Retiring in Panama
Retirement Living in Panama
International Living Magazine ranks Panama as one of the top three retirement locations world-wide.
Many of the reasons for this are discussed in our article Living in Panama. As a retiree, here are four important reasons you should consider Panama as a retirement venue.
Relaxed Pace of Life
When most people retire, they want to slow down and get away from the rat race. Panama is the perfect place for that. The pace of life is more relaxed. No one is in a rush to do anything here. This is sometimes frustrating for foreigners who move down to Panama and open businesses. They soon find that Panamanians rarely share their sense of urgency about getting things done quickly. But as a retiree, that can work to your advantage. When you are settled in here, life can be all about relaxing – lying on the beach, walking in the mountains, sitting on your front porch and watching the sun go down, or surfing the web on your high-speed internet connection, which is available almost everywhere in Panama
No Taxes on Foreign Income
Unlike many countries such as the US, Panama does not tax income on offshore earnings. If you have income from the US, Canada or Europe, you will not pay any taxes on it in Panama.
Health Care
We can tell you from first-hand experience that hospitals and medical care in Panama are excellent – and cheap, a fraction of what you will pay in America.
Europeans and Canadians don’t have to worry about paying doctors or hospitals back home, but they do have to worry about the cost of medicines and dental work. In Panama, dental work is high quality and inexpensive. Many pharmaceutical drugs are also much less expensive than in North America.
The Pensionado Program
One of the big draws for foreigners considering retirement in Panama is the Pensionado program. There are no age restrictions on this program. You can be 30 or 70. It doesn’t matter. All you need is a pension or retirement plan that provides you with income of $1,000 per month, plus another $100 per month for spouses and dependents. With proof of such income, you are eligible for a Pensionado visa in Panama that allows you to live here full-time.
Everyone loves a bargain, and there are many bargains for Pensionados in Panama. All Pensionados are entitled to a long list of discounts and benefits in Panama, including:
- 50% off entertainment, such as movies, theater, concerts, and sporting event
- 30% off bus, boat, and train fares
- 25% off airline tickets
- 30 to 50% off hotel stays
- 15% off hospital bills
- 10% off prescription medicines
- 20% off medical consultations
- 15% off dental and eye exams
- 20% off professional and technical services
- 50% off closing costs for home loans
- One-time tax exemption importing household goods valued up to $10,000.
- Duty-free importing of a new car or truck every two years duty free.
What’s not to like about that!