Another Panamanian secret has been revealed in recent years: it’s a great place to retire. In 2001, International Living, the renowned magazine and renowned expert in promoting the American expatriate lifestyle, stated that Panama is the best place to live outside of the United States. The American Association of Retired Persons (AARP) Modern Maturity magazine has ranked the city of Boquete in Panama fourth in its list of the “Fifteen Best Cities in the World for Retired Americans.”
Panama’s popularity as a retirement destination is easy to define. This country’s mix of high quality of life, easy living, retirement incentives, and modern conveniences allow people to change locations and lives with little trouble.
To begin with, Panama is an incredibly beautiful country. It has a diversity of flora and fauna that is not found anywhere else, due to the position of the Isthmus as a crossroads of North and South America. Potential residential opportunities span urban, mountain, coastal and island communities, so you can find a special place to suit everyone’s tastes. Once you decide where to settle, you have the security of knowing that as a foreigner, you can easily own property and are afforded exactly the same rights and protections as a Panamanian owner.
Due to the withdrawal of the US military and other factors, Panamanian real estate prices have remained basically unchanged since the early 1990s (except in “hot” areas such as Boquete in Chiriquí and the islands of the Bocas del Bull). At the time of this writing, some representative prices in the more well-known areas include: a three-bedroom apartment in Panama City, $60,000; a two-bedroom condo in a new skyscraper, $175,000; a four-story building on the former Albrook military base, $155,000; three-bedroom house with lot in Boquete, $100,000; and, a beach house in Colon, $40,000.
There are a number of real estate developments ideal for retirees. The most prominent are Altos de Cerro Azul and Altos del María, both within a reasonable distance from Panama City but located in cooler mountainous areas and with their own residential infrastructure and services such as clinics and supermarkets nearby.
Once you buy your home, you can also bring your household and personal belongings tax-free and a new car (for private use) every two years, plus you pay no property taxes on your residence. If all of this isn’t beneficial enough, English is widely spoken, so chances are you’ll be able to converse with at least some of your new neighbors.
Panama is one of the safest countries in the world and has the highest rating in tourist safety from the prestigious Pinkerton Intelligence Agency. Panama is a constitutional democracy without a dictator or permanent army. Due to the presence of the Panama Canal, Panama also enjoys international protection and surveillance.
In terms of health standards, Panama is among the best countries in Latin America. Life expectancy is around 75 years. A large percentage of Panamanian doctors are bilingual and have been trained in Europe and the United States. Private medical facilities are among the best in Central America (many are affiliated with major US hospitals). Furthermore, health standards in most of the country are quite good as a result of the massive sanitation programs initiated during the construction of the Panama Canal. The water is also drinkable in most parts of the country and in the cities it can be drunk directly from the tap.
Getting the most out of your money is, of course, a top concern for retirees. The US dollar has always been the currency of the republic. Panama is known for its banking center, which has bank branches of almost all international players. On another note, the cost of living is reasonable and is much lower than in the US and Europe. Inflation rates are some of the lowest known, typically hovering between 1% and 2%. In addition, retirees or “retirees” to use the Spanish term receive generous discounts on prices, such as 50% on movies and cultural events, 30% on transportation, 25% on utilities, 15% on personal loans and 1% on personal mortgages.
Those who settle in Panama can expect the daily life bill to be significantly lower than in “first world” countries. Nice apartments and houses can be rented for $1,000 or less per month. Grocery prices are 25%-30% lower. A meal at a nice restaurant can be enjoyed for $15-$40. First-run movie tickets are $3.75. Concert tickets range from $20 to $100. Housekeeping costs about $180 per month. Gardeners cost less than $10 per day. A bottle of Scotch whiskey can be found for $6.
Buying just what you need is usually not a problem. Due to its mixture of cultures and its position as an international trade hub, Panama offers a wide range of top quality products and, therefore, purchase options.
Staying in touch with friends, family and the rest of the world is no problem. High-band Internet connectivity, cellular phone networks, and ADSL telephony capacity in the home are easily accessible. Full cable and satellite television services are common.
When it comes to accessibility, many major airlines stop at Panama’s Tocumen International Airport, including American and Delta. Panama’s international airline COPA flies to 29 cities in 19 countries and now has direct flights from Houston, Los Angeles, Miami (2 1/2 hours), Newark and Orlando. There are also direct flights from major hubs in Central and South America. Anyone wishing to travel from the Eastern Hemisphere will likely be routed through the US.
Finally, obtaining a retiree visa is a very simple and inexpensive process. All you need is a “clean” police report from the area you lived in before Panama, a health certificate from a Panamanian doctor, and proof of personal income of $500 per month, with $100 per month for any dependents.
Considering all the benefits listed above, it is no wonder that for those looking to retire, Panama has become the place of choice in Latin America.
If you would like more information on retiring in Panama, numerous law firms offer a full line of advisory and relocation services. Retreat-related reading includes: “Knowing Panama”, “The Visitor” and “Focus on Panama”, published by Focus Publications (Int), SA (www.focuspublicationsint.com), “Living in Panama” by the American Chamber of Commerce and Industry of Panama (www.panamcham.com, under “Publications”) and the Panama Country Kit of the Panama branch of International Living (www.agora-inc.com/reports/pvom/wilvbb31). Another good source of information is Panama Info (www.panamainfo.com).
Americans may want to contact the American Society of Panama (www.amso.org). There are a number of organizations for foreigners and of interest to foreigners, including active Alcoholics Anonymous groups (www.panamakevin.com)
Panama Relocation Services was created to offer complete assistance in the process of moving and relocating in Panama or from Panama to another country. Services include airport pick-up, orientation to Panama, search and installation in a new residence, help finding schools and doctors, and everything an individual or family may need to start a new life. (www.panamarelocation.com)