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.
Panama is a beach and island lover’s paradise, with its two long coastlines and more than a thousand islands. Where else on earth can you surf in the Pacific Ocean in the morning and take an evening dip in the Caribbean Sea, all in the same day?
We’ve scoured the best beaches Panama has to offer. Here are our top 12, in no particular order. Since each beach has its own charm and unique characteristics, it would be almost impossible not to be able to find the tropical beach atmosphere you seek somewhere along the coast of Panama.
Ceclia Beth
1. Santa Clara & Farallón, Pacific Coast: These two are the most appealing beaches along the Pacific Coast, and the best for swimming. Best of all, they lie within a 2-hour drive of Panama City. Here the water is bluer and the sand is whiter than what you’ll find in many neighboring beaches closer to the city.
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2. Isla Bastimentos National Park, Bocas del Toro: Cayos Zapatillas, or the “Slippers Islands” (so-called because they resemble footprints), not only fulfill the beach lover’s fantasy with their soft sand backed by a tangle of jungle. They are also surrounded by a rich display of coral that attracts hordes of fish, which makes for some excellent snorkeling.
VivaTropical
3. Boca Chica, Chiriquí: We are a bit partial to Boca Chica, which offers pristine ocean views of tropical blue seas, lush vegetation, and remote islands with white sand beaches and swaying palms. Not to mention, this area also offers world-class fishing, diving, and snorkeling.
Michael McKenzie
4. Santa Catalina, Veraguas: Originally a highly coveted secret surf spot, Santa Catalina probably has the most consistently great waves in Panama. It is the closest access point to Isla Coiba with its world class diving, pristine beaches, and nature reserve.
César Duarte
5. Contadora Isand, Panama: The beaches here are sandy brown, with warm waters suited for snorkeling and swimming. Contadora Island is one of Panama’s more affordable beach destinations.
Haakon S.Krohn
6. San Blas Islands, Guna Yala: This is by far Panama’s premier beach destination with with powdery white sand, extensive coral reefs, piercing turquoise water, and clusters of enticing palm trees. The indigenous and colorful Kuna population administers this province, and their unique culture is one of the best reasons to visit the region.
Gaspar Serrano
7. Las Perlas Archipelago, Panama: The Pearl Islands are a relatively unsung beach destination, despite the fact that this Pacific archipelago is close to Panama City, has some of the country’s best snorkeling, and boasts white sand beaches and calm waters. Outside of holidays and the hard-core summer, you won’t find crowds here, even during weekends. It’s well worth a short boat ride to enjoy solitude at one of Panama’s best beaches.
Chuck Holton
8. Isla Coiba National Park, Veraguas: This island is Panama’s number one diving site. It’s rather remote, but its incredible beaches and the Isla Coiba National Park make it worth the excursion. If the main island is too crowded, try venturing to Granito de Oro where the beaches are so idyllic that midsize cruise ships make stops here.
Andy B.
9. Las Lajas, Chiriquí: One of the lesser known beaches in Panama, Las Lajas is worth a visit, with its swaying palm trees and perfect water temperature. This beach is known for having just the right amount of waves for bodysurfing. Given that the beach stretches for more than 8 miles, it is also the perfect walking beach as well.
Manuele Zunelli
10. La Barqueta, Chiriquí: Strong currents at this black sand beach mean the water is not ideal for swimming. However, like Las Lajas, it is lengthy and good for walking. It’s also home to an impressive nature reserve.
Roman Königshofer
11. Playa Los Destiladores & Playa Venao, Azuero Peninsula: There are a multitude of beaches lining the coast of this peninsula, but these two are the best. Located within a 20-minute drive from one another, you can surf both in one day. Not into surfing? Try the protected cove at Playa Venao, where it is calm enough for a swim, or travel a bit farther east for the best beach surfing hotspot.
Emerging Terrains
12. Burica, Chiriquí: Looking for an underpopulated stretch of some of Panama’s best beaches? Burica, apart from a few small towns and one accommodation, is absolutely desolate. So what is its attraction? Lots and lots of isolated beaches, rows of palm trees, and at times surfable waves. The beach is formed with gray sand and striated rocks that stretch all the way out into the sea.
Which of these Panama beaches is your favorite? Are there any others you think we should have included? Comment and let us know!
Panama City, Panama has been called the “Dubai of Latin America” due to its skyline that seems to reach endlessly into the clouds and the fact that it’s a hub for commerce between North and South America. As such, it’s become a popular place for expats to live and work.
Andrew Campbell
Yet, no matter how cosmopolitan it appears, the fact remains that it’s still a developing country. As such, it comes with its own unique set of growing pains. Check out our top tips for living in Panama City, Panama.
1. Brace yourself for the bureaucracy.
Possibly nowhere is Panama’s inefficiency more evident than when it comes to processes like applying for a visa, getting a building permit, or even just changing your mailing address. Regulations and requirements change frequently, and what you were told last week may have changed by this week when you come back with what you thought was the required paperwork.
It gets even worse after an election when the newly elected party comes in and cleans house, much like a new college head football coach. Their first order of business is often to reverse any of the unfavorable laws they didn’t like from the previous administration.
All you can really do to combat this issue is to keep good documentation, remain polite, be persistent, and just keep doing everything you can to move the ball forward at every opportunity.
2. Expect everything to take at least twice as long.
As you might have guessed from the first point, Panama and its capital city are not known for their speediness. That quick trip into the utilities office to pay your bill could turn into you standing in a line that would make a U.S. DMV office look like a cakewalk. And a contractor who says he’ll show up “mañana” to fix your leaky roof might not come around until some time next week.
Traffic is another area where huge delays can be a problem. The culprit could be anything from one of the many construction projects in and around the city to an accident caused by a local driving recklessly, a common hazard in Latin America.
It can be frustrating, but with a measure of patience you’ll eventually start to learn to calm down and appreciate the slower pace of life that was likely one of the very reasons you moved here anyway.
3. Use common sense to avoid becoming a victim of crime.
While violent crime does exist in Panama City, much of it is related to drug and gang activity and, as a result, somewhat avoidable. That’s not to say that innocent bystanders never get caught in the crossfire, but it’s a lot more likely to happen if you’re in a dark alley in a bad part of the city than if you’re out walking your dog in a public park in broad daylight.
What is more common is petty theft, and tourists and expats are often easy targets. To avoid becoming a victim, try not to draw attention to yourself. Don’t go around flashing cash or carrying valuables. If you do, don’t leave them unattended.
Jasperdo
4. Soak up every possible ounce of culture.
Panama City has the double benefit of being both a cosmopolitan city and a world class cultural hub. The city dates back to 1519, and many old Spanish buildings from that area can be found in its central neighborhood of Casco Viejo, which is a UNESCO World Heritage site.
It’s also home to museums, galleries, symphonies, shopping, and everything else you’d expect from a first world destination. That’s not true about every expat hotspot. Panama City is in a class of its own when it comes to cultural attractions.
5. Understand it isn’t the cheapest expat destination.
When comparing the cost of living in various expat favorites, Panama City is far from rock bottom. In fact, it’s almost at the top. As it’s become a prime banking center, a communications hub, and a logistics necessity, the price of everything from clothing to cold beers has only gone up.
Its real estate market is booming, and therefore prices are high. However, like any large city, there are options to fit every budget. You may have to make a few sacrifices (e.g. shopping in farmer’s markets and giving up pricy imported brands), but living in Panama City is still doable for most expats.
6. Realize that living in Panama City still represents an incredible value.
You can’t mention the somewhat high cost of living in Panama City and not follow it up by pointing out that it’s still considerably less than the cost of living anywhere in North America. And that’s not an apples to apples comparison. In other words, in Panama City you can enjoy a lifestyle comparable to Miami’s South Beach and still spend less than what it would take to live in a bland U.S. suburb.
It’s a great place to live, as evidenced by the thousands of U.S. expats who call it home. With a great blend of commerce and culture, coupled with a growing economy, first world infrastructure, and a reasonable price tag, Panama City is definitely a place worth keeping on your short list of potential expat destinations.
If you check out the lists of the best places to retire or live as an expat, you’ll see one location come up again and again: Panama City, Panama. Unlike many large metropolitan centers in Latin America, Panama City is a true first world city, boasting all the modern conveniences you would expect in places like San Francisco or New York.
You’ll be able to take for granted things like international banking, top-notch health care, and high-speed Internet in Panama City, while appreciating its proximity to some of the most beautiful natural spots in the world and two coastlines to explore. And you can still take advantage of the reasonable cost of living most people associate with the Latin Tropics.
Here’s a look at why Panama City, Panama, is such a popular expat destination.
Hectorlo
Welcome to a Vibrant, Modern City
Located at the western end of the Panama Canal, Panama City is known for being a rare first world Latin American city. With a population of just under a million people, its impressive steel and glass skyline overlooking the Bay of Panama could easily trick you into thinking you’re in Miami. In fact, if you read on, you’ll see that Panama City has much in common with the Miami of just a few decades ago, which bodes well for expats making it their new home.
The roads in Panama City are in great shape, and it is easy to find outpatient and hospital care there on par with U.S. standards. Numerous international corporations are headquartered there, and Panama City is also home to artists from around the globe. Each year Panama City hosts festivals celebrating jazz, dance, and film, and if you like to go out at night, there is no lack of entertainment.
Across the bay, close to downtown, visitors and locals alike can be found soaking up culture and cuisine in Casco Viejo, the old city. Built upon a seawall to defend the city against pirates, Casco Viejo is undergoing a major renovation, giving a facelift to historic buildings and providing a lively contretemps to the skyscrapers nearby.
Outdoor enthusiasts need look no further than than the outskirts of the city to find amusement. Water sports abound, and Panama is home to some of the best bird watching on the planet. Go east or west – either way you’ll hit some spectacular coastline worth making the focus of your next vacation. And if you’re a sports fiend, you don’t even have to leave Panama City to find soccer matches and golf courses to make your friends at home drool.
World Bank Photo Collection
Panama Is Growing
Panama was founded in 1519, and it has a rich history. But the real growth of Panama occurred after the end of the Noriega dictatorship and the return of the Panama Canal zone by the U.S. in 1999. Old U.S. military bases have been turned into stunning residential neighborhoods. While most of the rest of the world has languished during the recent financial downturn, the Panamanian economy has expanded by nearly 50%.
Panama is eager to attract commerce, expats, and tourists. A$5.25 billion renovation of the Panama Canal is expected to double its capacity. In the late 1990s, Panama City had only a few thousand hotel rooms; it now offers more than 15,000, with another 4,500 in the works, many with major chains.
You’ve probably heard that Panama City, Panama, is a popular expat locale. That it is, and not just with those escaping the U.S. The city is full of German, Chinese, and French influence, among others, and its international flavor is a fitting reflection of the canal that has linked two sides of the world for generations.
Food and hospitality are a common place to see this global influence, and it is here that the comparison with Miami in the late ’80s is often made. Urban Panamanian cuisine is still developing, but it will likely be a eclectic mix of the best of all world cultures with indigenous ones.
Panamanian food is not as spicy as what you find in other Latin American countries, and much of it features corn products. Seafood and fish are abundant, of course, with Panama’s ability to pull fresh catches from both coasts.
In spite of its tremendous growth, Panama is still geographically small enough that you can get a good taste of its varied topography and microclimates without having to travel very far. (You can still actually run into monkeys and anteaters within the Panama City limits.)
In the space of a few days, you can experience the big city, beach relaxation, and rural mountain life. Don’t like the climate where you are? Drive to the coast for a breeze or spend a few cool nights in the hills before heading back to the year-round heat of Panama City.
Steven Downers
Panama City, Panama, Has a Reasonable Cost of Living
Sometimes in Latin America, low cost of living comes at the expense of quality of life, modern amenities, or political stability – not so in Panama City. There you can find high quality living quarters that are within the means of someone subsisting on a pension or retirement benefits. A couple can live on about $1,500-2,000 per month in Panama City, and approximately half of that would be devoted to rent.
The more you can live like a local, the more money you can save. Eating foods grown nearby, using public transportation, and taking advantage of local entertainment, like in Casco Viejo, will not only make it easier on your wallet, it will truly enrich your expat experience. You don’t want to move to a foreign country just to replicate your life in the U.S. – you want to transplant some basic amenities in a new and exciting culture. This is the appeal of Panama City.
One of the amenities you won’t have to sacrifice is health care. Panama City has very cheap but high quality health care. Hospital Punta Pacifica, for example, is affiliated with Johns Hopkins but runs about 50% of the bill. Clinica Einstein in El Cangrejo is a smaller facility, but it offers most of the same services for half again what Punta Pacifica charges.
Irving Martínez
Panama Has Low Barriers to Residency
One of the things that makes the country of Panama so attractive to expats is how easy it is to move there. In fact, Panama has become so popular that it can sometimes take longer than expected to work out long-term visa applications, so it is wise to plan in advance as soon as you know what type of visa you want.
Panama has numerous visa options, some of which include routes to Panamanian citizenship, should you desire it. To dip your toe in the water, start with a 90-day tourist visa, which is renewable if you’d like to stay longer. There are also visas for retirement and business investment that require proof of financial stability.
Buying property in Panama is fairly straightforward. It is suggested to use a local attorney, however, to make sure you have all the laws covered and to help complete documentation that must be done in Spanish. The currency in Panama is the U.S. dollar (sometimes called a Balboa), so there are no exchange rate risks there.
Driving in Panama is quite similar to the U.S.:
- Traffic moves on the right side of the road.
- Drivers are required to have insurance.
- Driving while talking on a cell phone is illegal.
- Children must be secured in appropriate car seats.
A foreign drivers license is valid in Panama for 90 days, after which it must be converted to a Panamanian license. While traffic in Panama City can be as challenging as any large urban area, it can be nice to have a car to tour surrounding beach and mountain destinations.
Panama is in an ideal location, as it is an easy gateway to South America. But it’s not too far from the States either – just a couple of hours from Miami – which makes it easy for friends and family to pop down for a visit.
Panama City’s Tocumen International Airport has been recently expanded, and there are daily flights in every direction. To see if Panama City, Panama, is the right spot for you to unpack your expat life, grab a flight, book a boutique hotel, and spend a week exploring local life. You won’t be disappointed!
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.
What makes a destination a great place to live? Is it the place with the most pleasant surroundings? The lowest cost of living? Or even the healthiest and happiest people?
In compiling my list of the best places to live in the world, I took into consideration all of those factors. Plus some others I’ll mention as we go. And the common denominator among all ten of my top destinations is that they’re all in Latin America.
liveandinvest
Why? Because the countries just south of the U.S. border have so much to offer in terms of natural beauty, authentic culture, unrivaled quality of life, and a heck of a lot of bang for your buck.
That’s why these ten best places to live in the world are becoming home to an increasing number of North American expats each year. Because when it comes down to choosing a place to actually settle down and dive into the local culture and become a part of the expat community, you just can’t beat these ten destinations.
Boquete, Panama
Panama consistently ranks among the top retirement destinations in the world, taking top billing again in 2014. And Boquete is its crown jewel, claiming more North American expats than anywhere else in the country, with the exception of the capital of Panama City.
Yet even with its status as a top expat hotspot, it still maintains a small-town feel, due in part to its quaint mountain setting and friendly locals. It’s also home to pretty much any type of business or service you could ever need, thanks to a long-standing expat presence.
Surrounding Boquete are cloud forests, coffee farms, rivers, and numerous other natural landscapes that offer a wealth of activities for the adventurous expat. The area enjoys spring-like temperatures all year, with frequent showers that produce almost daily rainbows.
The cost of living is low, although it’s slowly climbing as more and more expats settle in the area. With fantastic infrastructure and a lot of modern developments, it’s still a great value. Panama is also a favorite destination due to its attractive retirement program benefits for those who qualify.
Cuenca, Ecuador
Cuenca is another mountain town with a large expat community, and for good reason. It’s known for its rich culture, which includes its colonial architecture and a lively art and music scene.
Ecuador also boasts one of the lowest costs of living in the Americas. You can plan to spend less on everything from fresh produce to a renovated condo in the bustling downtown area.
Cuenca is home to a number of universities, making it a hub for international students. It’s also a great, safe place for families with its excellent education and health care options.
There are also plenty of great restaurants, bars, shopping centers, and all of the other creature comforts you’d expect to find in a metropolitan city. Yet it enjoys the same slow pace of life you’ll find throughout Latin America. It’s the best of both worlds.
Though it’s recognized for the terra cotta roofs and blue church domes that dots its city skyline, the area around Cuenca is equally breathtaking. It sits at the convergence of four rivers and is surrounded by mountains, offering plenty of opportunities for outdoor adventure.
Tierra Magica
Nosara, Costa Rica
Nosara is the perfect example of what happens when a city is founded with a plan and the residents remain committed to that vision for decades running. Once used for grazing cattle, the land in and around Nosara has been developed very intentionally, and the results are really remarkable.
No high rise condos block your view of the beautiful sunsets on Nosara’s pristine beaches. Numerous conservation efforts and organizations work to maintain the area’s natural surroundings.
Nosara is known for its surfing, yoga, and healthy lifestyle options. It’s also a great place for families. It’s safe and has several really good schools.
And Costa Rica’s laid-back lifestyle easily adds to the reasons Nosara is one of the best places to live in the world. The locals are incredibly welcoming, greeting residents and visitors alike with the phrase “pura vida” (pure life) that’s become a motto of sorts for the country.
Nosara has a good-sized expat community, as well as the established infrastructure and development you’d expect from such a world-class destination.
Steve D.
Roatan, Honduras
The largest of the Bay Islands, Roatan is a great choice if island living is what you’re after. With plenty of development and consumer options, as well as an airport with direct flights from the U.S., there’s little need to ever leave the island.
There you can enjoy every imaginable aquatic adventure. From sailing to sport fishing to kayaking through the mangroves, it’s all possible in Roatan. Just off the coast you’ll also find access to the world’s second largest reef system, which makes for some incredible snorkeling and scuba diving.
Because it hasn’t quite yet reached the popularity of some of its Latin island counterparts, Roatan is still a bit more affordable. However with its growing tourism industry, including frequent visits from cruise ship passengers, Roatan’s appeal is being discovered by more and more would-be expats each year.
Despite its growing population Roatan still offers some off-the-beaten path areas that offer plenty of solitude, including a few villages that still don’t have electricity.
VivaTropical
Boca Chica, Panama
Another Panama destination has made the list, thanks to its attractive retirement benefits and amazing investment opportunities. Boca Chica is an island destination that’s still relatively unknown but has the potential for tremendous growth in the coming years.
Located in the Gulf of Chiriqui, it consists of a mainland city and an archipelago of over 50 islands, many of which are completely uninhabited. Residents of Boca Chica can spend their days exploring otherworldly islands covered in rainforests, mangroves, and even white sand beaches.
And because of its convenient location, those same adventurous expats can then take a quick shower and drive 45 minutes to enjoy a first-rate steak dinner in a world-class restaurant in the nearby city of David.
It’s this strategic location, combined with a whole host of ongoing infrastructure improvements, that makes Boca Chica real estate such a great investment.
An airport expansion that’s now bringing in direct international flights is among one of the biggest value-adds the area has seen. Folks can now fly in to David from anywhere in the world and find themselves in Boca Chica in under an hour.
P. Schenll
Granada, Nicaragua
Granada is another colonial city that’s absolutely brimming with culture and charm. Horse-drawn carriages still dot the cobblestone streets. If it weren’t for the freshly-painted tropical colors on the historic buildings, you might think you’d stepped back in time.
Well, that and the modern amenities available in the city, a stark contrast from the wilderness that occupies most of the rest of the country. In what’s a mostly underdeveloped country, Granada offers things like reliable utilities, four-star restaurants, and state-of-the-art fitness centers.
It’s located on Lake Nicaragua, one of the largest freshwater lakes in the world. It’s also surrounded by several volcanoes, so plenty of opportunities for exploration abound.
Granada is a town that fought its way back from near demise due to bankruptcy and other issues, but you’d never know it today. Instead, modern-day Granada is abuzz with construction projects and up-and-coming developments.
Granada real estate is extremely affordable, as is the cost of living in the country. It’s home to a number of expats, many of whom are involved in humanitarian efforts in the surrounding impoverished areas.
Ambergris Caye, Belize
If you want to feel like you’re on vacation 24/7 then look no further than the island of Ambergris Caye. Due to its status as a tourist mecca, it’s ripe with all kinds of activities and attractions.
There are surf shops and scuba schools, beach-side restaurants and bars, and plenty of flip flops and floral shirts. In fact, most of the island’s inhabitants are foreigners, particularly those who operate enterprises geared towards other expats and visitors.
The large expat community isn’t the only thing that makes Ambergris Caye feel familiar. Because Belize was originally a British colony, it’s the only Central American nation whose residents rely on the British legal system and speak English as their official language.
Among the biggest perks of the island are that it’s an ocean lover’s dream. Thanks to its proximity to the Belize Barrier Reef, the second largest in the world, it’s the perfect place to enjoy scuba diving, sailing, and sport fishing. You can also explore the more than 450 other islands that lie off the coast.
Antigua, Guatemala
If you’re looking for a place that’s a little less popular among expats and tourists, then you should definitely check out Antigua. It’s a well-preserved colonial city nestled in between some amazing mountains and volcanoes, which make for an impressive skyline.
Because it’s not as highly sought after as some of the other destinations on the list, the cost of living in Antigua is probably a little less than in some of its Latin competitors. Real estate is a great bargain, as are essentials like fresh fruits and veggies and utilities.
With the low cost of living, it’s also possible to splurge on luxuries such as domestic help, which at only $2 or $3 per hour is something many expats are thrilled to find that they can afford when they relocate to the tropics.
In addition to the mountainscapes, Antigua is also decorated with beautiful flora and fauna, as well as the cobblestone streets and other charming touches you’d expect in an ancient destination.
Equipped with just the right amount of infrastructure, Antigua is also known for its Spanish language schools.
Phil
Placencia, Belize
If you like Belize but aren’t crazy about the gringo-saturated island culture then the mainland city of Placencia is another place worth the title of best places to live in the world. If the islands are like living on a resort, then Placencia is like relaxing on a postcard.
The beaches are wider, whiter, and less crowded than in places like Ambergris Caye. There are still plenty of activities to enjoy, but there are also more places to spread out or even find a secluded spot all to yourself.
There’s also a more authentic Caribbean vibe on the mainland, which many expats prefer. It has an even more laid-back atmosphere (if that’s possible), with not even so much as a paved road anywhere in town.
As opposed to the expat-run businesses on the island, the locals are very involved in commerce in Placencia. They even offer guided diving and fishing excursions to visiting foreigners.
Plus, since Placencia is on the mainland, it’s also close to a number of activities suited for the land lover, like jungle exploration and archaeological sites.
Alex Torres
Lake Chapala, Mexico
Understandably Mexico is home to more U.S. expats than any other country. And, other than the border town of Tijuana, the majority of those live in the Lake Chapala area. So suffice it to say that 40,000 U.S. expats would agree that this city is one of the best places to live in the world.
Mexico’s largest freshwater lake, Chapala was once planned as a luxury resort town. It serves as a weekend getaway for locals from Guadalajara and has attracted expats for decades, including Tennessee Williams who chose it as the site from which to write A Streetcar Named Desire.
In addition to the beauty of the lake and surrounding mountains, Lake Chapala offers an ideal climate year-round. It’s also famous for its mariachi music.
Which of the best places to live in the world is right for you?
So if stunning scenery and adrenaline-pumping adventure are your thing, there’s a place on this list that’s right for you. If sustainable living and a relaxed vibe are what you’re into, there’s a destination where you can find those as well.
I’ve done the hard part by laying out the ten best places to live in the world. Now all you have to do is narrow it down.
Good news if you’re an expat living in Latin America or if you’re thinking about making the jump: safety and security is improving in numerous regions, according to several key criteria. A recent Gallup Law and Order Index looked at local perception of crime in each Latin American nation and found several countries had made big jumps in safety.
Irving Martínez
Why is this particular survey significant?
Because it is based on residents’ personal experience with criminal elements and their feelings about how secure they are in engaging in day-to-day activity. Rather than relying on a third-party assessment, this survey used face-to-face and phone interviews to get down to the local level to see what’s really happening.
The Gallup Law and Order Index examined perceptions from 2013 and compared them to data from 2009. Three main points were considered:
- Confidence in the local police force
- Feeling of safety walking alone at night
- Incidents of property or money stolen from the participant or family member within the last 12 months
So, what did the results show?
Panama is tied at the top as the safest country in the region and went up seven points in its score over the last four years. This should come as no surprise to expats who are already enjoying the pristine beaches and undisturbed jungle of Panama’s more rural areas or to those who have flocked to Panama City, making it a premium retirement destination.
Nicaragua tied with Panama as the safest perceived country in Latin America, up nine points from 2009. Both nations have experienced marked economic growth and a decrease in crime and political violence. Rounding out the top four were Chile (up seven points) and Ecuador.
Ecuador is a fantastic study in what can be accomplished in a relatively short time to both decrease actual crime statistics and boost public opinion about security. President Rafael Correa attributes his nation’s 14-point leap in the Gallup rankings to a three-tiered approach to fighting crime:
- Increased emphasis on arms control
- Widespread judiciary reform
- Improved methods for the capturing of criminals
Ecuador’s new ECU-911 system, implemented in 2012, plays a large part in this. The program coordinates national police, firefighters, armed forces, and transit authorities, as well as other government ministries and organizations, in order to respond immediately to emergencies.
Ana Freitas
The implications are important
The implications of the Gallup Law and Order Index are important not just to your personal safety, but to global economics as well.
Let’s get macro here for a second. A country’s annual gross domestic product (GDP) is basically the sum of what everyone in that country earned in the course of a year or what they spent in a year (those two sums should be about equal). GDP is therefore a primary measure of the health of any nation’s economy.
What happens when crime goes up? GDP goes down. Tourism is reduced, police costs rise, and there is a significant loss of income from incarcerated or otherwise non-participating individuals. Gang-related crime preys on this economic vulnerability, and local businesses suffer. Moreover, foreign investors run the other way, as a bad economy is no place to put their money. The cycle continues, and it can be devastating for a country until they figure out how to turn it around, largely by decreasing crime.
Jurgen Proschinger
That’s all well and good, but what does this mean for you?
If you’re going be investing your hard-earned cash in a foreign economy, you want it to be a stable one where crime is on the downturn and GPD is climbing. This is one of the reasons Panama continues to be so popular right now. It’s been steadily raising its GDP over the last decade and is predicted by the IMF to remain solid.
The Gallup Law and Order Index confirms what many people intuitively feel about crime and macroeconomic growth. Furthermore, the survey’s use of direct contact with the participants lends it a high confidence level (95%) that may not be achievable in other less objective studies conducted by local government or police.
It’s important, too, to look at the overall trends in this survey, rather than just pure rankings. Latin America as a region has improved since 2009. And look at the numbers for Colombia and Costa Rica, for example. Colombia is now perceived as being as safe as Costa Rica. Does that make Costa Rica any less safe? No, it simply points to the strides that Colombia has made in improving its safety and security.
While there are still pocket of violence in Honduras, Guatemala, and Mexico (particularly in the U.S. border regions of the latter), overall things are looking promising for Latin America. Knowing how the locals feel about their personal safety is the first step in addressing crime issues that have far-reaching effects on both the macro- and microeconomic level.
Viva Tropical Radio
Everything you need to know about Panama residency, visas, and beyond. Ricardo Faraudo, an attorney from the DENFAB firm, joins the show.
Ricardo specializes in expat immigration and gives details on all the visa options you have when moving to Panama.
There is even one visa which comes with a Panamanian passport, so find out what option is best for you or if you even need to apply for residency.
In this episode, you will learn:
- Do you even need to get residency?
- How to get a Panamanian passport in under 6 months.
- How much does it cost to get residency?
- Which residency option gives you huge discounts on almost everything you buy?
And much more.
Listen to the show
You can listen to the show using the player above or grab it and listen on the go via one of the following options:
- Click here to download the mp3
- Click here to subscribe via iTunes
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- Click here for the show archive
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The Show Notes
- Ricardo’s firm DENFAB
- Contact Ricardo directly: [email protected]
- Or contact the firm: [email protected]
When looking at lists published by international living gurus citing the best places to live in and retire to overseas, the nations of Ecuador and Panama consistently appear among the places with the highest rankings.
As beautiful, affordable tropical destinations go, they’re among the best of the best. And, while they’re both excellent overall as places to retire, raise a family, start a business, or just live for a short time, each has certain areas where it shines brighter than the other.
We’d be hard-pressed to say which country is the best or, even more specifically, which one is the best for YOU and your particular situation. That decision is best left up to your family, based on your individual needs and priorities.
What we can do is highlight a few categories that are important to expat families and tell you which country excels in that area.
D. Bmcnicol
Round #1 – Lifestyle Hacks
Winner: It’s a Tie
One of the coolest things about living abroad is the ability to enlist help for tasks that you might be fed up with doing yourself, but would’ve never had the means to hire out in North America. Some examples are maids, gardeners, drivers, tutors, and nannies.
And domestic help is abundant and affordable in both Panama and Ecuador. We’d be tempted to give this category to Ecuador for its lower cost (around $10 per day for the services of a maid vs. $15 for the same work in Panama).
However, as is often true, you tend to get what you pay for. So some might argue that the quality of service you receive from domestic helpers is superior in Panama.
Eddie Codel
Round #2 – Connectivity
Outcome: Panama By a Nose
This is another area where both countries excel far beyond the reach of most of their Latin American neighbors. And, up until recently, this category would have gone to Panama by a landslide.
However, Ecuador is aggressively working to improve its internet coverage. As a result, the country’s connectivity is increasing by leaps and bounds with a goal of access in 50% of households by 2015. (It’s currently closer to 35%.) Free public access centers are also widely available across the country.
While Ecuador’s connectivity is great, Panama’s is excellent due in part to a long-standing U.S. military presence. In fact, it ranks #2 in all of Latin America for technology and internet penetration and #1 for wireless availability.
Most Panamanian cities offer affordable broadband service, and there are free wi-fi hotspots nationwide. Because of its technological advances, companies such as Dell, 3M, and Philips have chosen it for their regional headquarters and customer service centers.
Pavel Kirillov
Round #3 – Living Options
Slight Edge: Panama
Both Ecuador and Panama have a lot to offer in terms of variety of living options. When it comes to mountain towns, Cuenca, Ecuador, and Boquete, Panama, are among some of the top expat destinations in Latin America. There are others as well, such as Loja, Quito, and Vilcabamba in Ecuador and Volcan, El Valle, and Santa Fe in Panama.
There are also popular beach towns in both countries. Salinas, Ecuador, has been compared to Miami’s South Beach. There’s also Montanita and Manta. Panama has Bocas del Toro, the quintessential Caribbean beach town, as well as Coronado and Pedasi.
Panama City trumps places like Ecuador’s Quito and Guayaquil if you’re looking for something that more closely resembles a first-world city. The other place where Panama takes the cake is with its options for island living. Ecuador has the Galapagos Islands, a great place for tourists to visit or explore but not necessarily live.
However, Panama offers options like Boca Chica Island, which offer nature-loving expats the opportunity to own their very own piece of a private island that’s only a hour away from the country’s second-largest city and an international airport.
Wogo 24220
Round #4 – Green Living
Winner: Ecuador
While Panama has long had its sights on continuing to improve its infrastructure and commerce, it lags a bit behind in its sustainability initiatives. However, it is making some strides in the right direction. Take for instance the village of Kalu Yala, a development that has a goal of becoming the world’s most sustainable residential community.
Most green efforts in Panama are more grass roots and less government-driven. On the other hand, Ecuador has the unique distinction of being the only country in the world where the rights of the natural environment are protected by the nation’s constitution.
Sustainability issues are on the government’s radar in Ecuador as it battles issues like the threat of drilling in its Yasuni National Park, the most biodiverse place on earth.
Vilseskogen
Round #5 – Cost of Living
Clear Winner: Ecuador
Ecuador and Panama both offer the ability to live satisfying lifestyles for a fraction of the North American budget. As you can imagine, prices vary greatly from one city to the next, with some of the more developed areas running much closer to U.S. prices.
However, overall the cost of living is considerably less in Ecuador. In fact, it’s often one of the country’s biggest selling points, with many expat couples claiming to live just fine on a mere $1200 per month including rent, which averages around $450. This includes luxuries like high speed internet and once-a-week maid service.
Both countries have great discount programs for their senior adults, with Panama’s pensionado program being one of its most attractive benefits for retirees. However for most expats, particularly young families, it’s cheaper to live in Ecuador.
Rivera Notario
Round #6 – Ease of Access
Advantage: Panama
This was an easy one. Mainly because the majority of Ecuador’s incoming flights have layovers in places like Panama City (as well as Miami, Bogota, and places in the Caribbean). As a result, travel to Ecuador is longer and a bit more expensive.
It does have great public transportation once you fly in to Quito or Guayaquil, as well as connecting flights to a number of regional airports.
By contrast, Panama’s recently expanded Tocumen International Airport receives direct incoming flights from multiple U.S. cities, as well as various points in South America. David’s Enrique Malek International Airport will also soon begin welcoming international flights, opening up the western regions of Panama to expats and tourists from all over the world.
Matthew Straubmuller
Round #7 – Business Climate
Champion: Panama, Hands Down
To decide this category, you only need to look at the stats. The International Finance Corporation ranks Panama 55th in the world for ease of doing business, compared to Ecuador’s rank of 135th. This survey is based on factors that affect one’s ability to start and operate a local business.
This comes as no surprise, as Panama’s government has historically been extremely pro-business and pro-investor. It’s also somewhat of a tax haven and an increasingly popular place to open an offshore bank account. Panama also offers a whole host of visa options, with the number of choices increasing frequently.
Ecuador, on the other hand, has a reputation of being a bit unstable and unpredictable. It struggles with issues such as high government turnover rates and an economy that is based a bit too heavily on petroleum.
However, Ecuador’s economy is growing. The country is also taking steps to reduce the government’s influence in certain business sectors.
Gaspar Serrano
Round #8 – Banking
Advantage: Panama
Both Ecuador and Panama benefit from having a dollarized economy. However, both have seen requirements tightening in recent years due to laws like FATCA and other U.S. tax evasion agreements. As a result, it’s becoming increasingly difficult for foreigners to open an account.
That being said, the banking process is far more friendly to foreigners in Panama. It’s home to a number of international banks and is emerging as a major player on the global banking scene.
Ecuador, on the other hand, suffers from inconsistent regulations and subpar accounting standards, although its banks’ performance has improved in recent years. Due to the inconsistencies, however, the process of opening an account can be a bit long and tedious.
thinkpanama
Round #9 – Investment Opportunities
Our Pick: Panama
When you look at the ingredients for a savvy investment, they include factors like low costs, massive infrastructure projects, a focus on tourism, and government incentives. Both Ecuador and Panama have all of these. And lots of them.
Panama just has more. Its real estate is still affordable. The government has recently invested $15 billion in projects like airport expansions, new roads, and a metro system. There are tax breaks on everything from the importation of building materials to build a hotel to income tax on land purchased for reforestation.
Ecuador offers many of those same advantages, and often at a lower cost. So you could argue that in Ecuador there’s a bit more room for appreciation. However, the benefits of investing in Panama are just still too good to award this category to anyone else.
Presidencia de Republic de Ecuador
Round #10 – Health Care
Outcome: Another Tie
Ecuador and Panama both benefit from having excellent health care systems, with skilled medical staff and modern facilities. English is widely spoken by doctors in both countries, many of whom trained in the U.S, and hospitals offer the latest in technological advancements.
The low cost of care is also a big plus, with procedures generally running about ¼ of the price for the same service in North America. Health insurance is also affordable and widely available.
Both countries suffer from the same main drawback in this category: availability in rural areas. While they both have state-of-the-art hospitals, they’re found only in the largest cities. Clinics in more remote locations may be limited to basic services or even first aid only.
ThinkPanama
Round #11 – Consumer Goods
Winner: Panama
Both Ecuador and Panama have a surprisingly good selection of consumer goods. As a result, you usually need only drive to the nearest city to find exactly what you’re looking for, or at least a comparable replacement.
Where Ecuador suffers in this arena is due to its ever-increasing taxes. Many items have become more difficult to find, or at least more expensive, in recent years. Consequently, fewer and fewer items (like vehicles and cell phones) are being imported.
Panama, on the other hand, has become quite the shopping hub for folks all across Latin America. This is due in part to its low value-added tax of 7% (vs. 12% in Ecuador). We’ve even seen people who traveled from Ecuador to Panama City to buy several flat-screen TV’s due to the better prices and availability.
D. Rorfold
Round #12 – Foreign Land Ownership
Victor: Panama
In both Ecuador and Panama, foreigners who buy property have their rights protected by the constitution just the same as nationals of that country. There are also few restrictions on what land they can buy. Well, there’s only one really, and it’s in Panama where foreigners can’t own land within 10 kilometers of the border.
Both countries offer an abundance of land available at, in some cases, rock-bottom prices. However due diligence is absolutely necessary before buying land in either country.
Purchasing real estate as a foreigner can be a challenge, but the whole process is a bit easier in Panama. A good attorney is a must, so choose one who’s experienced in land transactions and can handle things like researching the title, drafting contracts, and registering the deed.
D Rorfold
And the Grand Champion Is…
Nah. We didn’t keep score. There’s just too much to love about both of these countries for us to try to give the trophy to one or the other.
What’s more important than our opinion is your own experience with each of these fine countries. So, if Ecuador and Panama are on your short list of potential expat destinations, then we suggest you open a new tab and start looking for flights. There’s no better way to pick a winner than to just let the two duke it out firsthand.
Map of Panama
Panama Fast Facts
- Population: 3.8 million
- Typical temperature: Temperature typically varies from 72°F to 91°F
- Nearest airport with U.S. flights: U.S. bound flights leave daily from Tocumen International Airport
- Nearest U.S. consulate: Panama City
Map of Ecuador
Ecuador Fast Facts
- Population: About 15.49 million
- Typical temperature: Ecuador is known for its micro climates.
- Major airports with U.S. flights: Quito, Cuenca and Guayaquil. Complete list of airports in Ecuador.
- Nearest U.S. consulate: Quito and Guayaquil
A R Vindgrove
There are so many good reasons to live in Panama. Some make the move for the climate, the friendliness of the Panamanian people, and of course because it is home to one of the best retiree discount programs in the world.
So it’s easy to see why Americans are choosing this country as their retirement haven.
But sometimes the best advice and position on life in the tropics comes from those who are living the expat lifestyle every day. Today, in our Expat Interview series we focus on three expats in Panama who share their living experiences and reasoning behind their decision to pick up their lives and move them to the tropics.
Expat Interview #1: Kris C.
Kris C.
Why did you choose to move to Panama? And how long have you lived there?
We were nearing retirement age and realized we didn’t have enough money to retire comfortably where we were, and that was if we worked until we were 70. We needed something more affordable.
We made a checklist of what we wanted – close enough to the US for visits to family, warm climate, stable government, crime under control, decent infrastructure…. and Panama just rose to the top of the list. We visited Panama City first and loved the country, but not the hectic pace of the city. Next we looked at David and knew it would work for us. We have been here 1-1/2 years and are very happy!
Where were you living previously?
Sarasota, Florida for 17 years.
What do you do with your time?
I don’t know how I stay so busy every day! There are still the usual daily chores, and I tend to cook from scratch more with all the great produce available here. I have more time for my photography hobby. I write a blog which is growing, and more and more people contact me through the blog. I’ve been riding my bicycle almost every day which is good exercise, and I’m also getting to know the city better and meeting new people.
I enjoy spending time with my friends. I try to study Spanish a bit every day. I like to work in the yard. I like to sew. Well looking at that list, it’s no wonder I stay busy. We are also traveling more both in and out of Panama.
What surprised you when you first came to Panama?
It is SO beautiful here. I think I loved it from the moment I saw those lush green mountains from the airplane window. I expected it to be really hot but it’s actually more comfortable than Florida in the summer. We hardly ever see mosquitoes and rarely get bitten or stung by anything even though we are outdoors a lot. The people are so friendly and welcoming, and adjusting to life here has been much easier than I expected. We have been made to feel like a part of the community, and members of a number of families.
If given a chance, which other South American country would you want to live in, and why?
When we decided that Panama was good for us, we really didn’t research other options. Something would have to change a lot before we’d consider moving. If it came to that, maybe Mexico, or Nicaragua? I hope to travel through Central America so when we get a chance to visit these other countries we should have a better idea of where else might work for us.
Expat Interview #2: Christopher Powers, Panama for Real
Chris Powers
Why did you choose to move to Panama? And how long have you lived there?
I chose to move to Panama because my wife, Marlene, is Panamanian, we lived 8 years together in the U.S., and we just decided we wanted a fresh, new start. Since she’d given my country a try for so long, it just made sense to try hers. Plus, I’d constantly moved our family from one place to the next in the U.S., at the whim of my employer, and it got to where my family was alone all the time.
For holidays, birthday, and any other significant event, it was only us. We’d just had twin boys, making it 4 kids total, and we wanted our kids to be surrounded by family and a warmer atmosphere. Panama is very family-oriented. Now, my kids have more of a life than we do. It seems they’re always at a cousin’s birthday party or a family get-together. We’ve lived in Panama going on 5 years.
Where were you living previously?
Prior to moving to Panama, we were living in Columbus, Ohio.
We’ve lived all over the place though. We started our family in Anchorage, Alaska, when I was stationed there while in the U.S. Air Force. From there we moved to South Florida (Boca Raton and Palm Beach Gardens) and then on to Chicago, Illinois before finally landing in Ohio.
What do you do with your time?
I spend most of my time working on my website, which is a site dedicated to helping people understand everything about Panama before they make the decision to move here. We (my family and I) travel all over this country. I write detailed reports and put together videos about each province, town, and neighborhood in Panama.
I tell you all about the cost of living, entertainment, utilities and infrastructure, medical care, and everything else you need to know. Plus, I write a lot of blog posts and articles giving people tips and pointers about living in or visiting Panama.
For example, I just wrote this post about the new Metro train system in Panama or my newest, probably most popular post yet on dating in Panama and if you just want to learn about one of the neighborhoods, here’s a video on the most popular beach town in Panama.
When I’m not working on Panama For Real, I’m busy punching out my next novel. If you happen to like dark urban fantasy (very action-packed and violent) check out my first novel, Mirror Images Book 1: The Darkness of Man. It’s only $.99 right now on Amazon (for Kindle).
What surprised you when you first came to Panama?
What surprised me most about Panama is how easy it actually is to live here. You spend so much time contemplating and trying to make sense of everything involved in a move overseas.
Then, when you finally do it, you realize it’s not all that difficult. You just have to adapt to your new lifestyle. The two most difficult things are learning Spanish (something I’m still struggling with all these years) and learning to truly relax.
Most people move to Panama because they want a slower pace, but they don’t realize what that actually means. Yes, it’s much more chill here in Panama. Everything slows down, but you have to realize that means EVERYTHING, to include anything involving the government. Don’t expect to get any paperwork filed easily. It takes forever here.
If given a chance, which other South American country would you want to live in, and why?
This is a tough one. Which country other than Panama would I like to try? If I could afford it, I think I’d have to say Argentina. Have you ever seen the photos and videos of the Argentina vineyards? I’m not even a wine drinker (I like my beer), but I think owning a vineyard would be awesome. And Argentina just looks so stunning. Yes, I’ll go with Argentina.
Expat Interview #3: Elizabeth Vance
Elizabeth Vance
Why did you choose to move to Panama? And how long have you lived there?
My former executive position brought me to Panama six years ago. We’ve lived since then – almost six and a half years.
Where were you living previously?
In the Chicago, Illinois area.
What do you do with your time?
I’m a writer and the bestselling author of two books about Panama. They include The Gringo Guide to Panama: What to Know Before You Go, and The Gringo Guide to Panama II: More to Know Before You Go. Both launched in the last 18 months, and have hit #1 and #2 for books about Panama on Amazon during that time.
In addition to writing, I run our household (which is more than it sounds like, but this is a developing nation, so everything takes longer than expected), and I consult part-time with companies considering moving to Panama and setting up business in Latin America.
What surprised you when you first came to Panama?
Ha! Almost everything. Probably the biggest thing that surprised me was that the city of Panama appears so glamorous with all the skyscrapers and glitzy night clubs and gorgeous hotels, but when you get down to conducting business and day to day life, the inefficiency and processes of getting anything accomplished can be exhausting.
Things here generally take three times longer to get done than they might in the U.S. I talk a lot about this and the realities of acclimating to life as an expat coming from North America to Panama in my first book.
If given a chance, which other South American country would you want to live in, and why?
I adore Colombia for the people and the culture. Bogotá is my favorite place, and my husband loves Medellín. The people are welcoming and warm. The food is delicious, and the shopping (especially for silver and leather goods) is fantastic.
Add that to the stunning mountain backdrop of either city and you have a winning combination. The ability to travel easily from Panama to every other capital in Central and South America is another reason why we chose to relocate here. That’s also a topic I cover in the second Gringo Guide book.
You can read more about me and my stories about Panama here.
Alex E. Proimos
The nation of Panama has touted itself as “The Way.” The way to adventure, the way to realizing your dreams, the way to a dream vacation, or the way to whatever it is you may be looking for.
And it’s true.
Every year thousands of expats are finding exactly what they’re seeking in Panama. Whether it’s an opportunity to start their own business, the ability to experience new adventures with their family, or just a quiet place to settle down and enjoy the fruits of their labors.
So, what is the secret to Panama’s appeal? There are actually too many to name. But here are just a few facts about Panama and why expats continue to pick it as their destination of choice.
1. Panama has unmatched natural beauty and biodiversity.
Christoffer Undisclosed
Almost half of Panama’s land mass consists of rainforests, mountain cloud forests, and mangrove wetlands. And they’re all teeming with an abundance of flora and fauna. Not to mention all the aquatic species in the surrounding seas and coral reefs.
Much of the country’s biodiversity is due to its strategic position as a “biological corridor” connecting the Americas. Its Darien province, which is almost impenetrable and lacks much infrastructure, is considered by some as one of the most biodiverse areas in the entire world.
It’s home to jaguars, harpy eagles, American crocodiles, giant anteaters, and more. Among the country’s other species are over 10,000 types of plants (including 1,200 varieties of orchids and 1,500 types of trees) and over 250 types of mammals, several of which can be found nowhere else in the world.
2. Turtles and whales and birds…Oh, my!
Of all the animals to see in Panama, few are as prevalent and as fascinating as these. Five of the eight species of sea turtles in the entire world swim ashore to nest on Panama’s beaches. Several national parks encompass havens for these turtles that swim in by the thousands to lay their eggs in the sand.
Panama is also home to a whopping 972 species of birds, more than the U.S. and Canada combined. You can observe them in the mountains or in the mangroves. One of the best places is in Baru Volcano National Park, where you can spot the Resplendent Quetzal along with many other species.
Every year from June to November, humpback and sperm whales migrate to Panama’s Pacific Coast to mate. The sight of them leaping out of the water in areas like Coiba, the Gulf of Chiriqui, and the Pearl Islands is quite a sight to behold.
3. Finding the right climate in Panama is almost as easy as adjusting your thermostat.
In general, Panama has a warm, tropical climate with very little seasonal variation. Coastal areas are much more hot and humid, and the mountain towns are more temperate with less rainfall. The year is essentially divided into a rainy season (roughly April to December, give or take a month or two depending on location) and a much drier rest of the year.
Finding the right climate for you basically involves testing out spots on a sliding scale from Caribbean to Pacific and from lower to higher elevations. The Pacific coast is a bit cooler and drier, with a nice evening breeze. The Caribbean side, by contrast, gets significantly more rainfall and is a few degrees warmer.
Likewise, you can also adjust your temperature and humidity by moving further up into the mountains. It gets cooler and cooler (maybe even too cool for some), with areas like the Cordillera de Talamanca in western Panama even seeing a little bit of frost.
With such great weather year-round, Panama’s residents can enjoy its beauty and opportunities for adventure in every season! In other great news, while parts of Panama do see the occasional strong thunderstorm, it’s outside the hurricane belt.
4. Panama is an ocean lover’s paradise.
Diesel Demon
Panama is a narrow isthmus that connects Costa Rica in Central America with Colombia in South America. It’s lined by miles and miles of coastline on both the Pacific Ocean and Caribbean Sea. Its coastal ecosystems consist of gorgeous beaches, rocky cliffs, mangrove forests, and coral reefs.
As a result, Panama’s coasts offer opportunities for every water sport and activity imaginable. Coiba National Park contains the longest reef on Central America’s Pacific coast. Both it and Chiriqui Gulf National Marine Park are great places to go diving or snorkeling or watch whales and dolphins.
The name “Panama,” in the Indian language, means “abundance of fish.” It’s a great place for sport fishing, as a number of world record fish were caught of its shores. Surfing is also popular in Panama, particularly in world-famous Santa Catalina. Other available water sports include paddle boarding, kayaking, and kite surfing.
5. Panama’s fun doesn’t stop at the shore.
Panama’s interior offers a wealth of other options for adventure. Many hiking trails wind through the country’s jungles and rainforests, including several that run through Metropolitan Natural Park in Panama City, the only protected forest in Central America that’s located within the city limits.
A hike to the summit of Volcan Baru, the country’s highest point, affords visitors the opportunity to simultaneously take in views of both the Atlantic and Pacific Oceans. The most intrepid adventurers often start this hike at midnight in order to reach the peak by sunrise.
Not far from Volcan Baru, also in the Chiriqui province, is the mountain town of Boquete which offers some of the world’s best zip lining tours through the canopy of the cloud forest. The area also has some first-rate places for kayaking and whitewater rafting, with rapids ranging from Class III to Class V, depending on the season.
6. Panama’s capital city is truly cosmopolitan.
Jasperdo
Much of Panama enjoys great infrastructure for a developing country. In Panama City, it’s top-notch. There’s world-class shopping, fine dining, museums, modern medical facilities, and much more. And recent urban development has attracted even more residents to this thriving hub.
But it’s not all concrete and skyscrapers. As mentioned, Panama City has a 655-acre rain forest within its limits. There you can find a variety of birds and mammals, including toucans, parrots, and sloths.
There’s also a coastal strip with lots of green space that leads to the Old Town, Casco Viejo. This area, a UNESCO World Heritage site, is a unique blend of ancient and modern. With its boutique hotels, located in historic buildings, and open-air cafes it’s an eclectic mix of people and cultures.
7. Panama is a unique and diverse blend of people and customs.
Speaking of culture, Panama is a great place to go if you want to experience the real, authentic customs and traditions of a nation’s people. Panama is still home to 7 different indigenous tribes, although they represent only 6% of the country’s total population. They live in groups called comarcas, which are self-contained sovereignties, with many being very welcoming to visitors who want to observe how they live.
Among the cultural heritage of these ethnic groups are indigenous dances, like the tamborito and congo. They also produce a variety of handmade arts and crafts. These include molas (patchwork pictures that can be sewn to garments or used as pillow covers or wall hangings), jute bags, wood carvings, beaded jewelry, and woven baskets. (However, one of the most commonly mistaken facts about Panama is the origin of the Panama hat. It actually hails from Ecuador.)
Locals also celebrate a number of festivals, most notably Carnival which takes place four days before Ash Wednesday. Towns elect two queens to represent separate sections of the city. For five nights, the queens and their troupes entertain the crowds with parades, dancing, and fireworks.
8. The Panama Canal is an amazing piece of living history.
The largest contributor (directly and indirectly) to the nation’s GDP, the Panama Canal is such an integral part of the story of the country’s progress. And it’s currently undergoing a massive expansion.
The 90-year old waterway, which is already operating at almost 100% of its ability, will have doubled its capacity by the time its over $5 billion expansion project is completed in 2015. A new Observation Center gives visitors the opportunity to watch the construction, as well as take in views of Gatun Lake. Also available are full and partial tours through the canal, where visitors can experience the journey for themselves.
9. Panama enjoys a pleasantly low cost of living.
While it’s true that the cost of living is low throughout most of Latin America, it’s difficult to find a much better bang for your buck than in Panama. Costs vary, of course, from one area to the next (with larger cities requiring much more money to live on than more rural areas).
However, it’s within reason that a couple could enjoy a nice standard of living for $1,500 or less, including rent, in most parts of Panama. And that includes such luxuries as the services of a maid and gardener.
Other services that are quite reasonable in Panama include reliable high-speed internet, public transportation, and excellent health care.
10. Panama is an excellent place to invest or do business.
Not only is Panama a great place to visit or live, it’s very friendly to investors or those who want to open a business, particularly in the tourism industry. Its tax laws are favorable, and setting up a Panamanian corporation is relatively simple.
The government has also recently signed into legislation a number of incentives that make it even more attractive to invest in Panama.
Whether you want to start up an outfit that offers ATV jungle tours, or you just want to buy a piece of land and build your own little piece of island paradise, Panama is a great place to make that happen.
Bonus Facts About Panama…#11. Panama is home to two Adventure Colonies.
I know what you’re thinking. What’s an Adventure Colony, right?
Adventure Colonies are our one-of-a-kind developments that are specially tailored towards would-be expats like you who share our love for the natural environment and a life lived a bit more simply. After reading these facts about Panama, I’m sure you can see why we chose it for our first two projects.
Playa Burica is located on Panama’s Pacific coast on a peninsula the country shares with Costa Rica. Its oceanside lots are covered with untouched jungle, making it great for adventure lovers. It’s also a savvy investment choice, as several factors make the area prime for a boom in the coming years.
Our newest development, Boca Chica Island, is a 400 acre private island covered in jungle and rainforest. It lies 10 minutes off of Panama’s Pacific coast and is surrounded by about 50 other mostly uninhabited islands. We think Robinson Crusoe would approve.
If your idea of a dream destination abroad involves something more–or in this case, less–than a string of high-rise condos and all-inclusive resorts, then maybe an Adventure Colony could be right for you.
Map of Panama
Panama Fast Facts
- Population: 3.8 million
- Typical temperature: Temperature typically varies from 72°F to 91°F
- Nearest airport with U.S. flights: U.S. Bound flights leave daily from Tocumen International Airport
- Nearest U.S. consulate: Panama City
For would-be expats looking to relocate to Central America, Costa Rica and Panama are natural front runners.
And for good reason.
Located adjacent to one another at the southernmost end of Central America, the two are quite similar in many ways. Both consistently top the lists of best places to retire in Latin America, and the world for that matter.
They both boast amazing vistas, near-perfect climates, modern amenities with a low cost of living, excellent health care, and some really great options for how you can spend your free time. However, there are a few areas where one nation has a slight advantage over its neighbor.
While many areas of consideration depend largely on personal preference, we lined up Panama vs. Costa Rica in a head-to-head cage match to see which one comes out on top.
Use the Infographic on Your Own Site
Round #1: Lifestyle Hacks
Advantage: Costa Rica
Both Panama and Costa Rica offer the opportunity to simplify your life by hiring out a number of services that, quite frankly, you’d just rather not have to do on your own. You can easily enlist the help of a gardener, a driver, a tutor for your children, or even a full-time maid who cleans your house, buys your groceries, does your laundry, and prepares your meals six days a week (for less than $15 per day).
While the costs are fairly close, domestic help can be a bit more expensive in Costa Rica. Why’d we pick it as the winner if it’s the more expensive of the two? Easy.
When comparing Panama vs. Costa Rica, Costa Rica has a much more customer-oriented service culture. So, while you may pay a few more dollars per day for domestic help in Costa Rica, the extra money is totally worth it in terms of the quality of personal service you’ll receive.
Round #2 – Connectivity
Winner: Panama by a Landslide
Due in part to a long-standing U.S. military presence, Panama is one of the most connected countries in Latin America. Broadband internet service is available in most cities and is very affordable. There are also numerous free wi-fi hotspots nationwide.
In fact, Panama was recently named #2 in all of Latin America for technology and internet penetration. It also earned the #1 spot for wireless availability. That’s why so many multinational companies like Dell, 3M, and Philips are choosing to establish regional headquarters there.
By contrast, Costa Rica is light years behind its Central American neighbors in terms of internet speed. Although its average connection speed has increased 43% percent in the past year, it’s still only 2.1 megabytes per second. (Streaming a movie requires 1.5 Mbps, or 4 Mbps in high definition.)
Brian Gratwicke
Round #3 – Living Options
Outcome: Varies by Region
This category is a hard one to call. Both Costa Rica and Panama have such varied topography and eco-climates. Not to mention all the other factors that can vary greatly from one region to the next, such as climate, infrastructure, and proximity to attractions.
For comparison’s sake, we’ll compare Panama vs. Costa Rica in four subcategories and examine the top cities expats are choosing for each type of area.
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Mountain towns…Winner: Panama A popular mountain destination for North American expats in Costa Rica is Atenas. Located in the Central Valley, it enjoys mild weather year-round, great views of the surrounding mountains, proximity to San Jose, and an established expat community. Boquete, Panama, offers all those things plus cooler temps, better roads and infrastructure, and a million things to do nearby, from ziplining through cloud forests to climbing volcanoes to sport fishing off the coast.
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City living…Champion: Panama Again Panama City, the nation’s capital, is a vibrant cosmopolitan city that caters to residents and travelers looking for both business and adventure. It offers world-class shopping and dining, as well as a 655-acre rain forest that’s within its city limits. On the other hand, San Jose, Costa Rica, is much smaller, much less attractive, and much more limited in terms of anything interesting to do.
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Beach communities…Advantage: Costa Rica Beach living is right in Costa Rica’s wheelhouse. Towns like Nosara and many, many more have been drawing nomads and expats for decades, and the country caters very well to this genre. Costa Rica’s beach towns have everything you need, from aquatic adventures to quaint accommodations. Panama has a few good options, such as Coronado near the capital, but none can hold a candle to the laid-back coastal cities of Costa Rica.
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Island retreats…No Contest: Panama Costa Rica was almost a no-show for this match. There just simply aren’t many island living options available for comparison. Cano Island offers a serene natural setting among the reefs, but with such slim pickings island ownership is pretty much out of the question. However, in Panama, you can own your own piece of paradise on our own Boca Chica Island, a 400-acre private island offering lots ranging from 5 to 50 acres. It’s just off the coast in an area that’s surrounded by a multitude of land and sea adventures.
Round #4 – Green Living
Winner: Costa Rica, Hands Down
Both Panama and Costa Rica have great options for living in harmony with nature. However, Costa Rica is committed to protecting its natural environment, due largely to its importance in the country’s eco-tourism industry. Almost ¼ of its total area is dedicated to parkland.
Over 90% of the country’s electricity comes from renewable energy sources, with a plan to increase this to 95% by 2014. It’s also on its way to becoming the first carbon-free economy in the world.
Both countries have tons of options for eco-tourism, from jungle tours to mangrove exploration to scuba diving.
Smilla4
Round #5 – Cost of Living
Slight Edge: Panama
Panama and Costa Rica both boast a cost of living that is a fraction of that of the U.S. or Canada. However, from the cost of property to the cost of a bunch of bananas, prices are a bit lower in Panama on average.
It’s true that in both countries there are certain regions or cities (typically the most developed or heavily-touristed areas) where everything from rent to a three-course meal runs close to North American prices, but in general you can find more places in Panama where those expenses are considerably less.
One of the largest contributing factors to Panama’s affordability for many expats is its Pensionado Program. Available to “retirees” of any age, those who meet the income requirements can qualify for discounts ranging from 15-50% on everything from health care to entertainment.
Round #6 – Ease of Access
Verdict: It’s a Tie
Panama and Costa Rica are fairly neck and neck in this category, each for their own reason. Panama takes the prize for international arrivals and departures. Its Tocumen International Airport has flights to several North American cities, as well as various points in South America, making Panama a great destination for those who want easy access to faraway places.
Costa Rica wins for being a great jumping-off point for other adventures throughout Central America, due to its more central location and affordable travel options.
Round #7 – Business Climate
Advantage: Panama
The International Finance Corporation ranked Panama 55th in the world for ease of doing business, compared to a rank of 102 for Costa Rica. Their findings are based on an examination of 10 factors to determine which countries are most conducive to the startup and operation of a local business.
And the difference is obvious if you’ve experienced the business climate of the two nations. Panama’s government is extremely pro-business and pro-investor. It’s also something of a tax haven. Costa Rica on the other hand is much more bureaucratic, with slower processes and higher taxes and fees.
Arturo Sotillo
Round #8 – Banking
Winner: Costa Rica (For Now)
With changing regulations, in both the U.S. as well as Costa Rica and Panama, this category tends to fluctuate greatly over time. However, for the past few years at least, banking for North Americans has typically been easier in Costa Rica.
This is mainly in terms of opening and holding a bank account. Both countries share many of the same requirements (identification, proof of residence and income, etc.). However, Costa Rica only requires a $25 minimum deposit (vs. Panama’s $1,000). Panamanian banks may also ask for additional documents such as proof of employment or reference letters from one or more North American banks.
One difference worth noting is that Panama’s official currency is the dollar, while Costa Rica uses the colon. Because it’s so thinly traded, the colon generally follows the dollar. However, in the event of a financial crisis, this could mean problems for Costa Rica.
Round #9 – Investment Opportunities
Our Pick: Panama
To put this showdown into perspective, let’s use the analogy that Panama is basically the Costa Rica of twenty years ago. When North American retirees began to get tired of the overcrowded expat communities and rising costs of Mexico, they turned to Costa Rica. Now that Costa Rica has reached mega-expat status, people are looking to Panama.
Costs are still lower and, as a result, there is much more capacity for growth. In addition to those factors, the Panamanian government is and has been placing heavy emphasis on tourism investment, largely in the form of tax incentives. It’s also possible for foreign residents to obtain financing in Panama, something they can’t get in Costa Rica.
Round #10 – Healthcare
Outcome: Too Close to Call
Healthcare is excellent in both Costa Rica and Panama. The two countries both have inexpensive public health care, with Costa Rica’s being touted as one of the world’s best low-cost medical programs. In fact, the quality of its health care system is ranked 36th in the world by the WHO, with the U.S. in 37th place.
Both countries also have private hospitals available, where many of the doctors speak English and trained in the U.S. Panama has several state-of-the-art hospitals that are affiliated with world-renowned facilities in the U.S., such as Johns Hopkins.
Panama’s only drawback is the accessibility of its modern private medical facilities. They’re often found only in the largest cities, specifically Panama City and David. Those in rural areas may have trouble finding the care they need, as often only first aid is available in the most remote areas.
World Bank
Round #11 – Consumer Goods
Winner: Panama
We mentioned that the cost of living is slightly higher in Costa Rica. This is especially true when it comes to consumer goods, like groceries–for instance–which generally run about 15-20% higher than in Panama. Exports are also taxed more heavily in Costa Rica, so as a result a lot of products are much harder to find.
Costa Rica also has a higher value added tax (VAT), 14% vs. 7% in Panama. It also has a lot more taxes on luxury items like cars, electronics, and appliances. Compare this with Panama which has lower taxes and even a number of duty-free zones.
These factors have made Panama quite the shopping hub for folks in Latin America. In fact, on one of our last trips to Ecuador we met some people who were on their way back from Panama City where they’d gone specifically to buy several flat screen TVs, due to the country’s lower prices and better selection.
Round #12 – Foreign Land Ownership
Undisputed Champ: Panama
Panama has virtually no restrictions on the ownership of property by foreigners. In fact, there’s only one, and here it is. Foreigners, or foreign owners of Panamanian corporations, can’t own property within 10 kilometers of the country’s borders. That’s it. Also, under Panamanian law, foreigners have all the same protections as citizens.
By contrast, Costa Rica’s land ownership laws are not as liberally applied to foreigners. Land considered restricted or concession areas, including 95% of all beachfront property, is not eligible to be owned by foreign residents (unless they’ve lived in Costa Rica for at least 5 years). The only option for use of this kind of property is through 49% ownership in a corporation with a native Costa Rican.
The buying process is also much easier in Panama, where a good attorney can help to simplify things like title searches, purchase agreements, and the registering of the deed.
Coco Lime Monkey
Panama vs. Costa Rica…Which is the Grand Champion?
Were you keeping score during that match-up of Panama vs. Costa Rica? If so, we would advise you to take our recommendations with a grain of salt. Panama and Costa Rica both offer a host of great places to live as an expat. And determining which one is right for you depends 100% on your values and what you want out of your life in a new location.
Want to Learn about Residency Options?
Each one of these countries has different strengths, but you can listen to our interviews with the experts and find out what it takes to become a resident or if you need to do it at all. The Costa Rica residency interview is here and the Panama residency discussion can be found here.
Our best advice? Plan a trip down to Central America. Check out both of these amazing expat destinations and choose for yourself which one is right for your family.