Panama, the narrow bridge between North and South America, is a vibrant and diverse country that offers a unique blend of modernity, rich history, and stunning natural beauty. Famous for the iconic Panama Canal, this Central American nation is a vital global crossroads, making it one of the most internationally connected countries in the region. Beyond its strategic location, Panama boasts a stable economy, attractive tax benefits, and a welcoming environment for expats, particularly retirees, thanks to programs like the renowned Pensionado visa.
But what makes Panama truly special is its remarkable variety. From the cosmopolitan buzz and gleaming skyscrapers of Panama City, to the pristine beaches of Bocas del Toro, and the lush rainforests of Boquete, Panama truly offers something for everyone. Outdoor enthusiasts will appreciate its biodiversity, world-class hiking, and diving opportunities, while history buffs can explore colonial-era ruins and indigenous traditions.
The country’s year-round warm climate, affordable cost of living, and excellent healthcare further enhance its appeal. Whether you’re seeking adventure, tranquility, or a mix of both, Panama’s unique combination of natural wonders, modern amenities, and cultural richness make it an enticing place to live.
I’ve been living here for more than 14 years, and here are 10 things you need to know if you’re planning to make such a move.
#1: Visa requirements
When I applied for residency, I opted to do it myself to save money. I had heard immigration was coming to Bocas thought it would be easy. Boy, was I wrong. I had to wait in endless lines for two days and go back and forth to meet requirements for photos and copies of documents. Only to find out in the end that this visa was only good for 2 years.
Two years later, I applied for permanent residency and used an attorney. It was so much easier. No lines and the right visa the first time. It was worth every penny.
A cautionary tale: A few years back a friend came to Panama and built a home, and then applied for residency, only to find out that because he had a felony on his record he wasn’t allowed to stay in the country. He had to sell quickly and at a considerable loss. Don’t make this mistake.
#2. Currency
Many people ask me about the currency here. Although Panama has a national currency called the Balboa, they don’t really use it, except for coins. The American dollar is commonly used so there is no exchange fees.
#3. Opening a bank account
I really recommend using an attorney or CPA. Otherwise look forward to endless delays similar to the visa issues. In Panama, attorneys and CPAs have relationships with banks and make things so much easier and faster
# 4. Panama has moved on from Manuel Noriega! And the Canal is more popular than ever
I get this so much from folks who haven’t been here. The truth is Noriega has been out of power since 1989 and Panama is a stable democracy, made even more stable by the Panama Canal especially since the country took over its management in 1999.
#5. If you need fast internet…
You’re in luck! With plenty of modern infrastructure, including satellites and fiber optics, Panama has stable, fast, and affordable internet in most parts of the country.
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#6. Create a realistic budget
My partner and I live quite comfortably in Bocas del Toro on about $2000 a month. There are parts of Panama that are less expensive than that (inland) and parts that are more expensive (Panama City), but that’s a decent barometer of what to expect.
#7. Health care
Healthcare in Panama is very affordable, with a visit to a specialist costing about $50. When my partner Doug got his finger caught in a winch all the care, the ambulance ride, hospital stay, and surgery was about $250, total! For more serious injuries or medical procedures, like knee replacements, we go to the states and use our Medicare because it’s free, even though it’s very affordable here. We also have Medivac for emergencies (good to have if you live on an island), and very affordable health insurance.
#8. Culture
I found it very easy to adapt to the Panamanian culture. But be prepared for some changes, particularly the first year. Latins are known for being in “mañana land.” And although you might think you are ready for that mindset, it’s important to stay patient when trying to get anything done. And if you don’t like noise, you might want to look outside of the more urban areas as Panamanians do enjoy a good party.
#9. Transportation
Knowing how the transportation works in Panama is critical before you make the move. While some people prefer getting a car, you couldn’t pay me to drive in Panama city. I recommend taking a regular taxi who will take you anywhere you want to go, with no muss and no fuss. Uber also works well. And Panama also has a great Metroline that they are building from Panama City to David.
If you have’ve never been to Panama, you might want to explore the country in a car but after that, flying to various parts of the country is my preferred way to go. And, as luck would have it, more small airports are opening as development continues.
#10. Legal representation
It’s important to keep in mind is that attorneys do everything in Panama. While that may sound odd, they’re actually amazingly helpful (and relatively affordable) when it comes to buying property, looking into asset protection, and conducting other legal, governmental, or administrative affairs.
Read more on 6 Countries Where It’s Easy To Get A Residency Visa
If you’re thinking about moving abroad and are looking for information about asset protection, cross-border transactions, second citizenship programs, or global investment, contact Joel Nagel and Nagel Law.
