Panama Real Estate for Retirement: Best Communities for US and Canadian Retirees

Why Choose Panama for Retirement?

International publications like Forbes have consistently chosen Panama as one of the best retirement destinations. If you want to retire in Panama, real estate, prices, cost of living, and communities are factors to have in mind. 

This is why we have put together an article with an overview of the best communities, towns, and environments for retirees and expats in general.

Cost of Living in Panama

Living Comfortably Under $2,000 a Month

One of the main reasons Panama attracts foreigners is its low cost of living. When compared to the US, Canada, the UK, France, Spain, or Finland, the cost of living is considerably lower. 

For that reason, it has become a hub for retirees as they can stretch their income much further than back at home. Especially for retirees who may not be in their most productive years, retirement in the Central American nation is an excellent choice. 

Living in the land of birds and butterflies can be 40% cheaper than in the US. Renting a nice apartment in the city center may cost from $1800 to 2000 a month, while having dinner for two in a mid-range restaurant can cost between 25 and 30 dollars. Nevertheless, in some restaurants you can get a meal for $7 to $10.

As for utilities, the most expensive bill will probably be electricity due to the extensive usage of the air conditioning. All in all, you may expect to spend between $60 and $200 a month. On average, a single person can expect to spend from 1800 to 2500 a month, while a family’s expenses can reach $3500 or more, depending on lifestyle.

Healthcare in Panama

Healthcare is a major concern for retirees. With world-class clinics, state-of-the-art equipment, and modern facilities, the country has an outstanding healthcare system. Visits to the doctor (if you have insurance) can cost around $50, which is considerably less than in the States. 

As for the public system, it offers excellent standards at very low prices (maybe a few dollars a consultation). It constitutes a perfectly good choice. Nevertheless, it entails longer waiting periods, and the facilities are not as advanced as in the private sector.

Other benefits of retiring in Panama

• Dollarized economy
• Stable financial and political environment
• Low cost of living
• Excellent healthcare at lower prices
• Vibrant business scene
• Cosmopolitan environment with expats from all backgrounds
• Accessible visa program for retirees (pensionado)
• Accessible visa programs for children when they become adults
• Discounts and benefits exclusive to pensioners 
• Great big-city vibe and active lifestyle in the capital
• Numerous tropical paradises along the Pacific and the Atlantic
• Tranquil living in small towns
• Great expat communities in places like Boquete

Obtaining a Retirement Visa in Panama

The government has facilitated the ways for foreigners to retire through a program called Pensionado. According to Article 200, Law 9, it stipulates the simple requirement of earning a lifetime pension of at least $1000.

Interestingly, it's not age-restricted. It widens the concept of retirees, allowing people of any age who have a pension for other reasons. The source of the pension can be of any kind, both from the government and private sector. 

Apply with dependents

The main applicant can add the spouse, and if they both have a pension, the 1000-dollar threshold can be reached by combining the two incomes. It allows children as well. Yet, if they're older than 18, they must be financially dependent on the applicant and be full-time students at the university. Children aged 25 and above are no longer qualified as dependents, in which case they can apply to any other program.

Retirements and real estate

If you buy property for at least $100,000, the minimum pension income is $750.

Best Places for Retirees in Panama

For obvious reasons, Panama City is the main expat magnet. It is a thriving urban center and one of the most developed capitals in the region. However, the expat should not underestimate the interior. The interior (“el interior”) is how people call the locations that do not belong to the capital and its metropolitan area. Here, every expat finds beautiful surroundings, great beaches, a peaceful environment, and, above all, a lower cost of living.

Coronado

On the Pacific Coast lies this charming little beach town. Of all the beach communities, Coronado is the most developed one. This is the right place to go if you want to live near beaches but not in a rustic area. Here you'll find everything from schools and large stores to clinics and more. Prices are slightly lower than in Panama City. A single-room apartment rent can range from 700 to $1000 a month, and a three-bedroom unit can cost between $1500 and $2500.

Boquete

Boquete is a highland paradise that you wouldn't expect to find in Panama. Near the border with Costa Rica, Boquete is a mountain town with elevations reaching 3,900 feet, which results in cooler temperatures. The emerald verdure across the slopes and along the roads, its delicious coffee (locally produced), and its quaint spirit make it an outstanding expat destination. 

Pedasi

This is another coastal town, this time, in the Azuero peninsula. Beyond secluded beaches, great surfing spots, and excellent seafood, you'll find a closer connection to Panama's cultural roots here. 

More information about Panama

Valle de Anton

2.5 hours away from the capital, Valle De Anton is another place where pensioners choose to lead a tranquil life and enjoy the benefits of being an expat. The city lies in the crater of an inactive volcano. Thus, it's home to spectacular vistas and several natural features like waterfalls, hills, and hiking trails.

Bocas del Toro 

Panama has a coastline on the Caribbean Sea; therefore, there are many paradises to visit. This doesn’t necessarily mean that they are suitable for residence. Bocas del Toro is an archipelago in the Caribbean Sea, near the border with Costa Rica. It has vibrant cities in Isla Colon, forested islands, breathtaking coastal landscapes, and abundant wildlife to explore. With advanced facilities (including an international airport), it constitutes a great place to live. In the Caribbean, this is Mundo’s number one recommendation. 

Capital city vs interior

Disclaimer: the information provided in this article is taken from general research. Hence, this article should not be taken as legal advice. The information here may be inaccurate or outdated at the time of reading and should not be relied upon as a basis for investment or migration decisions. Before applying for residency abroad or buying property, always consult with certified professionals.

Conclusion 

As you can see from the chart above, the cost of living and apartment rental costs are slightly higher in Coronado. This is because it is a tourist hub, and, being so close to Panama City, it is consistently chosen for weekend escapades. As for Boquete and the capital, both show similar costs but quite different lifestyles.

Buying Property in Panama

Navigating the Property Market as a Foreigner

We strongly recommend that you contact an English-speaking real estate expert. Luckily, Mundo has experts who know the projects in depth, so they can help you find exactly what you're looking for. 

Another advantage of the Mundo team is that they speak multiple languages and have a multicultural background. This allows us to understand different needs and provide the best advice.

Financing Options for US Expats

While obtaining a mortgage as a foreigner is possible, it is much more complicated, requiring longer due diligence and more red tape. Also, interest rates and minimum down payments are higher. 

Developer financing is very popular these days, as many companies use this strategy to fund their projects. For the buyer, it is a good opportunity to obtain lower final prices.

Step-by-Step Guide to Buying Property

• Step 1- define objectives: establish exactly what the purpose of the property is (residency, second residency, weekend house, short-term rental, ROI) 
• Step 2 - research: Conduct research in order to find out the available options
• Step 3 – Consult with experts: Find experts who speak your language and let them guide you through the properties and the country’s regulations
• Step 4 - sign the promise of purchase: Once you have decided, you must sign a promise of purchase 
• Step 5 - payment through mortgage or other means: if through a mortgage, this is the stage where all documentations are gathered, and the application is submitted
• Step 6 - payment of property and receiving the title: once the purchase is done, whether through full payment or financing, the contract is signed before a public notary, and the owner is given all ownership documentation

Buy property in Panama

Potential Risks of Buying Property

Acquisition of real estate is not without risk. The buyer should always conduct research, speak with locals, and analyze perspectives on urbanization plans in the mid- and long term. 

If you want to use your property for short-term rental, you will need a special license, otherwise, the activity is illegal. In this regard, we strongly recommend buying units in projects that already have such a license. 

Benefits of Investing in Real Estate in Panama

• Outstanding cost/quality ratio
• More affordable than in other world-class capitals
• Ample variety
• Possibility to obtain residency and permanent residency
• Beachfront options close to the capital city
• Projects in residential, walkable neighborhoods
• Projects in the heart of the city
• Doesn't have to be pre-approved in order to apply for residency
• Branded residences by international hospitality players available
• Energy-efficient complexes
• Great views
• Most complexes have all the main amenities included

Frequently Asked Questions about Retiring in Panama

How much does the visa to retire in Panama cost?

The Pensionado Visa is accessible for those who have a $1000 pension from any source. It grants permanent residency.

Do retirees have support when moving from abroad?

Yes. Pensionado visa holders can import household goods up to 10,000 dollars in value duty-free, along with other benefits. 

Is Panama a safe country?

In general, yes. However, expats are encouraged to take basic precautions such as staying aware of their surroundings, keeping an eye on their belongings, and implementing security measures at home. It's worth noting that many of the projects we offer include security 24/7.

Conclusion: Making the Move to Panama

To sum up, moving can be quite a positive change in the life of a retiree. Its convenient program, low cost of living, outstanding real estate offer, thriving environment, and rich nature make it one of those places everyone loves to call home. 

How can Mundo help you

We are a team and a publication specializing in services for expats and international businesspeople. We have a dedicated team located in Panama, with plenty of experience in the isthmus. Talk to us because we can help you obtain any of the residencies, along with other services like company incorporation, banking, trusts/foundations, and real estate. Contact us now and start your journey with us.

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