10 Things to Know Before Moving to Panama

Welcome to the crossroads of the Americas! Panama, with its vibrant culture, tropical climate, and bustling economy, is an increasingly popular destination for expats from around the globe. Whether you're drawn by the allure of adventure, the promise of a relaxed lifestyle, or the benefits of a growing economy, there's much to consider before packing your bags. Here are 10 essential insights to help you prepare for your exciting move to Panama.

1. Understanding Residency and Visa Requirements

Before you can enjoy the Panamanian way of life, you'll need to navigate the country's immigration policies. Panama offers several visa options for expatriates, including the Pensionado Visa, which is popular among retirees due to its minimal income requirements and generous discounts on services. For those not yet of retirement age, the Friendly Nations Visa provides a pathway to residency for citizens of select countries with professional and economic ties to Panama. It's crucial to research and prepare the necessary documentation in advance to ensure a smooth transition.

2. The Cost of Living Can Vary Greatly

While Panama can be more affordable than many Western countries, your cost of living will largely depend on your lifestyle and location. For instance, living in the cosmopolitan hub of Panama City might set you back as much as residing in a major city in the US or Europe, especially if you opt for a luxury condo with a view of the skyline. Conversely, settling in a smaller town or rural area can significantly reduce your expenses. Fresh produce at local markets and dining at traditional fondas offer not just savings but also a taste of local life.

3. The Climate is Tropical and Diverse

Prepare to embrace the warmth! Panama's tropical climate means you'll enjoy plenty of sunshine and warmth year-round. However, it's not all uniform; the country boasts microclimates ranging from the cool, misty highlands of Boquete to the humid, sun-soaked beaches of Bocas del Toro. Remember, the rainy season spans from May to November, bringing heavy showers that can affect travel plans and daily activities. Adapting to the local weather patterns will be key to your comfort and enjoyment.

4. Spanish is Essential for Full Integration

While you'll find English speakers in Panama, particularly in tourist areas and business circles, learning Spanish will vastly improve your experience. Not only is it the official language, but speaking Spanish will help you integrate into the community, navigate everyday situations, and understand the nuances of Panamanian culture. Language classes are widely available, and immersing yourself in local life is the perfect way to practice.

5. The Healthcare System is High Quality and Affordable

One of Panama's draws for expats is its healthcare system, which offers high-quality medical services at a fraction of the cost found in many Western countries. Many doctors are US-trained, and private hospitals in Panama City are equipped with the latest technology. However, facilities in rural areas may not meet the same standards, so consider proximity to healthcare when choosing where to live. Additionally, health insurance is advisable to cover any unforeseen medical expenses.

6. Real Estate Options Abound, But Do Your Homework

Whether you're looking to rent or buy, Panama's real estate market is diverse, offering everything from beachfront bungalows to mountain retreats. However, navigating property laws and finding the right fit can be challenging. It's wise to rent first to get a feel for different areas and to understand local real estate practices. Engage a reputable real estate agent and a lawyer to ensure all transactions are above board.

7. Panama's Economy is One of the Most Stable in Latin America

With its strategic location, Panama enjoys a robust and growing economy, largely driven by the Panama Canal, international banking, and commerce. This stability can be reassuring for expats looking to invest or start a business. However, it's important to understand the local market and regulations. Networking with other expats and consulting with local business advisors can provide valuable insights into the economic landscape.

8. Embrace the Panamanian Lifestyle and Culture

Life in Panama moves at its own pace, often slower than what many expats are used to. Embracing the 'tranquilo' lifestyle can lead to a more fulfilling experience. Additionally, Panama's rich cultural tapestry, from indigenous influences to Afro-Caribbean traditions, is celebrated through music, dance, and festivals. Participating in local customs and holidays will enrich your understanding and appreciation of your new home.

9. The Importance of Personal Safety and Security

While Panama is generally safe, like any country, it has areas of higher crime. It's important to take standard precautions: be aware of your surroundings, secure your home, and avoid flashing valuables. Expats often recommend living in gated communities for added security. Always seek local advice on safety, especially when exploring new areas.

10. The Expat Community is Thriving and Supportive

Finally, you won't be alone on your journey. Panama has a thriving expat community, with many groups and forums that offer support, advice, and friendship. Whether it's through social media, community events, or casual meet-ups, connecting with fellow expats can provide a sense of belonging and ease the transition into your new life in Panama.

Moving to Panama is an adventure filled with opportunities and discoveries. By keeping these 10 things in mind, you'll be well-prepared to start your new chapter in this beautiful and welcoming country. ¡Bienvenidos a Panamá!

Expats talk about Moving to Panama

"Rent first before you buy. Your paradise today may not be what you will think in 6 months. Brings essentials and sell everything else, you can get it cheaper here," wrote a member in Bocas del Toro.

"Definitely rent. When you find a short-term rental you really like and you demonstrate to the owner that you can be trusted they will probably let you reserve it a year in advance. That’s what we do, but we are considering the possibility of looking for a yearly lease which might cost about the same as 4-6 months short term. It would have to be a place where the owner lives nearby and can keep an eye on things. The advantage would be that you can furnish it the way you want and keep your stuff there when you are away. As far as I can see that would be cheaper and more convenient than buying," commented one expat who made the move to Panama.

"Come and visit several areas before making the move. We have snakes, though I haven't seen one yet. We do not have mosquitos. If you select an International Mover, avoid Move Management. They are very efficient on the US side, but they use PIR on the Panama side. PIR can't create a ACH to withdraw funds from your checking account, nor can they swipe a debit or credit card. As Manny Rojas in Miami,says, you can always pay in cash. (his relatives in Panama City run PIR) If you do not have two thousand in cash it may take you nine days to get the cash from an ATM, meanwhile, port charges, at $50 per day, keep mounting. I was withdrawing from 2 different banks in the US banks on a daily basis. BTW, every ATM here spits out $20.00 bills. You may have to fight with your US bank to make them understand that there is no Foreign Exchange issue in Panama. Mastercard charged as much as $12 foreign transaction. They have since reduced those fees to $5 or $6. Visa charges $4. If you don't have a place for your goods to be delivered, PIR charges $500 per month or any portion thereof, even one extra day will cost you $500.00. One more thing, if you send them a wire transfer, their bank charges PIR $90, which they will gleefully pass on to you. Bring buckets of cash or avoid Move Management. Your local US contact will drop you like a hot potato as soon as your goods are on the water. There is a storage place on the way to Boquete called Chiriqui Storage run by Hellmut and Linda Pederson. One good sized locker is $100/mo. A 20 ft. container would take two lockers," remarked one expat living in Alto Boquete.

"Travel as light as you can. Open yourself to the experience of daily life where you land. Don't choose a permanent base-of-operations until you have considered EVERYTHING that is important to you, and that you've been to other areas of Panama. It's a small country with amazing diversity. Give yourself the opportunity to experience the banquet!!!," wrote one member in Panama City.

"Before retiring in Panama, consider visa requirements, cost of living, healthcare system, climate, legal and financial aspects, housing options, activities for retirees, and familiarize yourself with the language and local culture. With proper planning, you can enjoy a successful retirement in Panama,"

"So what is it about Panama that makes it such a retirement haven for retirees all over the world, especially American and Canadian retirees? Is it that Panama is one of the safest countries in Central America, or is it the all-year-round tropical climate? Is it the abundance of American expat retirees, or its lucrative senior citizen programs? The answer is, all of the above and more. Panama is one of the few countries that brings almost everything to the table when it comes to a comfortable life for retirees,"

"When I first developed an interest in moving to Panama the possibility of owning beachfront property was the big attraction. After spending a few years looking around I decided that I would rather not live in a beach community, although I love to be near the ocean and, in fact, have spent much of my life at sea. One of the best things about Panama is that you are never far from the sea. In my opinion the Coronado area is overdeveloped and excessively expensive. The area around Pedasi is much cheaper and less crowded. It appeals to surfers for obvious reasons. There are many islands on the Pacific coast, and they are fun to visit, although it would be quite inconvenient to live there. There are also hundreds of miles of unspoiled mainland coastline that are nearly inaccessible by land. You probably want to be somewhere that has a road to it, which further limits your options. Look at a good map and you will see what is accessible. If you don't see a road it's because there isn't one. There probably won't be any utilities either. I found that there are some significant drawbacks to living close to the beach and few native Panamanians choose to do so unless they are in the fishing business. You should look for yourself, though, and after visiting Coronado and Pedasi you might look at Las Lajas, Boca Chica, Puerto Armuelles, and the Boca del Toros archipiélago on the Caribbean coast. They're all beautiful in their own way but don't forget to look at the negative aspects including weather, services, access, and increased maintenance requirements. If you find a place you love you should rent for at least a year before you consider buying anything," commented one expat who made the move to Panama.

"We see service dogs all the time here in Panama City in the malls, restaurants and bars. They accept them inside and some even offer them a water dish," remarked one expat living in Panama.

"Do not be surprised by the most modern technological society living in a first class environment," wrote one member in Panama City.

"People move to Panama for its dynamic economy, job opportunities, attractive retirement program, warm climate, diverse natural environment, political and economic stability, ease of settling in, developed infrastructure, ease of doing business, ample investment opportunities, and accessible financial market,"