panama even more stress-free.
Moving Your Pets to Panama
Bringing your furry friend to Panama is possible, but it takes planning. Panama’s immigration laws require pets to have a health certificate issued by a licensed vet, proving they’re up-to-date on vaccinations. Before travel, this certificate must be authenticated by the Panamanian embassy in your home country.
Once in Panama, pets may need to undergo home quarantine, which allows them to stay with you while being monitored for health concerns. Some airlines have specific pet travel policies, so checking in advance is essential.
Many expats find Panama a pet-friendly country, with plenty of parks, outdoor spaces, and even pet-friendly housing options. However, access to veterinary care varies by location—private hospitals in major cities offer excellent services, while options in rural areas may be more limited.
If you plan on living in Panama with pets, researching import regulations, available pet services, and the climate (especially the rainy season) will ensure a smooth transition for you and your four-legged companion.
Things To Know Before Moving to Panama
Moving to Panama is an exciting adventure, but there are a few things many expats wish they had known beforehand.
- While many Panamanians speak English, especially in tourist areas and expat communities, learning some Spanish makes daily life much easier.
- The cost of living can be lower than in the US, but it depends on where you settle. Budgeting for essentials like health insurance, groceries, and transportation is key.
- Weather is another big factor. Many don’t realize how intense the rainy season can be, bringing months of heavy downpours and humidity.
- Bureaucracy can be frustrating. Whether applying for a residency visa, a driver’s license, or a work permit, expect delays and lots of paperwork. Having patience—and a good lawyer—can make the process smoother.
Frequently Asked Questions
How to move to Panama?
Depending on your situation, moving to Panama involves choosing the right residency visa. You’ll need to meet visa requirements, set up banking, and find affordable housing in your preferred area. Researching Panama’s immigration laws and working with an expert can make the process easier.
Can I collect social security if I live in Panama?
Yes, US citizens can still collect Social Security while living in Panama. Payments can be deposited into a US bank account or a Panamanian one, depending on your preference. Checking with the Social Security Administration for any tax implications is important.
Do they speak English in Panama?
While Spanish is the official language, many Panamanians speak English, especially in tourist areas and places with a strong expat community.
How long can a US citizen stay in Panama?
US citizens on a tourist visa can stay in Panama for up to 180 days but must leave the country before re-entering. If you plan to stay longer, you must apply for a residency visa, such as the Friendly Nations Visa for workers or the Pensionado Visa for retirees.
Can a foreigner buy a house in Panama?
Yes, foreigners can buy property in Panama with the same rights as locals. There are no restrictions on non-citizens purchasing real estate, whether in Panama City, a beach town, or a mountain region. However, buying land near borders is restricted.
Do foreigners pay taxes in Panama?
Foreigners only pay taxes on income earned within Panama, meaning income from other countries is not taxed. This makes Panama a tax-friendly destination for retirees and remote workers. However, you may be subject to property taxes if you own property.
What are the best neighborhoods for expats in and near Panama City?
Expats in Panama City often choose neighborhoods like Casco Viejo for its historic charm, Costa del Este for modern conveniences, and El Cangrejo for its walkability and vibrant culture. Just outside the city, areas like Clayton and Coronado offer quieter living with easy access to urban amenities.
How safe is Panama?
Panama is generally safe, especially in areas with strong expat communities. Like anywhere, petty crimes like pickpocketing can happen in crowded places, so using common sense is important.
What is the healthcare system like in Panama?
Panama has high-quality medical facilities, especially in private hospitals in Panama City and major towns. Healthcare is much more affordable than in the US, and many doctors speak English.
What is the climate like in Panama?
Panama has a tropical climate with warm temperatures year-round. The rainy season lasts from May to November, bringing heavy downpours, while the dry season runs from December to April. Panama is outside the hurricane belt, unlike some Central American countries, making it less prone to extreme weather.
What are the best schools for expat children in Panama?
Panama has several excellent international schools that cater to expat families. Some top choices include the International School of Panama, the Metropolitan School, and the Oxford International School in Panama City.
