If you’re considering buying property in Latin America, it’s easy to see why Panama would be at the top of your list. With affordable real estate, loads of investment incentives, and favorable tax laws, it’s a great place to live and invest.
But, while narrowing your search down to Panama is easy, what comes next is much harder. With such variation among its various cities, the task of deciding EXACTLY where to buy property can be daunting, especially as an outsider.
Use this map to learn the names of the areas where expats live in Panama and narrow your search.
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If you’ve never seen a ship pass through the Panama Canal, this is your chance. Videographer Jean-Phillippe Angers filmed the ship passing through.
Enjoy!
Panama’s government has shown time and again that they are committed to enhancing the country’s attractiveness to businesses, tourists, and investors. This was recently evidenced when Congress announced a budget of $16.3 billion for 2013, which includes infrastructure projects to the tune of $15 billion to be completed over the next 5 years.
This is good news for investors, particularly those who own real estate.
This record-breaking budget is a large increase over the $14.5 billion it spent in 2012, which was already up 11% over 2011. While these expenditures may seem a bit ambitious, they’re arguably justified for a country whose economy grew a whopping 10.7% last year.
In anticipation of continued double-digit economic growth, the government has planned additions to each of the country’s airports, the building of a Metro subway system, a multi-billion dollar expansion of the Canal, and many more infrastructure projects. The $16.3 billion budget also has $8 billion earmarked for education, healthcare, housing, jobs, and other social programs.
While its economy certainly stands to benefit from the enhanced infrastructure, Panama is already a great place to invest. With a gross domestic product of $30.68 billion, its economy is the third largest in Central America and the fastest growing. Because it uses the dollar as its national currency, those in the U.S. can do business in Panama with zero foreign exchange risk.
Panama’s location and its operation of the Canal have secured it a permanent place in the international trade scene. It also boasts a tax system that is pro-business, pro-investor, and pro-foreigner. In addition, Panama’s laws are quite favorable for anyone wanting to do business there.
Real estate, in particular, continues to be a good investment in Panama. The cost of living is low, making it a very attractive destination for expats and retirees. And you can’t beat the scenery. Panama enjoys a year-round tropical climate and a setting to suit any preference: bustling cities, mountain retreats, or beachside villas. These all combine to make the country a hotspot for short-term vacationers as well.
Another reason real estate is such a hot commodity in Panama is because the country’s infrastructure, which is primed for a $15 billion facelift, is already better than you’ll find in most of its neighboring countries. Also attractive to investors are Panama’s host of government incentives, such as property tax exemptions and duty-free trading zones.
What does it mean when third-world property gains first-world amenities? For the savvy investor who can spot a great deal on real estate, it could mean the difference in buying property that’s merely a good value versus getting some serious bang for your buck.
Sure, Panama–like any other destination–has its share of overvalued real estate. No amount of improvement is going to change that (other than making it ever-so-slightly less inflated). It’s always important to do your due diligence and make sure you’re working with a team you can trust. If you do that, you could stand to gain a lot from the planned capital improvements.
Better infrastructure goes a long way to make a place more attractive to businesses, investors, and tourists. As roads and other means of transportation improve, there are fewer barriers to doing business. Airport expansions equal more visitors to the country.
Systems that supply electricity, water, internet, and other utilities add even more value to a property. These features also help to make previously lesser-known areas more attractive to visitors. Plus, the government’s investment in infrastructure is prompting a secondary wave of private investment, as business owners try to capitalize on the emerging opportunities for increased commerce and tourism.
Of course, the hefty budget is not without its criticisms. Many who oppose the current administration label it as just a well-timed political stunt to gain favor before the 2014 elections. Others fear the debt created by the expensive projects will be more than the country can manage.
But Panama’s current leaders are confident the country’s continued growth will be more than ample to offset the cost of the planned improvements. A growing economy, they argue, warrants a bigger budget.
So, other than the Canal, a Metro line, and some better roads and airports, just where is all of this money going? Here’s a little bit more information about the projects, some of which are already underway.
Public Transportation
Approximately $1.5 billion will go to the construction of Panama’s first subway system, the Metro line. Also in the works is a Metro Bus system, which will run around $270 million.
Roads
Plans are underway to construct five highways, establishing a value added logistics industry that will reduce transit times by as much as half. These include the completion of the final stretch of the Panama-Colon Highway, connections to bridge gaps within Panama City, and improved access to Tocumen International Airport.
Additional improvements and road rearrangements will bring thousands of jobs to the interior of the country.
Airports
The budget calls for $100 million in improvements to Tocumen International Airport, in response to international travel and cargo demands. In an effort to improve connectivity with other areas of the country, additional improvements are planned to all of the other four national airports.
Cold Chain
The logistical benefits of an 8-market Cold Chain will enhance competition among Panamanian farmers and, consequently, promote development in less-populated areas of the country.
Governmental City
This $360 million hub will house a whole host of governmental agencies in one location, reducing leasing costs and improving communication between the various entities.
Financial Tower
This 70-story Financial Tower will accommodate 10,000 users. Home to the National Bank of Panama and the country’s Securities and Trade Commission, it will become an icon that symbolizes the nation’s role as a key player in the financial industry.
Electric Interconnection
Approximately $415 million is earmarked for the construction of an Electricity Transmission Line that will connect the Central American market to the Andean market by way of a substation in northeastern Colombia, reducing costs for end users.
Panama Canal
The addition of new locks is already underway and, once the $5.2 billion renovations are completed in 2014, the Canal is projected to more than double its revenue.
Bay Sanitation
This $538 million project is geared towards improving the sanitary and environmental conditions of the area in and around Panama Bay.
Hospitals
Five new hospitals are slated to open in 2013 in the provinces of Chiriqui, Colon, Veraguas, Los Santos, and Darien.
Curundu Urban Renovation
Also scheduled to open in 2013 is the Curundu Urban Renovation, which will provide 1,000 housing opportunities for up to 5,000 individuals. Various training and enrichment programs will be offered.
Howard Air Force Base Conversion
$750 million has been set aside for the conversion of Howard Air Force Base into a duty-free zone that will house logistics operations, call centers, and technology hubs.
Bridge of the Americas Reconstruction
Another $80 million will go towards the rehabilitation of the iconic Bridge of the Americas.
Air-sea Stations
These seven sites are being constructed for enhanced security and will cost roughly $37 million.
Correction Facilities
Four jails are being constructed to house 5,500 inmates. This $155.6 million project is being implemented to improve the rehabilitation of those imprisoned.
Mining Projects
Mining projects to extract copper and gold have the potential to bring in as much as $665 million in income to Panama’s economy in the form of royalties and taxes.
Las Tablas, Panama is a tiny town in Central America that’s being touted by some as one of Panama’s up-and-coming areas. While it may be true that there is some opportunity to find a Central American getaway at an affordable price, there are a lot of important factors for you to consider.
As with any decision, the choice to relocate to or buy a property in a particular area of Latin America depends 100% on you and the things you value most. It’s important to weigh out all the pros and cons and find the area that best lines up with your lifestyle.
But it’s hard to do that when you’re thousands of miles away, trying to research dozens of options on a 17″ monitor.
There’s no substitute for checking out a city or a property firsthand, but here are some important attributes about Panama Real Estate in Las Tablas, and some of their possible implications for you. Hopefully this information will help you make an educated decision about whether it could be a viable option for your retirement.
1. Location, Location, Location
If you’ve ever bought a house, talked to a real estate agent, or even watched more than 5 minutes of one of those house-hunting television shows, then you probably know the 3 most important factors in real estate: location, location, location.
Where is Las Tablas?
Las Tablas, Panama, lies near the eastern Pacific coast of Panama’s Azuero Peninsula. Note, we said the city is “near” the coast. Not on the coast. That’s important to understand because many marketers are promoting the area as being a beachfront area.
It’s not.
It’s actually nestled into a rural area and surrounded by farms and ranches. In fact, the city serves as the hub where locals from the surrounding agricultural areas go into town to do business. It’s also the capital city of the Los Santos province.
What’s it like?
Since Las Tablas is close to the Pacific Ocean, it has a hot, tropical climate. However, because it’s surrounded by farmland instead of rainforests, it’s somewhat less humid than many of its coastal neighbors.
What’s it near?
Although Las Tablas, isn’t directly on the coast, there are some decent beaches nearby. Uverito is about 10 minutes away, and Pedasi, with its relatively untouched expanses of beach, is a 45-minute drive.
It is also strategically located near a few cooler mountainous areas. For instance Cerro Canajagua, which offers some really nice views of the Pacific Ocean and the entire peninsula, is about 35 minutes away.
One thing Las Tablas is not near, is a major city. Panama City is almost 4 hours away by car, although nearby Chitre does offer a flight to the capital city. After a 15 minute drive, the flight to Panama City is about 35 minutes.
In summary
While Las Tablas, Panama, does offer some great attractions (i.e. mountains and beaches) relatively nearby, the town itself doesn’t have a whole lot to offer in terms of scenery. This can be good or bad, depending on what you’re looking for.
Because Las Tablas is missing that immediate proximity to a must-see geographic feature, property prices are relatively low. You can get a bargain if you’re willing to drive a ways to get to the beach or mountains or some decent shopping.
If you’re looking for a short walk to the beach or the convenience of driving into the city for the afternoon, you might want to keep looking.
2. Uncharted Territory
Most would-be expats understand the need to settle some important questions before they start their property search overseas (e.g. urban vs. rural, mountain vs. beach, etc.). Another important aspect to consider is the level of development of a particular area, which often translates into how saturated it is with other expats.
Who lives in Las Tablas, Panama?
Las Tablas, Panama, has roughly 25,000 residents. But few of them are expats. What this means is that the local businesses aren’t in the habit of bending over backwards for foreigners.
That doesn’t mean they aren’t friendly. Quite the contrary! The natives, called tablenos, are very courteous working-class people who take a lot of pride in their city. However, not a lot of them speak English, and you can expect all signs and menus to be in Spanish only.
How developed is it?
Las Tablas, Panama, is still off the radar of most foreigners. As a result, it isn’t overrun with new developments like many of the more popular destinations. For this reason, the city’s Spanish culture is all still completely intact. There’s a quaint town square, and all the buildings are Spanish-colonial style with red tile roofs and ornate ironwork.
The infrastructure is good, but not the best you’ll find. The town has a supermarket and a hardware store. There are Internet cafes and an adequate offering of banks, shops, and clinics. It’ll have what you need, but not all the same conveniences you might find in a place with a more established expat community.
And again, expect the doctors and other professionals to speak Spanish and be accustomed to dealing with Panamanians. You’ll also come up empty-handed when searching the supermarket for even the most common U.S. products.
What’s there to do?
Las Tablas, Panama, has restaurants and bars, and even a tiny casino (read: a few slot machines and a bar). But that’s about it. The real attraction in this Central American city is the authentic culture.
Most notable of all the native festivals the city celebrates is Carnival. Once a year the town comes alive with excitement as Calle Arriba (Uptown) and Calle Abajo (Downtown) compete to host the biggest and best celebration, complete with food, music, fireworks, games, and even a Carnival Queen.
In summary
Las Tablas, Panama, is the perfect destination for someone who wants to be close to tourist attractions, but not too close. Someone who wants a few modern conveniences, but not a McDonald’s on every corner.
If you’re fine with speaking predominantly Spanish and living like a local, then you should definitely look into relocating to Las Tablas, Panama. If you feel more comfortable living in a place where a lot of the people look and talk like you, then keep looking.
3. You Can’t Beat Panama
If there’s one really great thing that can be said about Las Tablas, it’s the fact that it’s located in Panama. From its pleasant climate to its stable, growing economy and favorable business and tax laws, this Central American nation consistently dominates every study done on the best places to retire.
The cost of living, the price of housing, the benefits to foreigners…it’s all good. Panama has a lot of really great destinations that offer a variety of different perks. This is just one of them.
What’s so great about Panama?
This Central American nation has made it very clear that they want expats to move there. Their list of visa and residency options is ever-expanding. Choices also include the Pensionado Visa, which offers discounts on everything from restaurants to airfare to medical procedures.
Speaking of health care, Panama’s is top notch. Many doctors, especially those in Panama City, are English-speaking and trained in the U.S. And health care costs are only a fraction of what you would pay in the States for the same services.
In fact, Panama is becoming a hub for medical tourism, as people are traveling from all over the world to have expensive, or even elective, procedures performed for far less money. This is made easy due to the fact that Panama is so easily accessible. Its location makes it convenient for travel throughout the Americas (although Las Tablas itself is a little further off the beaten path).
In addition to the quality of its health care, Panama boasts some excellent infrastructure. Its airports, roads, and utilities–while already good–are also in the process of receiving a $15 billion facelift over the next several years.
Panama also uses the U.S. dollar as its official form of currency, eliminating any exchange risk for foreigners. Its favorable tax laws enable expats to have the possibility of paying no taxes, in some situations.
Is this true throughout Panama?
So, Panama sounds great. But can you enjoy these same conditions throughout the country? In some cases, yes. In others, not so much. Obviously, things like visas and tax laws don’t vary from one city to the next. You’ll still get quality health care. But you might have longer waits and less options, especially if you’re at a public clinic. You’ll also have to travel to see most specialists.
Infrastructure is another place where you might see a difference in more remote areas. Roads and public transportation will be less prevalent and reliable. As will utilities and other conveniences.
What about the cost of living?
The cost of living in Panama is already good. The cost of living in Las Tablas, Panama, is really no better. You can enjoy a full lifestyle, including several nice dinners each week, for between $1400 and $1600 per month.
Rental rates, for a modest 3-bedroom/2-bath house (furnished), is between $300 and $500. For those wanting to buy a home, you can get the same size home for under $70,000. However, that will get you a typical Panamanian home with small, closed-off rooms. If you want a larger, more open-concept American-style home, expect to pay in excess of $100,000.
In summary
There’s a lot to love about Panama. And there’s a lot to love about Las Tablas, Panama. Just don’t assume they’re interchangeable. A lot of sources cite the benefits of living in Panama when they’re describing why you should move to Las Tablas. However, there are a lot of other options that have the same perks, but may offer more bang for your buck in terms of location, activities, infrastructure, etc.
The cost of living in Las Tablas is low. But it isn’t the lowest in Central America, or even in Panama. Property listings are cheap. But they’re not rock-bottom. If you’re going to sacrifice comfort and convenience, make sure you’re really getting a bargain.
Las Tablas, Panama, has a lot of things going for it, and it’s a great opportunity for the right would-be expat or investor. There are those who would love to call this quaint, undiscovered village home. If you think you might be one of them, explore your options to find the choice that’s best for you.
Zach Welty
As more and more visitors flock to Panama each year, the nation’s government has been increasingly intentional about encouraging Panama tourism investment. Panama is a country that welcomes foreigners, whether for the short or the long term. Its hassle-free visa options have made it a haven for expats. Its business-friendly tax laws have made it a great opportunity for investors.
Now with its recent piece of legislation, Law 481, Panama is creating a win-win for everyone. Law 481 is a bill that is designed to create incentives for those who wish to invest in tourism operations in specific areas, namely those outside of Panama City. As tourism developments crop up in remote areas, there are many groups who stand to benefit.
Obviously, the news is great for tourists who will have many more lodging and recreation options. It’s also a huge benefit for property owners who will likely see substantial property value increases from the presence of nearby amenities. The same is true for expats, who will enjoy many more conveniences and services brought about by the increase in tourist activity.
But the real benefit is for the savvy investor who can take advantage of the unprecedented incentives offered by Law 481. We’ll get into the details of the benefits the law offers to investors. But first a little bit about what prompted Panama’s government to offer such advantages.
The Situation
Panama has been targeting tourists for quite a few years now. In addition to incentives like these, they have also launched ad campaigns, and invested heavily in infrastructure. Improvements such as airport expansions, better roads, new utilities, and other enhancements have continued to make the country a more attractive destination for tourists.
And the government’s efforts have worked! Panama saw over 2 million international visitors in 2011, up 16.1% from 2010 and contributing $1.9 billion in foreign revenue. The number of tourists in 2012 is estimated to be around 2.2 million. The tourism industry received investments of $405 million in 2011 and an estimated $842 million in 2012. Panama City and its bustling tourist attractions have been compared to destinations such as Miami, Singapore, and Dubai.
Historically, Panama City is the country’s main hub for tourism. It draws tourists of all kinds and markets itself as an ideal location for conferences and business meetings. However in recent years the number of travelers who come to Panama seeking beach getaways and adventure tourism in the interior is on the rise. As is the number of business travelers who are deciding to extend their stay and venture outside Panama City.
The Solution
Law 481 is essentially the government’s answer to ensuring that the country can keep up with the demands of its tourists. This initiative offers incentives for the construction and operation of tourist lodging facilities outside of Panama City with a minimum $250,000 investment. Hotels under construction in Panama City, with a minimum $8 million investment, can also qualify for benefits.
The Incentives for Panama Toursim Investment
Here are the specific incentives offered to those who invest in tourist accommodations that meet the criteria:
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20 year tax exoneration for materials, equipment, and vehicles used in construction
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no import tax of vehicles used for ecotourism
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20 year tax exemption for real property used for tourism*
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no taxes or assessments on the operation’s capital
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no fees for use of piers, airports, and heliports owned by the operation
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no income tax on interest earned by investors
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10% depreciation allowable on real property, excluding the land
*For operations in designated areas near historic landmarks, this period is 10 years. However, any improvements on the land are tax free for 30 years.
Projects near historic landmarks can also enjoy income tax exoneration on their profits for a period of 5 years. After that, they can deduct any losses they experienced as expenses and can claim them for 3 years after they were sustained.
Additional perks apply for projects in designated Special Tourism Zones. While most other incentives apply only to lodging, eligible operations in these zones can include convention centers, theme parks, zoos, marinas, and research and cultural centers. These types of businesses are eligible for income tax exemption for a period of 15 years. Investors can also enjoy no taxes for 20 years on interest earned on their investments.
The Opportunities
So, exactly what types of projects qualify for the incentives? Well, other than the previously mentioned operations in Special Tourism Zones, the law focuses on lodging facilities. This could mean anything from a world-class hotel on the beach with all the amenities, to a campsite in the jungle with nothing but rough plumbing. It includes cabins, family-run hostels (sort of like a bed & breakfast), individual units in larger buildings used as tourist accommodations, and even time-shares.
Just about any type of housing qualifies, as long as it is used for tourism. And these operations may also include the tourist activities carried on by the project. Think beach-side bungalows at a resort that offers some of the world’s best sport fishing. Or a rustic lodge designed to serve as a stop on a week-long jungle exploration. The possibilities are endless.
If you’re thinking of taking advantage of the government’s offer to invest in tourism, you’ll want to consult an attorney to help you iron out the details. A Panamanian lawyer can guide you through the ins and outs of buying property, starting a corporation, navigating immigration laws, etc.
Panama Guide
The Designated Areas
Here is a little more information on the Special Tourism Sites and the activities and adventure they offer.
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La Amistad – Located in Chiriqui and Bocas del Toro provinces, this area is home to two national parks and is a prime spot for ecotourism. It also includes the mountain haven of Boquete, which is home to many expats.
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Bastimentos – This area, located in Bocas del Toro province, boasts one of the country’s largest marine parks. It is home to beautiful beaches and is an ideal spot for diving or ecotourism.
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Arco Seco – This region contains the coastal areas of Herrera and Los Santos, which are rich in Panamanian cultural events and traditions.
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Farallon – Situated in the Panama and Cocle provinces, this area contains beaches and the Anton Valley.
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Metropolitan – This section includes Panama City and the natural parks surrounding it. It is a hub for business activities, as well as historical and cultural attractions.
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Portobelo – Located in Colon, Portobelo has beaches and reefs. It also contains a national park, as well as some historic ruins.
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San Blas – This area is home to a series of islands and contains gorgeous beaches and reefs for diving.
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Archipelago de Las Perlas – These islands are also home to beautiful beaches and reefs. In addition it is home to world-class sport fishing.
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Darien – This remote region includes a national park and many more opportunities for ecotourism. It is also home to several indigenous people groups and ripe with culture.
If one of these areas speaks to you, we’d encourage you to dig a little deeper. Find out if an investment in Panama tourism is right for you.
Rita Willeart
That First Taste of Free Air
You feel it the moment you step out of the airport, and are busy cruising down the highway to your destination. It’s not just in the traffic that crosses double yellow lines or ignores stop lights if the road is clear. It’s in the vehicles themselves; sometimes crowded to the maximum, with luggage tied to the top, sometimes appearing to be tied up just to keep the vehicle together.
Maybe you’ll notice a truck filled with workers or one that has a hammock swinging lazily in back, with the occupant blissfully taking in the sunlight. The buses lumber by, so packed, passengers cling to the door frames. If you brave one of these second-class, local buses, you might feel you’re in a barnyard. Chickens squawk from crates packed under the seat, and there might even be a goat or a lamb that somebody’s transporting to the market.
It’s a reminder of how America was before seat belt laws and strict traffic regulations, before traffic citations became profitable. If you have someplace to go, nobody cares about the means you use of getting there.
Slowing Down
Outside the city hubs, vehicles are relatively sparse. The most common mode of transportation is by bus. Pedestrians, farmers pushing along a few cows, wash women with piles of clothing on their heads are not an uncommon sight along rural roads.
This daily life, so unencumbered by appointments and punching a clock, begins to seep into you. You find yourself hurrying less and relaxing more, spending time doing those things you’ve always dreamed of doing, but never found the time or the opportunity. You begin to think about your new found freedom, that began with a freedom from worry.
The Economic Race
It seems odd that so many of the citizens who are immigrating from the United States into Central America are doing so out of a longing for freedom, but sadly enough, as a country founded on the liberties of all people, it has become a system of rules and regulations designed to give advantages and privileges to some, while penalizing and suppressing the many.
That hectic pace felt so distinctly in urbanized America is the desperate measure of a people determined to keep their heads above water. The American dream for many married couples, of a fine little home and a two-car garage, can’t possibly be realized unless both are working and they take out a twenty year loan. Those over sixty who had been planning to enjoy the benefits of their golden years, find their retirement or social security checks just aren’t enough, and take on part-time jobs for which they are over-qualified, but too financially distressed to refuse.
Then there are the young singles, working hard and studying for a degree that may not be very helpful for finding work. Jobs that had once taken an associate’s degree, now take a master’s, and debt-strapped students wallow in student loans.
When Life Becomes Stifling
The opportunities once offered in America don’t seem so plentiful anymore. Innovation, imaginative ideas, are either swallowed in a maelstrom of bureaucratic paperwork, or take a long time to mature, making the process uncomfortable for non-entrepreneurial types. For every proposal, no matter how universally beneficial, there is opposition. The red tape ticks away at finances, valuable time, and eventually, motivation.
America can barely breathe. You cannot even build a porch for your house, on your own property, without permits and inspectors. In some communities, there are agreed-upon house colors, and regulations concerning what you may have in your yard. You may discover you don’t even have a right to grow a garden instead of a water wasting lawn. The attempts to create a uniform standard of living within specified zones has swept away the concept that one’s home is one’s castle. The spirit of these rules makes sense, they are for the benefit of environment, home prices, and people’s safety, but in today’s world the rules are wielded like weapons against creativity and individuality.
You’re as Free as Your Neighbor
The migration into Central America is made up of people who have grown weary with asking for permission. The safety net hovering over American social affairs feels more like an entrapment net, encumbering freedom of travel with security checks and invasive techniques, such as airport scans and cell phone tracking.
Homes and small businesses are regulated with so many expensive codes and mandatory health care. The U.S. constituents are strapped with so many liability laws, they become nervous about allowing the neighbor kids to come over and play on a trampoline.
Coping with Drawbacks
The expats have had to make some adjustments. In an area where there is little to no regulation, cities can turn ugly fast, while everybody builds whatever they want and a smorgasbord of buildings go up. If your neighbor wants to begin his day at six in the morning, banging away at his new addition, and you want to sleep until seven, it’s best to just roll over with your pillow.
While the cities offer the modern conveniences, the farther away you are from them, the fewer commodities, such as super consistent electricity, paved roads, libraries, and U.S. foods you’ll find. You may find a lower quality in many of the common household tools, such as for gardening or carpentry.
There is a role reversal once you are an expat. You are suddenly a minority in a foreign country. You’ll feel subjected to the same type of scrutiny as given any minority. You may get pulled over just because you look like a gringo. If you are aspiring to become a global citizen, this actually aids in perspective. Outside the dynamics of the western world, you are a minority.
You Still Feel Freer than You Did in the United States
There is an enormous amount of satisfaction in living and breathing freely, without the rigid controls over an over-regulated government. It’s a learning experience in getting along with others of different cultural backgrounds and lifestyles. It allows you ample opportunities for evaluating your own beliefs. It teaches you resourcefulness with the tools and materials on hand.
For the health-oriented, it becomes advantageous to acquire a taste for the native foods. This isn’t too hard, considering the volume of fresh tropical fruits and delicious sea fare that abound in Central America’s market. Not only do you benefit from the organics, but buying local is cheaper than the shipped-in U.S. market.
The Growing Family of Expats
Families make up a vital force in the expat community. Sometimes, they come down for a year to absorb the cultural setting or as a reprieve from restrictive American life. Sometimes, they arrive with more permanent intentions in mind.
The challenge for these families, if they remain within a residential area removed from the major cities, is finding good schools. But like pioneers, they draw upon their own resourcefulness, enjoying the opportunity to educate their children in the manner they feel is best, maybe even starting their own school.
As We Look Forward
It is, in every sense, a type of pioneering. The expats that settle in Central America don’t hate their country. They hate the limits placed on their abilities to make conscious choices. They no longer wish to be treated like a kid, they trust their own ability to decide what is best.
They know this freedom comes with a price. They are moving into a different culture with different customs. They must depend on their own abilities to cope with change, to problem solve, to develop good relationships with others, but it’s all part of the excitement, the adventure. These are the stimuli for growth and development, the fundamentals of increased awareness, and the reward is an evolving society, ready to explore the new boundaries of individual rights and harmonious communities.
Sal Falko
In recent years Central America has received an influx of North Americans investing in local business. Countries like Belize, Nicaragua, Costa Rica, and Panama have become increasingly popular places for baby boomers to retire. Why has this generation chosen to settle offshore?
Quality of Life
With warm weather year round and stunning beaches, lakes, volcanoes, and hillside, Central America has an appealing climate. Many small jungle beach towns are popular among tourists, making foreign investment a lucrative possibility. For those looking for city comforts, most cities lie in close proximity to incredible wilderness. Granada, Nicaragua sits near a stunning lake and volcano and also has great restaurants, nightlife, and culture. Plentiful fruit and vegetables and many outdoor activities also make healthy living not only possible, but easy.
Lower Cost of Living
Even more expensive Central American countries like Costa Rica offer a lower cost of living than the United States. It is very possible for individuals to live comfortably on less than $1,000 per month. Nearby Panama is even more affordable and food, entertainment, and lodging in Nicaragua is half the cost of Costa Rica. This low cost of living is incredibly appealing to baby boomers looking to retire and live abroad without sacrificing luxuries like dining out, maid service, and travel.
Proximity to the U.S.
Central America is an inexpensive, quick flight from the United States, making investment or a permanent move less daunting. Individuals are still able to visit their families or live part time in each place.
Return on Investment
While some investors plan to live and settle in Central America, others buy property simply to earn income from their investment. Property costs are low and vacation rentals can yield a good salary, making these foreign investments a popular choice for those looking to save for retirement.
“What is the cost of Living in Panama?”… Viva Tropical’s Park Wilson and Josh Linnes launched the site in an effort to educate would-be expats on the realities of life in Latin America. They hope to help others have the information they need to make informed decisions when relocating to Central and South America.
Photo Credit: P. Peter
They also wouldn’t mind debunking a few of the false claims made by marketers who are trying to lure folks down to the tropics under false pretenses. Here, Park talks about one of his particular pet peeves.
I guess you see a lot of extravagant claims promising a perfect life in paradise. What are some of the worst?
Park: “Move to Panama and live on $500 a month!” “You can move to the great town of David and live like a King!” I’ve been an expat in Panama for 6 years now, after a brief stint in Costa Rica. Not only am I surrounded by others in the expat community but, as a real estate developer, I’m also surrounded by the folks who are making these ridiculous claims.
Marketers deliver a lot of really misleading messages about moving here, but the ones about the cost of living are the ones that really make me sick to my stomach.
So, it isn’t really cheaper to live in a place like Panama?
Park: No, it totally is! I mean, it can be. I mean…well, it depends.
Let me explain. If you plan to move down here and continue doing and buying all the exact same things that you did in the U.S., you might actually pay more. In other words, if you want the same brand of cereal you eat every morning back home and your usual flash frozen steaks flown in from Omaha, then you can get those things. But at a fairly high premium.
Are you saying people need to be ready to make some sacrifices?
Park: Not at all. Quite the contrary, actually. You will need to make some changes, but I wouldn’t call them sacrifices at all. Let’s go back to the steaks, for example. My family buys filet mignon for $5.50 a pound, and we eat a heck of a lot of it. But it’s local beef, not imported.
We also steer clear of most things in a box or jar, because those things tend to be more expensive than in the U.S. But the way we see it, those things were probably taking a few years off our lives anyway. I don’t consider that much of a sacrifice.
So how do marketers get away with lying to their potential customers?
Park: I wouldn’t say it’s an out and out lie. It’s just misleading. In a country with a per capita GDP of $600 per month, you could probably get by on $500 a month. It just wouldn’t be the standard of living you’re probably looking for when moving to a place like this.
To live on that little, you’d need to live like a local. Eat only local foods, patronize local establishments. We’re talking 47 cent beers, 10 cent bananas, and big bags of rice for a few bucks. You could do it. But you would also experience a huge shift in your standard of living.
If that’s what you’re looking for, then great! Just know that before you make such a big decision.
How do you strike a balance between having the things you’re used to in the U.S. and taking advantage of the lower cost of living in Panama?
Park: It’s all about finding that sweet spot. There are a lot of items in a household budget that can be obtained at a great value in Panama. You just need to pick the ones that line up with your values. Here are a few of ours.
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Domestic help. We have someone who works in our home every day: cooking 3 meals, buying our groceries, doing laundry, even babysitting our kids when needed. All for just $300 a month.
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Fresh foods is another category. We eat so well at our house. But we don’t eat like we did in the States. And because we have help with the cooking and more time on our hands, we don’t have to eat hamburger helper.
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Another place you can save on expenses in Panama is in medical costs. My daughter was born in Panama last year, and we saved $27,000 compared to what we would have spent in the U.S. But even for routine health care, the cost is much lower. Doctor visits are $5. Antibiotics cost $10. Our insurance premiums are also much less, and we even have a policy that works in the U.S. too.
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Travel is another biggie. There’s so much to do, and it’s all so close. We love to go to the beach, take the boat out to nearby islands (including my own project), visit new areas…and it’s mostly all in Panama. We save a lot by traveling within the country.
So, what’s the magic number? If an expat can’t get by on $500 a month, then how much?
Park: It’s hard to say, really. It’s all up to you and the areas where you plan to splurge and save. No one can give you a guarantee on what it would cost for YOU to live in Panama. What’s more important is to look at your own habits and tastes and have realistic expectations about the lifestyle you can afford here.
For me? I spend about a third of what I would in the U.S. And I wouldn’t change a thing.
If you are planning on making a move down to the lush tropics of Panama, why not take a moment to learn a little something about the Panama health care system and where to find hospitals that will offer quality and expat friendly care.
Luckily, you won’t have to look far. Equipped with two branches of health care, public and private, Panama is recognized for its world class institutions and qualified medical professionals. But in a country with such a strong health care system, where should you go to find the best possible care?
The Best of the Best
1. Hospital Punta Pacifica
hospitalpuntapacifica.com
First on the list is Hospital Punta Pacifica. A full-service private hospital praised for its trained physicians and immaculate facilities, Punta Pacifica is not only the only John Hopkins affiliated hospital in Panama, but in Central America as well.
Hospital Punta Pacifica employs over 350 medical specialists, and through the use of continuing education programs, these specialists are constantly updated to keep their knowledge current. This hospital can be found in Punta Pacifica, and although it is one of the more expensive institutions in Panama, inside you can expect to receive first rate care at the hand of qualified professionals.
2. Paitilla Hospital (Centro Médico Paitilla)
centromedicopaitilla.com
Next on the list is Paitilla Hospital. Located in Punta Paitilla, this facility is one of the oldest private hospitals in Panama and is a great choice for expats since most of the staff speak English. This is due to the fact that many of the doctors completed residencies in the United States and Europe before settling in at Paitilla Hospital.
While best known for its oncology unit, Paitilla Hospital is staffed with medical professionals that specialize in many different branches of medicine. Some of their departments include:
- Radiology and imaging
- Laboratory and anatomic pathology
- Cancer center
- Critical care unit for newborns and adults, and
- Cardiac catheterization unit
3. Hospital Chiriqui
hospitalchiriqui.com
Hospital Chiriqui, located in the city of David (near the Costa Rica border), is an institution with a reputation for providing exceptional medical care for over twenty years now.
The Hospital Chiriqui is a private hospital staffed with medical professionals that specialize in anesthesiology cardiology, reconstructive surgery, dermatology, and radiology (to name a few). In order to keep providing quality patient care, the Hospital Chiriqui is currently developing a clinic in the small town of Boquete, Chiriqui that will provide services like ambulance, pharmacy and primary health care to patients, twenty-four hours a day.
4. Hospital Nacional
www.hospitalnacional.com
If you visit Hospital Nacional, located in the Bella Vista area of Panama City, you can expect to receive quality care. This hospital is staffed with over 100 specialists and has an impressive nurse to patient ratio (one nurse per every ten patients). This facility also offers a diverse range of patient services like:
- A clinical laboratory
- A pathology laboratory
- A genetics center
- An emergency room
- and an intensive care unit
Hospital Nacional is also welcoming to out-of-towners for they even accept international health care plans.
5. Hospital Santa Fe
hospitalsantafepanama.com
Last on the list is the Hospital Santa Fe. Nestled in the center of Panama City and located mere minutes from the Panama Canal, the Hospital Santa Fe concentrates on creating individual health care plans that are patient specific. Founded in 1984, Hospital Santa Fe uses the latest technology, state-of-the-art equipment, and many English speaking, American-trained doctors to treat their patients.
Hospital Santa Fe is also on-board with the new wave of medical tourism and offers many health tourism packages that claim to provide the same quality care as American hospitals at a more affordable rate.
So before you pack your suitcase and whisk off to Panama, be sure to look into the local health care system and the available hospitals, so that when the time comes, you can make an educated and confident decision.
Herry Lawford
Whether you’re planning your retirement or just a quick getaway in Latin America, there are probably a lot of things on your “to-do” list. Spend some time at the beach. Hike to some waterfalls. Maybe take a tour of a coffee plantation. Get some dental implants. Explore the jungl…
What’s that? No dental implants?
While it may not seem like your typical vacation agenda, more and more tourists are finding out what expats already know about dental care in Panama. That its excellence and affordability rival the care you could expect to receive almost anywhere in the world.
From the quality of care you’ll receive to the quaint surroundings in which you can recover, dental care in Panama has a lot to offer both residents and visitors alike. Here are a few of the major perks.
The Location
Panama’s easily-accessible, central location has helped to position it as a growing hub for medical tourism. It’s a short flight from the U.S. to Panama City, where most of the best doctors and facilities are located. Many medical tourism companies will even arrange for every last detail of your trip, from airfare all the way down to the procedure itself.
When in Panama City, you’ll find it to be a perfectly acceptable place to recuperate. It’s a very cosmopolitan city with top-notch accommodations and infrastructure. And once on your road to recovery, you may even want to venture to a local beach or into the interior to see some of the magnificent tourist attractions the country has to offer.
The Doctors
The professionals you’ll encounter when you undergo dental care in Panama, will also bear some striking similarities to those in the U.S. Since many of the doctors will have trained in the U.S., a lot of them are bilingual. Others may have studied in Brazil or France or at the University of Panama, which has a great medical and dental school.
Dentists in Panama possess and utilize the same technology that U.S. dentists use. The facilities are clean and modern and offer excellent service. One key difference may be that the dentist may actually perform much more of the work by him or herself. By lowering the number of assistants needed to perform tasks such as cleanings and x-rays, the ultimate cost to the patient can be even further reduced.
While the overall quality of dental care in Panama is above average, your experience will only be as good as the provider you choose. Talk to someone who’s used them. Maybe several people. If anything seems out of line with your prior dental encounters, it could be a red flag.
The Cost
Let’s talk a little about how much less you can expect to pay for dental care in Panama versus comparable procedures in the U.S. or Europe. Of course it all depends on your particular situation, but many expats and tourists have cited savings of as much as 50%. For those taking advantage of medical tourism, that includes airfare and accommodations. So the savings for local residents could be even higher.
A porcelain crown can be obtained for $475.00. Dental implants, which can be as high as $5,000 per tooth in the U.S., run around $1,550. Zoom whitening can be obtained for $100 bucks, as opposed to $550. And a routine cleaning will only set you back about $25. Panama also uses the U.S. dollar, so those coming from out-of-country won’t have to worry about exchanging currency.
The lack of malpractice lawsuits in Panama is a huge factor in keeping the cost of dental care low. It’s also a good reason to do your homework before choosing a medical provider. Ask for recommendations from other expats or use someone associated with a major hospital such as Punta Pacifica, an affiliate of Johns Hopkins.
You can also request that the dentist use materials (such as metals or porcelain) from the U.S., as opposed to Panama or Brazil. However, this could raise your costs slightly.
The Procedures
For expats, you can expect to see the same quality of dental care and cost savings on routine, as well as elective procedures. While some tourists may also decide to have a root canal or filling done in Panama, they’ll likely be coming to undergo a bit pricier procedure.
Some common cosmetic dentistry offerings are dental veneers, which are porcelain caps that are bonded to your teeth to hide gaps or discoloration. Dental implants are also offered to replace broken or missing teeth and improve the appearance of the mouth.
Inlays and onlays that serve as an alternative to fillings can be obtained. Orthodontic services are also available, as are restorative procedures like crowns, bridges, and even dentures.
As medical tourism continues to increase, the quality and affordability of dental care in Panama only stands to improve as well. This is good news if you’re thinking of becoming an expat. If you’re only visiting for a little while, explore your options to find out if you could improve your smile while you enjoy your vacation.
photo by Evan
If you’re considering relocating to Panama, you probably already know that its health care is among the best and the most affordable in Central America. What you might be a little less sure of are your health insurance needs and how to go about meeting them.
Do I even need private health insurance in Panama?
Some expats choose to self-insure their medical expenses. This is a valid option for those who are in good health and can afford to do so. If you don’t want to take such a risk, you’ll need to obtain health insurance when moving to Panama.
While some U.S. policies may provide limited coverage in Panama, many don’t offer coverage for treatments obtained outside the States. Medicare is also useless, as it doesn’t apply to those residing in other countries.
Check with your current provider to determine if you’ll be covered once you leave the U.S. If you are, the worst case scenario is that you might only get the benefits available for out-of-network providers. You also may have to foot the bill yourself initially and get reimbursed on the backend.
If your coverage doesn’t extend outside the U.S., there are some very good and inexpensive policies available both internationally and from Panamanian sources.
Does Panama’s government provide any healthcare benefits to expats?
At the most basic level, Panama offers government-sponsored health insurance to its citizens and permanent residents. However the coverage isn’t great. Treatment is available only from public hospitals and clinics. While many great public facilities exist, they can sometimes have their challenges. While the doctors are well-trained, the hospitals are often understaffed. Public facilities often equate to long waits and inferior technology when compared to private hospitals.
Carrying private health insurance affords you more options to choose when, where, and by whom you’ll be treated. It also offers a higher level of comfort and other attractive benefits, such as private hospital rooms. Doctors in private hospitals are often trained in the U.S., and many are bilingual. Even though they’re more expensive than their public counterparts, medical treatments in private Panamanian hospitals are still a fraction of what you would pay for the same procedure in the U.S. And for the same quality of care.
How do I go about finding private health insurance?
When shopping for health insurance, there are a lot of factors to consider. Obviously, the cost of the policy should be taken into account. You should also look at things like the coverage territory (if you’ll be traveling much outside of Panama), any applicable annual or lifetime limits, whether the policy applies only to a certain network of providers, how claims are paid, and whether your existing health conditions will be covered.
If you aren’t comfortable interpreting and comparing policies, you may want to opt for buying through a broker or agent. Insurance representatives who are licensed with multiple companies can compare costs and features to help you select the plan that best suits your needs.
What types of health insurance policies are offered in Panama?
The two major types of policies available include local health maintenance organizations (HMO’s) and international HMO’s. Local policies only apply for services obtained in Panama. Common limits are between $300,000 and $500,000, and deductibles can be as low as $300 or $500. Treatment from in-network providers are fully reimbursed, but you can often receive as much as 60% towards treatment received from other doctors or facilities.
International policies work the same way, but they also offer networks in other countries as well. They also often carry limits as high as $700,000 to $1.5 million in lifetime coverage, with deductibles ranging from $1,000 to $10,000. Premiums for both types of policies are in the $600-$700 range. They often require medical screenings, and premiums usually rise with age.
A few of the companies that provide coverage in Panama are Pan-American Life Insurance Group, MAPFRE, Aseguradora Ancon, and even familiar names like Blue Cross Blue Shield of Panama.
Another option available in Panama is private hospital memberships. These are discount programs offered specifically by private hospitals, which apply only to treatment received at that same facility. Costs are as low as $18.00 per month and include benefits such as 100% reimbursement for emergency room services, 70% reimbursement for diagnostic tests, and 50% reimbursement for routine screenings. Waiting periods apply for some services, as do annual coverage limits.
Panama Pensionado Visa: Savings and Benefits
Panama has a lot of extremely attractive features that beckon expats to its beautiful beaches and lush mountain havens. It is a nation that is extremely welcoming to foreigners and perhaps never more so than when it offers to retirees a whole host of discounts, on everything from airfare to home phone service.
These benefits are part of Panama’s Pensionado Program, a neat little package of perks tailored to retirees of all ages. Depending on where you choose to settle, the cost of living in Panama is already extremely affordable. However, the benefits offered to pensioners can make retiring to this Central American destination all the more lucrative.
Panama’s Pensionado Program’s Benefits
The discounts and advantages of the pensioner’s visa are quite numerous. Here they are in a nutshell:
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50% off on recreation and entertainment such as movies, theaters, sports, etc.
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50% off hotels Monday through Thursday (30% off on weekends)
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50% off passports
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30% off public transportation like buses, trains, and boats
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25% off airfare
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25% off restaurants (15% off fast food)
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25% off electrical, telephone, and water service
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20% off doctors and specialists
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20% off prosthetics and other personal assistance devices
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15% off hospitals and private clinics
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15% off dental and optometry services
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10% off prescription medications
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tax-free importation of household goods, up to $10,000
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tax-free importation of a vehicle, or tax-free purchase of a local vehicle, every 2 years
In addition, retirees are now able to obtain a cedula, the national identification card issued to residents of Panama. While participants in the retirement program can easily get by with merely their pensionado card and a passport issued from their home country, the cedula allows for greater ease of getting around and transacting in Panama. Locals feel a bit more comfortable when dealing with someone they know is “documented,” so to speak. While holding a cedula doesn’t grant you any additional benefits, it’s just one more step towards diving headfirst into your new culture.
The Qualifications Required for the Pensionado Visa
While it sounds like, and is often referred to as, a “retirement” program, the pensionado visa is actually available to expats of any age who meet the specified criteria. Even better, recipients are grandfathered in under the law and can never lose their benefits, as long as they continue to meet the requirements. To qualify you must have the following:
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Monthly income of $1,000 for life from a guaranteed source such as a pension or annuity
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Or income of $750 per month and a $100,000 minimum investment in Panamanian real estate
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An additional $250 monthly income for each dependent child
The $1,000 per month is a total amount for a married couple. In other words, it isn’t necessary for both spouses to meet the income requirement. Dependent children cannot be over the age of 18, unless they are attending college. Exceptions can also be made for adult children with disabilities. The $250 can also be obtained in the form of interest earned on deposits in a Panamanian bank.
How to Get a Pensionado Visa?
The process of applying for and obtaining your pensionado visa is a fairly straightforward one. The whole shebang takes about six months and costs between $1,500 and $2,000 per person, including attorney fees. If you’re applying for yourself, your spouse, and your dependents all at the same time, you can sometimes save a few pennies on the legal fees. A good bit of paperwork will be required, and it will all need to be properly authenticated. A reputable attorney with experience in immigration issues will be an invaluable tool as you navigate this process. In general, you’ll need to be prepared to provide the following:
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Certified letter from the appropriate organization or entity guaranteeing your monthly pension for life
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Government certification that the source of your income is in good standing, if your pension comes from a private company
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Proof of prior pension payments (e.g. check stubs, bank statements, etc.)
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Certificate of public registration of Panamanian real estate in your name, if applicable
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Police record from the country where you resided the past 5 years
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Marriage and/or birth certificates, if applicable
The Fine Print
While the program no doubt has some great benefits available to expats, there are some who question whether or not it’s all it’s cracked up to be. Take, for example, the discounts on utilities. Water in some areas may be as low as $7. So 25% off of that isn’t a whole heck of a lot. Then again, it all adds up. Another criticism of the program is the fact that exclusions often apply. So, pensioners shopping for airline tickets may end up finding another flight that is actually less than the discounted rate they could get on what was already a higher priced ticket. And, understandably, the entertainment discounts aren’t available on events such as charity functions. Would-be expats who know little Spanish will want to quickly learn this phrase: Por favor, deme mi descuento de pensionado. Which means “Please give me my pensioner’s discount.” Benefits aren’t automatic. You have to ask for them, and some small businesses may even be reluctant to grant them. It’s also important to note that, for those of retirement age (women over 55 and men over 60), you are eligible for most of these benefits anyway. It’s up to you whether you want to jump through the additional hoops to obtain the pensioner’s visa, or just opt for another type of visa.
The Breakdown
So, we said it all adds up. But just how much could you really save in a year with the benefits offered by the pensioner’s visa? Here’s a theoretical breakdown that shows how a hypothetical couple could easily save as much as $10,000:
|
Movie tickets |
$2.75/person x 2 per month |
50% |
$66 |
|
Dinner theater |
$20/person x 2 per month |
50% |
$480 |
|
Three-night hotel stay |
$375 total x 6 per year |
30-50% |
$1,125 |
|
Bus ride |
$6/person round trip x 15 per year |
30% |
$54 |
|
In-country flight |
$175/person round trip x 4 per year |
25% |
$350 |
|
Flight to US |
$450/person round trip x 3 per year |
25% |
$675 |
|
Dinner for two |
$30 total x 2 per week |
25% |
$780 |
|
Mid-range meal |
$12/person x 4 per week |
25% |
$1,248 |
|
Fast food |
$7/person x 2 per week |
15% |
$218.40 |
|
Home phone bundle |
$70/month |
25% |
$210 |
|
Water |
$7/month |
25% |
$21 |
|
Electric service |
$80/month |
25% |
$240 |
|
Doctor visit |
$40/person x 3 per year |
20% |
$48 |
|
Dentist visit |
$40/person x 2 per year |
15% |
$24 |
|
Specialist visit |
$45/person x 1 per year |
20% |
$18 |
|
Medications |
$7/ea x 2 per month |
10% |
$33.60 |
|
Vehicle import |
18% of value (e.g. $25,000) |
100% |
$4,500 |
|
Total |
$10,091 |
*Amounts given are examples based on our experience and are for two people.
Whether it’s the Pensionado Visa, or one of Panama’s many others, you’re certain to find the visa that’s right for you. Start your search today!