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Panama—best known for the Panama Canal, which connects the Pacific and Atlantic Oceans—offers far more than global trade and shipping routes. For retirees, digital nomads, and people seeking a better quality of life, Panama consistently ranks at the top of the list.
This small but powerful country offers a lower cost of living, affordable healthcare, a stable government, and a strong, dollar-based economy. Add in modern infrastructure, miles of sandy beaches, lush mountains, vibrant culture, and hurricane-free tropical weather, and it’s easy to see why people from all over the world are choosing Panama.
So why do expats flock here?
The answer is simple: Panama truly has something for everyone.
Live Well on $2,000 a Month or Less
Panama’s strong, stable economy makes it an ideal destination for retirees and anyone living on a fixed income. The culture is rich and welcoming, cities are modern yet relaxed, and the large population of North American and European retirees means English is widely spoken in many areas.
Dining out is affordable and enjoyable. There are countless excellent restaurants where a meal for two costs under $20, often including a glass of wine or beer. Grocery prices are reasonable, and fresh produce is abundant year-round thanks to Panama’s tropical climate. Fresh fruit is available daily, and seafood arrives straight from two oceans.
While some areas of Panama require a higher monthly budget, many places allow a couple to live comfortably on $2,000 or less. Singles often live well on $1,500 or less. (Note, in Panama City, Coronado, or Boquete, you may need to increase these numbers)
Recently, a couple from one of our Panama Relocation Tours rented a fully furnished two-bedroom, two-bathroom home for $750 per month, with utilities included. That’s not an exception in Panama; it’s a reality when you know where to look.
Less stress. More freedom. A better lifestyle.
Beach Communities, Mountain Towns, And Everything in Between
Panama is one of the few countries in the world where you can enjoy two oceans, mountains, jungles, vibrant cities, and quiet beach towns—all within a few hours of each other.
Panama City, the capital, is located along the Pacific Ocean and is home to nearly 2.5 million people. It offers world-class hospitals, shopping malls, restaurants, and international airports, while still maintaining a laid-back lifestyle.
On the Pacific coast west of the capital, communities like Coronado, Gorgona, and San Carlos are popular with expats who want sandy beaches and a slower pace—without giving up access to Panama City.
If you want beachfront living on a tighter budget, Panama’s Azuero Peninsula offers incredible value. In some areas, you can still find furnished two-bedroom homes near the ocean for around $500 per month.
Prefer cooler weather? Mountain towns such as Boquete, Volcán, and El Valle enjoy spring-like temperatures year-round, averaging around 76°F. Boquete, in particular, has one of the largest and most established expat communities in Panama, making it a soft landing for newcomers.
Cost of Living That Makes Sense
Panama continues to attract retirees because daily living costs are dramatically lower than in North America and Europe.
A domestic beer can cost as little as 65 cents. One-bedroom apartments or small homes can rent for $500–$1000 per month, depending on location.
Compare that to cities like Los Angeles, where average rents exceed $1,600 per month, and a beer costs $5 or more. When comparing Panama City to London, expats often save 35% on meals and over 50% on city-center housing.
For US citizens, it helps that Panama uses the US dollar, so there is no exchange rate!
The difference is life-changing.
Affordable High Quality Healthcare & Insurance
Panama offers modern hospitals, well-trained doctors, and excellent healthcare at a fraction of the cost found in the U.S. or Europe. Many Panamanian doctors are trained in the United States, and high-quality care is available even outside the capital.
Typical costs without insurance:
- $10–$20 for a general doctor visit
- $50–$100 for a specialist
- ~$150 for several hours in an emergency room
Public hospitals are even more affordable:
- $2 for a general doctor
- $5 for a specialist
Healthcare alone is one of the biggest reasons people choose Panama.
Private health insurance is also affordable in Panama. Family Medical Plan offers comprehensive insurance for people of all ages. If you’re between 60 and 69, insurance is less than $120 per month.
Favorable Taxes for Expats
Panama operates on a territorial tax system. If you earn income outside Panama and do not sell products or services within the country, you owe no Panamanian income tax.
If you do earn locally, taxes are generally much lower than in many other countries.
For U.S. citizens, the Foreign Earned Income Exclusion allows qualifying individuals to exclude a significant portion (exclude $132,900 in 2026) of foreign-earned income from U.S. taxation. Many other countries also do not tax income earned abroad.
A Safe, Friendly Country
Panama is not politically divided like many countries today. Family values are strong, communities are close-knit, and there is no military.
Crime is rare in most parts of the country. While there are areas in Panama City, Colón, and Paso Canoas that are best avoided, the vast majority of Panama is safe and peaceful.
Panama often feels like stepping back in time—in the best way. Children walk or ride bikes through town, families gather outside in the evenings, and neighbors stop to talk when they see each other.
Panamanians are known for being warm, friendly, and welcoming to foreigners.
A Paradise for Retirees
Panama actively welcomes retirees through its Pensionado Visa, one of the most generous retirement programs in the world. Benefits include:
50% off movies, theaters, sports, and entertainment
50% off hotels (Mon–Thu), 30% on weekends
30% off public transportation
25% off airfare and restaurants
25% off utilities
20% off doctors and specialists
15% off hospitals, clinics, dental, and optometry
10% off prescription medications
Many businesses even offer special lines for retirees, reducing wait times.
Great Weather Year-Round
Panama enjoys warm weather year-round and is naturally hurricane-free. No snow. No extreme cold.
You can choose your climate based on elevation:
Coastal areas average around 90°F
Temperatures drop about 4°F for every 1,000 feet in elevation
Few places in the world offer this level of choice and comfort.
Discover Panama the Right Way!
If you want to experience Panama firsthand, join us on an all-inclusive 6-day, 7-night Panama Relocation Tour. You’ll explore popular areas, meet vetted professionals, and learn everything you need to know through our rolling seminar—before making costly mistakes.
If you already know the area you are most interested in, consider a fully customized Private Tour to gain a deeper understanding of what it’s like to live there.
Prefer a DIY approach? Our Online Panama Relocation Guide gives you instant access to the same trusted information, helping you relocate faster and with confidence—while saving thousands.
We’ve been helping people relocate to Panama since 2010, and our Tours and Online Guide include ongoing support before and after you arrive.
When you see Panama, you’ll understand—just like I did—that it feels like home almost immediately.
Come see how you can live better for less in Panama. 🇵🇦
Experience You Can Trust Since 2010!
Since 2010, Panama Relocation Tours® has helped thousands of individuals, couples, and families successfully relocate to Panama—doing it the right way. We were the first company to offer relocation tours exclusively focused on moving to Panama, and we’ve been here on the ground ever since.
Our experience comes from real-world, boots-on-the-ground knowledge—not theory, not outdated blogs, and not guesswork. After completing hundreds of all-inclusive group tours and private tours across Panama, we understand what works, what doesn’t, and how to help you avoid costly mistakes. When you work with Panama Relocation Tours, you’re not just getting information—you’re gaining the confidence that comes from working with a team that has been guiding people to Panama for over a decade.
