How To Move To Panama From USA: Everything You Need To Know

Many Americans are drawn to Panama for its affordable living, friendly locals, and diverse visa options, making the transition to this Central American haven more accessible than ever. However, the idea of relocating abroad can be overwhelming, with countless factors to consider and navigate before making such a significant change.

In this complete guide, we will explore everything you need to know about moving to Panama from the USA, covering visa options, residency requirements, and key financial considerations. Prepare to uncover the beautiful lifestyle that awaits you in Panama!

Visa Options for Moving to Panama

Moving to Panama from the USA offers a variety of visa options suitable for different needs, whether you’re retiring, working remotely, or planning to invest in the burgeoning Panamanian economy. The landscape of Panama’s immigration laws is dynamic, thus it’s crucial to have the most current information. This guide encapsulates the primary visa pathways for American expats, detailing their requirements and benefits.

Table: Visa Options for Expats in Panama

Please check with the Panamanian Immigration Department for the latest updates, as changes to visa regulations can occur.

Pensionado Visa Details

The Pensionado Visa is a renowned option for retirees eager to enjoy life amidst Panama’s beautiful landscape and cosmopolitan cities. To qualify, applicants must prove a guaranteed lifetime income of at least $1,000 per month, typically through Social Security or a pension. Though this visa does not permit employment within Panama, it allows for remote work for foreign entities.

The Pensionado Visa offers a plethora of benefits, such as exemptions on importation taxes for vehicles and other items, alongside attractive discounts on utility services, healthcare, and travel. These incentives have significantly drawn retirees from the USA, Canada, and Europe, making Panama a popular destination for settling post-retirement.

Digital Nomad Visa Overview

While Panama does not offer a specific Digital Nomad Visa, the environment is inherently accommodating for digital nomads. Those working as freelancers or remotely for international companies can benefit from Panama’s non-taxation on foreign income. This, coupled with the cost-effective lifestyle—ranging from $1,600 to $3,000 in monthly expenses—makes Panama a favorable option for digital nomads from North America.

Entrepreneurial expats frequently take advantage of Panama’s business-friendly atmosphere by opening ventures like cafes or accommodations, further aligning with the digital nomad philosophy. The cultural warmth and low living costs make Panama an inviting prospect for those seeking a flexible work environment in Central America.

Other Visa Options

Beyond the Pensionado and digital work modes, Panama extends various other visa pathways:

• Professional Residency Visa: Ideal for degree holders in non-protected fields, offering a structured path to residency.
• Reforestation Visa: Requiring an $80,000 investment, this option appeals to environmentally conscious investors.
• Golden Visa: Provides the benefit of permanent residency within 30 days, conditioned on a real estate purchase worth $300,000.
• Friendly Nations Visa: Available for citizens of 50 collaboration-friendly countries, it requires a $200,000 real estate investment or similar financial commitment.
• Small Business Visa: With a minimum investment of $40,000, this allows for repeated renewals before obtaining permanent residency.

Each visa type caters to distinct purposes and investment strategies, suiting various expatriate profiles. As visa regulations can swiftly evolve, consulting the National Migration Service of Panama is essential for timely, accurate information.

Understanding Residency Requirements

When considering a move to Panama from the USA, it’s essential to understand the residency requirements. Panama offers various visa types, each with specific conditions.

Permanent Residency Visa:

• Clean Police Record: U.S. citizens will need an FBI report, while Canadians need one from the RCMP.
• Health Certificate: Obtainable easily within Panama.
• Financial Stability: Show a monthly income of $3,000 ($4,000 for families) and medical insurance.

Friendly Nations Visa:

• Investment Requirement: At least $200,000 through purchasing real estate or a fixed-term deposit.

Pensionado Visa:

• Monthly Income: A minimum guaranteed lifetime income of $1,000, plus $250 for each dependent.

These visa options cater to different needs, whether you’re investing or retiring. For a seamless move, ensure all documents, such as foreign records, are authenticated appropriately. Familiarity with these conditions will help you transition smoothly into Panamanian life.

Financial Considerations

Relocating to Panama from the USA involves understanding the financial landscape, which is significantly different—and often more favorable—compared to life in the United States. With its affordable cost of living, Panama has become an increasingly popular destination for expatriates seeking both adventure and economic relief.

Cost of Living in Panama

Panama offers a cost of living that is approximately 35-40% less than in the United States or Europe, making it an attractive option for those looking to maximize their lifestyle on a budget. A single person can expect to spend around $745 per month without rent, which highlights the affordability of daily expenses. For those planning to live in Panama City, the average monthly cost for a family of four is approximately $3,686, not including rent. Rent for a three-bedroom apartment in the city center is about $1,800 per month, whereas similar accommodations outside the city center may cost around $1,000. For single expats, renting a one-bedroom apartment averages at $925 in the city center, and about $525 in surrounding areas.

To illustrate the cost-effectiveness of living in Panama versus major U.S. cities, take a look at this comparison table:

Monthly Income Needs

When considering a move to Panama, understanding your income needs is crucial. A comfortable monthly income for expats in Panama ranges between $2,000 and $3,000, which provides a high quality of life depending on individual preferences. For a family of four residing in Panama City, living expenses hover around $3,686 per month, excluding rent. Single individuals typically require approximately $1,035 per month for living expenses, again not including rent.

Expats who budget around $2,000 per month report living comfortably in Panama’s cosmopolitan cities, where the cost of living remains significantly lower than in North America’s urban areas. Whether planning on retiring or simply seeking a change of scenery, Panama offers a cost-effective yet vibrant lifestyle that appeals to many American expats.

The overall affordability, combined with a warm climate and hospitable culture, makes Panama a compelling choice for anyone considering relocation from the USA.

Housing Options in Panama

Panama presents a vibrant mosaic of housing options to suit every lifestyle and budget. Whether you’re looking for a cosmopolitan experience in Panama City or a serene retreat in a picturesque beach town of Central America, Panama offers a range of choices for expatriates relocating from the USA. This burgeoning Latin American destination is gaining popularity not only for its affordability but also for its friendly communities and compelling culture. Let’s explore some housing options to help you settle smoothly into your new Panamanian life.

Renting in Panama

When embarking on your Panamanian adventure, renting is a flexible option that accommodates both short-term and long-term needs. The rental market offers a variety of housing types, from modern apartments and townhouses to spacious single-family homes. For those new to the area, platforms such as Airbnb provide convenient short-term accommodations while you navigate the permanent resident visa process and search for longer-term housing.

Working with a licensed Panamanian real estate agent is highly recommended. These professionals can guide you to properties that align with your needs and offer valuable insights into the local neighborhoods. Rentals in Panama can be much more affordable than in North America. For example, living in sought-after locales like Panama City may range from $900 to $1,700 per month, while opting for a more rural setting could drop your costs to between $300 and $700 monthly.

Expat groups and social media forums serve as excellent resources for newcomers. They provide first-hand information about rental availability and market conditions, making your search for a new home more informed and less stressful.

Buying Property in Panama

For those considering a long-term commitment to life in Panama, purchasing property is a feasible option. Panama’s real estate market is open to expats, allowing you to buy property in your name without restrictions. The purchase process includes essential steps such as identifying suitable properties, negotiating terms with sellers, performing title searches, and officially registering the property with the Public Registry.

Although mortgages are accessible to foreign nationals, patience is vital, as the application process with Panamanian banks can be quite detailed. Typically, these financial institutions offer loans up to 25 years with interest rates around 6% to 8%. Be aware, however, of the property tax obligation on real estate valued over $30,000.

To navigate these processes smoothly, enlisting the services of a licensed real estate agent familiar with the needs of expatriates is advised. They can provide insights into the local market dynamics and legalities that differ from what you might expect in North America or South America.

Whether renting or buying, every step in Panama’s housing journey is an exciting one, promising the opportunity to immerse yourself in a vibrant and welcoming international community.

Employment Opportunities in Panama

Panama is a vibrant nexus of cultures and economies, making it an attractive destination for expatriates seeking new horizons. For those considering moving to Panama from the USA, understanding the employment landscape is essential. The job market in Panama is marked by its regulatory environment, competitive landscape, and opportunities in various sectors, especially for those aligned with international companies.

Job Market Overview

The employment market in Panama is tightly regulated, with specific limitations placed on hiring foreign workers. According to Panamanian immigration laws, most companies are restricted to employing no more than 10% of their workforce as expatriates, save for certain highly-skilled positions. This rule is a pivotal factor for expatriates aiming to build a career in Panama, highlighting the importance of securing positions in sectors with greater demand for foreign expertise.

Opportunities for expats are more accessible within Panama’s Free Trade and Export Processing Zones, where international companies often have less stringent hiring constraints. Key sectors with potential openings include construction, technology, banking, tourism, the maritime industry, and the nonprofit sector. However, it’s crucial to acknowledge the competitive nature of the job market. With an unemployment rate hovering around 12% since 2019, breaking into the local job market can be challenging for Americans and Canadians alike.

Finding Work as an Expat

For expatriates aiming to work in Panama, finding a position with an international company is often a pragmatic approach. These opportunities can be more straightforward, given that the work permit application process is generally more navigable when dealing with larger, multinational employers.

To work legally in Panama, a guaranteed job offer is a prerequisite before obtaining a work permit. Prospective employers must first demonstrate that there are no qualified Panamanian citizens available to fill the position. This requirement can be a significant hurdle for foreign job seekers. Consequently, it is advisable to secure legal counsel to help navigate the complexities of the work permit and visa application processes. Essential documents typically include a health certificate along with a negative HIV test result.

Despite the hurdles, Panama remains appealing due to its lower cost of living and the business-friendly environment, making it a desirable locale for entrepreneurs and freelancers. For those moving with children, Panama’s cosmopolitan cities offer access to international schools and a vibrant expat community, while the lush landscapes provide an inviting backdrop for those seeking balance between work and leisure.

In summary, while the road to employment in Panama for expatriates may be laden with challenges, the potential rewards within the country’s dynamic economy and appealing lifestyle make the journey worthwhile.

Healthcare System in Panama

The healthcare system in Panama is a blend of public and private sectors, providing various options for both locals and expatriates. The Ministry of Health oversees the public services, ensuring that affordable healthcare is accessible to all citizens and residents. However, these facilities often experience longer wait times and have more basic offerings.

In contrast, private healthcare in Panama is renowned for its advanced care, which is often preferred by expatriates and wealthier Panamanians who opt for private health insurance. This insurance not only provides access to higher quality medical services but also ensures shorter wait times. Public healthcare remains economically viable, with office visits sometimes costing as little as $15 to $50 for those without insurance.

Major medical hubs such as Panama City, David, and Chitré are equipped to handle more complex medical treatments and provide a higher level of care. Smaller towns, however, might only have basic facilities. Despite improvements in its healthcare infrastructure, Panama still faces challenges, as evidenced by its ranking of 56th out of 89 countries in CEOWORLD magazine’s Health Care Index, lagging behind North American counterparts like the U.S. and Canada.

Understanding Health Insurance Options

Access to healthcare in Panama can vary considerably between public and private options, each with its distinct advantages and considerations. Public hospitals deliver low-cost care but are sometimes plagued with long waits and overcrowding. Conversely, private hospitals are known for offering superior services, albeit at higher prices, making private health insurance an appealing option for those seeking optimal care.

The cost of private health insurance in Panama is relatively low compared to that in North America. Many medical practitioners in Panama have been trained in the U.S. and speak English, which simplifies the patient experience for expatriates. However, expatriates with pre-existing conditions might deem it more practical to pay out-of-pocket for minor healthcare services while reserving their Medicare for major medical needs in the U.S.

For U.S. veterans residing in Panama, there are facilities that accept military healthcare programs, such as VA-FMP, TRICARE, or CHAMPVA, ensuring they have access to necessary healthcare services. With a range of options available, understanding and selecting the right health insurance in Panama is crucial for ensuring peace of mind and securing quality medical care.

Moving To Panama With Pets

Moving to Panama with pets involves a specific set of regulations that are crucial for a seamless transition. Before you pack your bags, check with Panamanian authorities to understand the current vaccination requirements and health certificates needed for pet entry. These rules can vary, so staying informed is key to avoiding any hitches.

Expats have expressed that pet relocation can present challenges, highlighting the importance of diligent preparation. To ease the process, consider consulting with a pet relocation service, which can help navigate the complexities involved.

Additionally, securing pet-friendly accommodations before your move is essential. This ensures not only a smooth transition but also a comfortable environment for your furry friends upon arrival.

Here’s a quick reference list for moving your pet to Panama:

1. Verify updated vaccination requirements.
2. Obtain necessary health certificates.
3. Research and book pet-friendly accommodations.
4. Consult with a professional pet relocation service.

By thoroughly preparing and adhering to these guidelines, you can make the journey smoother for both you and your pets, paving the way for a successful new start in this beautiful Central American nation.

Panamanian Education System for Families

When moving to Panama, it’s essential for families, especially those with children, to understand the local education system. Panama offers a blend of public and private educational institutions that cater to a diverse expat community as well as local students. Primary education in Panama is mandatory and free through the 9th grade, ensuring that every child has access to basic education. After this, students have the option to continue high school for three additional years, with public high schools mostly free of charge, though some nominal fees may apply in certain areas.

Panama’s public education system is ranked 80th globally by The Education Index, which assesses both accessibility and quality. However, expat families often opt for private schooling to meet their specific needs and expectations. Approximately 145,000 children in Panama are enrolled in private schools. These private institutions are particularly attractive to families seeking international curricula and a multicultural environment.

International Schools vs. Local Schools

For North American expat families living in Panama, international schools are often a preferred choice. Primarily found in Panama City, these schools offer instruction in both English and Spanish, providing a bilingual and culturally diverse learning environment. The appeal of international schools lies in their use of globally-recognized curricula, often including programs like A-levels and the International Baccalaureate Diploma, which can facilitate student transitions back to North American or European educational systems.

However, the financial commitment to international schooling is significant. Tuition fees at international schools in Panama range from $6,660 to $8,140 annually. This investment reflects the high-quality, globally-oriented education these institutions provide and the extensive resources they offer.

On the other hand, the public education system in Panama is an accessible and cost-effective option. It provides fundamental education from primary through to secondary school at minimal cost, which can be an appealing factor for families looking to capitalize on the free public education. Each family must weigh their priorities, such as budget considerations, language of instruction, and curriculum preferences when choosing between public and private schooling options.

The International Schools Database is a valuable resource for expats navigating these choices, allowing families to search for schools based on educational level, location, and specific programs offered. This helps ensure that all educational needs and aspirations for their children are met during their time in this vibrant Central American nation.

Vehicle Importation: Import A Car To Panama

Below you will find an outline for vehicle importation to Panama, but if you’d like a more detailed guide, check out our post How to Import an American Vehicle to Panama.

Importing a car to Panama from the USA is possible, but it requires careful navigation of specific regulations and documentation to ensure compliance with local laws. For expats, retirees, or returning residents, Panama offers duty-free import options under certain visa categories, making planning crucial.

To import a vehicle, it’s essential to allow ample time to handle all the necessary paperwork and certifications. This includes obtaining the correct health certificates if you’re also planning to bring pets, as these documents are time-sensitive.

Consulting with local experts, such as law firms specializing in relocation, can be immensely helpful. They provide valuable guidance throughout the vehicle importation process, ensuring you meet all legal requirements efficiently.

For quick reference:

Preparation and expert advice can smooth your transition, just as you’re advised to allow for similar attention when considering the movement of pets to accompany you to Panama.

Cultural Experiences in Panama

Panama is a tapestry of cultures, and this vibrant blend is reflected in daily life. Panamanians are celebrated for their friendliness and hospitality, making expatriates and visitors feel right at home. Over the years, Panama has adapted foreigner-friendly policies, further solidifying its reputation as an international sanctuary. Its cultural landscape showcases a diverse history, combining influences from indigenous tribes, Latin America, and Spain. This cultural mosaic is evident in the variety of traditional attire, music, and dance found throughout the country.

In Panama City, one of Central America’s busiest and most cosmopolitan cities, you’ll find a harmonious blend of modernity intertwined with traditional Panamanian customs. The capital and its surroundings provide a captivating balance of contemporary urban life and rich cultural heritage, making it an engaging destination for those seeking to immerse themselves in Panama’s unique identity.

Local Cuisine to Try

Panamanian cuisine offers a symphony of flavors, a testament to its rich cultural heritage. The country’s culinary scene is abundant with traditional and international influences, showcasing the diversity of its people. Staples such as rice, beans, and fresh seafood are commonly found, with dishes often accompanied by the tropical fruits that thrive in Panama’s fertile soils.

For food enthusiasts, festivals and holidays present the perfect opportunity to savor traditional dishes in festive settings. Dining options range from local eateries that serve authentic tastes to fusion restaurants where international flavors converge. Joining the expatriate community can further enhance your culinary adventure, offering shared experiences and insider recommendations on must-visit dining spots.

Festivals and Celebrations

Festivals in Panama are a jubilant expression of the country’s rich cultural tapestry. These celebrations are deeply rooted in the traditions of indigenous tribes and enriched by Latin American and Spanish influences. Panamanians, known for their warm and welcoming spirit, embrace community during these vibrant events, celebrating cultural identity and societal bonds.

From folkloric parades to lively music and dance, Panama’s festivals epitomize the joyous and diverse spirit of its people. Participating in these events offers a unique insight into the social fabric of the nation, allowing you to experience firsthand the harmonious blend of global influences that define Panama’s cultural landscape. Whether you’re witnessing the grand Carnival or exploring indigenous traditions, festivals in Panama offer an exhilarating glimpse into the heart of its culture.

Safety Considerations in Panama

When contemplating a move to Panama from the USA, understanding the safety landscape is essential. Overall, Panama is considered a safe nation for travelers and expatriates, with no major travel warnings currently affecting the country. Violent crime primarily involves gang activity that is generally localized and infrequent in tourist or expat communities. While certain cities, such as Colon, are perceived as having higher crime rates, popular destinations like Panama City, Boquete, and Coronado are noted for their safety and are often recommended for foreigners looking to relocate.

Despite the presence of drug and gang-related violence in some areas, exercising common sense precautions typically protects residents and visitors. Unlike in some other countries, racially and politically motivated crimes, as well as random shootings, are not significant concerns in Panama. This relative stability contributes to the nation’s reputation as a desirable place for expatriates.

Crime Rates and Precautions

While Panama City shares a similar crime rate with New York City, it does present a higher risk of muggings. To guard against petty crime, which is prevalent in tourist areas, heightened vigilance and caution are advised. Tourists and expats are recommended to avoid the Mosquito Gulf and Darién regions owing to the high levels of drug-related crime and human trafficking in those areas.

The majority of violent crime victims in Panama are typically involved with rival street or drug gangs, indicating that avoiding involvement in such activities considerably reduces personal risk. Visitors and residents should be particularly wary of engaging in or being near drug-related situations, as the possession of illegal substances is met with stringent legal consequences, including long-term imprisonment.

Safety Tips in Panama:

• Be mindful of your surroundings, especially in crowded tourist areas.
• Avoid showcasing valuables in public to minimize the risk of petty theft.
• Stay clear of neighborhoods with higher crime rates unless accompanied by locals who know the area.
• Avoid the Mosquito Gulf and Darién regions due to specific safety concerns.
• Refrain from engaging in illegal activities, particularly drug-related, to avoid severe legal repercussions.

Understanding these considerations and practicing recommended precautions can ensure a safe and enjoyable experience for those moving to Panama.

Preparing for the Move

Relocating to Panama from the USA is a significant adventure that requires careful planning and an understanding of local conditions. As an increasingly popular destination in Latin America, Panama offers a cosmopolitan lifestyle coupled with welcoming beach towns and a rich blend of North and South American cultures. Whether you’re drawn to the bustling Panama City or serene coastal areas, a well-prepared approach will ensure a smooth transition. Here’s how to get started.

Checklist for Moving Abroad

1. Visa Requirements and Residency: American citizens planning to settle in Panama need to apply for a temporary residence permit. This requires substantial documentation that justifies your reason for moving, such as employment offers, business investments, or academic enrollments. Consider visas like the Pensionado Visa, which benefits retirees with a lifetime pension, or the Friendly Nations Visa for those from one of the 50 eligible countries, including the USA.
2. Essential Documents: Bring original copies and notarized translations of birth and marriage certificates, academic transcripts, and vaccination records. This paperwork is crucial for applications related to residency, employment, and education.
3. Legal Consultation: Navigating Panama’s immigration laws is much easier with expert guidance. Consider hiring a Panama immigration lawyer to streamline your application process and ensure compliance with local regulations.
4. Site Visit: Before making the move, it’s wise to visit Panama. This trip can help you familiarize yourself with potential neighborhoods, consult with local real estate agents, and engage with both locals and expats.
5. Research and Planning: Thoroughly research Panama’s cost of living, healthcare options (both private and public hospitals), education facilities (international and private schools), and bank services to prepare adequately for your new life.

Packing Tips

When packing for your relocation to Panama, aligning your packing list with your residence permit type and purpose is crucial for a hassle-free transition.

1. Documentation: Keep all necessary documentation related to your permanent resident application organized and easily accessible. This includes IDs, visa documentation, academic and employment certificates, along with any family reunification paperwork if applicable.
2. Interim Essentials: Considering that the immigration process can be phased, ensure your luggage includes daily essentials to cover the interim period before your permanent settlement. Practical items like clothes suited to Panama’s tropical climate, basic household items, and electronics should be prioritized.
3. Family Considerations: If you’re moving with kids or planning family reunification, pack belongings that will ease the transition, such as familiar toys, educational materials, or items needed for school enrollment.
4. Specific Items for Relocation: Depending on your temporary residence permit’s requirements, you might need to include special items or tools you’ll need to establish your purpose in Panama—be it business attire, academic resources, or professional equipment.

Arrangement for pet relocation or vehicle import is also part of the checklist for those moving with pets or interested in importing a car. Properly preparing these aspects will contribute significantly to the ease of setting up your new life in one of Central America’s most inviting countries.

FAQs: How to Move to Panama from the USA

What visa options are available for Americans moving to Panama?

Americans have several visa options to move to Panama, each catering to different needs. If you’re simply visiting, you can enter as a tourist and stay for up to 90 days without needing a visa. However, if you’re planning to stay longer, there are other options. The Pensionado Visa is a popular choice for retirees who receive a monthly pension of at least $1,000. This visa provides attractive benefits such as discounts on healthcare, utilities, and even entertainment.

For individuals looking to invest in Panama, the Self-Economic Solvency Visa allows applicants to gain residency by investing in real estate or making a significant deposit in a Panamanian bank, typically around $300,000. Another common visa is the Friendly Nations Visa, available to citizens from countries with strong ties to Panama, including the U.S. This visa allows individuals to become residents by establishing a business or employment connection in Panama. Lastly, the Qualified Investor Visa is available to those investing at least $300,000 in Panamanian real estate or securities, offering permanent residency.

What are the financial requirements for living in Panama?

Financial requirements depend on the type of visa you’re applying for. For the Pensionado Visa, you need to prove that you receive a pension of at least $1,000 per month, or $1,250 if bringing a spouse. If you’re applying for the Friendly Nations Visa, you must demonstrate a steady income or invest a sum of at least $5,000 in a Panamanian bank or business. The Self-Economic Solvency Visa requires an investment of $300,000 in either real estate or a bank deposit. For those considering the Qualified Investor Visa, the same financial threshold applies—an investment of $300,000. It’s important to note that the required financial documents must be verified to ensure that you meet Panama’s economic standards.

How does the cost of living in Panama compare to the USA?

Living in Panama is generally more affordable than in the U.S., although costs can vary based on your lifestyle and location. Major cities like Panama City have a higher cost of living, especially in the more upscale neighborhoods, but it’s still lower than living in major U.S. cities like New York or Los Angeles. Rent in Panama City can range from $800 to $2,000 depending on the area, while in smaller towns or rural regions, you may find significantly lower prices. Groceries in Panama are typically 20-40% cheaper than in the U.S., and dining out is more affordable as well. For utilities like electricity, water, and internet, you can expect to pay between $100 and $200 per month. The biggest cost-saving factor is healthcare. Panama offers excellent private healthcare at a fraction of U.S. prices, with many doctors trained in the U.S. or Europe.

Can I work in Panama as an American expat?

Yes, but you’ll need the appropriate work visa. The Friendly Nations Visa allows you to live and work in Panama, but you will need to prove you have a job or business in the country. This visa no longer automatically grants work authorization, so if you’re not self-employed, you’ll need to secure employment first. Many expats also work remotely for companies based in the U.S. or start their own businesses in Panama. If you’re seeking employment with a Panamanian company, you will need a work visa, which requires sponsorship from your employer.

How does healthcare work for expats in Panama?

Panama offers both public and private healthcare options, with many expats opting for private care due to its high quality and affordability. The public healthcare system, known as CSS (Caja de Seguro Social), is available to residents but can be limited in terms of facilities and wait times. Many expats prefer to use private healthcare, which is excellent and significantly cheaper than in the U.S.

For example, a visit to a doctor or specialist can cost between $25 and $50. Panama also has modern hospitals, particularly in Panama City, where many doctors have been trained in the U.S. or Europe. Health insurance is widely available, and many expats choose international health insurance plans that cover both their home country and Panama.

Is Panama safe for American expats?

Panama is generally considered a safe country for expats, with a relatively low crime rate compared to other Latin American countries. That said, crime does exist in some areas, particularly in certain neighborhoods of Panama City and in the province of Colon. Expats often choose to live in areas like Boquete, Coronado, or El Valle de Antón, which are known for their safety and expat-friendly environments. As in any country, it’s important to take standard precautions, such as avoiding isolated areas at night and securing your home.

Can I bring my pets when moving to Panama?

Yes, Panama is pet-friendly, but there are requirements for bringing pets into the country. You’ll need to provide a health certificate from a USDA-accredited veterinarian, proving that your pet is in good health. Your pet must also be up-to-date on vaccinations, including rabies, and you’ll need to obtain an import permit from Panama’s Ministry of Agricultural Development. The good news is that Panama does not require quarantine for most pets as long as the proper documentation is in order.

Do I need to speak Spanish to live in Panama?

While many people in Panama, especially in urban areas like Panama City, speak English, knowing basic Spanish is helpful for day-to-day life. It can make tasks like shopping, interacting with government offices, and dealing with healthcare more manageable. Even if you don’t speak Spanish fluently, the effort will be appreciated, and you’ll find that most locals are eager to help you communicate. There are many Spanish language schools available if you wish to improve your skills.

Can Americans buy property in Panama?

Yes, Americans and other foreigners can buy property in Panama without restrictions, and the process is relatively straightforward. There are no major obstacles, but in certain areas close to the borders or coastlines, there may be limitations. Foreigners who buy property in Panama enjoy the same rights as Panamanian citizens. Many expats choose to buy property in areas like Boquete, David, and Coronado, which offer a mix of tranquility and modern amenities. It is recommended to hire a real estate attorney to help navigate the buying process, especially to ensure all paperwork is in order.

How do I open a bank account in Panama as an American?

Opening a bank account in Panama requires basic documentation, including a valid passport, proof of income (such as bank statements or tax returns), and possibly a letter of reference from your current bank in the U.S. Some banks may require proof of residency in Panama, but others will allow you to open an account as a non-resident. Be prepared for strict banking regulations due to Panama’s commitment to anti-money laundering laws and the FATCA agreement with the U.S.

Do I have to pay taxes in both Panama and the U.S.?

Panama is considered a tax haven, and it only taxes residents on income earned within Panama. This means foreign income is generally not subject to Panamanian taxes. However, as a U.S. citizen, you are still required to file a U.S. tax return annually, regardless of where you live. The Foreign Earned Income Exclusion (FEIE) allows you to exclude a certain amount of income earned abroad from U.S. taxes. Many expats also use the Foreign Tax Credit (FTC) to avoid double taxation.

How long can I stay in Panama without residency?

As a U.S. citizen, you can stay in Panama for up to 90 days as a tourist. After that, you must leave the country for at least 30 days before re-entering. If you want to stay longer than 90 days, you’ll need to apply for a residency visa or explore options like the Friendly Nations Visa.

What are the best cities for expats to live in Panama?

Popular cities and towns among expats include Panama City, which offers a cosmopolitan lifestyle with all the amenities, and Boquete, a mountain town with a cooler climate, perfect for retirees. Coronado is a beach town known for its modern amenities, while David is a budget-friendly city with easy access to the Costa Rican border. Pedasí, a quiet coastal town, is also gaining popularity among expats looking for a slower pace of life. Each area offers unique benefits, depending on your lifestyle and preferences.