Residency options

• Pensionado — US$1,000/month in lifetime pension (US$1,250 for couples). Widely considered the world's best retiree visa: 25% off flights, 30% off transport, 25% off restaurants, 15–25% off medical bills, one-time duty-free household goods import. See our Pensionado guide.
• Qualified Investor Visa — US$300,000 in Panamanian real estate, US$500,000 in a fixed deposit, or US$500,000 in Panama-listed securities. Permanent residency in ~30 days.
• Friendly Nations Visa — for citizens of 50+ eligible countries (US, Canada, UK, EU, Australia, etc.). Now requires either a US$200,000 real-estate purchase, a US$200,000 bank deposit, or a Panamanian job offer. 2-year temporary then permanent.

All routes lead to permanent residency and open the door to Panamanian citizenship after 5 years.

Cost of living

Panama uses the US dollar, so there's no currency risk. Costs vary sharply by location:

• Rent (2-bed): US$1,200–2,200 in Panama City (San Francisco, El Cangrejo), US$800–1,400 in Coronado or Boquete.
• Groceries (couple): US$400–700/month. Riba Smith and PriceSmart carry US brands; Mercado San Felipe Neri for local produce.
• Utilities + internet: US$150–250/month (AC in Panama City drives the bill).
• Health insurance: US$80–250/month per adult for private plans.
• Domestic help: US$400–600/month full-time — a common expat perk.

Comfortable budget for a couple: US$2,000–3,000/month in Boquete or Coronado, US$3,000–4,500/month in Panama City.

Healthcare

Panama City is a regional medical hub. Hospital Punta Pacífica is affiliated with Johns Hopkins; Hospital Paitilla and Hospital Nacional are also JCI-accredited. Most senior doctors trained in the US and speak English. Elective surgery, dental, and specialist care typically cost 40–60% of US prices out-of-pocket.

Retirees on Pensionado receive 15–25% discounts on medical services by law. Combined private insurance + out-of-pocket usually runs US$150–350/month for a couple.

Where to live

• Panama City (Punta Pacífica, San Francisco, Costa del Este, El Cangrejo) — modern skyline, best hospitals, international dining, Copa hub airport.
• Coronado & Playa Blanca — Pacific beach towns 80 min from the capital. Established expat scene, mall, hospital, golf.
• Boquete & Volcán — cool mountain climate at 3,900 ft, coffee country, gringo majority in some sectors.
• Bocas del Toro — Caribbean archipelago, surf, remote-worker culture, fewer amenities.
• Pedasí & Azuero Peninsula — quiet Pacific coast, boutique surf breaks, growing slowly.

Taxes & banking

Territorial taxation: Panama does not tax income earned outside Panama, regardless of residency. Foreign pensions, US dividends, and remote-work income for foreign clients are not taxed here. US citizens still owe US tax (no treaty), but the Foreign Earned Income Exclusion typically offsets much of it.

Banking: Opening a Panamanian bank account requires 2–3 in-person visits with apostilled documents, reference letters, and proof of income. Banistmo, Banco General, and Multibank are common expat picks. Many new arrivals use Wise or a US brokerage until residency is granted.

Your first-year timeline

1. Months −6 to −3: Choose a residency category. Apostille birth certificate, marriage cert, FBI background check, and pension/income letters.
2. Months −3 to −1: Fly in for a 10-day scouting trip. Shortlist a neighborhood. Line up a 60-day furnished rental.
3. Month 0: Enter on 180-day tourist stamp. File residency with your Panamanian attorney (US$3,000–6,000 legal fees typical).
4. Months 1–3: Rent long-term, open a bank account (harder before cédula), enroll in private health plan.
5. Months 4–6: Receive temporary residency and cédula E card. Register household-goods shipment for duty-free import (Pensionado benefit).
6. Months 7–12: Get Panamanian driver's licence, import or buy a car, apply for permanent residency where applicable.