Moving from the US to Panama: A Step-by-Step Relocation Guide for American Citizens

Introduction: Why Record Numbers of Americans Are Choosing Panama in 2026

Geopolitical conflicts, increasing taxation, and over-regulation have historically driven middle- and high-net-worth individuals away to friendlier jurisdictions. And this is why many American, Canadian, and Western European expats decide to start over under new skies.

Today, we focus specifically on those who are moving to Panama from the US. Choosing this path feels natural because of what they can find in Panama, from the possibility of doing business to the accessibility of the visa programs. Moreover, one of the visas is designed specifically for retirement.

Let's analyze Panama's advantages and why more American people are choosing to apply for a visa here, whether temporarily or permanently.

Push and Pull Factors: Costs, Politics, Climate, Proximity

One of the main reasons they choose to move to Panama from the US is the financial landscape. In Panama, they relish the exoticism of Latin America without compromising on political and economic stability. This country has the US dollar as legal tender, a fact every American expat finds convenient: no exchange fees, no volatility, and low inflation are good enough reasons for them to move. 

Another reason that allures American citizens, particularly those from the colder states, is a mild, stable temperature of approximately 84-88 degrees. Walking in light clothes all year long is a dream come true for many, and of course, they have plenty of tropical paradises to visit. 

Panama as an Alternative to Florida

The American reader may be wondering why one should go abroad. Can't an American spend his or her retirement years in Florida? Doesn’t the Sunshine State also have tropical weather, lovely coastal landscapes, and the US dollar as legal currency? Of course, but Panama has something that Florida doesn't: a lower cost of living.

Just a few miles south of the Cays, they find a similar lifestyle and weather, while the bills, the rent, and the expenses are considerably lower.

For American retirees who love the pulse of a big city, Panama is an excellent alternative to Miami. Interestingly, their appearances are similar, and they are often compared for feel, skyline, and style.

What This Guide Covers (and What It Honestly Cannot)

Mundo is a team fully dedicated to topics and services for the perpetual traveler, international investor, and global businessperson. These encompass a wide range of options from investment migration to financial services like opening bank accounts and registering companies and trusts.

We don't offer relocation services per se, and we can't actually help you move to Panama; however, we open up the gate so that you can do those things freely and legally.

In this guide, the reader will have a clearer idea of what Panama looks like for the American expat; nevertheless, it is the reader's responsibility to research the country, weigh its pros and cons, and make decisions accordingly. 

After reading this guide, we encourage you to research more and turn to us when you're ready to apply for residency, as this is our area of expertise.

Phase One: Planning from the United States

Scouting Trips: How to Test-Drive Panama Properly

Common sense dictates that any family planning relocation should at least visit the country first. Ideally, a few trips should be taken so that you can get to know the country, understand its ways, and feel its atmosphere rather than collecting information from an article or a brochure. No matter how well drafted these may be, they will never replace your own opinion. 

This is from an emotional point of view, and from a practical point of view, you can get an actual sense of what things cost (daily expenses, school fees, rent, car lease, eating out at a restaurant, going to the movies, etc.).

Further, these trips will allow you to get to know the city and help you figure out where you want to live. You can plan your first trip to Panama with a preliminary notion of each area through any of our dedicated articles and expat-living guides. 

Ask our experts

Mundo's Guide on How to Choose the Right Relocation Place for American and Worldwide Citizens

Based on their ample experience researching and writing about these topics, the editorial team put together a ranking of the main factors to consider when moving abroad and choosing the right jurisdiction.

Other publications may differ or find different positions in this ranking, and individuals can have different needs. Hence, the following graph must be taken as one component in the expat's research for their retirement or relocation country.

Choosing Your Residency Route Before You Move

By looking at Mundo's ranking above, it is interesting to see the position of the residency programs. We've chosen to put them high on the priority list because we believe this is a determining factor. One may fall in love with the secluded beaches of any given island, or prefer the pulse of New York, Helsinki or Amsterdam, but how difficult is it to obtain legal residency? Or, by all means, how costly is life here? In our view, accessibility to residency must be a top priority.

Therefore, we present a table with what Mundo considers to be the key programs. Please note that we don't add alternatives like the remote worker visa because it’s oriented to a limited stay, unlike other options that offer mid-term residency and permanent permits.

Document Preparation: Background Check, Apostilles, Translations

All applicants will pass through a strict due diligence process and will have to submit adequate documents and copies. Each document must be translated into Spanish, and the copies must be legalized or bear a Hague apostille.

Phase Two: Money, Taxes, and Banking

Opening a Panamanian Bank Account as an American (FATCA Realities)

Coming from a country with higher demands than the average, the American expat must comply with several requirements and regulations. Nevertheless, at the moment of opening a bank account, all they have to do is tick the box that indicates they are either citizens or residents of the United States. The real challenge is to remain fully compliant with the IRS while finding adequate and legal tax relief, endeavors that must be addressed with the help of a tax expert. 

Being from a whitelisted country, the American applicant will be able to open a bank account as easily as any foreigner, as long as they have impeccable financial records and no criminal history, and if they are not involved in shady activities or businesses that aren’t generally accepted by mainstream banking.

American expats should keep in mind that they are still taxable in the US and must file taxes on their worldwide income.

Mundo's tip about opening a bank account as a foreigner: "Once residency has been obtained, whether it's temporary or permanent, opening a bank account becomes much easier. Having a Panamanian document (resident card or cédula) allows for more possibilities and better conditions: higher interest, lower initial deposits, and lower charges".

Currency Simplicity: The US Dollar Advantage

One of the main reasons why American citizens choose Panama is its dollarized economy. Since the local currency, the Balboa, is pegged to the US dollar, generally all expats find it highly convenient. For the American citizen, exchange rates are not a matter for concern. 

Furthermore, this is not something that was stipulated by one government’s whim. Panama has adopted the dollar as legal tender since its independence from Colombia in 1904. In short, this has been thus for almost a century and a half and is not going to be changed anytime soon, or at least it's highly unlikely.

Reasons to choose Panama for relocation

• Vibrant cosmopolitan environment
• Active nightlife in Panama City
• World-class and modern capital
• Plenty of natural richness and geographical variety across the country
• Plenty of relocation options, varying from large cities to small beach towns and quiet villages in the highlands
• Dollarized economy
• Business- and investor-oriented country
• Territorial taxation
• Ample variety of residency programs
• Relatively easy access to residency
• High-end real estate market at lower costs than Miami and New York

Disclaimer: The information in this article may be incorrect or outdated at the time of reading. The reader is responsible for conducting his or her own research before applying for residency or moving to a foreign country. This article doesn't constitute legal or migration advice.

Phase Three: The Physical Move

Shipping Household Goods vs. Starting Fresh

This point will depend on each family's situation. Mundo encourages expats to consult with official and verifiable sources regarding importing their personal items. Then, thorough research is needed to find out the cost of buying new stuff in Panama and to compare both alternatives (this survey can be conducted during your preliminary trips).

For Pensionado Visa holders, there is a customs duty exemption for expats shipping household goods up to an amount of $10,000 in value. In this case, bringing the family's stuff is probably the most convenient choice.

It's worth noting that the Pensionado Visa is not age-restricted, so a couple or a family whose head of family receives a proven lifetime pension can apply and access this benefit.

Mundo experts' tip: "For expats who prefer to ship their personal items rather than start afresh, the Pensionado Visa is the best option, assuming they qualify. Having this visa, they will be able to import household goods up to the amount of $10,000 with a customs duty exemption".

Bringing Pets: Vaccinations, Permits, Quarantine Rules

Those furry little buddies are the family's best friends, and nobody is willing to leave them behind. Luckily, the Panama Health Ministry stipulates clear rules to bring our friends with us. We strongly encourage applicants to read the resolution on the ministry's official page. In general, they require a certificate of good health with an apostille and keeping the pet in quarantine after arrival.

Importing or Buying a Car in Panama

Similar to the above, importing a car is more convenient for Pensionado Visa holders, as they can import the car duty-free. It’s important to know the conditions: this benefit is available for one car every two years.

Important information about bringing pets: A family pet arriving on weekends or holidays will be kept at the airport kennels, as veterinary attention and airport staff are available only during working hours.

Conclusion: A Realistic View of Panama Relocation

Month-by-Month Action Plan

If you're willing to relocate to Panama, we recommend you contact the Mundo team as soon as possible to find out about your visa eligibility and which path is best for you and your family.

Then, you could plan a visit or several visits to get to know the country better. This move will surely help you make informed decisions. From firsthand experience, you will learn more about the country than from any expat guide, and this is something worth doing when it comes to moving abroad.

How Mundo Experts Can Help You with Your Residency

Mundo can't help you orchestrate the move, but we can assist you in obtaining Panama residency, opening bank accounts, establishing a foundation, or registering a company. Since we have a physical office in Panama and an in-house Panamanian lawyer, we can help you navigate bureaucracy and find the most straightforward path.

If you're planning on moving to Panama, please contact us, and let's discuss your residency options. For other jurisdictions and services, contact us as well, and our experts will guide you.

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