Overview
Panama stands out as one of the most accessible and financially advantageous destinations for American expats, combining a U.S. dollar economy, territorial tax system, and world-class Pensionado program into a uniquely attractive package. With an estimated 30,000-40,000 Americans already living there, established expat infrastructure makes the transition smoother than most Latin American destinations. From Panama City's modern skyline to Boquete's eternal spring climate, the country offers remarkable diversity for every lifestyle and budget.
Explore Panama
Why Move to Panama?
Panama offers a unique combination of benefits rarely found together: use of the U.S. dollar eliminates currency risk entirely, the territorial tax system means foreign-source income (including U.S. pensions and remote work income) is completely tax-free, and the Pensionado program provides one of the world's best retirement visa deals with just $1,000/month pension requirement. Add world-class healthcare at 25-75% U.S. prices, modern infrastructure, and direct flights from major U.S. cities, and you have an exceptionally compelling package.
Pros
- U.S. dollar economy eliminates currency risk
- Territorial tax system - foreign income tax-free
- Best retirement visa in the Americas ($1,000/month pension)
- World-class healthcare at 25-75% U.S. prices
- Large established expat communities
- Modern infrastructure and shopping
- Direct flights from major U.S. cities
- Pensionado discounts up to 50% on services
- No hurricanes - outside hurricane belt
- Equal property rights for foreigners
Cons
- Extreme heat and humidity in lowlands
- Banking can be challenging due to FATCA compliance
- Car essential outside Panama City
- Higher cost than many Latin American countries
- Rainy season brings daily downpours (May-November)
- Spanish needed outside tourist areas
- Traffic congestion in Panama City
- Power outages common in rural areas
Who Thrives Here
Retirees seeking maximum pension purchasing power thrive with the Pensionado discounts (50% off entertainment, 25% off utilities/restaurants/airlines). Remote workers benefit from U.S. dollar income going further while maintaining timezone alignment. Healthcare seekers find quality care at fraction of U.S. costs. Those wanting first-world conveniences without first-world prices appreciate the modern shopping, banking, and infrastructure. Highland lovers escape tropical heat in Boquete's eternal spring.
Who Should Look Elsewhere
Those who cannot tolerate heat and humidity should look elsewhere unless committed to highland living—Panama City and coastal areas maintain 86-90°F year-round. People seeking authentic immersion in local culture may find the large expat communities insular. Budget travelers expecting Southeast Asia prices will find Panama moderately expensive by Latin American standards. Those prioritizing public transportation outside Panama City will struggle, as cars become essential in most areas.
Popular Cities
View allPanama City
Modern metropolis with first-world amenities and Latin soul
Boquete
Mountain paradise with eternal spring climate and largest expat community
Coronado
Beach community with expat infrastructure and Panama City access
Bocas del Toro
Caribbean island paradise for adventurous spirits
David
Panama's most affordable city with full urban amenities
PedasÃ
Authentic small-town beach life at Panama's lowest costs
Visa Options
View allPensionado Visa (Retirement)
The gold standard retirement visa requiring just $1,000/month pension
Friendly Nations Visa
Residency for Americans with $200,000 economic commitment
Qualified Investor Visa
Fastest path to permanent residency with $300,000+ investment
Self-Economic Solvency Visa
Residency through $300,000 in assets without income requirements
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