Country Guide Living in Panama as an Expat
35 businesses across 2 cities — curated by the expat community
Why expats choose Panama
Panama punches well above its weight as an expat destination. A dollarised economy, one of Latin America's most generous retirement programs, a modern banking sector, tax advantages for foreign-source income, and a strategic location connecting North and South America make it uniquely attractive — particularly for retirees and financially-focused expats.
Panama City is a genuinely cosmopolitan capital with gleaming skyscrapers, excellent restaurants, world-class healthcare, and a fast-growing expat community. The contrast with the rest of Panama is stark: Boquete, a highland town in Chiriquí province at 1,200m altitude, offers cool mountain air, spectacular hiking through cloud forests, and one of the largest English-speaking expat communities in Central America.
Panama's Pensionado visa — one of the most comprehensive retirement visa programs in the world — offers significant discounts on healthcare, utilities, flights, and entertainment for qualifying retirees. The country operates on US dollars, eliminating currency risk, and is politically stable with strong rule of law by regional standards. The cost of living is moderate — higher than some neighbours but with premium infrastructure to match.
Expat cities in Panama
Frequently asked about living in Panama
What visa options are available for expats in Panama? +
Panama's most popular expat visa is the Pensionado (retiree) visa, requiring $1,000/month pension income and offering substantial discounts on services. The Friendly Nations Visa offers permanent residency for nationals of 50 countries with a job offer or business. The Digital Nomad Visa allows 9-month stays for remote workers earning $3,000+/month. A simple tourist card allows 180-day stays.
How much does it cost to live in Panama? +
Panama City costs roughly $2,000–$3,500/month for a comfortable expat lifestyle including rent in a modern apartment, dining out regularly, and transport. Boquete is cheaper — many expats live well on $1,500–$2,500/month. Panama uses the US dollar, so there's no currency conversion to worry about. Utilities, dining, and domestic staff are notably affordable.
Is healthcare good in Panama for expats? +
Panama has the best healthcare infrastructure in Central America. Hospitals like Hospital Punta Pacifica (affiliated with Johns Hopkins) and Clínica Hospital San Fernando in Panama City offer world-class care with English-speaking physicians. Boquete has solid private clinics, and Panama City is just 4 hours away. Many expats purchase international health insurance.
Are there tax advantages to living in Panama? +
Panama operates on a territorial tax system: income earned outside Panama is not taxed. This is a major draw for retirees with foreign pensions and remote workers with international clients. Panama has no capital gains tax on foreign investments. Always consult a qualified tax professional in both Panama and your home country before making decisions.
Is Panama safe for expats? +
Panama City is generally safe in expat-friendly areas like Miraflores, Casco Viejo, and El Cangrejo. Boquete has very low crime. Standard urban precautions apply in Panama City as in any major city. The country is politically stable and has a well-functioning police force. The active expat community in Boquete is particularly helpful for newcomers.
