Ok so you want to live in Panama and probably have a lot of questions but you may not know where to start.
First things first, conduct a serious self assessment, that is to say carefully consider your motivations for wanting to leave your home country for another foreign land that can be a big departure from what you’re accustomed too.
Understanding why you want to move to a place like Panama is just the beginning of what should be a well thought out and well planned relocation.
Don’t be afraid as everyone who came before you did the same thing and went through the same process however the difference is in how well prepared you are when making the transition and asking the righty question will prompt experienced expats to take the time to respond.
If you come on this site and ask others to do your research for you then you probably won’t get much of a response, however if you’ve done an abundance of your own research including multiple exploratory trips to PTY then yes well informed expats will likely be happy to guide you through the process.
Ok so asking the right questions on the front end is the best way to start a productive dialogue with those of us who live here.
Also understanding why you want to live in a place like Panama is just as important because you will likely be giving up a lot of what you take for granted in your normal daily life in your home country in exchange for a new life in Panama.
It’s important to understand that Panama is a developing third world country that cannot deliver the same standard of living that you enjoy in your highly developed home country.
However once you get settled into your new lifestyle in PTY you will discover that balance between what you gave up and what you gained.
You will find that you gained much more than you lost if you’ve properly integrated into Panama’s lifestyle the new norms that go along with day to day life in Panama.
Can you have a good quality of life in Panama?
Sure but it won’t be the same as you are familiar with, however after you have a solid grasp on living in Panama as part of the expat community then yes you can create a lifestyle that could surpass what you left behind.
However it may take time, adjustment and a fair amount of capital investment depending on the standard of living you desire and can afford.
So understanding your motivations for wanting to live in Panama is crucial, but that’s not all.
It’s equally as important to know if you can actually qualify for a resident visa from the Panamanian Migration Authorities or your dreams of living in PTY will be over before they ever gets started.
You need to have a qualifying life-time source of income or what Panama calls financial solvency, this is typically some sort of government pension or private capital investment that can be proven to support you (and your family if applicable) while living in Panama.
Generally Panama does not recognize 401K or IRA retirement pension systems.
Besides the visa requirement you should also carefully analyze your health condition and your probable future health care needs as you grow older in order to properly manage your health needs. Does Panama have good health care?
Sure, however it’s not always up to North American standards and it is not always available. So having good health will make all the difference whether you succeed in your newly found lifestyle in Panama.
Now just because you can afford to live in Panama and secure a resident visa you still need to determine if you can cope with the Latin American mentality that drive Panama’s culture.
You will also have a new language to learn, new customs and courtesies to adapt too plus a new diet and climatic conditions with high level of heat and humidity and then there’s the extra heavy tropical rains 9 months out of the year.
Basically there is only two seasons, the wet season and the dry season.
Also if you’re coming from Canada or Europe you will have to get used to using the American Dollar as your day today currency, Panama has its own coin currents but the US dollar is the money used in every financial transaction.
All major credit cards are also in use her but there are times when the nationwide credit card system is down so again cash is king.
Always have some cash on hand when you fill up your car and discover that the PTY credit card system is out of service.
In Panama you don’t have the right to keep and bear arms, and although there is a legal mechanism to acquire a privately owned firearm for personal protection in the home it is exceedingly difficult and can take many years to secure the permission from the Panamanian Government.
So if you can’t live without your guns then Panama I not for you.
Just because you want to live in Panama doesn’t necessarily mean that Panamanians would want you to live I their country.
Panamanians are proud patriotic people and subscribe to traditional values and don’t need a bunch of arrogant self-serving expats looking down in them. They call those individuals the “ugly Americans”, please don’t come here and become one of them.
More importantly don’t come here expecting Panama to comfort to your expectations or think that you can live on the cheap while exploiting the disparity of Panama’s impoverished people.
Panamanians are hard workers and need to be treated with respect and compassion and compensated fairly for their services.
Panama has a wealth of highly skilled workers and talented craftsmen who can perform almost any conservable type of work or service however the best and most skilled workers are hard to acquire as they are almost always all booked up.
So if you want to live in Panama it’s important that you’re independent and possess useful skill sets that you can use to be as self reliant as possible.
This will make all the difference whether you can maintain a North American standard of living in while in Panama.
Next a lot of people come here needing a job in order to generate the income in order to survive, this is not a plan that rarely works out.
Even if you are a highly trained and certified health care worker you cannot and will not find work in Panama for hire.
Panama labor laws prohibit foreigners from holding professional positions as these jobs are only open to Panamanian Nationals.
It is conceivable that you could perform some sort of volunteer work but with Covid -19 those opportunities have been reduced to zero.
So realistically the only way to generate an income in PTY is with some sort of on line work. Besides most people who come to Panama do so to retire not work.
If you have young school age children then you will either have to home school them or pay astronomical tuition fees to send them to private schools.
There aren’t really too many good options and sending your children to local public Panamanian schools is not going to happen and even if you could you wouldn’t want to unless you don’t value your children’s education.
Finding housing is not difficult especially if you plan (and can afford) to purchase a home as there is a plentiful supply of homes on the market.
Renting is also an option but not as comfortable and rewarding as owning a nice home. $250 to $300 thousand dollars can get you into an upper middle class North American style home in Chiriqui.
You can find less exspensive homes but the quality starts to go down from there. In order to retaien a North American standard of living in PTY you will probably need to look in the 250K+ price range.
There are also several well developed gated communities that have beautiful home available in that same price range.
It’s my understanding the certain types of resident visas require capital investments in Panama typically the purchase of property in order to qualify for that type of visa.
If you do decide to buy a home don’t rush in just rent for a while to get a feel for the environment where you have chosen to live.
One of the most hazardous activities you will engage in is driving on Panama’s roads. The roads are rarely maintained properly and there are all sorts of dangerous and hazardous situations that pop up everywhere.
One of the biggest injustices in PTY is the lack of responsibility when an accident occurs and being the foreigner in Panama you will almost never be given the benefits of the doubt.
So that does that mean? It means this if you get into an accident you will assumed to be at fault because in Panama Panamanians rule and they will almost always come out on top of a “he said she said” issue.
I have had several small fender benders where the other driver, that is to say a Panamanian driver was clearly at fault, but before long dozens of nonexistent witness will appear out of thin air claiming that is was the gringos fault.
So what do you do? Well first dive exceptionally defensive and be prepared to take defensive action at any time, in short you can never let your guard down.
Next having full coverage insurance will keep you out of hot water when it is quote “your fault” even when it’s not.
So just let the insurance companies deal with it.
Another must have item is a good quality dash camera that records the front and rear fields of view with GPS and speed tracking.
This data will make all the difference if and when you get in a wreck and can prove what happened, the insurance will still pay but you probably won’t be victimized by a frivolous civil lawsuit because you are perceived to have lots of money for nothing more than being a gringo.
I know a guy that hit and killed a child who ran out between some parked cars and was run over. The diver a gringo was cleared of any wrong doing as the child was negligent and caused the accident.
He was not charged with any crime and was free to go however he was sued by the parents of the child and won a judgment against him because he was a rich gringo. Not only was he not at fault but he was not rich.
His only liability in the civil lawsuit was the he was operating motor vehicle in Panama, they said that if he (the gringo) wasn’t here (in PTY) their child would still be alive so some corrupt judge sides with them and the gringo had to pay a 18K in settlement that was not covered under his insurance.
His only crime was that he was a gringo.
So make sure you have a high quality dash cam in your car even if it’s a rental car.
Speaking of cars, don’t consider shipping any cars to Panama as the cost in the end will exceed the value of the car between shipping, importation taxes, licensing fees including dozens of other hidden fees that will make you wish you had never ship an automobile to Panama.
New and used cars are plentiful in PTY so it’s best to acquire what you need here.
Shipping house hold good is another issue that is actually the best option if you plan on owning your own home here in Panama. You will find that shipping all of your stuff is not only better but cheaper then replacing it in PTY.
The quality of tools and furniture are not as good as up north so if you have lots of good quality tools and house hold stuff then plan on sipping them down in a container after you secure a resident visa.
Far too many people have inquired about medical marijuana, let’s be clear Panama does not recognize medicinal pot and it WILL land you in prison.
And once your released assuming you survive in the Panamanian penal system you WILL be deported never to set foot in PTY again.
So if you can’t live without you drugs then cross Panama off your list.
Panama can be a rewarding retirement destination if you have the right set of circumstances, values, temperament, expectations, financial solvency, health, skill sets, street smarts, motivations, situational awareness, patience, flexibility, adaptability, sobriety, morality, independence and sense of adventure.
Above all else if you do move to Panama just remember that you are a guest and you will always be a guest in the eyes of the locals so your conduct must resemble that of an ambassador of good will.
Nobody got here by themselves so we in the expat community are here to help you make a successful transition if you do the right things and ask the right questions.
You must do your own research and decide for yourself if Panama is right for you.
If you do decide to live in Panama will join the ever growing American expat community numbering 55,000+ according to US Embassy statistics.
There are just as many Canadians living her but I don’t have the numbers however they are here in great number and more relocate to PTY every year, I guess the harsh winters get old.
You will never find nasty could weather in Panama, in fact the average temperature hovers around 82 degrees F all year round.
There are other locations that have cooler temperatures and places in David and along the coast can be well into the mid to upper 90’s coupled with higher humidity.
Generally the higher up you go in elevation the cooler it gets with much less humidity.
The vast majority of Expats live in the Provence of Chiriqui where the tallest mountain range in Panama called Volcan is located.
Volcan in popular with many expats who like living in the higher elevations where Panamas largest agricultural producers are located. There it's much cooler and can dip down to the low 60’s if not lower.
Panama can be a great place to live and retire if you have the right stuff.
Good luck and welcome aboard!
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