Let me share a little bit of my 40 years of experience with all things Panama.
First Panama is a developing third world country with many challenges, in fact in a lot of ways Panama is about 30 to 40 years behind other developed societies like the USA and Canada.
However, living in Panama is a wonderful and welcoming experience in that if you subscribe to traditional values you will fit in quite well here.
Panama is not a cheap country to live in but it is definitely more cost effective than the USA, Europe of Canada, Panama can also be a good place to reside if you don’t require an astronomically high standard of living (unless you can afford it).
If you generally live at the middle-class level and have the financial resources to do so in your home country, then you will probably be able to live at the upper end of the middle-class spectrum here in Panama on that same income level.
And over time if you integrate into the expat life then you will be able to leverage the lower cost of living in Panama to move further up the food chain and elevate your standard of living well above the middle class.
So these are just a few of the advantages of becoming a full-time expat with no strings attached to your home country.
If you’re from the USA and become a bona-fide expat in Panama as defined by IRS Publication 54 than you will be able to reduce or eliminate your US tax liabilities down to zero (0) if you have the right set of circumstances and learn how to legally outmaneuver the IRS.
I’ve not had to pay any federal taxes on my retirement revenue streams in over 15 years because I learned how to legally leverage the tax code and out maneuver the IRS as a full-time expat.
Beyond that living in Panama has many more benefits including year-round summer like conditions, slower pace of life, less stress and is far removed from the social and political BS from up north in the USA and alike.
Living in Panama also offers a lifestyle that is insulated from US government overreach and ever-increasing abuse of governmental power. Panama has very little gun violence and hardly any street violence unless you get involved in gangs of drug.
People find that after a few years of living in Panama their health improves in many ways, one factor is that you will be eating better and healthier foods with less chemical preservatives, also because of the year-round stable climate your bodies digestive system will balance out and function smoothly thus improving your health.
Fresh meats, vegetables and fish are all in abundance all year round and clean fresh vegetables and literary dirt cheap, in fact you can buy fresh vegetables right from the farmers still covered in dirt for pennies on the dollar.
Children are required to wear school uniforms so no gang colors or objectionable lettering or skimpy racy clothing are allowed in public schools.
New cars cost considerably less if you buy one without all the US specs and emission controls and DOT requirements.
Home construction is reasonable and far more cost effective then in the USA.
Skilled labor in the USA could cost upwards of $60 to $120 per hour or more, whereas skilled and semi-skilled labor in Panama will cost as little as $30 dollars a day, yes I said a day. Most people in Panama work for a daily wage and not hourly wages, especially in the construction industry.
Cultural Panama has traditional values that resemble life back in the 1950’s, so many retirement aged people from up north, that is to say the USA and Canada feel comfortable with the older ways of living.
Panama’s public infrastructures are a bit run down and poorly maintained so one needs to adapt and build North American style infrastructure into your home if you want to maintain a North American standard of living.
This means that in most situations you will need to have a back-up generator for when the electricity go’s off, you will need extra water reserve tanks and water pump(s) to maintain good water pressure.
You will also need good water filters to go along with you’re a water system.
It’s recommended to have two vehicles, one gas and one diesel so you will always have options when fuel is in short supply, generally because of local political unrest.
Panama has no recorded history of hurricanes or nasty winterer weather, and although Panama is geologically active with earth quakes they are far and few between and generally of a low magnitude that causes no issues.
There are about 65,000+ North Americans holding permanent residency visas with more arriving all the time, in fact Panama's Immigration Service has a hard time keeping up with the demand for new resident visa applications.
Once you receive a permanent resident visa it is usually indefinite with now renewal requirement.
The majority of retirement aged North American expats live in the Provence of Chiriquí, however some enjoy living in and around Panama's beach communities.
Good quality housing costs are almost equivalent to North America prices if you want a North American standard of living or close to it, however rents are much cheaper than what you would expect for up north.
Panama averages a comfortable temperature of about 82*f all year round with lower temps in the higher elevations and hotter temp in the lower and coastal areas.
There are some mountain communities with mid to low 70’s and even lower up in the higher elevations. Most sea level cities are going to be hot, usually in the mid to upper 90’s.
Driving a car in Panama is probably going to be the most dangerous thing you will ever do in Panama, many of the roads are not well maintained, have poor lighting at night and are not clearly marked where the edge of the road ends with outrageously deep drop offs.
It is a must to have a good quality dash camera system in all of your vehicle so if you get into a accident you have proof of what actually happened. Most driver of local national origin will never admit to any fault in an accident so the insurance companies struggle to resolve claims issues that can take years.
So with a good quality dash can video evidence you can quickly resolve insurance issues assuming that you were not at fault, it can also keep you from being sued and going to jail if a fatality occurred in the accident.
Panama has approximately 500 years of history so brush up and research Panama's history before considering a move to this fascinating country.
If you’re a single middle aged man with a steady income and well mannered personality then you will have many thousands of exceedingly beautiful Panamanian women constantly trying to get your attention, I should know as I have a wonderful Panamanian wife who is exceeding loyal, and possess advanced house wife skills and are very well family orientated with traditional values. My wife and I have been together for 40 years.
So indeed, come to Panama and create a new life for yourself, living in Panama offers a wealth of adventure at a fraction of the cost of a European adventure.
In order to migrate to Panama you MUST have a super clean criminal history, be financially solvent, typically on a retired pension and have reasonably good health. You must also be flexible, adaptable, patient, independent, have useful skill sets, possess a high degree of situation awareness, conduct yourself as if you are an invited guest because will be a invited gets in Panama.
In Panama you should also give more than you take and leave Panama better than you found it.
Statistically most people (north Americas) who move to Panama leave after 2 or 3 years because they were ill equipped to live in Panama or they never properly integrated into Panama's way of life.
Also some also go back home because of health issues that cannot be adequately addressed here in Panama, so it is important to ensure that your health situation is compatible with living in Panama.
If you live a reasonably modest lifestyle in Panama your dollar will stretch much further that up north.
Panama is not for everyone but for those who do successfully make the transition they are happier and healthier.
Panama is a great place to live and retire if you have the right stuff.
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