Panama is a top destination for expats, digital nomads, and retirees due to its stable economy, low cost of living, and high quality of life. With a U.S. dollar-based economy, tax benefits, and an easy residency process, Panama has become a haven for those seeking a tropical lifestyle with modern conveniences.
For retirees, cities like Boquete and El Valle de Antón offer a cool climate and strong expat communities, while digital nomads thrive in Panama City and Bocas del Toro, where fast internet and coworking spaces are readily available. Beach lovers flock to Coronado and Pedasí, while David and Volcán provide affordable alternatives with great infrastructure.
How to Be a Digital Nomad, Expat, or Retire in Panama from the USA, Canada, and Western Countries
Panama is a welcoming destination for digital nomads, expats, and retirees, offering a tropical climate, affordable living, and a strategic location bridging North and South America. With its use of the U.S. dollar, modern infrastructure, and diverse landscapes—from beaches to mountains—Panama appeals to those seeking a new home abroad. Here’s how to make the move from the USA, Canada, or Western countries.
1. Visa Options
- Friendly Nations Visa: Ideal for digital nomads and expats from 50+ “friendly” countries (including the USA, Canada, and most Western nations). Requires proof of economic or professional ties to Panama (e.g., starting a business or employment) and a bank deposit of at least $5,000. Offers permanent residency with a path to citizenship.
- Pensionado (Retirement) Visa: Perfect for retirees, requiring proof of a lifetime pension of at least $1,000 per month (or $750 if you own property worth $100,000+). Includes perks like discounts on utilities, healthcare, and transportation.
- Professional Employment Visa: For remote workers or those hired by a Panamanian company, requiring a professional degree and proof of income (minimum $2,000/month for individuals). Leads to permanent residency.
- Investor Visa: For those investing at least $300,000 in real estate, a business, or a fixed-term deposit in a Panamanian bank. Grants permanent residency and can include dependents. Note: The investment must be in an individual’s name, not a corporation or trust, to qualify.
2. Cost of Living
Panama offers a cost-effective lifestyle compared to North America and Western Europe, though expenses vary by region. Urban areas like Panama City and tourist hotspots like Bocas del Toro are pricier, while rural towns like Volcán or Las Tablas are more affordable. A couple can live comfortably on $2,000–$3,000 per month, depending on location and lifestyle.
- Sample Monthly Costs:
- Rent: $500–$1,500 (urban vs. rural)
- Groceries: $250–$600
- Utilities (electricity, water, internet): $50–$150
- Dining Out: $5–$15/meal
3. Healthcare
Panama boasts a robust healthcare system, with high-quality public and private options. Expats can join the public system (Caja Costarricense de Seguro Social equivalent, known as CSS in Panama) for a low monthly fee based on income, or opt for private hospitals like Hospital Punta Pacífica in Panama City, which offer excellent care at a fraction of U.S. costs. Many doctors speak English, especially in expat-friendly areas.
4. Internet & Work Infrastructure
Panama’s internet is reliable in cities and popular expat hubs, with speeds ranging from 50–300 Mbps in urban areas like Panama City, David, and Boquete. Rural spots like Santa Fe or Las Tablas may have slower service (10–50 Mbps). Coworking spaces, cafés, and hotels cater to remote workers, particularly in Panama City, Coronado, and Bocas del Toro.
5. Best Places to Live
- For Digital Nomads:
- Panama City: Urban vibe, fast internet, coworking spaces, and international amenities.
- Bocas del Toro: Island life with a laid-back atmosphere and decent connectivity.
- Boquete: Cool mountain climate, growing digital nomad scene, and outdoor appeal.
- For Expats/Retirees:
- David: Affordable urban living with healthcare and proximity to beaches and mountains.
- Coronado: Beachside community with expat-friendly amenities and a relaxed pace.
- Volcán: Quiet highland town with cool weather and low costs.
6. Things to Keep in Mind
- Learn Basic Spanish: While English is spoken in tourist areas and by some professionals, knowing Spanish simplifies daily interactions and integration.
- Embrace the Relaxed Pace: Panama’s “tranquilo” lifestyle may require patience, especially when dealing with bureaucracy.
- Visit First: Spend time in your chosen area—whether urban, coastal, or rural—to ensure it matches your needs before committing long-term.
- Currency Convenience: Panama uses the U.S. dollar, making financial transitions seamless for Americans and simplifying budgeting.
This list highlights the top 10 places to live in Panama, considering cost of living, lifestyle, safety, and expat-friendly communities.
1. Panama City – Best for Urban Life & Business Opportunities
🌟 Why? A cosmopolitan city with skyscrapers, modern infrastructure, and a growing digital nomad scene.
💰 Cost of Living: Moderate to high, depending on the neighborhood.
🏙️ Lifestyle: International restaurants, shopping malls, nightlife, and fast internet.
2. Boquete – Best for Retirees & Nature Enthusiasts
🌟 Why? A mountain town with a cool climate, stunning landscapes, and a strong expat community.
💰 Cost of Living: Moderate, with many affordable housing options.
🌿 Lifestyle: Hiking, coffee farms, and outdoor activities.
3. Coronado – Best for Beach Living & Expats Seeking Convenience
🌟 Why? A well-developed beach town with modern amenities and a large expat population.
💰 Cost of Living: Moderate, with beachfront properties and gated communities.
🌊 Lifestyle: Golf courses, shopping, and easy access to Panama City.
4. El Valle de Antón – Best for Cool Climate & Relaxed Lifestyle
🌟 Why? A picturesque mountain town built inside a dormant volcano crater.
💰 Cost of Living: Moderate, with affordable housing and fresh local produce.
⛰️ Lifestyle: Hiking, thermal baths, and a laid-back pace.
5. Bocas del Toro – Best for Digital Nomads & Island Life
🌟 Why? A vibrant Caribbean archipelago with an active expat and backpacker community.
💰 Cost of Living: Moderate, with budget and luxury options.
🏝️ Lifestyle: Beach bars, surfing, and coworking spaces.
6. Pedasí – Best for Tranquil Beach Living & Local Culture
🌟 Why? A charming fishing village on the Azuero Peninsula, known for its friendly community.
💰 Cost of Living: Moderate to low, with affordable beachfront properties.
🐠 Lifestyle: Fishing, whale watching, and small-town charm.
7. Volcán – Best for Affordable Mountain Living
🌟 Why? A less touristy alternative to Boquete, with a similar cool climate and beautiful nature.
💰 Cost of Living: Low, with very affordable real estate.
🌄 Lifestyle: Farming, hiking, and peaceful surroundings.
8. David – Best for Affordable City Living & Accessibility
🌟 Why? Panama’s second-largest city, offering a low cost of living and good infrastructure.
💰 Cost of Living: Low, with budget-friendly housing and services.
🏥 Lifestyle: Shopping centers, medical facilities, and a growing expat presence.
9. Santa Fe – Best for Off-the-Beaten-Path Nature Lovers
🌟 Why? A hidden mountain gem with untouched landscapes and fresh air.
💰 Cost of Living: Low, with very affordable real estate.
🌳 Lifestyle: Nature retreats, organic farming, and quiet village life.
10. Las Tablas – Best for Cultural Immersion & Festive Atmosphere
🌟 Why? A town rich in Panamanian culture, famous for its Carnival celebrations.
💰 Cost of Living: Low, with affordable homes and local markets.
🎭 Lifestyle: Festivals, traditional music, and a welcoming local community.
Summary
Panama is a diverse and expat-friendly country with options for all lifestyles. Panama City is ideal for urban professionals, while Boquete and Volcán offer cool, scenic retreats for retirees. Bocas del Toro and Pedasí are perfect for those seeking a beach-town vibe, and Coronado provides the best mix of coastal living and modern convenience. Whether you’re looking for an adventurous, luxurious, or peaceful way of life, Panama has the perfect place for every expat.
Disclaimer
This guide is for informational purposes only and does not constitute legal, financial, or professional advice. While we strive for accuracy, information may change over time. Always consult with local experts, legal professionals, and financial advisors before making decisions related to moving to or living in Panama.