D Barefoot
Central America is a great place to call home. We certainly like it here. But we also know it isn’t for everyone.
While some of the negatives of living in a developing country can be managed by carefully choosing your specific area, there are others that can never be overcome. Period.
That’s important to know before you spend valuable time and money transplanting your life and all your worldly goods to a place thousands of miles away from friends and family. Every year, tons of expats move to Central America only to realize that a life in the Latin tropics isn’t right for them.
We don’t want that to happen to you.
We probably don’t have to tell you all of the many things there are to love about living abroad in Central America. But we’re going to anyway. We’re going to tell you the not-so-great things as well.
Of course, we firmly believe that the benefits of living here far outweigh any negatives. But that’s for you to decide. Here’s a list of what we think are some of the biggest pros and cons of living abroad in Central America.
The Pros of Living Abroad in Central America
1. Freedom
Sure, U.S. citizens sing about being “the land of the free.” But, if you really want to understand what freedom feels like, move to Central America. Theirs is a life lived less encumbered.
Freedom from virtually all government regulation. Freedom from neighborhood covenants. Freedom from the rat race and 60-hour work weeks. Freedom from cell phone tapping. Freedom from the need to keep up with the Joneses.
There’s nothing like it.
2. Cost of Living
Particularly in a time when your U.S. dollar seem to be stretching a shorter distance than ever before, the thought of living on between $1000-$2000 per months sounds pretty tempting. And it’s entirely possible almost anywhere you go in Central America. And that includes housing.
While costs vary greatly from one location to the next (and are, of course, higher in the larger cities), it isn’t unheard of to find a decent 2-bedroom house for under $500 per month. Dinner for two at a world-class restaurant, with a bottle of wine, will set you back no more than $30. You can get a dozen roses for $4 and a four-course lunch for $2.50.
The affordability of Central America is one reason it attracts so many retirees who can live an extremely comfortable retirement without sacrificing anything about their lifestyle.
3. Affordable Health Care
Almost everything is cheaper in Central America. And health care is no exception. It’s so inexpensive that many expats choose to self-insure their medical costs. However, for those who do choose health insurance coverage, they can get it for as little as $50 per month for coverage that pays 100% for in-network providers.
Doctor visits cost generally around $25, and that includes an extended time with the actual physician who may send you home with his or her private cell phone number. A specialist costs closer to $50, and an ER visit runs around $100.
Many countries even offer free health care at public clinics and hospitals, although a lot of expats opt to pay for private care. Most larger cities have hospitals that rival those in the U.S.
A lot of medical practitioners in Central America speak English, and many doctors even trained in the U.S. As a result, many Central American countries are beginning to emerge on the medical tourism scene, with patients traveling abroad to undergo procedures ranging from heart transplants to facelifts.
4. Climate
The countries of Central America boast some of the best weather you’ll find anywhere in the world. There’s really no winter at all, with the only distinctions in seasons coming as a result of a few rainier months each year.
While generally mild everywhere, the climate does vary from location to location. In general, coastal areas are warmer with higher humidity. Highs can get into the upper 80’s and low 90’s.
However, you only have to move up to a slightly higher elevation to get a little bit of relief from the heat. Many areas in the highlands never even reach 80 degrees and have a spring-like climate year-round.
The steady, temperate climate means there’s no need for two separate wardrobes. With just a light jacket or sweater and an umbrella you’re set for day and nighttime in any season.
5. Fresh Produce
The perpetual spring-like weather in Central America means that fruits and vegetables can be grown year round. And they’re like nothing you’ve ever eaten. Maybe like nothing you’ve ever even SEEN.
Farmer’s markets are loaded with the usual favorites, like plantains and mangoes. You can also find jicama, tomatillos, papayas, and guava.
Also among the offerings are more unusual options like nopals and prickly pears, respectively the stems and fruit of the prickly pear cactus. You might also see yuca root, tamarind, and chayote squash.
Fruit and vegetables in Central America are fresh, organic, locally-grown, and widely available. They’re also affordable. You can buy a week’s worth of produce for a family of four for less than eight bucks.
And nothing’s ever out of season.
6. Nature
The countries of Central America are some of the most ecologically and biologically diverse places in the world. And rather than driving cross country to experience a different climate or ecosystem, all you have to do is drive up or down the mountain.
Central America has it all. From beautiful beaches to active volcanoes to coral reefs to lush rain forests to mountain waterfalls. And each of those areas is teeming with rare, and often endangered, species of plants and animals.
The region is home to sea turtles, jaguars, toucans, sloths, snakes, monkeys, and much more. It also offers great sites for bird and butterfly watching. If adventure’s your gig, there are also opportunities for jungle expeditions, white water rafting, and some of the world’s best sport fishing.
7. Uncharted Territory
For many, Central America represents a place where you can truly find that new frontier that can never, ever be had in the U.S. With miles of unexplored reefs, untouched beaches, and undiscovered jungles, you can truly feel like a pioneer.
You can explore these areas (often only on foot or horseback), and–if you’ve got good negotiating skills–you might even call them yours.
Whether you want to build a hut and live like Robinson Crusoe, or just spend an afternoon alone on a deserted beach and then call it a day, you can do that in Central America.
8. Indigenous Culture
Depending on where you go in Central America, there are a number of opportunities to experience the culture of the area’s indigenous people groups or even live alongside them. You’ll see women washing clothes in the river and drying them on rocks. Many still practice the religious ceremonies of the Mayans and turn to alternative healers for medical treatment.
They set up booths in local markets to sell their wares: bead jewelry, straw goods, and textiles. They hunt, farm, and raise livestock. Many groups wear their own colorful native dress, and there are dozens of indigenous languages spoken throughout Central America.
9. The Simple Life
We’re not sure how or why, but in Central America the days seem longer. Things move slower, and there’s time left over for so many more things you could never have fit into your schedule back in the U.S.
The workaholic lifestyle is unheard of here. It’s replaced with 2-hour lunches and shorter work weeks. Many businesses still close for lunch. And, in fact, lunch is often a time that is reserved for families to spend together.
Most of Central America is untouched by consumerism, and there’s less of a need to have more and get more and do more. While some of the larger cities are becoming increasingly more North American in their practices, a simpler, slower pace of life is easy to find wherever you go.
Cons of Living Abroad in Central America
1. Crime
While some are certainly safer than others, the countries of Central America present some real concerns in terms of violence and crime. While there’s the obvious drug trafficking and its related criminal activity, there’s also a gang problem.
Some of the countries in Central America have alarmingly high homicide rates, and tourists often fall victim to burglary and theft. Many nations are taking great strides in this area, but there’s still a lot of room for improvement.
The good news is that much of the more violent crime often occurs in areas that aren’t necessarily as popular for expats. The biggest concerns in areas populated by foreigners are petty theft, pickpocketing, and other scams aimed at gringos.
Our best advice is to use common sense. Don’t leave valuable items in an unlocked car, and don’t run around flashing wads of cash.
2. Consumer Selection
While Central America does have ample options when it comes to fresh fruits and vegetables, in some other areas the selection can be lacking. The more dead set you are on having the same products and goods you enjoy in the U.S., the more disappointed you’ll be in the options available to you.
It’s not that there are a lot of things you can’t find here at all. It’s just that they might not be the same quality or same brands you’re used to. However, they will be cheaper. Imported and gourmet items are some of the only things that could end up costing you MORE in Central America.
So, if you can find a comparable substitute, you’re likely to save considerable money buying the local option. Likewise, if there’s something you absolutely can’t live without, you can have it shipped to you. But you’ll pay a pretty penny.
3. The Simple Life
No, we’re not crazy. Yes, we realize this was also the “Pro” list. The reason it appears again here is because the slow, simple pace of life isn’t for everybody. If you’re someone who thrives on busy-ness, you could actually become bored by the lack of hubbub in Central America.
Likewise you won’t find all of your North American television channels and other conveniences you’re used to. Certainly the larger cities offer more options and activities, but even there it’s not uncommon for businesses to close early. However, most areas have a vibrant night life, particularly the more touristy cities.
If the loss of a large social network is your complaint, it’s also easy to find other expats and enjoy regularly scheduled activities such as theater groups and poker nights.
4. Lack of Sophistication
While Central America offers plenty of culture, it’s often in the form of local culture. Things like art museums and live music venues are sparse and are usually found in only the larger cities. Even then, the scheduled exhibits and performers will be few and far between. They’ll also be mostly local talent.
You can find a variety of cuisines, especially in more populated areas, as well as specialty shops. Larger cities offer modern shopping malls and supermarket chains. You can even find movie theaters (some with flicks in English) and bowling alleys.
In addition to the cultural sophistication, many are often turned off by the level of infrastructure in Central America. Roads are often poorly maintained. Airports have unpaved runways. And contaminated water sources can be a concern.
5. Education
Although it’s not a problem for many expats, particularly retirees, the education system in many parts of Central America leaves a lot to be desired. While it’s free and compulsory in most countries, classroom sizes are often large, resulting in a poor student to teacher ratio.
Some areas do have bilingual schools. Private schools are also an option, although they can be expensive. Many expats instead opt to homeschool their children, giving them more freedom and flexibility to make good use of their time in their new country.
Central America does have a number of good universities and language schools.
6. Inefficiency
Central America marches to the rhythm of a different drum. And it’s often a slower and more erratic pace than most North Americans are used to. It’s very easy for expats to become frustrated at how things are run and how long it often takes to accomplish what seems to be such a relatively simple task.
Government requirements and processes are continually changing. People are always late, even in business settings. Contractors often leave work unfinished and never come back. It can be taxing to say the least.
The only real solution for this issue is to be prepared and set your expectations accordingly.
7. Difficulty Doing Business
While Central America is a great place to live, it’s a difficult place to do business. For starters, the type of visa you hold can limit your ability to work. Many countries protect their citizens by refusing to give jobs to foreigners if there’s a citizen who can do the job.
For those who want to open a business, that’s a whole other can of worms. The business climate of Central America is very different from that of the U.S. Combine that with the inefficiencies and delays mentioned above, and it can be a recipe for disaster.
While these pros and cons of living abroad in Central America are general observations, the individual countries and cities offer a variety of other perks and problems. If you think the downsides of living in Central America are things you could overlook, the next step is narrowing down the specific country you’d like to consider.
Playa Burica property in Panama
There are a lot of great up-and-coming places in Panama that are perfect for those who want to relocate to the tropics but don’t want to pay the hefty price for a place in an established area. These locations are also ideal for any would-be pioneers who are looking for a rising hotspot that isn’t quite so “last week.”
So, whether you’re hoping to blaze a trail in an emerging area or just want to find your own piece of paradise with a slightly lower price tag, we recommend that you keep an eye on these 5 up-and-coming places in Panama.
1. Western Azuero
Unlike the eastern portion of the peninsula, the western coast of Azuero is much less developed. Known as the Azuero Sunset Coast, this area is sparsely populated and home to very few expats. While it has a couple of small towns–most notably, Torio, and Malena, a small fishing village–the region is mostly home to cattle ranches and those involved in other agricultural pursuits.
Situated on Panama’s Pacific Coast, the scenery on the Azuero is remarkable. Lush mountainsides, with cascading waterfalls, give way to deserted stretches of beach where you could easily find yourself to be the only sunbather or surfer for miles around. Speaking of surfing, this region, particularly Morillo Beach just south of Torio, offers some of Panama’s best and most consistent waves.
The Azuero’s western coast offers sightings of whales, dolphins, and sea turtles. It’s also home to world-class fishing, with an abundance of tuna, sailfish, marlin, dorado, wahoo, and yellow tail. And the rainforests of Cerro Hoya National Park are home to many endangered species.
Azuero coastal area does have some supermarkets and even a handful of new residential areas along the coast, but getting from point B to point B is indirect at best, however, if that doesn’t bother you, this area boasts one of the lowest costs of living in Panama.
With decent access to the larger city of Santiago, and even better access to more populated areas along the peninsula’s east coast (like Pedasi and Las Tablas), the western Azuero coast is a great fit if you want to live like a local without venturing terribly far away from modern conveniences.
2. Caribbean Coast
In contrast to Panama’s often rocky and varied Pacific coast, its northern coast borders the Caribbean, which offers pristine white sand and shady palms. Not to mention sparkling turquoise waters that offer crystal clear visibility.
Its beauty might suggest that Panama’s Caribbean coast would be its most desirable and home to many of its largest settlements. Not so.
One reason is its inaccessibility. The Pan-American highway, which stretches from Alaska down to the southernmost regions of South America (except for a brief gap through Panama’s Darien province), almost invariably clings tightly to Panama’s southern Pacific coast, making the Caribbean side of the nation much more difficult to reach by land.
Also, while there are areas such as Bocas del Toro that attract both tourists and expats in droves, they’re not the best bargains on the Caribbean coast. If you’re looking for a bigger discount, Panama’s northern coast also boasts miles and miles of virgin beaches that are great for the more adventurous destination-seeker.
Along with the discounted price tag, though, comes much less in the way of infrastructure. Think primitive roads, spotty internet, and fewer public water systems.
Additional challenges presented by Panama’s Caribbean coast include the large amount of protected land. With many national parks and indigenous lands, property is quite difficult to come by. Not to mention, the area gets a large amount of rainfall, roughly twice that of the Pacific Coast.
While the Caribbean coast offers opportunities to own stunning beachfront property at rock bottom prices, it’s not for everyone. We’d only recommend this region if you aren’t afraid to hurdle some obstacles in the buying process and are willing to contend with a lack of conveniences. At least, for now.
3. Burica Peninsula
In Panama’s southwest corner lies the Burica Peninsula, which juts into the Pacific Ocean and divides its territory between Costa Rica and Panama, which claims about ⅔ of the landmass. Accessible by a short scenic drive from David, the peninsula is home to Puerto Armuelles, which has shopping facilities and other modern conveniences.
However, Burica’s tropical wilderness, not its familiar amenities, are its real appeal. Covered mostly in rainforests, it contains beautiful flora and fauna and is home to many endangered species such as the Panamanian Red Spider Monkey.
The area also contains fields, where cattle graze, and rolling hills that often drop off directly into the Pacific Ocean. Its beaches are untouched and dotted with towering palms. In addition to lounging in a hammock on an isolated beach, the area also welcomes you to experience some of the world’s best sport fishing and a few of Panama’s secret surfing locations.
A drive down the recently completed road that leads all the way to the tip of the peninsula affords views of Volcan Baru, the country’s highest peak. You’ll cross a river and drive out on the beach, along the surf, to reach the Playa Burica community at the southernmost point. But only at low tide. Otherwise, you’ll need a boat to get there.
While this area is still up-and-coming, it likely won’t be for long. If you’re looking for an elusive destination that offers a remote feel, just a short distance from civilization, take a look at the Burica Peninsula.
Note: Article 121 is something one needs to research before buying here. Despite this Law most of the coastline is currently owned by foreigners.
4. Santa Fe
So, those are some beach areas. What about something for the mountain-goers?
The relatively small, albeit growing, town of Santa Fe, nestled into the Veraguas mountain range about 5 hours from Panama City, is a place we think you should watch.
Although surrounded by much higher mountains, Santa Fe sits at an altitude of just 1350 feet. That’s high enough to escape the heat and humidity of the lowlands, yet low enough to experience some nice warm days and no breathing problems.
While notes of traditional Panamanian culture still ring throughout, the city enjoys many modern conveniences such as clean drinking water and high speed internet. However, perhaps its biggest draw is its opportunity for adventure.
Santa Fe offers horseback riding, bird watching, and exploring…from mountainside coffee farms to waterfalls to orchid gardens. Among the town’s inhabitants are toucans, hummingbirds, and rare butterflies.
Also relatively rare in Santa Fe are expats. Sure, there are some. But rather than living isolated by themselves in gated communities, expats in Santa Fe often reside on large plots of land that they can use for coffee farming, reforestation, or even simply growing their own organic fruits and vegetables.
Santa Fe is a great value if you’re an outdoor enthusiast who wants community and conveniences, but in a place that’s rich in authentic culture and relatively unspoiled by developers.
5. Ruta Sur
Ruta Sur refers to the new stretch of road that was built to bridge the gap between Boquete and Volcan. Meaning “Southern Route,” it covers what is essentially 15 miles, as the crow flies, in many more winding miles of unmarked (and sometimes unpaved) roads.
Much different from the highly-developed and densely populated towns it connects, areas traversed by the Ruta Sur are rural and contain few inhabitants. The route takes you past miles of coffee and vegetable farms, by orange groves, past Volcan Baru, alongside waterfalls, through canyons and lush valleys, and finally to fields used for cattle farms and greenhouses.
Once fairly unknown, this region offers, not only new and improved access, but many opportunities for enterprise. Residents of this area are able to enjoy the breathtaking scenery and also earn a living operating a dairy farm or a spa retreat high in the mountains.
As the road begins to become more traveled, the region will likely gain popularity. However, it could take a while. The route is largely unlabeled, with only a telltale painted yellow stripe marking the way, much like Dorothy’s fabled quest for the land of Oz.
The areas along the Ruta Sur are perfect if you want to enjoy a life lived a little further off the beaten path and use your land as your livelihood. Shop for property along this stretch of road if you want to embrace life along the journey, not at the destination.
VivaTropical
Deciding where you want to live, invest, or spend your retirement abroad can be tough. If you’ve picked Panama, then we think you’ve made a good choice.
But now you may be wondering exactly how to find your dream property in Panama.
The decision ultimately depends on your particular set of values and how you envision spending your retirement. There’s no ideal community or city that’s perfect for everyone.
However, with some careful consideration and self-examination, we’re confident you can find the place that’s the best fit for YOU. Here’s a map of Panama, with some popular expat destinations labeled on it, for you to reference as you go along.
What is my dream?
While it sounds cliché, a good place to start is with the good ole “Close your eyes and imagine yourself in paradise” trick. So, go ahead. Close ’em. Can you picture it? Save that image in your mind, so you reflect on it as needed.
Now let’s examine that vision. How did you visualize yourself spending your retirement?
Were you in a hammock on a deserted beach with monkeys chattering in the trees and toucans flying overhead? Or maybe in the lush mountains picking fresh organic vegetables from your very own garden, or tending your hillside coffee farm? Or maybe you envisioned yourself sipping a glass of wine at a table outside a small cafe in a bustling cosmopolitan city.
Whatever that dream, it can be a reality for you in Panama. You’ll just need to consider a few more factors to help you narrow your search, from an entire country, down to a short list of areas that are best suited for you and your values.
Am I a beach or a mountain person?
This question should be a fairly simple one and one that can probably be easily answered based on a quick survey of how you’ve spent most of your pre-retirement vacations. It’s also a pretty important question, since the difference between the beach and the mountains in Panama may be an even more drastic one than you’re accustomed to.
There is some variance depending on the area but, in general, Panama’s beaches are hot and humid, with highs in the upper 80’s and very little seasonal variation. The only real difference in the seasons is between dry and wet, as a vast majority of the country’s annual rainfall occurs from April to December. Panama City and Santa Catalina have this kind of climate.
While they also experience little temperature variation, Panama’s mountain areas enjoy a more spring-like climate year-round (with temps dipping down into the 50’s at night). As a result, vegetables and flowers can be grown all year.
Temperatures continue to decrease the higher you go and, rather than just having the one main attraction (the beach), the mountains have rivers, waterfalls, and a wide variety of ecosystems. Santa Fe and Boquete are two popular mountain destinations.
If I’ve decided to live near the beach, which side should I choose?
Since Panama runs from West to East, it’s bordered by the Caribbean to the north and the Pacific to the south. And the two are vastly different.
The Caribbean boasts most, if not all, of Panama’s most beautiful beaches. With white, powdery sand, a crystal-clear turquoise sea, and shady palm trees, it looks exactly like a postcard.
Not so fast, though.
While unquestionably breathtaking, Panama’s Caribbean coast presents its own set of challenges. Because it is so far removed from the Pan-American highway, most of the cities along the Caribbean coast are quite difficult to access by land. As a result, there are few areas with any kind of established city to live in. Bocas del Toro is a great one.
Its inaccessibility is further intensified by the large portions of Caribbean coast that are designated as protected areas or indigenous lands, making it difficult for individuals to own property there. The Caribbean coast also experiences significantly more rainfall than its Pacific counterpart.
The Pacific coast on the other hand, is ever-so-slightly cooler and gets about half the amount of rain. However, its beaches are much more varied and maybe the tiniest bit less picturesque, depending on your tastes. With coarse, gray sand and sometimes rocky coastlines, the Pacific offers great surfing and sport fishing opportunities.
Panama’s Pacific coast is also much more accessible and available to would-be property owners. As a result, it offers many more settlements that are as unique as those who reside in them, from quiet fishing villages like Pedasi to up-and-coming luxury destinations like Boca Chica.
Rori Ablilia
Do I want to be near a lot of other expats?
Think back to that vision of yours. Whom else did you see in it? Locals? Other expats? No one at all? Knowing the kind of community, or lack thereof, that you want is a major factor in helping you find your dream property in Panama.
Like many who have gone before you, you may welcome the opportunity to live among like-minded individuals who understand where you’re coming from and what you’re going through. If so, you may find that a place with an established expat community provides you with the support group you need to help you more easily acclimate to your new surroundings. Panama City and Boquete are both home to thousands of foreign residents.
If being surrounded by people just like you sounds like it defeats the entire purpose of retiring overseas at all, then you might be better suited for a place like Las Tablas or Volcan. You can find expats there, but they’re carefully woven in among the locals and a little bit harder to find.
If you don’t want to see other expats, or anyone at all for that matter, more remote areas like Playa Burica and the western Azuero Peninsula offer the opportunity to pretend you’re Robinson Crusoe. All alone with your thoughts.
I know where I want to be. Now what?
Once you think you know where you want to settle, the final step is finding your actual piece of paradise. You can start by shopping for properties online. But use caution. Make sure you really feel out the sellers to weed out any that are less than credible.
Buying property in Panama can be challenging, but the key is finding a seller, agent, and attorney you can trust. Asking a lot of questions, even ones to which you already know the answers, is a great way to find out who’s honest and who isn’t.
Once you’ve narrowed your search down to a handful of promising options, plan a trip down to Panama to check them out. Set up meetings with the agent and attorney you plan to work with. Confirm those appointments. Several times, for good measure. When you finally find the right place, a trustworthy attorney can handle much of the actual transaction for you, another reason to make sure you’ve picked a credible one.
Now that you know how to find your dream home in Panama, what are you waiting on? Close your eyes. Get started.
There’s a lot of buzz about the incredibly low cost of living in Panama. But just how cheap is it? And how do you know it isn’t just a bunch of lies fabricated by marketers and real estate brokers?
You might have even found some information about the costs to rent or buy a property, but still have questions about–for instance–how much food costs in Panama. To answer that, take a look at a typical grocery bill for a family of four.
This isn’t a gimmick. This is just based on our observations during our last couple of trips to the market.
And just for fun we had a friend back in the U.S. give us the current prices on the same items there. Take a look at the side-by-side comparison.
| Item | Panama | U.S. | %Discount |
| 1 dozen eggs,organic | $2.08 | $3.18 | 35% |
| 2 filet mignons teaks (12oz.total) | $4.86 | $14.99 | 68% |
| 1 liter milk | $1.59 | $3.19 | 50% |
| 2 lbs. bananas | $.80 | $1.18 | 32% |
| 3 lb. bag laundry detergent | $2.53 | $5.45 | 54% |
| Soap (3bars) | $1.59 | $3.65 | 56% |
| Yogurt (4servings) | $2.40 | $6.00 | 60% |
| Pineapples, 3 small | $1.00 | $4.99 | 80% |
| Grapefruit, 4 | $1.00 | $2.29 | 56% |
| Cheese, largeround(16oz.) | $1.57 | $6.99 | 78% |
| 3 heads organic lettuce | $1.00 | $5.07 | 80% |
| Bouquetof fresh flowers, large | $3.50 | $12.99 | 73% |
| Ground organic coffee(12oz.) | $4.04 | $5.99 | 33% |
| 1 dozen fresh panacitos (rolls) | $2.40 | $5.58 | 57% |
| 1 rotisserie chicken, whole | $4.19 | $7.39 | 43% |
| Rack of porkribs, frozen | $12.13 | $8.98 | -35% |
| 3.5lb chicken breasts, frozen | $6.47 | $9.79 | 34% |
| 2lbs langostinos(shellfish), frozen | $6.18 | $19.98 | 69% |
| Cereal, boxed | $6.29 | $4.29 | -47% |
| Total | $65.62 | $131.88 | 50% |
Because your grocery bill will be every bit as varied as your individual tastes, it’s impossible for us to tell you exactly what YOUR food costs in Panama would be. However, as you can see above, we spend about half what we would pay in the U.S. For the exact same items!
We should point out here that not every food item in Panama costs less. On some things, like cereal and other pre-packaged items, you may even pay a little more if you insist on having the same brand you’ve always eaten for breakfast. On a few items, there may not be enough of a savings to even warrant mentioning, like yogurt.
This may appear to be the case on quite a few items. However, another factor to consider is the QUALITY that you are paying for. Take coffee for example. While it’s about the same price, coffee in Panama is no comparison to what we drank back in the States. This stuff is out of this world.
Likewise fruits and vegetables here are organic and as fresh as you can find, and they run about $8 per week for a family of four. Not to beat a dead horse, but this can really vary depending on the types of fruits and vegetables you prefer.
As you probably noticed, our diets haven’t suffered as a result of our decision to move to Panama. Neither have our wallets. So no matter how delicate your palate or tight your budget, you shouldn’t be disappointed with the options available to you in Panama. Cheers!
If you are one of many North Americans searching for the best place to live in the world, but don’t know where to begin, then these rankings are for you.
In this inaugural retirement power rankings, I have put together a comprehensive grouping based on the most important criteria for living a happy overseas life.
While most of Central America has a warm tropical climate and a relatively low cost-of-living, each country, city, and town is different and will have something unique to offer you.
To help narrow your search, I have ranked 15 of Latin America’s top destinations based on the combined criteria of value, beauty, ease of access, and healthcare, and quality of life. The number one selection meets the most of the chosen criteria.
So move through the ranked cities and towns, determine which attributes are most important to you, and begin compiling your own list of possible destinations as you search for the best place to live in the world and the perfect spot to call home.
1) Cuenca, Ecuador
Photo: Bill Grenn
Nestled in the Andes and surrounded by four sprawling rivers, the friendly city of Cuenca, Ecuador has become the best place to live in the world for many expats. Cuenca is the ideal retirement spot for expats who like having large city amenities like bars and shopping malls at their fingertips, while living in a tropical environment.
The cobbled streets and historic architecture make Cuenca look like a snapshot straight from a European postcard and the vibe of the city allows expats to live like they would in Paris or San Francisco, but at a fraction of the cost.
A city of 500,000 respectably, Cuenca locals are extremely welcoming of North American expats and many of the people and store owners speak English, making it easy for expats to settle into Cuenca life.
The perfect place to retire or even to raise a family, this artisan community promotes education (there are 8 universities in Cuenca) and has a good health care system comprised of 18 hospitals and medical centers. Time will tell if Cuenca can last atop the ratings or become a passing fad.
2) Boquete, Panama
Rita Willeart
Boquete is the old Cuenca, and other than being slightly more expensive and a bit smaller, it’s still an incredible option and one of the best places to live in the world.
Known as the valley of flowers and eternal spring, Boquete makes its home in the Panama highlands at an elevation of 4,000 feet, which allows it to avoid some of the humidity that can be found in other areas of the country.
Bursting with exotic flora and accented with rainbows that appear frequently as a result of the bajareque (light rainfall that comes down from the mountains with the north wind) the scenic beauty of the surrounding area of Boquete is truly a sight to be savored.
A town of 20,000, but only a 30 minute drive from the Chiriquí capital of David, in Boquete you can relish in the small town life. The downtown area is not the most attractive place in the world, but its good food and ease of living make up for it in spades.
Hike, rock climb, horseback ride, and experience the culture of the local Ngobe-Bugle people as you learn to enjoy what several others have already learned: this is a great place to live.
3) Nosara, Costa Rica
Photo: Jason Ewa
A small town located in the Nicoya Peninsula, on the northwest Pacific coast, Nosara is a well-known surfer’s and Yoga paradise.
Nosara is the highest ranked beach area on the list, and it has a fighting chance to be a contender with all its offerings, but its Achilles Heel is that it can be a little expensive. Comparable to the cost of living in many U.S. towns, Nosara is not for the budget-minded.
People come to Nosara to soak in the small beach town vibe, and with a two and a half hour drive to Liberia, a four hour drive to San Jose and an undeveloped road leading into town, the town remains remote.
Yet, despite its remote location, Nosara is filled with expats who think of this as a benefit. There isn’t much for local culture and Nosara can actually feel like an English-speaking town.
But what Nosara lacks in local culture, it makes up for in natural beauty.
With four miles of white sand beach of Playa Guiones and access to Playa Pelada (a bordering neighborhood of Playa Guiones), for many expats, Nosara is a little slice of heaven.
4) Roatan, Honduras
Photo: Matteo Tarenghi
Not everyone wants to live on an island, but this place is well worth it even with the negative headlines often received by the country of Honduras.
Retire in Roatan, Honduras, and spend each day enjoying the unspoiled beaches and crystal blue ocean without having to worry about the crowds like you do in other parts of Central America.
The largest bay island in Honduras, Roatan is only a 2.5 hour flight from Houston, Texas, making it beautiful, as well as convenient.
And while it isn’t yet choked with tourists and expats, it may not remain a retirement secret for long. In 2011, Island Magazine named Roatan the number one island in the world to retire to and with so many amazing islands out there, that is definitely a bold statement. Because of this it comes as no surprise that many expats consider Roatan to be the best place to live in the world.
There is an established expat community in Roatan and getting residency is quite simple. You can be granted a retirement Visa as long as you can prove an annual income of $1,500 a month, which makes settling down in the paradise of Roatan, a very achievable dream.
5) Granada, Nicaragua
Photo: Soul Surfer
Described by some as one of the world’s best retirement destinations, in Granada, expats can set out the welcome mat in a luxurious and affordable colonial home that would have cost them an arm and a leg back in the states.
In fact, a couple can live well in Granada on a budget of around $1,200 a month.
With temperatures that hover in the 80s throughout the year and the cool breeze that blows in from Lake Cocibolca, the weather in Granada is ideal and definitely a huge draw for many North American expats.
Granada also has one of the safest communities in Nicaragua, around 1,000 expats already living in town and best of all, it will only take a two hour plane ride from Miami, Florida, to make the trip down. The only knock on Granada is that it can be perceived as a little gritty, the streets are not pristine as are other colonial cities of the region. This shouldn’t stop you though, Granada is really good value and not a huge compromise.
6) Ambergris Caye, Belize
Photo: Viv and Jill
Belize is gaining popularity with expats and tourists alike, not only for its tropical rainforests and Caribbean beaches, but also because it’s a democratic and English-speaking nation that is very welcoming of visitors.
You may know already that John MacAfee, the notorious software developer, chose to live here and could have chosen anywhere else in the whole world. (Look it up on Google if you missed this story.)
Ambergris Caye is the largest island in Belize and the island’s only town, San Pedro, is known as the dive and water sport capitol of Belize.
The island is also home to the second largest coral reef system in the world and this magnificent reef lies a half mile east of Ambergris Caye and runs along its entire 25 mile length.
Retirees that come to Ambergris Caye will enjoy the mild climate, the beautiful beach setting and the colorful blend of cultures, from Creole to Mayan, as they kick off their shoes and sink into island living.
7) Lake Atitlan, Guatemala
Photo: Simon and Vickie
Let’s just get this out of the way, I know the lake is polluted but this still doesn’t change the fact that this little town is an awesome place to live. The area is completely unique in terms of what is offered combined with the incredible opportunity to live around an amazing indigenous culture.
The deep basin of Lake Atitlan was the product of one of the strongest volcanic eruptions in history.
This vast, blue body of water is set against a backdrop of three volcanoes and is surrounded by twelve indigenous villages, many of which are still inhabited by the local Maya.
Expats come to Lake Atitlan to get away from it all and with a two and a half hour drive to Guatemala City and Antigua, life in Lake Atitlan can definitely feel tranquil and remote.
Like many areas in Central America, expats coming to Lake Atitlan can expect to live comfortably on a small budget, but with so many villages and each with a different standard of living, prices will fluctuate, so be sure to shop around.
If you choose life on the lake, get ready to enjoy the simple things in life. Take a walk to the local market to stock up on fresh food and hand-made crafts, hike the mountain trails, or simply stretch out in a hammock and watch the sun set on the water.
8) Escazu, Costa Rica
Photo: Alex Centeno
Costa Rica remains, without a doubt, the most popular Central American destination, and for many, it’s considered the best place to live in the world. After one visit to this tropical paradise, it isn’t hard to see why.
This suburb of the capital city, San Jose, can be found tucked in the Central Valley and is the best place to retire in Costa Rica for expats that want every service available.
Encompassed by lush mountain views and several choices for living and eating, Escazu can offer expats the best of both worlds, gorgeous weather, while living in an urban environment.
While Escazu is more expensive than other areas in Costa Rica, it remains cheaper than urban life in North America and a couple can still live comfortably on a budget of around $2,500 a month.
And with a strong expat community and big city amenities like great restaurants, shopping malls, and an excellent and affordable health care system, it’s no wonder many expats are choosing Escazu.
9) San Juan del Sur, Nicaragua
Photo: David Amsler
Because of this popularity, the town has experienced some economic development in recent years and improvements have been made both to the waterfront and to the central park area.
In San Juan del Sur expats can live the beach town life complete with great restaurants, exciting bars and even language schools. There is also a growing alternative scene that does appeal to people who care about the environment and values things like creating your own solar power.
To make your way down to San Juan del Sur, you can hop on a bus from Managua to the municipal markets of Rivas and then board another bus that will take you on to your possible retirement destination. Nicaragua is a very poor country, but don’t let this get in the way of at least exploring it as an option. If you do, you might miss out on something great.
10) Antigua, Guatemala
Photo: Michael Swigart
Picturesque Antigua is a modern city that is rich with history. This 16th century city was founded by Spanish colonists and is filled with colonial style homes and cobblestone streets that simply beckon you to get outside to enjoy the city’s charms.
One hour from Guatemala City, Antigua has a population of 30,000 and while the cost-of-living here might be considered high for Guatemala, the prices are cheap compared to anything you might find in North America of a similar caliber.
Of course, the costs again will vary depending on what you are looking for. While a large, fully restored colonial home near the city center might cost anywhere from a few hundred thousand to a million, there are many lovely smaller homes that can be purchased for under $100,000 or even $50,000.
And with clean, well-preserved streets (the government makes preservation a priority) and no serious crime problem, in Antigua you can feel safe and comfortable as you explore your new home.
11) Panama City, Panama
Photo: WLT
If you like Miami but feel like there are not enough people who speak Spanish, then Panama City could be the perfect solution. With its ultra modern skyline and true metropolitan feel, Panama City offers a unique lifestyle only compared to a Miami Vice breed of Miami.
Hailed as Central America’s most affordable capital city, Panama City is definitely a city on the rise.
With an excellent business climate, Panama is the prime location for expats looking to put their money and live an urban life. Panama’s renowned privacy laws are no doubt a draw for individuals who value privacy but want to live in a very modern city. The established expat community and many expat-run businesses can provide the comforts of home, in a unique and modern tropical setting.
12) Cotacachi, Ecuador
Colleen Taugher
Slow down and live the small town life in Cotacachi, Ecuador, a town of only 9,000 that continues to be relatively undiscovered by expats.
This remote mountain village is hidden between a pair of volcanoes, but is only two hours from busy Quito, Ecuador’s capital city.
In Cotacachi, you will have the unique opportunity to really immerse yourself in the rich culture of the Quichua people, who live side by side with expats and continue to dress in their traditional garb. You can even walk along Lake Cuicocha and witness local Quichua shamans performing cleansing rituals on the serene shores.
Known for hand-crafted leather goods and local markets, Cotacachi is for expats who really want to live and experience authentic Ecuadorian life, but still have a great leather hand bag.
And while there is a medical clinic in town, most residents will make a trip to the nearby towns of Otavolo or Ibarra, or even Quito for any major medical procedures.
13) Playa Papagayo, Costa Rica
Photo: Josie MacDonagh
Bar none, the greatest option for the ultra-wealthy.
In the province of Guanacaste on Costa Rica’s northwest Pacific coast there is a retirement spot that not many know about.
If you are looking to retire in a luxury beach location, the community of Peninsula Papagayo just might be your best option.
This area is the country’s highest profile development and will cover 2,300 acres with 15 miles of coastline.
Currently in Papagayo, there is a Four Seasons Hotel frequented by Brad Pitt, and over 300 condos. Playing 18 holes on the local course has been compared to a life-altering experience.
14) Boca Chica, Panama
Photo: David Curry
If you crave the serenity of island living, without the bustle of large scale beach resorts, look to Boca Chica to find your perfect match.
Boasting some of the most pristine beaches in Central America, Boca Chica can offer retirees many private island settings with a growing expat community that is not yet overly congested with tourists.
Resting against the Pacific Ocean, in Boca Chica you can live out your golden years fishing, snorkeling, scuba diving, and taking advantage of the outstanding national marine park in the near vicinity.
The Chiriquí Gulf National Park is comprised of islands and sea and is filled with white-tip sharks, rays, and sea turtles. You can also visit a white sand, palm-lined beach and expect to see no one else.
15) Canoa, Ecuador
Photo: Patricio Lopetegui
Located along the dry looking northern coast, Canoa, Ecuador is the ideal spot for expats that small town living in place with personality.
Recognized as a water sport hot spot, in Canoa you will spend your days surfing, paragliding, kayaking or simply walking along the stretch of unspoiled shore.
A burgeoning expat community can be found in Canoa (made up of more residents than investors) and the town is steadily continuing to expand as more westerners learn what South Americans already know about this Ecuadorian gem.
The town now has a bilingual elementary school and more expat-run restaurants and businesses, but despite this development, the prices are low and the adventure is high.
So where is the best place to live in the world?
With so many amazing spots to choose from, it might take some time before you make a final decision on the best place to live in the world.
Don’t rush into buying, rent around and test the waters in a couple different areas before settling down for the long haul in your own personal paradise.
The Marvelous Canal
The Panama Canal is listed as one of the seven greatest industrial marvels of the modern world. It has a well-deserved reputation. The engineering feat spans across fifty miles. The turn of the century visionaries battled a nearly impenetrable jungle, and an equally unforgiving rain forest, as well as tumultuous mountains. The builders and workers on the canal would face every type of tropical disease imaginable; most particularly yellow fever and malaria. What they accomplished was the most important navigational route in the world for shipping goods from the Atlantic side of the North American Continent to the Pacific.
What Makes the Panama Canal Remarkable
U.S. Navy
The Panama Canal is not the longest canal in the world, nor even in North America. With over three hundred miles in length, the Eerie outstrips it by far. Nor is using a lock system anything new. Locks were used as early as 960 A.D., by the Chinese, and well incorporated into nineteenth century architecture. However, no other canal has had to meet the challenges that went into the construction of the one in Panama.
Prior to the building of the Panama Canal, most canals were built across relatively flat land. The locks developed were used to control the amount of water flow over uneven land or to make a river more easily navigable.
When the construction of the Panama Canal began by France in 1881, the ambition was a sea level canal. Buoyed with confidence by the completion of the Suez Canal, private financiers backed the builder, Ferdinand de Lesseps to begin a similar project in Panama.
Lesseps was completely unprepared for the far more hostile environment. Torrential rains and landslides in the unstable mountains continuously hampered his efforts. Diseases ran rampant. By 1889, France had given up in defeat. During the eight year construction period, it had cost the investors $287,000,000, with an additional loss in human lives at 22,000, including nearly the entire family of the Panama project’s Director General, Jules Dingler. The Panama Canal enterprise had cleared eleven miles.
Crossing the Great Divide
Lesseps’ determination to build a sea level canal was ruled by a flawed logic. He was unfamiliar with North American geology and the Great Divide, which extends up through the Rocky Mountains into Canada.
This is an area where the mountains were formed by two tectonic plates colliding together. His sea level would be a constantly shifting, sliding floor that not only held two separate oceans, but contained two separate plates, sliding, grinding and colliding with each other.
By 1902, when the United States purchased the abandoned canal from France, the world had begun going through some rapid technical and scientific advancements. President Theodore Roosevelt chose John Frank Stevens for his Chief Engineer, a man who advocated using a lock-based system that would raise the ships to the level of the mountains, instead of attempting to dig to sea level.
A New Landscape
Curtis Fry
One of the difficulties Lesseps had encountered was the Chagres Rivers. Influenced by the changing tides and seasonal rains, the winding river resisted the efforts to tame it, flooding without warning, toppling layers of freshly cut work with it. Stevens’ proposal included damming the river and creating a lake as part of the Panama Canal route.
The War on Mosquitos
The crew that landed in Panama in the 1880’s were mystified by the diseases that occupied the region. They suspected it had to do with unsanitary conditions and attempted to keep their dwellings as clean as possible. Yet malaria and yellow fever seemed impervious to cautious lifestyles.
As science entered the twentieth century, so did its knowledge that mosquitos were the carriers of these dreaded diseases. The U.S. crew sent in to begin building the new lock system canal, also came prepared to make war on mosquitos.
Stagnant pools were drained and mosquito infested areas were sprayed. An adequate sewage system was put into the French built town. Netting was placed over all doors and windows. By the time the Panama Canal was built, the disease carrying mosquitos had been eradicated along with malaria and yellow fever.
The Developing Canal
Another advantage of the ushered in new century was a deeper understanding of hydraulics. Steam power was in full gear. A railroad had already been built crossing the strait of Panama, close to the location they wished to build. The work that had begun primarily from manual labor was now made easier with steam shovels and cranes.
If the equipment used was the best the time period had to offer, the technology involved in building the canal was a concept so modern, its ingenuity continues to be admired. The new canal had constructed what was at the time, the world’s largest dam and artificially created lake. Three sets of double locks controlled the water height, with one set raising the vessel eighty feet as it entered Gatún Lake. The locks and dam required four and a half million cubic yards of concrete. The extensive electrical system used to power the locks was one of the earliest complex systems ever used.
The Panama Canal Today
Bruce Tuten
Each day, an average of forty ships pass through the Panama Canal. Four percent of the world’s trade and sixteen percent of the U.S. trade uses the shipping route through Panama.
The flourishing business nurtured a flourishing city. The buildings left by the early French effort to settle in the lush, tropical region, were absorbed by the American workers, who improved and expanded them, added to them, inexorably shaping the settlement into a highly industrial city.
The advanced architecture and technology of the Panama Canal has influenced the development of Panama City. Sleekly modern, its appeal draws businesses, investors, entrepreneurs and international residents.
The Panama Canal also draws a booming industry of tourists. The canal is not only one of the seven engineering wonders of the modern world, it’s beautiful. The sparkling Caribbean waters give way gently to a graceful, winding river, that broadens into the tropical forest setting of the Gatún Lake. Dotted throughout the lake are a number of islands, including the world famous wildlife sanctuary, the Barro Colorado Island.
Future Economic Impact
Traffic through the Panama Canal is so extensive, ships wait in long lines to be cleared for passage. As global industry grapples with the problems of resource demands and economy, ships have grown larger to accommodate global trade more efficiently. Where once a Panamax was the largest ship size to pass through the locks, there are a growing number of larger ships that are forced to take their cargo on the extra nautical miles sailing around Cape Horn.
Panama has begun earnestly on a third shipping lane that will reduce the average waiting period for passage.
The project will not only increase the number and size of the ships passing through its locks, it is expected to increase trade on the U.S. East Coast. Presently, the Post-Panamax ships bypassing the canal are also bypassing East Coast ports, carrying their cargo to the over-crowded Los Angeles ports. The longer journey, and consequent added expense, has added to the price of imported goods, further straining an already distressed economy.
In anticipation of Panama’s expansion plans, scheduled to be completed by 2015, the Port Authority of New York and New Jersey have already spent $800 million on dredging and deepening their ports to accommodate the giant post-Panamax ships, and have authorized an extra billion for raising the Bayonne Bridge fifty feet higher. At present, a fully loaded post-Panamax ship is able to go under the bridge and into the harbor, but once unloaded, would not be able to make it out as it then sits taller in the water.
Sound Management for the Panama Canal
Robert Ciavarro
The government of Panama has already begun to look for new ways to allow vessels to pass through the canal within their scheduled transit time. A new service, called Just In Time, uses Satellite Automatic System technology for tracking vessels within 2,000 nautical miles before arrival to ensure they can arrive at the canal in their scheduled booking time. The trial service is designed to allow vessels more energy efficiency by reducing their waiting period at anchor before beginning their actual canal transit.
An issue that has become critical over recent years is the depleting water resources in Gatún Lake. The current canal loses fresh water each time the locks open during the downward lock cycle. The widened canal design would use water saving devices at each lock, for a total of nine basins, conserving and recycling sixty percent of fresh water use.
Why Panama Is a Solid Investment
Panama’s economic policies have made it the leader among Central American countries. With the canal as its center for trade, the gross domestic product per capita is $11,700. As its major investor, the United States is inexorably tied to the canal, depending on its services to mitigate the rising costs of fuel. Seventy percent of the traffic through the Panama Canal is in vessels from or bound for U.S. shores. It is the quickest route for bringing Asian products to the Pacific waters of commerce.
Although a new canal through Nicaragua and a route through the Northwest Passage have been discussed, and are even on the planning tables of some countries, both regions come with their difficulties. A canal through Nicaragua would be three times the length of the Panama Canal. Although it would utilize the rivers and the enormous Lake Nicaragua, separated by only a narrow strip of land, it would cost approximately 40 billion dollars and take eleven years to build. Opponents to the canal state the consequences to Nicaragua’s delicate environment could be disastrous.
Ownership of the Northwest Passage is still in dispute. The waterway is a journey through a treacherous ocean that is rarely ice free. Beside the human risk, there is risk to a number of endangered species of marine life.
The Practical Choice
The cost of the Panama Canal expansion is approximately $5.35 billion, a sum that will easily realize profit within a few years. The volume of traffic has continued to increase on a yearly basis despite the appearance of Post-Panamax ships. With the new locks in place, it will be able to handle three times its current volume, as well as accommodate larger vessels.
Panama has consistently shown a peaceful international resolve, a strong sense of responsibility toward its environment, and commitment to its people. Its foresight, beginning with the most advanced engineering feat of its time, continues to mark it as a country that forges ahead with practical applications for the future. Because of its skilled management of its affairs, which include economic stability through good stewardship, Panama remains the most practical Central American investment and the hub of maritime travel.
The Peaceful Country
The Latin American countries are often associated with periods of intense upheaval, political corruption, and violent revolutions. Progress and democratic process was laborious and only accomplished with enormous struggle. Panama, however, has never had a prolonged period of bloodshed and violence. Its history is one of usually dissolving its disputes by peaceful means and taking a pragmatic look at the future.
Panama’s Early Independence
Formerly a region of Colombia, Panama stated its independence from its mother country in 1903. Its proclamation was stimulated by a three hundred year old dream to build a canal through the narrow isthmus, shortening the journey for inter-continental traffic, and creating a cheaper trade route for the shipping industry. In 1819, the Spanish government formally authorized the building of a canal, but no action was taken, and interest eventually faded.
The French first undertook the project in 1881. After examining a proposal set forth by Ferdinand Marie de Lesseps, the builder of the Suez Canal, the French government authorized the construction of a sea-level canal through Panama and a company to undertake the construction.
For eight years, the company struggled with obstacles they had not previously considered. The Pacific tidal range was twenty feet, whereas the Atlantic range was only one foot. The labor was done by primarily by hand, making navigation slow and cumbersome. Workers were often plagued with malaria, yellow fever, and other tropical diseases. In 1889, they abandoned the project and offered to sell it to the United States.
The Little Rebellion
When the United States accepted the project, it also accepted a commitment to protect the sovereign rights of the Panama people. The initial proposal, presented to the Colombian government, was met with rejection. Already unhappy with their ties to Colombia, the citizens of Panama chose to stage a rebellion and declare themselves an independent country.
It was probably the most bloodless rebellion in history. Siding with the Panama people, the United States blocked rail transportation into Colombia and sent a few warships into the zone. With the jungles of the Darien Strait their only recourse to combating the insurrection, Colombia relinquished its claims to Panama, allowing it to be recognized as an independent country. During the three day blockade, a few shots were fired, but there were no deaths or injuries.
The Beginnings of Economic Stability
The United States compensated France forty million dollars for their abandoned project, and ten million dollars to the Panama government for the right to build a canal on a thirteen mile strip. The preparatory labor included paving the roads, the introduction of screened windows and the installation of city-wide water systems to prevent water stagnation and contamination. Swamps were drained, and insect breeding areas were covered with oil and larvicide. After two years of sanitation efforts, mosquito borne diseases were nearly eliminated. Despite these efforts however, 5,600 workers died of diseases and accidents during the construction phase of the canal.
The canal formally opened on August 15, 1914. The United States had spent 374 million dollars on its construction, including building what was then, the largest dam in the world, a massive, sophisticated electrical system for powering and controlling the flow of water into the locks and spillways, and a number of housing facilities for workers and guards.
An Issue of Ownership
The building of the Panama Canal was a spectacular success. The project was declared one of the seven wonders of the modern world. The city of Panama experienced a quality of life found in few other places within the Central American network. However, by the early 1960’s, many of the Panama citizens felt the United States had profited from their engineering feat long enough and the canal rightfully belonged to Panama. A series of student demonstrations were staged, one of which involved the deaths of twenty Panamanians and three U.S. soldiers.
In 1974, negotiations began for the settlement of the issue. The Torrijos-Carter Treaty was signed in 1977 by U.S. President, Jimmy Carter and Omar Torrijos, the leader of Panama, granting Panama full control over the canal on conditions of neutrality. On December 31, 1999, Panama assumed full command over the waterway. The canal remains one of Panama’s primary sources of revenue.
Panama’s One Black Eye
Panama’s history has been one of diplomacy and negotiation. Its strong ties with the United States have lasted over a hundred years. However, from the civil unrest and rebellion that spread through many of the Central American countries, emerged an ambitious leader. Manuel Antonio Noriega Moreno began his rise to power as a career soldier involved with the CIA. Throughout the 1970’s and 1980’s, he aided U.S. backed guerillas in Nicaragua, and set up listening posts in Panama, despite the canal’s declaration of neutrality.
Noriega’s association with the CIA allowed him to build almost unlimited power within his country as he skillfully manipulated government agencies to support what appeared to be the mutual benefit of both countries. Noriega, however, was skilled at working both sides of the fence.
Although he outwardly supported Panama leader, Omar Torrijos, when Torrijos died in a 1981 plane crash, it was rumored Noriega had planted a bomb.
In 1985, he allowed the first presidential elections in sixteen years to be held in Panama. However, when it became clear he would not win, Noriega halted the count. His opposition still won by a slim margin, although analysts concur that if the votes had all been counted, PRD candidate, Nicolas Ardito Barletta Vallarino would have won by a landslide. In 1989, he was again accused of rigging the elections.
Noriega’s career was embellished with the grisly murders of outspoken opponents, whose deaths were never fully proven to be connected to him. The highly criticized 1989 elections resulted in deteriorating relationships with the U.S., and a statement of war.
On December 20, 1989, the U.S. invaded Panama. Five days later, Noriega surrendered. He was charged with racketeering, money laundering, drug trafficking, and absentee murder.
Panama Today
Panama has recovered from the social conflicts that had once made Central America a hotbed of politics. It is now the fastest growing country in Central America with one of the most robust economies. The conversion to the dollar has favored its energetic growth, with investors from the United States, Canada, and the European Union.
Much of Panama’s growth has been credited to sound business policies, which include a planned expansion of the canal that remains one of Panama’s greatest sources of income, and the Colon Free Zone, which supports national and international commerce, ranging from transportation to commercial activities.
Transportation facilities for Panama include the Pan-American highway, which extends into Alaska, the Caribbean to Pacific highway, six airports, five ocean ports with modernized cargo handling facilities, a trans-isthmus railway and the canal, which annually passes 12,000 merchant ships from 75 different countries.
With more than 120 international banks, Panama has become a crucial regional hub, with a diversified ownership structure, low reliance on wholesale funding and high capital and liquidity rates. Panama’s open policies have made investment easy for both individuals and enterprises.
No other country in Central America has changed so quickly. From a small, struggling region breaking away from its parent country, to an independent voice speaking out for what is best for Panama, it has shown itself to be resilient, imaginative, and creative. An investment in Panama is an investment in a future filled with promises of greater things to come.
Sam Shall
Expats head down to Central America for the scenic beauty, the year-round spring-like weather and the low cost of living that makes these countries a prime retirement spot.
But now something new is drawing them in, the promise of world class health care at extremely affordable rates. And with such a short commute from Central America to the U.S., what could be better for North American expats?
For many people, choosing to travel overseas to receive medical treatment is basically a no-brainer (especially after the recession) and medical tourism is experiencing a new wave of popularity.
But does quality of Medical Treatment have to be sacrificed?
In short, no, the treatment you receive abroad can be just as good as the treatment you would have received back home and in fact, many expats claim that the treatment they received abroad was superior, with lower costs and shorter waits.
Recognizing the opportunity and getting on board with medical tourism, many of America’s top health care branches are expanding out to include countries that are known to be popular retirement spots and well-known insurers like Blue Cross are putting their own medical tourism programs into action.
So where in Central America can expats find the best health care?
1) Ecuador
First on the list is Ecuador and Cuenca in particular.
According to former U.S. hospital administrator Alex McClellan, Cuenca, Ecuador, may just be the newest medical tourism hot spot. And having worked in the medical tourism industry for years, in countries like Mexico, India, and China, McClellan knows a thing or two about the industry.
In Cuenca, expats can expect to pay around 7-10% of what they would have paid for medical procedures back home, without having to sacrifice quality.
A heart bypass that would cost $130,000 in the U.S., will cost closer to $10,000 in Cuenca and a hip replacement priced at anywhere from $43,000 to $51,000, only $8,000.
With price differences like that, it’s no wonder retirees are looking to Ecuador for the perfect spot to settle down.
2) Mexico
Next up is Mexico. Originally a popular spot for medical tourists due to its close proximity to the United States, Mexico now boasts many great medical facilities like Angeles Health.
The largest private hospital network in the country, Angeles Health has over 23 hospitals, 2,000 beds and 200 operating rooms, all staffed by 11,000 trained health care professionals.
Because of this, Angeles Health has become a sought out spot for medical tourists and the U.S.-based Angeles Health subsidiary is constantly setting up treatments for North American medical tourists.
3) Costa Rica
Already one of the most popular expat destinations in Central America, the high standard of health care that can be accessed in Costa Rica is just icing on the cake for many expats.
In Costa Rica, expats can receive the medical attention they require, in one of the many private accredited hospitals and again, the prices are much, much lower than back in the states; 50-70% lower in fact and the wait time for treatment or surgery is virtually non-existent, something that definitely cannot be said about the U.S.
While cosmetic and dental procedures were the most common medical tourist lures in the past, today many other surgeries and medical treatments are being performed, bringing in even more expats and medical tourists.
4) Panama
Each year, Panama is drawing in more expats with its beaches, weather and excellent business climate, but now, foreigners are coming for the health care system as well.
Many world class health care facilities can be found across Panama, each staffed with medical professionals trained to use the latest technology.
- Clinica Hospital San Fernando: is Panama’s first private hospital and is known for its excellent inpatient pharmacy.
- Centro Medico Paitilla (affiliated with Cleveland Clinic): can be found in the center of Panama City and is a great choice for tertiary care.
- Hospital Punta Pacifica: is a John Hopkins-affiliated hospital and offers exceptional treatment for minimally invasive cardiac surgery, general surgery, neuro-surgery, and urology procedures.
When expats leave North America behind in search of the perfect retirement spot, their Medicare and private health insurance can’t be brought with them.
Fortunately the boom of medical tourism that is rushing through Central America at an incredible rate is making it possible for expats to get quality health care without having to fly back home.
If you are thinking about moving down to Central America, to live out your retirement years in tropical bliss, consider Ecuador, Mexico, Costa Rica, or Panama.
These countries can give you the best of both worlds, the paradise you crave, coupled with the first world medical facilities you need to make you feel safe and comfortable.
Knights Bridge
Expat and real estate developer Park Wilson talks about the best Panama visa and residency options and why they’re the main ones he’d recommend to someone wanting to relocate to Panama.
Park: I’ve been an expat in Panama for about 6 years now, and one of the questions I get asked a lot is which visa is the best for other expats to pursue. Obviously, this can vary from one individual to the next, based on their specific needs. But, from my own experience and from talking to tons of other expats who have gone through the process, I could easily narrow it down to two that I think make the most sense and the non-option that has made the most sense for me.
The Pensionado Visa. And the one for Nationals of Specific Countries (NSC).
They both have their pros and cons, but in my opinion these two have the best benefits and require the least amount of effort. Here’s a little more information, including the pros and cons of each.
Pensionado Visa
The Pensionado Visa is an option designed for pensioners of all ages and comes complete with a neat little bundle of discounts and advantages for its recipients. You’ll have to jump through a few extra hoops to qualify, but the end result can really be worth it. Here’s the skinny on this visa.
Qualifications
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Monthly income of $1,000 for life from a guaranteed source such as a pension or annuity
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Or income of $750 per month and a $100,000 minimum investment in Panamanian real estate
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An additional $250 monthly income for each dependent child
Benefits
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50% off on recreation and entertainment such as movies, theaters, sports, etc.
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50% off hotels Monday through Thursday (30% off on weekends)
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50% off passports
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30% off public transportation like buses, trains, and boats
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25% off airfare
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25% off restaurants (15% off fast food)
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25% off electrical, telephone, and water service
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20% off doctors and specialists
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20% off prosthetics and other personal assistance devices
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15% off hospitals and private clinics
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15% off dental and optometry services
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10% off prescription medications
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tax-free importation of household goods, up to $10,000
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tax-free importation of a vehicle, or tax-free purchase of a local vehicle, every 2 years
The Pensionado visa also allows expats to obtain a cedula, Panama’s national identification card. It also makes them eligible for permanent residency, but not citizenship.
Some Drawbacks
While most would say it’s worth it, the Pensionado visa can be a lot of trouble to obtain. And not everyone gets it. The process takes about 6 months and requires a hefty amount of paperwork and may require you to continue to prove solvency.
Another problem is that the Pensionado visa restricts you from having a job. You can own a business that you operate, but otherwise Panama historically frowns on foreigners coming in and taking jobs away from Panamanians. So, if you don’t want the hassle or if you plan to seek outside employment, the Pensionado visa may not be the one for you.
No worries. You’ll get to enjoy most of the same discounts anyway once you reach retirement age.
Nationals of Specific Countries Visa
The other visa that I would highly recommend is one that was recently made possible in order to attract much-needed skilled labor to accommodate Panama’s growing economy. It’s quick, painless, and fairly easy to qualify. And it has the added benefit of allowing you to hold a job or start a business. It’s required in fact. Here are the qualifications for the visa offered to nationals of specific countries (NSC):
Qualifications
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$5,000 in a Panamanian bank (plus an additional $2,000 for each dependent)
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One of the following:
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evidence of investment in Panamanian real estate
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proof of ownership in a Panamanian business or corporation
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or a letter and contract of employment from a Panamanian company
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Oh, and one more thing. You have to be coming from one of these 47 countries “that maintain friendly, professional, economic, and investment relationships with the Republic of Panama”:
Andorra, Argentina, Australia, Austria, Brazil, Belgium, Canada, Chile, Croatia, Cyprus, Czech Republic, Denmark, Estonia, France, Finland, Germany, Greece, Hong Kong, Hungary, Ireland, Israel, Japan, Latvia, Liechtenstein, Lithuania, Luxembourg, Norway, Malta, Monaco, Montenegro, Netherlands, New Zealand, Poland, Portugal, San Marino, Serbia, Singapore, Slovakia, South Africa, South Korea, Spain, Switzerland, Sweden, Taiwan, United Kingdom, United States, or Uruguay.
Also eligible are applicants’ dependent spouses, children under 18 (or between 18 and 25 if they’re students), dependent parents, and family members with disabilities.
Benefits
The NSC visa doesn’t have any discounts or other monetary perks like the Pensionado. Its main attractive feature is that it gives you the freedom to work, and requires a very minimal investment.
Another perk is that, because the need for workers is great, Panama’s current administration is really cranking these visas out fast. And, it’s immediate permanent residency. No renewals. No waiting. Recipients can also apply for citizenship after 5 years, something that isn’t possible with a lot of visas.
That’s why a lot of folks are calling this one the “fast track” visa. It’s great for young entrepreneurs who might not otherwise be able to afford to make such a move.
Some Drawbacks
I really can’t think of a negative thing to say about this visa. Other than the fact that it isn’t right for someone who doesn’t have the $5,000 investment or doesn’t want to have to work. Other than that, it’s a great opportunity for ambitious would-be expats.
The Non-Visa Option
Another option, or you could call it a non-option, is not to apply for any visa at all. This is actually what I’ve been doing, and it has worked out quite well. You see, U.S. citizens are automatically given a 6-month visa upon entering Panama. And there’s no limit to the number of times you can be granted this visa.
So, because I live so close to Costa Rica, it’s really no trouble at all for me to hop over the border, stay for a few days, and then head back to Panama where I get another 6-month visa. This option is fairly common. I know a lot of people who do it.
Bottom Line
If you have the guaranteed income and are ready to enjoy a retirement lifestyle, go with the Pensionado visa. The benefits are worth it. If you have less of an initial investment and want to build a business or career in a place that better rewards your efforts, the specific countries visa is your ticket.
Then again, if you don’t mind some occasional travel, then don’t get a visa at all. There are plenty of options, or non-options, available. Find the one that’s right for you.
Sometimes the real estate market in countries like Panama appears to be flat out insane.
Prices don’t make sense. Some places that hardly have any infrastructure have expensive land. How in the world do you move forward with any rational decision in a market like that?
These are the questions that led us to come up with our work on the stages of land development in Central America. If you don’t yet understand this concept, you are playing with fire when evaluating whether or not you are getting a “good deal.”
Good, now that you understand the concept of Market stages, how do you apply it to Panama?
Start by using this map as a starting point to learn the stages of the different areas in Panama.
Is it an exact model of the country? No. Is it accurate enough to help you make smarter decisions. Absolutely.
P.S. Here is a bigger version of the map.
Click for Larger Version
If you’re considering buying property in Latin America, it’s easy to see why Panama would be at the top of your list. With affordable real estate, loads of investment incentives, and favorable tax laws, it’s a great place to live and invest.
But, while narrowing your search down to Panama is easy, what comes next is much harder. With such variation among its various cities, the task of deciding EXACTLY where to buy property can be daunting, especially as an outsider.
Use this map to learn the names of the areas where expats live in Panama and narrow your search.
Click for Larger Version
BattenKill Canoe
Retirement used to mean that your best days were behind you. The word itself conjures up images of senior citizens gathering for breakfast every morning at the same local cafe or meeting up for their weekly game of bridge.
Retirees were those who had resigned themselves to their fixed income and holed up at home to live out the rest of their days in peace. The more well-to-do might spend a month or an entire season in Florida in a mobile home park, or maybe even a condominium. But most just counted down the days until they got put in a home and lost their last final shred of dignity.
Those days are over.
Today’s retirees are not content to waste away playing checkers and reading their AARP magazine. They’re adventuresome, fearless, and all the more vivacious because of the gusto with which they’re approaching their retirement years.
For many, retirement means something very different these days than it did even a decade ago. Those uneventful, sedentary lifestyles are being replaced with travel, exploration, and sometimes even a new start in another context.
Retirees are traveling and moving overseas more than ever before.
Travel among retirees is at an all-time high. The travel industry has recognized this demographic as a vital segment of their customer base and has begun catering to the mature traveler.
And the travel itself even looks different. Today’s retirees are less likely to spend their vacation on a crowded tour bus being shuttled from one city to the next. Many are taking a more DIY approach, planning their own adventures and steering clear of the more cookie-cutter travel experiences.
Since much of the current retired generation has traveled extensively during their working years, many are now targeting locations that are a little farther off the beaten path. If they traveled to a well-known European city years ago, they may decide to visit its lesser-traveled neighbor when they return. Multi-generational travel has also grown in popularity, as many retirees want to see the world with their children and grandchildren in tow.
In addition to their short-term travel, more Americans than ever are retiring overseas. It’s unclear just how many, but a reported 350,000 Americans receive their Social Security checks in countries outside the U.S. And in a recent study by Travel Market Report, an estimated 3.3 million baby boomers plan to retire abroad.
So what’s causing this trend among current retirees?
Maybe they’re born with it.
Americans who are currently entering retirement age are part of the “baby boom” generation, which includes those born between the years of 1946 (following the end of World War II) and 1964, when more babies were born than in any previous period in history.
While there are a number of suggestions as to why this boom occurred, many speculate that it was the result of a spirit of anticipation of future comfort and prosperity that led postwar families to want to have more children. Young couples in those days desired something better than their Depression-era parents had, and they wanted their children to have an even better life than they themselves planned to enjoy.
No doubt baby boomers came into this world with an inborn sense of optimism and an inherent drive to surpass all expectations. And this characteristic is evident in their travel and retirement decisions. Today’s retirees have a spirit that is not afraid.
Could it be a culturally-driven thirst for adventure?
In today’s world, it seems like everyone has a “bucket list.” A mental inventory, or maybe even one they’ve put down on paper, of all the things they want to do before their time is up. Add to this the fact that nearly every prime time network has a whole lineup of reality television shows set in remote destinations and featuring a slew of death-defying challenges and adventures.
There are travel magazines, travel-themed TV shows, and even entire networks tailored to those who have a desire to see the world and experience other cultures. As a result, retiring baby boomers are more aware than ever of the options that are available to satisfy their wanderlust.
Cross-country RV trips to the Grand Canyon are being replaced with 14-day cruises to Grand Cayman. And instead of weekend trips to Florida with the family, they’re heading to Peru to hike Machu Picchu with their kids and grandkids. And they’re hanging in there with the spryest of them.
Maybe it’s the calm and contentment.
As people age, studies show that their enjoyment comes less and less from the anticipation of some future event and more so from relishing the here and now. And many retirees feel like traveling to or living in another country can greatly affect their enjoyment of their current state.
For many, it means spending time outdoors and enjoying the serenity and peacefulness that nature has to offer. This may be why so many of today’s retirees choose to visit or relocate to areas with milder climates and undisturbed natural habitats.
Spending time in another location better enables retirees to avoid common stressors, like political dissatisfaction or financial worries. The absence of stress has been proven to improve health and decrease one’s risk of illness, particularly heart disease.
For this reason, many retirees are embracing the possibility of enjoying a stress-free lifestyle in those all-important latter years. Many are finding this decision to be hugely beneficial.
Or is a lack of money prompting baby boomers to retire overseas?
Still another possible reason today’s retirees may be choosing to travel and especially live overseas is the fact that they can enjoy a much lower cost of living, without sacrificing any of their quality of life.
Living in the States these days is not cheap, especially for those in retirement. The recent global financial crisis did quite a number on the pocketbooks of many American families. Many suffered severe hits to their 401k’s (an average of 18 years worth of gains). Home prices also fell 23% from 2007 to 2010.
Not everything is down, though. On the contrary, taxes have never been higher. And the average 65-year-old couple will pay $240,000 in out-of-pocket medical expenses over the rest of their lifetime, versus $160,000 a decade ago.
It’s no wonder that, in a recent Retirement Confidence Survey conducted by the Employee Benefit Research Institute, only 14% of employees were “very confident” they’d have enough money to live comfortably in retirement.
As many retirees are learning, this comfortable retirement can much more easily be found overseas. Housing costs are much lower than the U.S. average. Good health care, often as good as can be found in the U.S., can be obtained for a fraction of the cost.
Expats can often enjoy a pedestrian lifestyle, buy fresh produce from local markets, and enjoy excellent meals at local restaurants for much less than they would pay in the U.S. for the same cuisine. Add to that the abundance of inexpensive activities they can participate in, especially in more-established villages or those with a large tourist or expat presence.
And with today’s technology it’s even easier and cheaper than ever to stay connected to family back home. So, there’s one less barrier to breaking free and spending their retirement the way they’ve always dreamed.
No matter the reason, they don’t seem to be slowing down.
Whatever it is that’s prompting them, baby boomers are changing the face of retirement as we know it. The travel industry is certainly taking notice, as many of the biggest names in the industry have launched campaigns tailored towards retirees.
Interestingly, quite a few foreign countries are also jumping on the bandwagon. Between foreigner-friendly tax laws and special discounts for retirees, many nations are welcoming both tourists and expats with open arms. See for yourself some examples of what these countries are doing. A little research can help you decide if overseas retirement could be right for you.