Before we learn about what makes Panama one of the best places to retire, let’s do a little history lesson. There’s hardly a person in the U.S. who doesn’t know about the Panama Canal. It’s where ships can go from the Atlantic Ocean via the Caribbean Sea to the North Pacific Ocean. In other words, it’s how ships move from the Atlantic to the Pacific without having to go down and around the tip of South America.
But there is another important thing about the Panama Canal that makes the country Panama so very attractive to US retirees. It’s the fact that much of the revenue from the Panama Canal is divided each year among native Panamanians giving them a solid and stable form of income.
Not only does Panama have the canal, it is known for its rain forests and has the fastest growing economy in Central America. The country is made up of several different regions that retirees can choose from. If island living looks good, you could choose to live on one of the small group of islands named Bocos del Toro. If you prefer big city living, there is Panama City, which is also the country’s capital.
A program just for retirees
Panama also boasts a low cost of living for retirees with an economy that’s based on the US dollar. Plus, it offers a program for retirees called pensionado (retirement) that includes discounts on almost everything from transportation to medical care. For example, if you can provide documentation that you have a guaranteed pension income of $1000 a month from Social Security, disability, a corporation or the Armed Forces, you can get discounts of 50% of entertainment, 30% off the cost of bus, train and boat fares, 25% of airline tickets and 25% off meals at restaurants.
Healthcare in Panama is considered to be so good that most US ex-pats don’t even bother to purchase private health insurance.
You may pay no income tax at all
Panama levies no income taxes on foreign-earned income. This means that if you derive all of your income from the US, you will pay no income tax at all.
Panama also boasts excellent weather. It offers everything from sun-kissed beaches to a temperate mountain climate. The country is very politically stable and has a low crime rate. It’s only about 4 ½-hour flights from Miami, making it easy for retirees to get back home to visit family and friends.
Many Americans have chosen to live in Boquette, Panama. This is because it is one city in Panama that you can live and get by without speaking Spanish fluently. Most of the locals know how to speak some English while restaurant works and other customer service positions speak both Spanish and English.
Living in Boquette
What does it cost to live in a city such as Boquette? What is the cost of living in Panama compared to the US? If you are able to buy a home, you can probably live nicely for around $1300 a month.
To give you an idea of housing costs, there was recently advertised a nice, two-level cottage with 3 bedrooms and 2 bathrooms, totaling 950 ft.² with a balcony and covered terrace for $75,000.
You can rent an apartment or house for $500-$1000 a month and transportation will probably cost you only about $50. You will pay about $160 a month for electricity, telephone, Internet and gas. You can add cable TV for another $30 and hire full-time household help for about $300 a month. Food will cost about $300 and entertainment $400.
As you can see it is relatively cheap to live and retire in Panama. The cost of living is low.
How about a nice 2-bedroom condo for $45,000?
Panama City is also not much more expensive. In the city’s convenient Parque Lefevre neighborhood, you can get a 2-bedroom condo for about $45,000. It even comes with a maid’s room that has its own bathroom. Or you could buy a luxurious, 1300 sq. ft., three-bedroom condo with a great ocean view in the elite Punta Patilla neighborhood for $185,000.
Great recreational activities
Panama also offers retirees a wealth of recreational things to do. There’s white water rafting, horseback riding, the thrilling Boquette Tree Trek Canopy Adventure, nature hikes and rock climbing. Just an hour from Panama City are Pacific Coast beaches that are perfect for walks, surfing and just beaching. Bocas del Toro offers dolphin watching, snorkeling, nature tours, beautiful island beaches and the Boca nightlife. Alternately, there is El Valle, a lush mountain town that’s just 2 hours from Panama City. It has a canopy ride, nature hikes, a great artisans market and biking.
In other words, when you choose to retire in Panama you’ll rarely run out of fun things to see and do.
Learn more about visiting, living and retiring to Panama:
http://wikitravel.org/en/Panama
http://travel.state.gov/travel/cis_pa_tw/cis/cis_994.html
http://www.lonelyplanet.com/panama
https://www.cia.gov/library/publications/the-world-factbook/geos/pm.html