Contact 
Log In 
Moving to a foreign country is a whole new experience for many people. Living in Panama is unlike living in the United States, Canada, or Europe. Some things are similar, but many things are done differently. For a smooth transition to your new life in Panama, learn the nine biggest mistakes new ex-pats make when moving to or planning to move to Panama. You will have a better experience is you avoid these common mistakes.
1. Relying on people in ex-pat forums for advice on moving: Facebook and other social media is full of conflicting information. You don’t know who the person posting is or if they even live, or have ever lived, in Panama. Many people who post on ex-pat forums are new to Panama, too, so they are not your best source for information. Some people who post on ex-pat social media have never lived in Panama or are newbies who try to present themselves as experts. Some people who post on ex-pat forums have a hidden agenda to sell you real estate, illegal financial services, or something else. You should never, ever discuss your financial situation on forums. Be very careful who you get advice from.
2. Being too friendly with the locals too fast: Panamanians are genuinely friendly. Expats are friendly, too. It’s great to visit with locals at a restaurant, bar, or charity event, but don’t tell people where you live or invite them to your home until you get to know them well. Don’t tell anyone how much money you have or your monthly pension. It’s best not to flash fancy jewelry. Sadly, even at church, you can’t trust everyone because some people go to church so that they can make friends with people they think have money, and then they turn on their sob stories to extract as much of your money from you as they can. Avoid people who claim to have a unique way you can hide money from your government. Some people will attempt to become your friend, invite you to a happy hour or a beach/mountain trip because they have a hidden agenda to find out as much about you as they can (mostly how much money you have) so they can either sell you real estate or get a referral fee by telling a real estate agent about you. Beware of the potential hidden agendas, no matter how nice some people seem!
3. Don’t rush to buy real estate: I tell everyone on Panama Relocation Tours that they should rent for at least 6-12 months before considering buying real estate. There are several reasons for this. You need to make sure you like living in Panama and the Panamanian culture before you purchase real estate. Panama also has a lot of different micro-climates. The weather can be completely different, just a few kilometers away or 3 months away. Some areas get more rain or cloud cover than others. Some areas have more water problems than the rest of Panama. Some areas cannot get reliable or fast internet service. Friends who rented a condo by the beach were shocked to discover that many units are rented by the night, so it felt like living in a hotel with a constant stream of strangers coming and going. Before you buy in a certain area, you need to ensure you like that area. Rent for 1-2 months to give each area a test drive before you sign a long-term lease or buy. Also, remember that rent is cheaper than buying, so it may make more sense to rent while you live in Panama. You can get out of a rental a lot faster than you can sell a property you buy. If you decide to buy, always use your attorney for a title search and create the purchase contract with your best interest in mind. Understand that not all properties are titled in Panama. Some properties are ROP (right of possession), which has no title and could be disputed, which would result in your losing the money you paid for the property. Wait until you get your permanent residency Visa before buying.
4. Don’t move to Panama without visiting first: This is a biggie! People who move to Panama without visiting first almost always end up leaving within 6 months. They had no clue what they were getting into. If you’re married, both of you must check out various Panama areas before you move. We designed Panama Relocation Tours to give you a good overview of the kind of lifestyle Panama has to offer in a variety of different places and at various price points. So, we think Panama Relocation Tours is the ideal way to discover if Panama is right for you. You’ll also learn about residency visa options, such as bringing your pet into the country, renting a house, buying a car, and much more. Sure, you could fly to Panama, rent a car, then explore Panama alone. Either way, see many different areas of Panama before you decide to move.
5. Don’t get too involved with too many different things: When you move to Panama, it is tempting to get involved with every charity, card game, painting class, cooking class, and hiking group you can find. This is a great way to meet fellow ex-pats and Panamanians too. But you may find that you are exhausted by the end of the week. It is better to pace yourself. Give yourself time to get settled into your new home and town before you get involved in too many activities. Sometimes, sitting on the porch sipping coffee (or wine) and enjoying the fantastic views is nice. It’s time to relax. You don’t need to be busy every minute!
6. Don’t sit at home watching TV: Politics have made some people so furious that they stay glued to the TV to see what will happen next. There’s nothing you can do about it when you live in Panama. So turn off the TV, especially the news, and meet people in your new town. Get involved in some of the local activities (not too many). Take up that hobby you’ve always wanted to do. You’ll enjoy your life in Panama much more if you get out of the house, meet people, and get involved in local activities like live music at local restaurants or volunteering.
7. Don’t expect Panamanians to speak English: Some Panamanians do speak fluent English, but others don’t. Don’t get frustrated with Panamanians who don’t speak English. It’s not their fault. You’re living in “their” country, so it is your job to learn at least some of their language. DuoLingo.com will teach you a few words every day.. for free. There are also Spanish classes and private tutors. I have to admit that I am not fluent in Spanish, but I know enough to get by just fine. A little Spanish and a big smile go a long way in Panama. If necessary, you can hire a translator to help you with some things.
8. Don’t get the wrong Visa or plan to do border hops: If you’re going to live in Panama, get a residency Visa. The Pensionado Visa is ideal if you plan to retire. With a Pensionado Visa, you cannot sell a product or any service in Panama, not even part-time. Panama makes it easy to get a residency visa, so there is no reason to live in Panama without one. Nothing upsets Panamanians more than seeing “gringos” working who are not legally allowed to work or seeing ex-pats living in Panama illegally who don’t have a residency Visa.
9. Don’t start a business too soon: Instead of starting a business right away, it is better to move to Panama and then do a lot of market research to determine if the product service or restaurant you want to open is even needed – and what your pricing structure should be. The business you have in your country may not work well in Panama. Some “gringos” open a restaurant a few months after they move to Panama, charging twice what other restaurants charge, then wonder why they don’t have any business. You need to consult with an attorney to make sure you can legally run the business you have in mind. Get the appropriate Residency Visa with a Work Permit (you cannot work in Panama without a Work Permit). You’ll need to set up a corporation, get a business license, get an RUC number (tax ID number), hire an accountant, set up a business bank account, get a merchant account so you can accept credit cards, and perhaps other licenses or certificates depending on your business. Foreigners are not allowed to operate some businesses.
Panama Relocation Tours is the expert in helping people relocate to Panama. Since 2010, we’ve helped thousands of people make a smooth transition to life in Panama. We feel that educating people about the pros and cons of each area in Panama helps them decide which area is best for their personal needs and lifestyle. During the tours, we reveal exactly what you need to do before you make the move and what you need to do once you arrive in Panama. This takes the stress away.
Because of this education, 47% of people on a Panama Relocation Tour move to Panama within 6 months. Another 10% move within a year. And another 10% of tour attendees move to Panama within 2 years. Yes, 67% of people who come on a Panama Relocation Tour move to Panama!
Let us help you eliminate the guesswork and confusion associated with relocating to Panama. Join us for a Panama Relocation Tour this year.
We also offer the Online Panama Relocation Guide, a home study course about moving to Panama the right way. It has vetted contacts for immigration lawyers, real estate agents, insurance brokers, and everything else you need to move to Panama with confidence!!
Panama Relocation Tours has the experience you can trust and need.. since 2010!
