If you’re thinking about moving to Panama then there are some things you need to know and things you need to consider.
First, it would benefit you to listen and adhere to the advice of those expats who have decades of experience with all things Panama, however you should be mindful that there are some expats in PTY who’s agenda includes helping you spend your money all the while steering you towards their real estate or business interests and rental properties.
This may be ok but their real intensions have less to do with helping you and more to do with lining their pockets.
Ok, here are some facts, if you are a Canadian or American passport holder you can only stay in Panama for 180 calendar days from the first day you step foot in Panamanian territory, this means that you are required to leave the country for a minimum of 30 days in order to reset your tourist visa and can only reset your tourist visa twice in a given year.
Many people try to game the immigration system and try to slip over the Costa Rica border for a few hours or days. This will not work and you will have to remain outside of Panama for a full 30 days or more.
Many folks inquire about jobs in Panama, I can tell you from more than 38 years of boots on the ground experience in PTY that finding suitable employment as a North American is next to impossible and largely illegal unless you posses a visa with the proper work permit.
Are there some jobs that expats can fill? Sure but they are mostly on-line type jobs that are not regulated by the Panamanian Government so those are ok. You can also sell small quantities of home grown vegetable and alike at community markets but nothing resembling a commercial grower that produces a large income.
Some expats open small business which can be tricky but possible, however there are many consideration and restrictions and labor laws that make it challenging and costly.
Others have rental properties that they market to the expat and the tourist community which works out well but that requires a fair amount of capital investment and management which goes against the concept of retirement.
Indeed most people who relocate to Panama do so to retire and enjoy all that Panama has to offer without the need for supplemental income to get by.
Suitable locations to move to are subjective and based on the needs and desire of each individual. One thing is for sure you will not find everything you want on your wish list regarding the perfect location. Some places have good infrastructure and other are run down and pathetic.
The vast majority of expats choose Chiriqui Provence because of the variety of locations that fits the needs and comfort of North American expectations. Some people want to purchase a condo in a high rise beach community and live in PTY part time then try to rent their unit out when they are gone.
This never works out and is a very bad idea that will not produce favorable results in the end.
So if you require income from a job in PTY in order to survive then it is plan that is doomed to fail before it ever gets off the ground. Most expats who live in Panama have solid retirement income that is guaranteed for life, generally from a government pension system.
In order to secure a resident visa in Panama you must possess a qualifying source of lifelong income that Panamanian Immigration Authorities recognize, that is to say retirement income that meets or exceeds their individual finacial solvency requirements.
Any experienced PTY expat would tell those who are contemplating a move to Panama would recommend visiting Panama several times during different parts of the year to get a good feel for the variety of climatic conditions that differ widely from one region to the next. Again most people prefer the Chiriqui highlands as Chiriqui offers a wide variety of options that fits most expats needs and desires.
Other considerations include purchasing a home verses renting. I personally recommend purchasing a home as this will provide you the most cost effective and stable platform to operate from. Investing in a home also shows that you are serious about living in Panama and are willing to vest in your newly found country.
It is no recommended to ship a car to Panama as this almost always turns out to be cost prohibitive. New and used vehicles of all type and price range are widely available in PTY so no need to bring sand to the beach.
Banking can be a hassle that comes with a multitude of restrictions if you are an American Citizen, If possible its best to keep your banking in the USA or whatever country you're from. I’ve been in PTY off and on for 38 years and have always maintained my banking in the USA with no issues.
However If you’re an American Citizen having a local bank is possible but can be challenging in that you must keep a balance of less than $10,000 in order to avoid issues with the IRS and FATCA.
Banks in Panama generally don’t like to serve American Citizens as there is a large amount of red tape and costs associated with retaining them as clients so they generally avoid American customers.
Shipping house hold good is relatively striate forward but can be costly so it’s important to carefully analyze what you must have or want to bring with you to Panama.
My wife and I shipped a completely full 40’ container to PTY with everything we owned and it cost us 8k door to door, however that was 15 years ago so the cost of shipping has gone up and you will have to determine if its cost effective for your individual circumstances.
Building a new home can sometimes be a better option than purchasing a home already built from someone who is leaving PTY. Often times the seller has a inflated opinion about the home’s value and wants way too much for it plus you would be buying someone else’s property that most likely has not been maintained properly.
A new home will have everything in your taste of colors and a floor plan that's in line with your desire and constructing a new home can often be less expensive then purchasing a preexisting home.
Learn as much Spanish as you can before contemplating a move to Panama, this will help you properly integrate into Panamas way of life which can be a big departure from what you are accustom too.
Also make sure you possess realistic expectations when considering relocating to a Central American country like Panama. It’s common for expats from North America to return to where they came from after living in PTY for just a few short years as they were likely unable or unwilling to adapt and adjust to Panamas way of life. Others return to the states because of health reasons and some because they couldn’t cope with the isolation from extended family.
Living in Panama is not for everyone and it takes the right set of circumstances in order to be successful over the long term, this includes possessing useful skill sets, financial solvency, adaptability, flexibility, realistic expectations, independence, solid values, sobriety and morality. It also helps to have an abundance of patience as there is no such thing is instantaneous gratification in Panama.
You must also have a sense of adventure, posses good health, be willing to contribute to your new found country and have the right motivations for considering a place like Panama. Learn as much about Panama’s culture and rich history dating back 500 years. Yes Panama existed as an independent nation long before the USA although it has changed ownership a few time.
If you do want to live in Panama make sure that your agenda includes giving back to Panama more that you take and never look down on the generous Panamanian people as they possess all the needs and desires as anyone else around the world.
Nobody got here by themselves so those of us in the expat community with years of boots on the ground experience are here to help you make your fantastic Panama journey a success.
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