Did you know Panama is one of the only places in the world where you can watch the sunrise over the Pacific and set over the Atlantic—on the same day? And another crazy fact that Panama’s Pensionado Visa program offers retirees huge discounts on everything from healthcare to flights, and uses the U.S. dollar as its currency, making it one of the most attractive retirement destinations in the world? Sounds like a dream destination isn't it? Panama, a small Central American country known for its iconic canal, may just be the place you’ve been searching for. With its friendly locals, tax incentives for retirees, and a laid-back lifestyle, Panama is increasingly becoming a popular retirement destination. Whether you are drawn to the vibrant city life of Panama City or the tranquil beaches and mountain towns, this guide will walk you through everything you need to know about retiring in Panama, from visas and housing to living costs and the country’s culture. Why Retire in Panama? Panama’s geographical location is ideal for those who want a mix of both nature and modernity. Located between Costa Rica and Colombia, Panama offers easy access to both the Pacific and Atlantic Oceans, and its proximity to the equator ensures a tropical climate throughout the year. The country’s diverse landscapes include everything from white sandy beaches to highland forests, providing a variety of environments to choose from depending on your lifestyle preferences. In addition to its natural beauty, Panama boasts a stable economy, thanks in large part to the Panama Canal, which generates significant revenue for the country. Panama uses the U.S. dollar as its official currency, which simplifies financial matters for American retirees. The government also offers attractive incentives to foreign retirees, making it easier for them to settle in and enjoy a comfortable life. The Pensionado Visa Program One of the most attractive aspects of retiring in Panama is the Pensionado Visa program, designed specifically to attract retirees. To qualify for this visa, you must meet the following requirements: You need to have a lifetime pension or social security income of at least one thousand U.S. dollars per month. If you are a couple, the combined minimum monthly pension should be around one thousand two hundred and fifty U.S. dollars. Your pension must come from a government or corporation. Once you are approved for the Pensionado Visa, you will enjoy a host of benefits, including: Fifty percent off on hotel stays from Monday through Thursday. Twenty-five percent off on flights. Fifty percent off on entertainment like movies, concerts, and theater. Twenty percent off on doctor’s visits. Ten percent off on prescription medicines. Moreover, there are no property taxes on homes bought under this program for the first twenty years, making it an excellent option for those who wish to invest in real estate. Cost of Living Panama offers an affordable cost of living compared to many Western countries. The amount you need to live comfortably will depend on your lifestyle, but in general, here’s a rough estimate of monthly costs: Rent for a one-bedroom apartment in Panama City can range from seven hundred to one thousand U.S. dollars, while in smaller towns like Boquete or Coronado, it could be as low as five hundred dollars. Utilities (electricity, water, gas, and internet) are typically around seventy-five to one hundred dollars a month. Groceries can vary, but most retirees report spending between three hundred and five hundred dollars a month. Dining out is very affordable, with a meal at a local restaurant costing between five and ten dollars per person. Overall, a couple can live comfortably in Panama on a budget of between two thousand and two thousand five hundred dollars per month, including rent. Housing Options Panama has a wide range of housing options, from high-rise apartments in Panama City to beachfront villas or homes in the cooler mountain regions. Whether you’re looking to rent or buy, you’ll find that prices are much lower than in North America or Europe. In Panama City, expect to pay between one hundred fifty thousand and two hundred thousand dollars for a modern apartment in a central location. In Coronado or Boquete, popular towns for expats, you can find houses ranging from one hundred thousand to two hundred thousand dollars, depending on the size and location. If you decide to buy, remember that foreign nationals have the same property ownership rights as Panamanians, and there are no restrictions on foreign ownership. Panama’s Culture and People Panama is known for its friendly and welcoming population. The majority of Panamanians are mestizo, a blend of Indigenous, European, and African ancestry. The country’s culture is a mix of Indigenous traditions, Spanish colonial influences, and a strong Caribbean presence, especially on the Atlantic coast. Panamanian women are often described as family-oriented, warm, and friendly. They value close-knit familial relationships and are typically involved in both the professional world and traditional domestic roles. In terms of appearance, Panamanian women often have a striking blend of Indigenous and Afro-Caribbean features, reflecting the country’s diverse heritage. Panama’s Economy and History Panama has a stable and growing economy, largely due to its strategic location and the Panama Canal, which serves as a key conduit for global maritime trade. The canal has been a major source of revenue for the country since its completion in 1914, and its expansion in 2016 further boosted the economy. The country also has a rich history, shaped by Spanish colonization, independence movements, and American influence during the construction of the canal. Today, Panama enjoys political stability and continues to attract foreign investment. Things to Do and See in Panama Panama City is the bustling heart of the country, blending modern skyscrapers with rich historical and cultural attractions. Here are some key highlights: Casco Viejo (Old Quarter): This charming historic district is a UNESCO World Heritage site and a must-visit for anyone in Panama. Stroll along the cobblestone streets lined with colorful colonial buildings, boutique hotels, art galleries, and restaurants. Casco Viejo is also home to important landmarks such as the Presidential Palace and the Metropolitan Cathedral. Panama Canal: The Panama Canal is one of the country’s most iconic landmarks and a marvel of engineering. Visit the Miraflores Locks, where you can watch massive ships transit through the locks and learn about the canal’s history at the visitor center. The canal also has a museum detailing its construction and expansion. Amador Causeway: This scenic roadway stretches along the Pacific entrance to the Panama Canal and offers breathtaking views of the Panama City skyline. Along the causeway, you’ll find parks, restaurants, bike rentals, and even the Biomuseo, a museum designed by renowned architect Frank Gehry, which explores Panama’s biodiversity and geological history. Cinta Costera: If you enjoy outdoor activities, this waterfront promenade in Panama City is ideal for walking, biking, or rollerblading. It offers fantastic views of the city and is a great place to exercise while soaking in the skyline and ocean breezes. The Panama Canal Zone In addition to the Miraflores Locks in Panama City, the entire Panama Canal Zone is a fascinating region to explore: Gatun Locks: Located on the Caribbean side near Colón, these locks are even larger than Miraflores and offer a more tranquil viewing experience. The nearby Gatun Lake, one of the largest man-made lakes in the world, is also worth visiting for boat tours and wildlife spotting. Soberania National Park: Located near the Canal Zone, this national park is a birdwatcher’s paradise and offers excellent hiking trails through lush rainforests. One of the most popular hikes is the Pipeline Road, famous for its abundant wildlife, including monkeys, sloths, and hundreds of bird species. Bocas del Toro Archipelago Located off Panama’s Caribbean coast, Bocas del Toro is a tropical paradise with pristine beaches, vibrant coral reefs, and a laid-back island vibe. It’s the perfect destination for beach lovers, divers, and those looking to unwind. Here are some of the main attractions: Isla Colón: The main island of the archipelago and the most developed, Isla Colón is home to the lively town of Bocas Town, with its colorful wooden buildings, boutique hotels, and beachfront restaurants. It’s the perfect base for exploring the surrounding islands. Starfish Beach: Named for its abundant sea stars, this tranquil beach on Isla Colón is ideal for swimming and snorkeling in calm, crystal-clear waters. Red Frog Beach: Located on Isla Bastimentos, this beach is one of the most popular in Bocas del Toro. It’s famous for its powdery white sand, lush jungle backdrop, and the tiny red frogs that are native to the island. Isla Zapatilla: Part of the Bastimentos National Marine Park, this small uninhabited island is a true tropical getaway, featuring untouched beaches, turquoise waters, and excellent snorkeling. Boquete If you’re looking for a cooler climate and picturesque mountain scenery, Boquete is the place to be. Nestled in the highlands of the Chiriquí Province, Boquete is a popular destination for expats and nature lovers: Volcán Barú National Park: The highlight of Boquete is Volcán Barú, the tallest mountain in Panama. Adventure seekers can hike to the summit of this dormant volcano for a breathtaking view of both the Pacific and Atlantic Oceans. The hike is challenging but rewarding for those in good physical condition. Coffee Tours: Boquete is renowned for its world-class coffee. Many local coffee farms offer guided tours where you can learn about the entire coffee-making process, from bean to cup. Geisha coffee, a rare and highly sought-after variety, is grown in this region and is considered one of the best in the world. Hiking Trails: Boquete offers a number of beautiful hiking trails, including the Lost Waterfalls Trail, where you can discover three stunning waterfalls hidden deep in the rainforest. San Blas Islands (Guna Yala) If you’re in search of an untouched paradise, the San Blas Islands are a must-visit. This archipelago consists of over three hundred and sixty islands, most of which are uninhabited. Managed by the Guna Yala Indigenous people, the islands are known for their crystal-clear waters, white sandy beaches, and vibrant marine life. Snorkeling and Diving: The waters around the San Blas Islands are teeming with coral reefs, making them perfect for snorkeling and diving. You can explore colorful fish, sea turtles, and other marine life in some of the clearest waters in the Caribbean. Cultural Experience: A visit to the San Blas Islands also offers a unique opportunity to learn about the culture and traditions of the Guna Yala people, who maintain a largely autonomous way of life. You can stay in traditional thatched-roof huts, dine on fresh seafood, and purchase handmade molas (intricately embroidered textiles) as souvenirs. Pearl Islands (Islas de las Perlas) Located off the Pacific coast of Panama, the Pearl Islands are a group of over two hundred islands and islets that offer a more luxurious, private experience compared to other destinations in Panama. Isla Contadora: This is the most developed island in the group and is known for its upscale resorts, pristine beaches, and excellent snorkeling and diving opportunities. Whale Watching: Between July and October, the Pearl Islands are one of the best places in the world for whale watching. Humpback whales migrate to the warm waters of the Pacific to give birth, and visitors can witness these majestic creatures up close. Pros and Cons of Retiring in Panama Pros: Affordable cost of living: Panama offers a high quality of life at a fraction of the cost in the U.S. or Europe. Retiree benefits: The Pensionado program provides significant discounts on many services. Modern healthcare: Panama has excellent healthcare facilities, particularly in Panama City, at a much lower cost compared to the U.S. Easy integration: English is widely spoken, especially in expat communities. Beautiful natural surroundings: From tropical beaches to mountain towns, there’s a location for every lifestyle. And finally the Cons are the following: Weather: Panama’s tropical climate means it’s hot and humid year-round, which may not be suitable for everyone. Bureaucracy: Like many Latin American countries, navigating paperwork and dealing with government institutions can be slow and frustrating. Cultural differences: Panama’s pace of life is much slower than in Western countries, which may require some adjustment. Inconsistent infrastructure: While Panama City is modern, rural areas may experience occasional power outages or limited access to services. Panama is a land of incredible diversity, offering everything from cosmopolitan city life and historical wonders to remote islands and lush rainforests. Whether you’re drawn to its vibrant culture, outdoor activities, or tranquil beaches, Panama has something for everyone. The country’s mix of natural beauty, modern amenities, and rich history makes it a top destination not only for retirees but also for those looking for adventure and relaxation. Thanks for watching! If you enjoyed this video and found it helpful, make sure to give it a thumbs up and hit that subscribe button for more content like this. Don't forget to click the notification bell so you never miss an update. We have plenty more videos on retiring abroad, exploring new countries, and living your best life, so check them out too! Let us know in the comments if Panama is on your list for retirement, and as always, thanks for being a part of our community. See you in the next video!