As one of the fastest growing expat destinations, Panama City offers a variety of options for a tropical home. With an ever-expanding infrastructure, favorable residency laws and great discounts for retirees, the resurgence of Panama will continue to make living there an attractive choice.
Aside from the city itself, there are various locations in and around Panama City that can satisfy most every taste. From modern high end developments to more rustic settings, discovering which lifestyle is best suited to your individual desires is the best way to begin the transition to paradise.
Bernal Saborio
The Panama City, Panama Area Is A Blend of Styles
Panama City is much more than a dynamic Latin Tropic metropolis with a modern infrastructure. While the gorgeous skyline compares with such locations as South Beach, this capital city is actually comprised of three distinct districts-each with their own unique essence.
Whether you are looking for a high rise development in the new city, a restoration project in the old city, or the historical atmosphere of the old colonial area, there are many possibilities to choose from.
Alberto Ruiz
Panama Pacifico
Perhaps no location exemplifies the potential for growth in Panama than Panama Pacifico. Located on the site of the former Howard Air Force Base, this project is, quite literally, building a new city from the ground up sprawling over 4,450 acres.
Conceived by Colombian businessman Jaime Gilinski shortly after the base closed in 1999, it would take until 2010 before construction could actually begin. Since ground was first broken, both residential and commercial projects have begun transforming this former military installation into a new and exciting community.
Being only 15 minutes from Panama City, Panama Pacifico is the ideal spot for expats looking for new construction and business opportunities. With only 15% of the property developed, investors can take advantage of abundant space to transform their dreams into a profitable reality.
Steve Ross
Costa del Este
Costa del Este represents one of the newest areas of Panama. Its location, just five minutes from the heart of Panama City and ten minutes from Tocumen International Airport, have made it one of the most desirable neighborhoods outside of the city itself.
Housing here can range from luxury high rise condominiums to spacious houses. The modern infrastructure has attracted expats and investors who want to live and work in the tropics while enjoying all the amenities of any major U.S. city.
Beyond The Panama City Limits-Three Compelling Options
One of the most significant changes for expats and investors considering the Panama City area was the completion of the Pan American Highway. This highway system has made access to a number of popular destinations a manageable hour or so drive from the city center.
The list below highlights three of the most popular areas outside of Panama City. These locations have attracted the interest of retirees, expats looking for a second home, and investors seeking a higher ROI (return on investment).
Roberto Moreno
Coronado
Coronado is widely considered to be the first planned resort community in Panama. The dream of visionary developer, Bob Eisenmann, Coronado combines the rustic feel of several small villages with the modern amenities and infrastructure of a resort condominium community.
One of the most attractive features of Coronado, Panama is its climate. Located in the “dry arch”, or arco secco region, less rainfall occurs here than in the rest of the country. The large number of English-speaking expats who live in the area is another attractive feature for those who may have trepidations about living in a country where English is not the primary language.
Alexandra Oduber
Farallon
Much like Panama Pacifico, Farallon has risen from the remains of a military base a mere 68 miles from the capital. Once housing Panamanian troops, the facility was destroyed by the U.S. invasion in 1989. Since that time, Farallon and the nearby beaches of Playa Blanca have become one of the most sought after beach destinations in the Latin tropics.
Luxury resort properties, such as Buenaventura, are certain to appeal to those seeking modern amenities and an upscale lifestyle, without the frenetic pace of Panama City. The new international airport at Rio Hato, a short distance away, makes accessing this white sand oasis easier than ever.
Michael Afar
El Valle de Anton
El Valle de Anton is a delightful seven square mile mountain village located roughly 120 km (75 miles) from Panama City. This rustic location is becoming a popular choice for expats seeking to find a less frenzied pace of life that is infused with the cultural essence of “old Panama.”
Located in the caldera of the El Valle volcano, El Valle de Anton is actually the second largest inhabited volcano in the world. It has also become a favorite location for Panama City’s more affluent citizens seeking a weekend retreat far from the hurried pace of the city.
Whether looking for a rustic Panamanian village dwelling or a modern construction home, El Valle de Anton will continue to offer both a unique environment and a great potential for investment.
Panama City Has Both Potential And Promise
With such a wide variety of possibilities for a home in the Latin Tropics, as well as great investment potential, exploring the real estate market for yourself is a great place to start. Finding that “place in the sun” may be as easy as a click of a mouse.
Living in Panama today can provide a wide variety of options for those seeking opportunities outside the U.S. and Europe to live, retire, and invest. Ranging from big city living to secluded mountain villages, Panama offers a selection of lifestyles that is second to none in Central America.
Panama City at Night
Panama’s Past Is the Cornerstone of Its Future
Panama’s history is one of change and growth. From its earliest colonial beginnings, to the construction of the Panama Canal, the turmoil of the late 20th century to the revitalization of today, Panama continues to thrive and offer fresh opportunities to live and immerse oneself in the diverse culture of Central America.
One of the major attractions in Panama is the lower cost of living throughout the country. With reasonable rents, lower food and medical costs, and a continuing growing standard of living, it is small wonder that Panama is viewed by many as picking up where other Central American countries have left off.
Living in Panama today provides a cultural and economic opportunity to share in a rich historical tradition while exploring and becoming part of a vibrant and exciting future. In a real sense, Panama’s past has become the cornerstone of the future potential as the country continues its course to becoming a premier expat destination in the 21st century.
Living in Panama – A Wide Choice of Locations and Climates
Panama is fortunate in that it offers variety in both climates and locations. Though located in tropical Central America, Panama has several “micro-climates” that reflect the many regions in the country.
For those seeking the energy and excitement of a modern city, Panama City is the place to be. The skyline along the beaches of the Pacific Ocean is more reminiscent of South Beach than an emerging nation.
The cool climates of the mountains in such locations as Boquete, Sante Fe and El Valle offer a nice contrast to the hotter, more humid beachfront locations. The La Armistad Biosphere Reserve, at Volcan, demonstrates both the geographic and meteorological diversity that can be found in Panama.
A more rustic lifestyle awaits expats looking to the interior communities of David and Chitre. Being able to become part of daily village life may be an ideal alternative for those wanting to avoid the more frenetic pace of larger cities.
Island Life – A Uniquely Panamanian Alternative
Having more islands than any other Central American country, Panama can boast of some of the best beach living in the region. The Las Perlas Islands group on the Pacific side and the San Blas Islands on the Caribbean coast contain the best beaches in Panama and are more affordable than many oceanside locations elsewhere.
Panama Is a Land of Potential on Many Levels
The aggressive efforts of the Panamanian government in recent years to attract foreign investment and to make Panama a desirable location for expats and retirees is beginning to reap dividends. Changes in residency laws, enhanced benefits for retirees, and a pro-business and investment approach is making Panama a model for Central American vibrancy in the 21st century.
New Residency Laws Make Living in Panama an Easy Choice
In May 2012, Panama enacted the Specific Countries Program. Under this program, holders of passports from the United States, Canada and many European countries can become Panamanian residents in as little as six to eight months.
As Panama’s economy continues to grow, the need for skilled workers has led to revisions in the laws impacting those who may want to work in their new expat location.
The Highly Skilled Worker Permit is one of these new revisions. Under this program, which is exempt from quotas and sponsorship requirements, all that is needed is a Bachelor’s Degree (or higher) and a letter from the perspective employer.
Living in Panama – Retirees Are More Than Welcome
Panama is making a major effort to attract retirees with the Pensionado (retirement) Visa program. Any person over the age of 18, with a guaranteed monthly income of $1000 from a government agency, such as Social Security or the U.S. Armed Forces, can qualify for this type of residency.
Holders of retirement visas receive many discounts and benefits in the form of reduced prices for a wide variety of services and items. Some of the most attractive of these discounts are:
| Discount | |
| Entertainment (movies, sports, etc.) | 50% |
| Airline Tickets | 25% |
| Closing Costs for Home Loans | 50% |
| Professional/Technical Services | 20% |
| Dental/Eye Exams | 15% |
With the Retirement Visa, an individual is entitled to a one-time tax exemption on imported household goods (up to a $10,000 limit). Another important benefit is a tax exemption every two years for the purchase or importation of a new vehicle.
Living in Panama – Growing Pains
For all the positives and potential that Panama offers, it is important to remember that this is an emerging nation in the throes of development. As a result, some of the challenges that expats may encounter may not be a good fit for everyone.
Infrastructure Is Not the Same Everywhere
The modern and urban environment of Panama City does not carry over to other parts of the country. Less developed regions in the mountains and further inland are far more rustic in nature. If having access to modern amenities is a requirement, this could limit the choices for relocation.
Changing Legal Environment
Not everyone has welcomed the efforts of the government to attract foreign businesses and workers to Panama. As a result, changing laws and regulations could impact residency and tax matters. This potential for change can be a negative for some who would like a more stable, less dynamic environment in which to invest.
Improvement and Construction Versus Quiet and Established
The constant improvement of Panamanian infrastructure and amount of new construction is certainly a positive for the country. With this growth, however, comes the disruption of the tranquil nature of many communities in the country. Navigating through construction zones and dealing with the issues that this kind of development brings may be a negative to those seeking a more rustic environment.
Discover the “Panama Potential”
The emergence of a growing real estate market makes doing research on what is on the market more important than ever. Whether the desired location is big city or rustic village, looking at what is available can provide a perspective on the true potential that can be found in the various locations of Panama.
A tourist friendly country with pristine beaches, majestic mountain views, and an affordable cost of living, Panama has so much to offer expats, including the mountain towns of Volcan, Cerro Punto, Boquete, El Valle, and Santa Fe.
While each of these towns has spectacular views, year round spring-like weather, and expat friendly communities, they each have something special that makes them unique.
First Stop, Volcan
Rich Young
Famous for its “eternal spring” climate, Volcan sits atop a plateau at 4,200 feet. And it’s not surprising that Volcan means volcano, since the large green mountain that provides the amazing backdrop for Volcan is in fact the dormant peak of Volcan Baru (the highest peak in Panama).
This quaint mountain village was first settled by indigenous people thousands of years ago and artifacts are still found in farmer’s fields to this day. While some Ngobe Bugle people still reside in Volcan, expats can mainly expect to find the same relaxed and laid-back way of life that you can find across the country.
There is an established expat community in Volcan and over the years many have opened hotels and restaurants, further expanding Volcan as a prime retirement spot.
Only twenty minutes from David, the third largest city in Panama, Volcan is perfect for those who are seeking the quiet, mountain town way of life, with urban amenities close by.
On to Cerro Punta
Celen Aper
Located in the highlands above Volcan, 2000 meters above sea level, Cerro Punta is the agricultural center of Panama. The hypothetical bread basket of Panama, Cerro Punta produces nearly 80% of the fresh produce for the entire country, and due to the high altitude, Cerro Punta has a slightly cooler, some might even say cold, temperature.
The friendly people and the relaxed farming atmosphere provide Cerro Punta with that small village feel that is sought after by many expats and as you stroll through Cerro Punta you will see many local farms, gorgeous mountain ranges and Ngobe families dressed in colorful traditional garb.
Next, Boquete
Boquete- roaming the planet – doors
Arguably the most popular expat spot in the province of Chiriquí, Boquete was rated by the AARP as one of the world’s top retirement spots. This popularity began in 2001 and as a result, you will find a well-developed expat community in Boquete today.
Only a 45 minute drive from David, Boquete is known for its misty rain (bajareque), coffee, and flowers, especially orchids.
Boquete is actually considered the flower capital of Panama and upon entry, you will be greeted by buildings simply covered with magenta and coral bougainvillea.
With fresh produce and seafood in abundance, Boquete promotes a healthy lifestyle for all who live there, and because of the low cost of living, a delicious dinner for four can be purchased for around $10.
Boquete also has a strong arts community with a yearly jazz festival and even an English language theater group.
Consider El Valle
Orban Lopez Cruz
The world’s only inhabited volcano, this mountain village remains close to the urban metropolis of Panama City while keeping its coveted small town atmosphere.
Known for its wind, water, rich volcanic soil, and perfect spring climate, El Valle attracts many people interested in eco-tourism and wellness vacations.
And even though the volcano has been dormant for 5 million years, many volcanic hot springs have surfaced, providing proof that there is definite volcanic activity happening underground.
Relaxed during the week, El Valle is alive with activity on the weekends as people come out of the woodwork to visit El Valle’s famous arts and crafts market. There is much to be seen at this massive market as the locals and the Kuna Yala Indians come out to sell their colorful wares.
Last Stop Santa Fe
Jerry W. Lewis
Expats come to Santa Fe to experience a truly authentic taste of Panamanian living.
Because Santa Fe is smaller and not as developed, you can really experience the serenity of Panama mountain life. Sitting at an altitude of 1350 feet, you will find the same year round spring weather and sweeping mountain views in Santa Fe, but with fewer expat additions.
The expats here don’t tend to participate in as many group activities as they do in the other mountain towns, and while there are still many outdoor activities to experience, there are not as many tour groups.
In addition, housing in Santa Fe tends to cost less, and although it will be equipped with cable and internet, the facilities will definitely feel more traditional.
Which Panama Mountain Town is right for you?
Rich with all the wonders that drew you to Panama in the first place, but with little differences that make each town a unique experience, any of these five towns could be the perfect place to set up shop.
A land covered in volcanoes, rivers, and lush forests, with a laid-back way of life and a low cost of living, Panama and its mountain towns are definitely an expat friendly treasure to behold.
So plan a trip and hop around to each town as you search for that ideal place to call home.