Why Panama is the #1 Place to Move to or Retire

Why Panama Is the Best Place to Move or Retire: Tangible and Intangible Reasons

Panama has consistently ranked as one of the top destinations for expats and retirees, and International Living recently crowned it the #1 place in the world to move to or retire. This Forbes article says, “For the average American, the question isn’t just about leaving; it’s about finding the right place to go for an affordable, fulfilling life abroad.”
Panama checks all of the boxes!

Since 2010, Panama Relocation Tours has helped thousands discover why Panama is the ultimate relocation destination. Beyond the glossy headlines, Panama truly offers a unique blend of tangible benefits and intangible charms, making it a standout choice for those seeking a better life abroad.

Tangible Reasons to Move to or Retire in Panama

• Affordable Cost of Living
  One of the most compelling reasons people choose Panama is the cost of living. Retirees and expats can enjoy a high quality of life for much less than in their home countries. From affordable housing to inexpensive healthcare, Panama offers exceptional value. Some areas are cheaper than others. A single person can live well for $1500 or less, and a couple can live well for $2500 a month or less.

• Rent for a furnished beachfront home can start as low as $1000 a month.
• Groceries and dining out are significantly cheaper, especially when you buy local.
• Public transportation and domestic flights make getting around easy and affordable.

• Excellent Healthcare
  Panama boasts a world-class healthcare system at a fraction of the cost in the U.S. The country has modern hospitals, especially in cities like Panama City, David, and Coronado, where many expats settle. Many doctors are U.S.-trained, and private healthcare is accessible and affordable, with medical consultations costing as little as $20 or specialists for $60.
  
  Panama also has an excellent public healthcare system with hospitals and clinics nationwide. Unlike neighboring Costa Rica, you do not need to pay a monthly fee to access the public healthcare system in Panama. A routine doctor visit at a public hospital costs about $2, and a specialist visa costs about $5.

• The Pensionado Visa Program
  Panama’s Pensionado Visa program is one of the best retirement programs in the world. Retirees only need to show a lifetime income of $1000 for one person or $1250 for a couple to qualify for a Pensionado visa. It offers:

• Discounts on everything from airline tickets to medical services.
• Easy application process with the help of a Panama immigration lawyer.
• Fast-track residency and legal benefits for expats.

• Proximity to North America
  Just a short flight from major U.S. cities, Panama offers unparalleled convenience. Many flights from Miami or Houston are under four hours, making it easy to visit family or handle business back home.

• Modern Infrastructure
  Panama’s first-world infrastructure sets it apart from many other retirement destinations.
• Reliable internet and cell service make it easy for expats to stay connected.
• Highways, public transportation, and even the Panama Canal showcase the country’s commitment to modern development.
• A wide range of housing options, from luxury condos to cozy mountain retreats.

• Climate and Natural Beauty
  Whether you prefer the cool mountain air of Boquete or the warm beaches of Coronado and Nuevo Gorgona, Panama offers a climate for every lifestyle. Plus, the country is a natural paradise, with tropical rainforests, stunning coastlines, and endless opportunities for outdoor adventures.

• Territorial Taxing System
• You only pay taxes in Panama if you sell products or services in Panama. There is no tax on your income earned or pensions outside Panama. Another benefit is that property taxes are very low in Panama.
• If you’re a US citizen and have active earned income, you can deduct up to $130,000 (2025 number) from your taxable income by taking advantage of the Foreign Earned Income Exclusion.
  
• Dollar Based Economy
• Panama uses the US dollar, so US citizens have no exchange rate.

Intangible Reasons Why Panama Feels Like Home

When considering where to move or retire, practical factors like cost of living, healthcare, and climate often take center stage. However, Panama’s intangible qualities—its welcoming people, breathtaking natural beauty, and thriving expat networks—set it apart as an exceptional destination. Retirees don’t just find a place to live but a place to thrive truly.

Recently, John commented, “Panama feels like home!”

Panama’s warm and hospitable culture makes newcomers feel at home the moment they arrive. Panamanians are famously friendly and generous, creating an environment where expats easily integrate into local communities. This culture of kindness and vibrant expat networks foster a sense of belonging and smooths the transition to retirement abroad.

The country’s natural beauty is equally captivating. From lush rainforests and pristine beaches to the cool highlands of Boquete and the modern amenities of Panama City, Panama offers diverse landscapes that cater to every lifestyle. Whether seeking adventure, relaxation, or cultural vibrancy, retirees find endless opportunities to embrace their new chapter in this remarkable destination.

Adding to its appeal, Panama boasts well-established expat communities that serve as a valuable resource for retirees. These communities provide a network of like-minded individuals sharing advice, support, and friendship. Whether attending social gatherings, joining hobby groups, or participating in cultural exchanges, it’s easy to find your tribe in Panama. These connections enrich your experience and provide a sense of security, knowing you’re not alone in navigating life in a new country.

While the tangible benefits make Panama a practical choice, it’s the intangible qualities that make it truly special:

• Welcoming and Friendly People
  Panamanians are known for their warmth and hospitality. Expats often comment on how welcoming the locals are, making it easy to integrate into the community.
• Relaxed and Peaceful Lifestyle
  Life in Panama moves at a slower pace, offering retirees and expats the opportunity to enjoy the little things. Panama’s lifestyle fosters peace and relaxation, whether it’s a morning walk on the beach or a quiet evening watching the sunset.

• A Sense of Adventure
  Moving to Panama is more than a relocation—it’s an adventure. Every day offers something new, from discovering local traditions to exploring hidden gems in this diverse country.
• A Strong Expat Community
  The expat community in Panama is vibrant and supportive. From social clubs to volunteer opportunities, there are countless ways to connect with like-minded individuals who understand the joys and challenges of living abroad.

• Freedom from Stress
  Many who move to Panama find they leave behind the stress of their previous lives. Panama offers a fresh start, whether it’s escaping political tension, high healthcare costs, or the rat race.

Why Choose Panama Relocation Tours?

Since 2010, Panama Relocation Tours has been helping people like you discover why Panama is the best place to move to or retire. With 268 all-inclusive group tours and over 350 private tours, we’ve helped thousands of individuals and families realize their dream of moving to Panama.

We have the experience you can trust!

Our tours go beyond just showcasing the country’s beauty; they provide the knowledge, resources, and connections you need to make a smooth transition. From legal advice to tips on finding the best neighborhoods, we’re here to guide you every step of the way.

Your New Life Awaits

Whether you’re drawn to the tangible perks—like affordable healthcare and the Pensionado Visa—or the intangible joys of a relaxed lifestyle and welcoming community, Panama is the ideal destination to start your new chapter.

Ready to explore what Panama has to offer? Let Panama Relocation Tours help you take the first step toward a better, brighter future.

For more information or to book your tour, visit Panama Relocation Tours.

We also offer Private Tours throughout Panama. These one—to three-day tours start at just $200 for up to two people. A Private Tour is fully customized to see and do what interests you the most.

Or, the Online Panama Relocation Guide is ideal for those who prefer to explore Panama on their own but still have access to vetted contacts and step-by-step details about how to relocate to Panama the right way!