As many expats and investors have already discovered, living in your own tropical paradise is not an unreachable dream. In particular, Panama real estate has become the best choice for a 2nd home in the tropics for a wide variety of reasons.
Finding a destination that is affordable, provides stability, and offers a good return on initial investment can be a challenge. More and more people are finding that Panama real estate checks all those boxes.
Top Reasons Why Panama Real Estate Is the Best Choice
There are many reasons why Panama real estate has become the preferred choice for a 2nd home or retirement destination. Below is a list, in no particular order, of some of the top reasons to pick Panama.
Location, Location, Location
Panama is readily accessible from many U.S. airports. As such, it is ideal for those wanting to stay connected back home even while they enjoy their time in the tropics. Daily, regularly scheduled flights, from at least 15 U.S. cities, make traveling to and from your second home affordable and easy to arrange.
Expat-Friendly
Panama has developed many expat-friendly programs that make living there an easy transition. A streamlined residency process, ease of obtaining work permits (for those so inclined), discounts for retirees, and a growing expat presence, are just a few of the features that draw investors, retirees, and those seeking a tropical escape.
Some of the many programs geared toward retirees can result in significant savings. Discounts of 30% on all forms of public transportation, medical services (including prescriptions) that can range from 15% to 20%, even savings of up to 50% on personal and commercial loan closing costs make choosing Panama as a second home an economically attractive option.
One of the most important features of Panama life is the growing number of English-speaking expats. While having some knowledge of Spanish is important, finding someone who can help translate is easier than one might imagine – especially in the larger areas like Panama City.
Climates and Contrasts
Panama has many comfortable climate options that range from cool and comfortable in mountain locales – such as Boquete – to hotter, humid, beachfront areas like Rio Hato. For those desiring the island lifestyle, the Las Perlas Island group on the Pacific side and the San Blas Islands on the Caribbean coast have some of the best beaches in the country.
Fast-Paced or Laid-Back
Having the choice of city living or rustic country life is yet another reason why Panama is a great choice. The selection ranges from Panama City, a vibrant, modern city with a skyline resembling Miami’s South Beach, to more rustic towns, like David and Chitre, which provide a more authentic village experience.
The U.S. Dollar
Perhaps one of the most important pluses for choosing Panama is the fact that the U.S. dollar is considered legal tender for daily transactions. Not having to go through the inconvenience and expense of converting money can make transactions, such as purchasing Panama real estate, much easier.
Being able to use U.S. currency for real estate transactions is especially attractive given the global fluctuation and uncertainty that impacts the value of many foreign currencies. This convenience also makes it much easier to budget for both the near term and longer time frames.
Stability
The stability of the Panamanian government greatly reduces the risk of investing in a foreign location. According to the Institute for Economics and Peace 2016 Global Peace Index, Panama is only one of 10 countries, worldwide, that is free from conflict.
A major advantage of this political stability is a sound legal system. Article 44 of the Panamanian Constitution guarantees protection of private ownership of real property.
These legal protections apply to both foreign investors as well as Panamanian citizens. Having this kind of security makes the investment decision much less complex.
Favorable Taxes
Although the 20-year exemption on property taxes ended in 2009, Panama’s revised tax structure still compares favorably with that of the U.S. With a 10-year exemption for property valued under $250,000, and a 15-year exemption for property under $100,000, buying Panama real estate certainly is a favorable investment long-term.
Price
Prices for property in Panama still compare favorably with neighboring Latin American countries. It can be anticipated, however, that as the market expands, the value of international real estate will also increase.
The Bottom Line
Panama’s popularity and features have made it the best choice for your home in paradise. But just because Panama is growing, that doesn’t make it the ideal choice for everyone.
Like all important life choices, doing your homework is a major step in the decision-making process. Even more import is actually visiting to see if Panama is the perfect place for you and your 2nd home.
As more and more retirees and young expats make their way to the Latin tropics, many cities are stepping up their game to meet the demands of this new demographic. And, as infrastructure and amenities continue to improve in many tropical cities, the cost of living is increasing at rapid rates in many locations.
Since a major consideration of making the move abroad is budget and lifestyle, it’s important that you know some of the most expensive cities in the Latin tropics and what they offer. Only then can you decide if they’re truly worth the sometimes high cost of living in paradise.
It’s important, though, to keep in mind that the cost of living in a particular area is often indicative of the level of services and amenities it offers. So, when evaluating tropical destinations and their associated costs, make sure you take the whole picture into consideration…not just the dollars and cents.
The Rising Cost of Paradise
Just as is the case with any other financial market, the increased demand for expat-friendly locations in the tropics has resulted in higher costs. Rising property values, infrastructure improvements, and the desire for more amenities “just like back home” have all combined to create larger price tags for life abroad.
Below are the four most expensive cities for expat living in all the countries we cover. The continued popularity of each of these destinations demonstrates the correlation between desirability and willingness to pay for the value-added features that each location contains.
San Jose, Costa Rica
Topping our list of the four most expensive cities in the Latin tropics is San Jose, Costa Rica. As the third most expensive city in the entire region (surpassed only by San Juan, Puerto Rico and Grand Cayman, Cayman Islands), the continued popularity of this Central American destination has resulted in higher prices, including the cost of Costa Rica real estate.
A dynamic, modern, and stable infrastructure, readily accessible “western style” amenities, such as shopping malls, internet access, cable TV, and a close proximity to major North American cities all translate into value-added features for this highly coveted expat destination. However, these desirable features do come with a higher price tag that should be taken into consideration as part of your plan for relocation.
Panama City, Panama
Close behind San Jose, on the list of the four most expensive cities in the tropics, is Panama City, Panama. According to an annual survey by Mercer Human Resource Consulting, from 2014 to 2015 Panama City’s cost of living has climbed 41 positions among all international locations surveyed and four spots in Latin America alone.
The continued expansion of new commercial investment and the accompanying improvements in infrastructure have resulted in increased housing prices and a growing demand for American style homes. Since that demand is outpacing the inventory, it’s far from being a buyer’s market.
Tegucigalpa, Honduras
It may come as a surprise to many that Tegucigalpa, Honduras has become one of the most expensive cities in Latin America in which to live. The upswing in foreign investment since the early 2000s has brought with it the cost of improving the infrastructure of the city to meet the demands of the 21st century.
While not as popular as…say, the island of Roatan, Tegucigalpa still offers high level of amenities at a price point that is less than some of the more popular tropical destinations. It can be anticipated that as growth continues, prices will stay on the rise as well.
Quito, Ecuador
Last but not least on this list is Quito, Ecuador. This capital city’s popularity with expats and retirees has led to a steady increase in the cost of living. With this price hike comes a wide variety of housing options and many other big city amenities expats have come to expect.
Not everything costs more in Quito, though. Although it’s ranked as the 13th most expensive of Latin American cities, its prices for gas and public transportation are still far less than any of its neighbors.
The Bottom Line: Is It Worth It?
For potential expats, the cost to live in a particular city should certainly play a role in the decision-making process. However, it shouldn’t be the starring one. Other factors to consider include location, amenities, climate, and whether it offers the kind of lifestyle you’re seeking.
In the end, only you can decide whether these and other tropical destinations offer sufficient bang for your buck. If you have cities you’re considering, spend some time there to see if the expat experience they offer lives up to the price point they demand. Only then can you make the move knowing you’ll never regret the decision you made.
To bribe or not to bribe? That is a very good question. On the one hand, it’s (usually) against the law. Then again, so is speeding. Yet both are commonly done in Latin America, where you can bribe your way into everything from pardon for a traffic violation to no-bid contracts for infrastructure projects.
In general, we think it’s a bad idea. Not only can offering a bribe land you a fine or even some jail time, it can also be detrimental to the legal or economic systems that fall prey to it. It violates the trust between citizens of a country and its elected leaders. It’s ultimately not a very effective way of doing business. It’s also earned Latin America a bad rap.
That being said, we’re talking about a part of the world where regulations often seem rather asinine, and processes that should be relatively painless can end up dragging on for months. So, if a $20 bill can get you out of a $400 ticket or a small favor can get your paperwork pushed through a little faster, then, by all means, bribe away.
But do it at your own risk.
Here are a few tips to know before you start your negotiations.
1. Your best bet is to know the laws or requirements and honor them.
Being proactive in educating yourself on a country’s laws will keep you out of many of the situations where you might find yourself resorting to a bribe. Find out whether you need an international driving license or if your U.S. identification will suffice. Know all the paperwork that’s needed before you apply for a visa or a building permit.
By doing your best to play by the rules and abide by the law, you’re far less likely to end up in a situation you’ll need to bribe your way out of. Furthermore, as a gringo, you’re already a natural target. You’re more likely to get pulled over or hassled over a seemingly routine process. This is likely due largely to the fact that North Americans are perceived as being rich and carrying around wads of cash.
So, since you’re already practically begging to be solicited for a bribe, don’t do anything else to call attention to yourself. Like riding around in a Jeep with surfboards strapped to the top of it blaring Bob Marley.
2. If you do find yourself in a bind, try some smooth talking first.
A lot of people you’ll deal with in Latin America, from border patrol to bicycle cops, are less than thrilled to be doing what they’re doing. They’re often overworked and underpaid, and sometimes they’re just plain tired of standing in the hot sun dealing with the likes of you.
As a result, a smile and a “gracias” or “por favor” can often go a long way. If they still won’t bite, there’s also the option of playing that gringo card and actually using it to your advantage. “But, ma’am, I didn’t know I needed a copy of my bank statement to go with my application.” Or “No, officer, I had no idea my rental car had an expired tag. I’ll go right now and let them know, and you can get on back to your air-conditioned patrol car.”
3. If a bribe is unavoidable, just don’t be the one to bring it up.
When you find yourself in a dead-end situation, you’ll know when you’ve finally reached a stalemate. You’ll have made your case, and they’ll have made theirs. And then comes the silence. The moment where you know it’s time to either give in or up the ante.
If you do decide to offer a bribe, make sure you phrase it carefully. Don’t offer money or favors outright. Just ask if there’s another alternative, a mutually beneficial way to get what you’re after, or an incentive to speed up the process. “Officer, are you sure revoking my license is the only option?” or “Sir, is there anything I can do to help get my application to the top of the pile?”
And then shut up.
Once the ball’s in the other person’s court, it’s up to them to either propose the terms or shut it down. If they threaten any kind of recourse, backpedal like hell. It’s also best to make sure no one else is in earshot of your conversation. An official is much more likely to take the bait if no one’s around to know about it.
4. Only risk as much as you’re willing to lose.
It’s worth a few dollars to have a tour guide let you photograph a rare exhibit, and $20 is nothing compared to a hefty fine and a court appearance. But be careful bribing when it really counts.
There are several reasons for this. One is that it rarely ends with one bribe. If you pay your way out of one requirement, you’ll be fully expected to fork over even more to get over the next hurdle. It’s a slippery slope.
Another reason is that there’s less of a guarantee that things will be done right. And, if you paid a bribe to make it happen, there’s very little you can do about it without implicating yourself. Not to mention, Latin American officials and policies often change completely with every new election. Just because you paid off a prior official, you could find yourself right back at square one (or, worse, even further behind) when a new administration takes over.
Bottom line? If you bribe your way out of a traffic violation, about the worst that could happen is that you end up with the fine or ticket anyway. But try it in a business setting, and the repercussions could be much worse.
If you know anything at all about Panama, you’re likely aware that it’s tropical, has amazing beaches and cool mountain locations, and is a great place to take up a second residence.
Here are 20 lesser known facts that show why this popular expat destination is worth a second look, whether merely for a visit or as a potential place to start the next chapter of your life.
- Panama contains the only place in the world where you can see the sun rise on the Pacific and set on the Atlantic…from the same spot! At the country’s narrowest point, only 80 kilometers separates the Atlantic from the Pacific Ocean.
- Panama City, the nation’s capital and largest city, is the only capital city in the world that has a rain forest within its city limits.
- The total population of Panama is around 3.6 million with 1.5 million of those living in Panama city.
- The official language of Panama is Spanish, but English is widely spoken. More so in the urban vs. the rural areas.
- Panama celebrates two independence days, the first from Spain in 1821 and the second from Colombia 82 years later in 1903.
- Panama was the very first Latin American country to adopt the U.S. dollar as its official currency.
- Major driver’s of Panama’s economy include cargo ships, the exportation of refined petroleum, and tourism.
- The Panama Canal was built by the U.S. Army Corps of Engineers between 1904 and 1914. It’s considered one of the seven modern World Wonders.
- More than 12,000 people died in the construction of the Panama Railroad.
- Panama is located south of the hurricane alley, so it is rarely affected by tropical storms or hurricanes.
- Panama is home to 10,000 different plants species, including 1,400 varieties of orchids, 678 ferns, and more than 1,500 varieties of trees.
- There are two basic seasons in Panama: the dry season from December to April and the rainy season from May to November.
- Panama has more than 976 bird species, which is more than the United States and Canada combined.
- All vessels going through Panama Canal have to pay a toll. The toll is based on the type of vessel, its size, and its cargo. The highest toll ever paid was $376,000 by the Norwegian Pearl cruise ship in 2010.
- Panama grows some of the world’s finest coffee, which can be tasted at Starbucks and other coffee houses worldwide.
- At 11,397 feet, the highest elevation in Panama is Volcán Barú, which is located near Boquete.
- Panama has the second-largest duty-free zone in the world, the Colon Free Zone, second in size only to Hong Kong.
- For a relatively small country, Panama boasts many miles of pristine beaches, with more than 1,500 miles (2,490 kilometers) of shoreline.
- The Panamanian constitution gives foreigners and citizens the same right to own property.
- The Panama Hat actually originated in Ecuador.
- Senator John McCain was born in Panama, in the Canal Zone which was at that time considered U.S. Territory.
- Panama has a 100% tropical climate with temperatures ranging between 80-90 degrees.
Want to learn more about Panama? You should check this incredible destination out for yourself!
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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!
Finding good medical care in a new country is an area of concern for many potential expats. Fortunately, thanks to the quality Panama health care system, those considering this tropical destination won’t need to lose any sleep over that issue.
With state-of-the-art facilities–including one partnered with the prestigious Johns Hopkins Hospital–and English-speaking, U.S.-trained doctors, it’s no wonder many expats claim the health care in Panama is one of the biggest perks of living here.
However, like anything else, the Panama health care system is only as good as you make it. So, here are a few tips from seasoned expats on how to really get the most from the health care in Panama.
1. Evaluate your need for health insurance.
There are a number of options for those seeking health insurance in Panama. They’re also pleasantly more affordable than the plans available to most North Americans, Obamacare notwithstanding.
Within Panama, there are HMO plans that reimburse services from in-network providers. There are also international plans that will cover you outside the country’s borders.
A few U.S. plans are even accepted in Panama, but that’s something you need to carefully look into BEFORE you find yourself needing treatment. Also know that Medicare does NOT cover medical costs outside the U.S. (including repatriation of remains), although Hospital Nacional in Panama City does provide services for active and retired members of the U.S. military (through TRICARE).
Many private hospitals have membership programs that offer sizeable discounts on medical procedures performed at that facility. Since Panama health care is already affordable (often ¼ to ½ the cost for the same services in the U.S.) some expats choose this option and then self-insure their medical expenses.
2. Understand the Panama health care system.
You may have heard that Panama health care is affordable or even “free,” and that’s true to an extent. However, that doesn’t mean that all facilities and providers are created equal. Here’s an explanation of the three types of clinics you’ll find in Panama and what you can expect from each.
National Health Care Clinics – These clinics, run by the Ministry of Health, are easily recognizable by the signs bearing the word “salud” and a green and yellow Staff of Asclepius (the rod entwined with a serpent, an icon of the field of medicine).
While they’re designed to treat Panama’s poorest citizens, often in remote areas, they provide care to anyone. Charges are as low as 50 cents for a doctor visit, but the quality of care is often equally low and inefficient.
Social Security Clinics – Most of Panama’s working class pays into the country’s social security system, or Caja de Seguro Social (CSS). As such, they have access to health services, emergency care, and maternity care at public clinics.
While these facilities are often plagued by understaffing, and overcrowding, there are also many that provide excellent care and specialized attention. Your best bet is to learn what’s available in your area so you’ll be prepared with the knowledge of where to go when the need for medical treatment arises.
Private Hospitals and Clinics – While Panama’s private hospitals are very modern and well-equipped, they’re also few and far between, with most being concentrated in the nation’s capital. However, new private clinics are popping up often, particularly in areas popular among foreigners.
Private facilities are also considerably more expensive than the public clinics (although still significantly less than a U.S. hospital). As a result, they’re generally only used by wealthy Panamanians and expats.
It’s also important to note that doctors generally expect payment up front, even for emergencies, and insurance plans usually only work on a reimbursement basis.
3. Look past the paint job.
Even the nicest Panama health care facilities don’t necessarily have the sleek, modern appearance you normally see in North American clinics. Paint may be peeling. Fabrics may be faded. The bathroom may not even have hot water, much like some Panamanian homes.
Don’t let those aesthetic differences affect how you feel about the quality of a clinic’s care. The fact that Panamanian hospitals aren’t competing to have the cushiest doctors’ offices or flat screen TVs in every room is one of the reasons they’re able to keep the cost of Panama health care low.
Instead of judging a book by its cover, ask for recommendations from other expats. Factors such as whether a facility treats your particular condition or whether the presiding doctor gives out her cell phone number easily are much more important than some tired-looking upholstery in the waiting room.
4. Take advantage of the low cost of Panama health care.
Because Panama health care is so affordable, yet also first-world quality, it’s becoming a hotspot for medical tourism. People from all over the globe come to Panama for procedures that are prohibitively expensive, including elective procedures like plastic surgery and cosmetic dentistry.
The increased interest in medical tourism has only helped improve the affordability and quality of Panama health care. As a result, many expats are also taking advantage of the low cost care.
Because so many people are traveling to the tropics to enjoy the affordable, quality Panama health care, there are even spas and resorts that cater to those recovering from medical procedures. So, while Panama has long been a great place to go for medical care, it’s becoming an increasingly fantastic place to recuperate.
Take a cue from the pros, and make sure you’re getting the most out of your Panama health care!
With more and more retirees, entrepreneurs, and families moving abroad than ever before, there are numerous websites and publications dedicated to the topic of international living – including, most notably, a print and online magazine that goes by that very name.
Their pages are filled with stunning photos of exotic destinations and bold claims about affordable living, ideal climates, and first-world amenities. While not entirely untrue, these assertions are often biased (at best) or completely misleading (at worst).
Before you buy into the hype about international living, make sure you understand the truth behind their claims. Here are a few tips to help you avoid being unsuspectingly led down the primrose path.
1. Never rely on ANY single international living resource for all of your information, including our site.
This is one tip I can’t stress enough. Every expat blogger, travel writer, or international living expert has his own opinion. Some are more candid than others. A few may tend to gloss over the unpleasant parts of living abroad. Some may even have ulterior motives that drive their recommendations.
Before you make such an important decision as where to live or invest overseas, you need to know all the facts. Dig up all the research you can find on your prospective area, even the negative stuff. Chances are, if something about the place bothers enough people, it may affect you as well.
2. Understand there’s no such thing as a “top secret” destination.
News flash. A quaint little town that some international living website labels as its best “undiscovered” destination can just go ahead and toss that title in the trash just as fast as it earned it. Places dubbed as being “off the radar” will soon be “up-and-coming,” and the next thing you know they’re “expat hotspots”!
Don’t believe me? Just look at what happened in Boquete, Panama.
Don’t get me wrong. There’s nothing wrong with moving to the place that everyone else wants to be…unless you were truly looking for a more authentic expat experience. In which case, your best bet is to “discover” the place for yourself.
3. Realize phrases like “affordable living,” “spring-like weather,” and “modern conveniences” are relative terms.
These phrases are favorites among people who write about international living. They’re also incredibly ambiguous. What’s affordable to Donald Trump is entirely out of reach for the rest of us. Spring looks a lot different in Southern California than Northern Maine. And my grandparents would consider a phone modern as long as it doesn’t have a rotary dial.
Instead of naively believing these generic claims, look for actual data that supports them. Average temperatures and rainfall are easy enough to find. Expat forums and city-specific websites can give you more info on actual prices for things like rent and utilities. They can also tell you if there’s reliable cell and internet services.
4. While you may not have to learn the language, you’re going to want to.
While it may be true that it isn’t necessary to learn the local language, especially in places with an established expat population, I highly recommend that you do. If not, you may find yourself only associating with other expats or frequenting the same handful of expat-friendly establishments over and over again, never branching out.
There may be a handful of people who would be content with moving overseas and never experiencing what international living is truly about, but I doubt it. Unless your goal is to move hundreds or thousands of miles away, only to live a lifestyle that looks almost identical to your North American one, then plan to become bilingual.
5. Make sure your anticipated budget meets your needs.
One of the biggest international living mistakes new expats make is believing that estimated costs for various expenses are one-size-fits-all. Take housing for instance. Sure, you might be able to buy a home in Boquete for $200,000. But make sure you’re considering the whole picture.
If you have to move outside the city center to find a more affordable place, you may end up needing a car. If you’re accustomed to having a pool or gym in your building, consider whether a prospective apartment has those amenities.
The same goes for expenses like health insurance. Just because it’s inexpensive for most people, it’s best to make sure you can afford coverage for any special conditions or needs you have.
6. There’s no substitute for experiencing a place for yourself.
You would think most people would have the common sense not to move abroad without ever even visiting their destination of choice, but in fact we see it all the time. Not getting the full picture of your new city, before you move there, is one of the most devastating mistakes made by expats. It’s also the most easily avoided.
Once you’ve chosen where you think you want to be, or at least narrowed it down to a few, you absolutely must visit them. Once one wins out, spend even more time there. Interact with the locals. See what it’s like in all seasons. Try to get a feel for it as a resident, not just a tourist.
Only once you’ve experienced a destination for yourself can you truly feel confident in your decision to become an expat there. No international living magazine can give you that assurance. I don’t care how many seminars they offer.
When it comes to choosing a tropical destination to call home, it’s important to know that they aren’t all created equal. It’s also important to know that just because one person or one publication loves a certain country or city, that doesn’t mean that everyone will or that YOU will.
That being said, there are a few places that stand out heads above the rest in terms of lifestyle, atmosphere, and quality of life.
We ranked cities all across Latin America in areas such as cost of living, quality of life, and potential for real estate appreciation. And we’re dying to tell you more about the three cities that blew all the others out of the water in those and other categories.
And, while not every single person on the planet would be happy in one of these three destinations, they’re hands down the top places where most people would be happy living in the tropics.
Here they are!
1. Nosara, Costa Rica
There is no place on earth quite as remarkable as Costa Rica, with its unparalleled natural beauty, friendly population, and laid-back lifestyle. Its residents are among the happiest people on the planet, and there are some obvious reasons for that.
There’s also no place in Costa Rica quite as fantastic as Nosara. It was initially established as a planned community by a North American developer. It got started on the right track and has continued to follow that original plan.
Today, it’s a tropical paradise with a first world design. There are banks, grocery stores, medical clinics, and fitness centers. Yet, due to zoning regulations, there aren’t any high-rise condos to block your view of the pristine coastline and magnificent sunsets.
The town also has numerous conservation and beautification initiatives, so it’s one of the cleanest cities you’ll find in the tropics. There’s regular trash collection, clean water, and reliable utilities.
It’s a health conscious town, and most residents regularly enjoy activities such as surfing, yoga, stand-up paddleboarding, soccer, tennis, and other sports. There are organic grocers, smoothie stands, and other healthy consumer options. There’s also plenty of nature to help rejuvenate your mind and body.
Great for Singles, Even Better for Families
Not only is Nosara a great place to live, it’s also the perfect place to raise a family abroad. There’s a large established expat community and a lot of English speakers, which makes for an easy transition. There are several bilingual schools, as well as plenty of organized sports and activities for children to enjoy.
Nosara is also an incredibly safe town. Crime is low, and there’s not much of a party scene or drug culture like you might find in other tropical beach towns. Everyone looks out for each other, and there’s a great sense of community.
While not the cheapest city to live or buy property in the tropics, Nosara offers tremendous bang for your buck. And even though it’s already a well-established town, there’s still room for appreciation and growth. As investors, we hope to be a part of where Nosara is headed.
2. Cuenca, Ecuador
You’ve probably heard a lot about Ecuador, and more specifically Cuenca, being a great place to live or retire because it’s cheap. Well, we think that’s a horrible reason on which to base such an important decision.
Yes, Ecuador enjoys a lower cost of living than many of its Latin neighbors, but there are so many better reasons to love this country and city. Here they are.
First of all, the climate is ideal. The temperature most days is in the high 60s to low 70s. It gets cooler at night, sometimes dropping into the high 40s. You only need one wardrobe for the whole year, plus a sweater or light jacket for evenings.
There’s a rainy season that runs from January to May. The rest of the year, all you’ll see is an occasional afternoon shower, perfect for a nap or some time with a good book.
Small Town Atmosphere, Big City Amenities
Also, for a fairly large city (roughly 330,000 people), it has a quaint small town feel. The colonial architecture is stunning, the people are friendly, and the carts of local farmers and craft vendors make walking the city streets a pleasant experience.
Yet despite Cuenca’s charming ambiance, there’s no shortage of big city amenities. There are internet cafes, boutiques, entertainment options, and any professional service you can think of.
What’s probably most notable about Cuenca is the incredibly diverse culture, both native and foreign. Cuenca is home to several large universities, and the zeal for learning and experiencing new things radiates through the city. There are numerous museums, free concerts, and local artists that further establish Cuenca as an important cultural hub.
Though not dirt cheap like many areas in Ecuador, Cuenca is a very affordable place to live. It has a large, growing expat community and numerous expat-friendly businesses. Health care is good. Education is emphasized. It’s a great fit for expats of pretty much any demographic.
3. Boquete, Panama
Panama, and especially Boquete, has been the darling of the international retirement scene for a while now. Not only does it have natural beauty, a great climate, and first world amenities, it also offers some of the best retirement benefits of any country in the world.
Retirees of any age can save on everything from healthcare to transportation to entertainment to utilities. And with tons of visa options, obtaining residency in Panama is about as simple a process as is possible in Latin America.
But enough about the boring stuff, what’s truly amazing about Boquete is the scenery and all the incredible opportunities to experience nature in the surrounding areas. Boquete has been dubbed both the “Land of Eternal Springtime” and the “Valley of Flowers,” and it easily lives up to both of those monikers.
At 3,900 feet above sea level, it enjoys a moderate climate with warm days and cool nights. Its location offers sweeping vistas of the surrounding valleys. And its fertile soil makes it the perfect place to grow fresh fruits and vegetables year round, as well as a variety of flowers. Its orchid fair held each March is an international event.
The Pace of Life Is Slow, but You Don’t Have to Be
The surrounding mountains offer opportunities for hiking, bird watching, white water rafting, zip lining through the cloud forests, or exploring local organic coffee farms. After a day packed with activity, the nearby Caldera hot springs are a great place to relax and rejuvenate.
Thanks to a longstanding expat presence, Boquete has most amenities you’d expect to find in an established first world city. English is widely spoken. Phone and internet service are top-notch.
Boquete is a more expensive mountain option than Cuenca, yet still affordable by North American standards. Its expat population is still growing steadily, thanks to much media hype in recent years. That’s likely to continue for years to come.
What About the Other 54?
These are the three tropical destinations we feel will appeal to the largest number of people. However, there are still 54 other amazing places you need to know about. It is possible you might love the sound of one of those even more than the three we just described. Download our free eBook and find out!
Unless you’ve been hiding under a rock, you probably saw that we recently published our Top 57 Places to Live and Invest in the Tropics eBook. It’s hundreds of pages of facts and photos detailing, based on our research, what we believe to be the best places to move yourself or your money in Latin America.
It’s a great read and, if you haven’t already, you should definitely check that out. It answers the biggest question we get asked all the time as experts on real estate investment and all things expat.
Or should I say the TWO biggest questions?
Because a lot of people assume that there are great places to live, and then there are other places that aren’t as great to live but are great areas in which to invest. And that’s not the case.
When we ranked the cities on our list, we looked at dozens of factors like climate, cost of living, accessibility. But the ones that really carry the most weight for us are these two: quality of life and real estate potential.
Those might not seem like they have anything to do with each other, but they actually do. Places that offer an incredible quality of life are naturally going to be places that are growing and have opportunities for new businesses, more housing, and other services.
Here are a few principles to help you understand how these two factors relate.
1. Quality of life is the number one thing that drives happiness.
It just is. It doesn’t matter how much of a great deal you score on a piece of property, if the place doesn’t offer the lifestyle you desire then you’re never going to be happy there. Whether the level of amenities is lacking or there aren’t enough people nearby–whatever the reason–if an area doesn’t have what you need to be happy or fulfilled, then it’s never going to work.
2. When people are happy, others start to want what they have.
We’ve seen this happen in city after city. Once a place starts to attract the right investors and the right kind of residents, then development starts to spread like wildfire. So well-planned projects lead to more businesses and better amenities. That leads to more residents, more developments. Growth naturally happens.
3. Better amenities and infrastructure mean good things for real estate.
When areas start to grow, then the government has to build new roads, install new utilities, improve existing services, etc. Those are automatic ways to increase your property value without ever having to lift a finger.
4. Spreading yourself too thin won’t make you happy either.
While we think quality of life is important, it’s not the only factor you should consider. That’s why we also included affordability and an area’s potential for real estate appreciation in our study.
Because we don’t want anybody to buy the most expensive house they can afford in an area that offers a great lifestyle, move down, find out it’s just not going to work for them, and then get stuck upside down on a property in another country because of market fluctuations. There’s a balance, and we can’t stress that enough.
5. Speculating on rock bottom real estate is best left to guys like us.
Yes, there are little-known places, undiscovered beaches, remote islands, and sleepy farming communities where an investor can find unheard of deals on real estate. But not someone investing from a suburb somewhere in Ohio.
To be able to evaluate a piece of property solely on its potential for appreciation, you have to understand that this could be a very long-term investment. Like decades. It’s not for the faint of heart, and it’s not something we’d recommend to your average North American investor.
Live vicariously through our adventures.
Instead, we invite you to look at all the factors, not just the ones that affect your pocketbook. It might not sound as pioneering as the types of projects we undertake, but that’s why we offer ways for investors to partner with us and benefit from our success in this area.
Quality of life and real estate potential go hand in hand. Check out the places that scored off the charts for both. If we think you should live there, then we also think it’s smart to invest there. And that’s exactly what we’re doing right now.
Coronado Panama has grown from the vision of its founder, the real estate entrepreneur Bob Eisenmann, to one of the most popular expat destinations in Latin America. The established infrastructure, solid reputation, and modern amenities that can be found in Coronado continue to be a magnet for expat retirees and investors looking for a Pacific paradise.
The Coronado region, as a whole, encompasses a number of smaller, rustic villages and barrios as well as the main community. The desirability of the area continues to drive the real estate market and provide several attractive options for turnkey properties and lots for development.
An Investment in Coronado, Panama Can Be Life-Changing
Coronado Panama is unique among other Pacific coast locations throughout Latin America in that it was planned and developed specifically to be a high-rise condominium community with modern resort amenities. As a result, Coronado has a well-established expat community that continues to attract new arrivals seeking investment potential and places to live or retire.
One of the biggest initial concerns that many had was the distance between Coronado and Panama City. The completion of the Pan American Highway has now made the connection between Panama’s capital and the beaches at Coronado an easy one-hour drive.
Unique Climate and Geography
Coronado, Panama is gifted with a rare meteorological and ecological aspect. Located in the “dry arch,” or arco seco region, less rainfall occurs here than in the rest of the country. Combined with the savannah-like geography, it is not surprising that the area became known as one of the earliest examples of planned agrarian culture in the Americas.
The earliest Spanish settlers recognized the potential of this land with the result that three major estates were created between 1691 and 1693. These estates would, ultimately, form the basis for the real estate registry in the region. As a result, Coronado and the entire region of Llanos del Chirú (to which it belongs) became an important part of the growth of Panama as a whole.
Just as in the Colonial era, the favorable climate and geography make living and developing here highly desirable. The established resort communities on the coast are a strong support structure for the new projects that are in the planning stage or are already underway.
Modern Convenience, Easy Access, and English Speakers
Getting to Coronado has never been easier. The Tocumen International Airport has regularly scheduled flights from many U.S. cities and arranging transfers to Coronado and the resorts is a convenient matter. Once there, new arrivals will be surprised by the modern conveniences that the community has. Shopping options, high-end restaurants and even a modern mall can meet just about every expat desire.
One of the most important features of this area is the number of established English-speaking expats who call Coronado, Panama home. Being able to communicate without finding someone to translate is a value added feature of life in this area.
Panama Wants You
Panama’s aggressive stance to attract foreign investors and expats looking for a new opportunity has resulted in a number of favorable changes to residency laws. Additionally, retirees qualify for many discounts on everything from entertainment to travel.
The tax benefits for foreign investors are also significant. For properties whose value is $100,000 or less, taxes are exempt for 15 years; between $100,000 and $250,000, ten years and, for values above $250,000, five years. Not having to pay taxes for an extended period makes the prospect of building your own Pacific paradise that much more appealing.
Buying to Invest or to Live – Many Opportunities Exist
The Coronado area goes beyond the principal resort and includes many of the small villages and farms along a 50-mile stretch of Pacific coastline. Finding development opportunities is an easy proposition as the demand for new residences continues to grow.
For those who desire a turnkey home that could double as both a vacation residence and rental income property, there are a number of options available both in the Coronado Beach and Golf Resort, as well as other communities that have sprung up in the region. The wealth of modern amenities makes for a terrific selling point that is only enhanced by the stunning black and white sand beach, a vista that is hard to duplicate elsewhere.
Price points are dependent on the size of the residence, the amenities, and, of course, the location. For example, rental rates can run the gamut from $700 per month to upwards of $3000. With that kind of range, life in Coronado can fit almost every budget.
Not everyone is interested in resort-style living. For those, the surrounding fishing villages and smaller towns offer the ability to immerse oneself in a more rustic lifestyle. Accordingly, prices for homes and lots in these areas are more affordable than the higher-end residences in the resort communities.
Adventurers desiring to follow in Eisenmann’s footsteps will find a large selection of lots that can be purchased for immediate development or held onto as part of an investment portfolio. The Coronado area has rebounded nicely from the financial crisis of 2008 with the result being that property values are steadily climbing, but still affordable.
Changing Your Life Can Be Priceless
Bob Eisenmann’s vision could be summarized in what is widely regarded as his last wish for his dream project: “Creating from the heart, no matter what the cost.”
Embracing Coronado Panama as a place to form your future can present the opportunity to rediscover the magic of building a new life. Begin this quest by visiting Coronado; explore the region and see for yourself why living here is truly a matter of the heart.
Due to its location as the southernmost country in Central America, Panama has a unique, tropical climate. While many might expect the weather to be hot and sunny all the time, due to the country’s proximity to the equator, that’s not actually the case.
Panama does experience “seasons” just like the rest of the world. They’re just a little different than what most North Americans are used to. It’s also important to note that you can easily adjust the temperature and humidity, merely by moving to a slightly higher (or lower) altitude.
Here are eight photos that can help me explain a little bit more about the Panama climate.
It is very wet.
Panama gets a lot of rain. Especially during the “wet” season, which is generally April through December. It starts with frequent afternoon showers in May and then culminates in November with torrential downpours that can last for days. The rain falls much heavier on the Caribbean Coast, which can see twice as much rainfall as the cities on the Pacific Coast.
Also, while there is the occasional thunderstorm, Panama is outside the hurricane belt and therefore experiences few natural disasters.
And it can get really hot.
Be warned. When the rain stops, the sun comes out. That means you can go from being cool and wet to being hot and humid in a matter of an hour. Again, temperatures on the Pacific Coast are a bit milder than on the Caribbean Coast.
Although sometimes it is just warm.
Most expats would agree that the best days are those during the changing of the seasons. A cool breeze off the ocean means it is the perfect temperature most of the day. The rainfall is manageable. Those are the days when you should drop everything, grab a book, find a rancho, and spend your day in splendor.
And, on those rare days, it is dry.
Dry days might be few and far between during the rainy season, but they do exist. When they do come along, they’re the perfect opportunity to lie in a hammock on the beach in a spot that might be too humid under normal circumstances.
And even cool.
You might be surprised to know that there are some spots in Panama that can get surprisingly cool, particularly in the higher elevations. If you aren’t a fan of the heat and humidity, you might find your ideal destination somewhere in Panama’s beautiful mountain communities.
It can be damp.
Even though the official rainy season is April through December, showers are not at all uncommon year-round in Panama. People who live in mountain communities seem to be less bothered by the wetness, as the humidity is much less noticeable in the much cooler higher elevations.
As well as sunny.
When it isn’t raining, Panama gets more than its share of sunshine. Especially during the dry season, January through early April. During the dry season the capital, Panama City, might enjoy a low of 75 degrees Fahrenheit and a high of 86 degrees. Regardless, the temperature rarely exceeds 90 for more than a short time.
But those are the best days to go house hunting in Panama!
But, most importantly, it is spectacular!
What will tomorrow bring?
Attempting to forecast day-to-day weather in Panama is a virtual waste of time. Why? Because there is always a 90% chance that it will be hot and sunny during the dry season, and hot and humid with about a 40 to 50% chance of afternoon thunderstorms during the rainy season.
It doesn’t take a meteorologist to predict that!
Which Panama climate do you like best? Leave us a comment below about your favorite Panama climate!
Bocas Del Toro has become recognized as one of the most popular tourist destinations in Panama. The rich biodiversity of the area, the sparsely developed shoreline, and the plethora of islands in the archipelago entice expats and investors who are seeking to find a less stressful way to live and enjoy island life.
There is certainly a transition curve to living a “Robinson Crusoe” style of existence in Bocas Del Toro. Yet there is also a great deal of untapped potential in terms of real estate and commercial growth that adventurers may find compelling.
Bocas Del Toro Is a Work in Progress
Like many areas that are experiencing growing pains, Bocas Del Toro does have challenges that may not suit everyone’s idea of a tropical escape. Knowing what to expect (or not) before deciding to move there is a sound way of making such a life changing decision.
Electricity Is Not a Given
Unlike larger, more developed communities, Bocas Del Toro does not have a power grid as such. The town’s electricity is supplied by diesel-powered Caterpillar Olympic Ready-to-Run Generators. As one might expect, outages do occur – especially during heavy usage periods like Carnival celebrations.
For those whose lifestyle requires a regular, mostly uninterrupted source of electricity, this somewhat rustic power solution may prove to be a hard obstacle to overcome. For others, however, there is a kind of romance to living in a place where the pace of life isn’t measured by the kilowatt hour.
Welcome to the Tropics
Bocas Del Toro is located on the Caribbean side of Panama. The weather is tropical; hot and humid. The average daytime temperatures year round are in the mid to high 80s. There are also two rainy seasons; May through August and December through the end of January.
When combined with the electricity status, air conditioning cannot always be counted on. Adjusting to the heat is something that could confound those who prefer a more moderate environment.
Limited Shopping and Services
What Bocas Del Toro has in abundance is beautiful shorelines, fantastic islands, and a great relaxed vibe. What the area is short on, however, are services such as banking, medical facilities, and shopping.
There is only one bank in Bocas Del Toro, the National Bank of Panama. The bank closes at 2:00 p.m. during the week (although it is open 9:00-12:00 on Saturdays), so planning ahead for any banking tasks is a good idea.
There are small shops and markets where you can find all your basic necessities. However, major items, such as appliances and electronics will require a trip to either Panama City or David.
There’s a definite trade-off between the rustic, laid-back Caribbean beach lifestyle and the amenities and conveniences of living in a faster-paced cosmopolitan city. You’ll have to decide if the loss of access to some consumer goods and modern conveniences is worth it.
Investment Potential Is a Major Upside
The continued growth potential in and around the Bocas Del Toro archipelago promises a good return for investors looking to tap into the increasing popularity of the “Galapagos of the Caribbean.” Here are some great opportunities that are currently available, just waiting for those with a true entrepreneurial spirit.
Stunning Hotel on Isla Carenero
Located on Isla Carenero, this 5000 ft. beachfront property, known as Vista Azul Lodge, could be the ideal vacation home, bed-and breakfast, or idyllic tropical hotel. With six en suite bedrooms, each with its own king-size bed, and terraces that overlook the blue Caribbean, the name “vista azul” is certainly well deserved.
Additionally, there is a loft bedroom with two double beds that could increase the total number of guests to 14. Visitors can snorkel right off shore, explore the lush 4+ acres that make up the grounds, or enjoy the private pier and over 500 feet of coastline. The long term prospect for profitability makes the $1,300,000 asking price a reasonable initial investment.
425 Titled Acres with Ocean View and Unlimited Investment Potential
This parcel is for the entrepreneur who wants to dream big. The 425 acres (172 hecatares) are fully titled and are being offered for $689,000. In addition to stunning vistas of Bocas Del Toro islands, Changuinola River, and the Caribbean Sea, this parcel includes five small rivers, two waterfalls and a rainforest teeming with biodiversity.
There are over five kilometers of internal roads, many cleared lots, as well as a dedicated rainforest preserve that encompasses 1/4 of the property. With over $800 million in infrastructure improvements in the area, along with two housing projects nearby, the potential to turn this into an eco-resort, ranch preserve, or another type of development is limited only by the imagination.
Authentic Piece of History
There are also a number of possibilities for restoring some of the original residences built by the United Fruit Company in the early part of the twentieth century. For those seeking to capture the sense of those bygone days, these properties could be a wonderful opportunity to own a part of history.
The Best Steps to Transition to Life in Bocas Del Toro
Knowing some of the challenges that await you as you look to finding your island dream can help you plan a course of action. Below are the best steps to begin your journey:
Set Realistic Expectations
When you realize that island living is a far cry from what you are used to, setting your expectations to include dealing with those differences can reduce the stress of adaptation.
Take Your Time
Remember that one of the big reasons island life was so appealing was that it was going to move at a slower pace. The flip side of that benefit is that things, like repairs, appointments, etc. are also going to be dealt with on a more casual basis. Take a breath, and remember you’ve got nothing but time…so enjoy it.
Become Part of the Community
One of the best ways to transition to any new living situation is to be willing to participate in your new community. As you become known to your neighbors and learn “how things work,” you will discover, one day, that you are no longer the outsider, but a part of the family.
Last, But Not Least…Don’t Lose Sight of Your Dream!
Island life isn’t for everyone; so congratulations if you’ve made the decision that this was a life path to follow. Even as you hit speed bumps while adjusting to your new environment, keep your dream close at hand. Bocas Del Toro is a place to reinvent and build new dreams. Go there and start the quest today.