Panama is a destination that is becoming increasingly popular for its culture, atmosphere, good infrastructure, and affordability.
Presentation of the country:
Panama’s landscapes vary greatly from volcanic mountains to tropical rainforest to beaches on both the Pacific Ocean and the Caribbean Sea. Lying off the coast of Panama, the San Blas islands and Bocas del Toro archipelago consists of hundreds of islands. On the islands of San Blas, you can still find communities of native peoples, though tourism there is under strict control. Climbing the volcano Barú (3,450 m above sea level) is a must for hikers.
Panama’s rich biodiversity preserves many endangered species in its rainforest, and much of its land is protected to prevent overdevelopment. Panama is also known for its endless kilometers of beaches and the Panama Canal. Though the official language is Spanish, most adult Panamanians speak fluent English as well. The local currency is the Balboa but since it is on par with the US Dollar, the US Dollar is accepted everywhere in Panama.
HDI ranking: 66/196 countries
HDI 0.789 = medium
The human development index is based on 3 criteria health, education, and longevity
Average journey times:
Paris – Panama: 10 hours 53 mins
London – Panama: 10 hours 40 mins
New York – Panama: 4 hours 43 mins
Los Angeles – Panama: 6 hours 04 mins
Sydney – Panama: 17 hours 07 mins
Currency and cost of living:
USD 1 / EUR 0.88
Big Mac Index: USD 6.00
Restaurant Meal for 2 People, Mid-range Restaurant, Three-course: USD 50.00
Market – Milk (regular, 1 liter): USD 1.49
Basic Utilities (Electricity, Heating, Cooling, Water, Garbage) for 85m2 Apartment in Panama: USD 110.77
Monthly Rent for Apartment (1 bedroom) in City Centre of Panama: USD 917.31
Price per Square Meter to Buy Apartment in City Centre of Panama: USD 2207.50
How can you live in Panama – residency requirements:
You must have a valid passport to retire in Panama. You must also apply for a resident visa. To obtain this residence permit, you must hire a lawyer for the application process. Among the resident visas, there is a Pensionado visa available for retirees. This allows you to benefit from tax reductions and local discounts on transportation, utilities, entertainment, and other services. To obtain this Pensionado visa, you must receive a monthly pension of greater than $ 1,000 USD.
Housing in Panama: You will find different types of accommodation in Panama: villas, apartments, houses, condominiums, mountain huts, etc. Your choice will depend largely on the purpose and duration of your stay in the country. The price of the rent can be negotiated with the owner, as well as the duration of the rent. Once your contract is signed, you must obtain it from the Lease Department of the Ministry of Housing. Prices can vary greatly from very affordable basic accommodation to expensive luxury villas.
Taxation: Overseas retirement revenues that are transferred to Panama are not taxed by the Panamanian state. There is a VAT applied to purchases, called ITBM, at a preferential rate of 7% for all products except for alcoholic beverages (10%) and for tobacco products (15%). The corporate tax rate in Panama is 25% regardless of net profits.
Safety:
Though levels of petty and violent crime are lower than that of other countries in the region, compared with other retirement destinations, crime remains high. Areas to avoid include the Colombian border, Darien state, and Colón state.
Stay vigilant in Panama City. Avoid areas such as El Chorrillo, Caledonia, Curundu, Juan Diaz and San Felipe, especially at night.
