Why is Panama the best place to retire?
Panama has one of the most attractive benefits program for retirees in the world. And it not only applies for Panamanians, it also applies to expats. Having access to these benefits is simple; you only need to process the residential visa and you are done!
For over ten years, Panama has been leading the retirement rankings made by prestigious international publications that highlight the immense benefits that the country offers nationals and foreign residents – without distinction – when reaching the age of retirement.
The World’s Best Places to Retire in 2019:
— World Index (@theworldindex) October 29, 2019
1.🇵🇦 Panama
2.🇨🇷 Cost Rica
3.🇲🇽 Mexico
4.🇪🇨 Ecuador
5.🇲🇾 Malaysia
6.🇨🇴 Colombia
7.🇵🇹 Portugal
8.🇵🇪 Peru
9.🇹🇭 Thailand
10.🇪🇸 Spain
(International Living)
The large ‘Expat’ community living in the country can enjoy these benefits as much as locals with the simple fact of having a residential visa.
Furthermore, there are various reasons why retirees have made Panama their center of operations.
1. Probably, the best benefits program worldwide for retirees.
No. It is not a myth. It is a reality. The pensionado program (which is a Law since 1986) is one of the main attractions for retirees that are looking to live in a country that has it all.
And the benefit is valid for every Panamanian and foreign resident woman (55 years old) and man (60 years old) in the country. The retired person can enjoy a series of discounts in entertainment, tourism, gastronomy, public services, medical expenses, etc. Here we present some of these benefits:
- 50% discount in entertainment such as movie theaters, theater showings, sports and other shows. In the last few years, Panama has welcomed world class presentations such as Cirque du Soleil.
- 30% discount in bus, metro, ferry and train fares. The country is the only Central American country with a metro system in the city. It currently has two lines and more are projected to be inaugurated in the next few years.
- 25% discount on airfare (of national origin). This discount applies in airline help desk centers during any season of the year. Coming and going from Panama has never been easier.
- 30% to 50% discount on hotel stays.
- 15% to 25% discount in restaurants.
- 15% discount on the total bill of hospital or private clinic services
- Discount of 20% of the value of drugs in pharmacies.
- Discount in medical services, such as: consults, odontology and optometry; the discount will depend on which of the mentioned services was used.
- 20% discount for all prosthetic prices, as well as all devices and accessories for disability.
- 1% discount in interest rates in home mortgages for personal use.
- The freezing of property tax.
- Exoneration of payment of the appraisal rate.
- 25% discount on monthly electrical energy consumption.
- 50% discount on tax or airport fees.
- 25% discount on the fixed charge for telecommunications services.
- 25% discount on the rate for water from private or public entity.
Furthermore, foreign retirees have the right to two important benefits:
- Unique tax exemption on the import of domestic equipment (up to $10,000).
- Tributary exemption every two years when importing or (even better) buying a car locally.
Living in Panama presents economic advantages unsurpassable by other countries in the region and the world.
But let us continue, the country has many more benefits.
2. World-Class Travel Hub
With the inauguration of the second Terminal in the Tocumen Airport, Panama consolidates itself as the highest connected point in the region.
Over 29 commercial airlines operating in the country with over 400 daily flights to 39 countries in America, Europe and Asia, with a flow superior to 16 million people that pass through Tocumen Airport on a daily basis.
The destinations with the highest popularity are Miami, Bogota, Cancun and Havana. South Americans are the main users of the terminal with 41%, followed by North Americans with 30%, Caribbean 13%, Central American 11% and 8% European.
Tocumen has been recognized by multiple organizations as the medium sized airport with best punctuality worldwide (approximately 93%), as well as the airline that bears the country’s flag, COPA, recognized as the most punctual airline in the world.
3. Best Weather
The weather in Panama is exceptional. With two main seasons, the area is far from the “Hurricane Alley”, thus the probability of a climatic catastrophe, apart from heavy thunderstorms, is very low.
Additionally, depending on the selected area, the temperatures are increasingly more refreshing.
The weather is characterized as tropical: it is very hot throughout the year, mainly in coastal areas and the lower parts of the country.
But as locals well know, the rainy season can be regularly found between the months of June and November.
For this reason, the best time to visit Panama would be between December and May: the likelihood of rain capable of ruining a good day is practically non existent.
The average temperature in Panama is around 29 degrees celsius all year long. This brings with it the advantage that it will not be necessary to bring heavy coats even for the higher areas such as Anton Valley and Boquete, where the temperature can be colder.
Panama can be a great refuge during the North or South winter time.
4. Political and Economic Stability
Since the Panama Canal was relinquished in 1999, the country has grown constantly until becoming the country with the best GDP per capita in all of Latin America.
The recipe? A privileged geographical position, a dollarized economy (since 1903), several decades of continuous political stability, a welcoming environment for foreign companies and investors, a first class logistics platform and of course: the Panama Canal.
While other economies in the region cement their development depending on raw materials (mining, agriculture, and more), over 75% of the Internal Gross Product (IGP) in Panama is derived from world class services.
To diversify the productive matrix and set aside the dependency on the Canal, the State is offering incentives for foreign investors.
For this, over 40 laws and special decrees regarding taxes and operations were created for importation.
Some sectors that enjoy these benefits are tourism, exportation zones, mining, reforestation, insurance and reinsurance, agricultural industry, petroleum free zones, infrastructure and construction.
Due to this, regardless of the economic and social upheaval in the region, Panama continues its path to sustained growth. This is one of the factors that attracts investors who are looking at Panama as the ideal place to live in.
6. World Class Health
Panama is rapidly becoming a medical tourism destination in the region. This is due to the quality of services offered, the level of professionals, the excellent infrastructure and the great relationship between price/technology/service.
It is common to find an international celebrity in the streets visiting a restaurant or touristic location after having entered the country for treatment or follow up.
The medical specialties that are most coveted amongst tourists are Neurosurgery, stem cell treatment and minor surgeries, as well as dentistry services.
Clinics such as Paitilla or Punta Pacifica hold the best technologies available and count with all the best certifications in the world. Furthermore, it is expected that in the short term two more modern hospitals will be incorporated.
Many Panamanian doctors have graduated from the best universities in the United States, thus the language barrier is non existent.
6. Security
Panama presents one of the lowest criminality rates in the region. For those that live here, you can breath an air of tranquility. Areas such as San Francisco, Coco del Mar, Santa Maria and Costa del Este are very safe and it is highly unlikely to witness any episodes of violence such as assaults or robberies.
The important thing to keep in mind, as much as you would in any other city in the world, are tips such as not having a carefree attitude, know which places you are walking into and not exhibiting any valuable objects unless necessary. One thing that is clear is that in Panama there is no need to be paranoid about ‘what might happen’.
Areas outside of Panama City such as Coronado, Buenaventura, El Valle, Boquete are quite safe areas too and the people are very nice.
7. The best coffee in the world
The coffee tradition in Panama is centenary. And at the center of this tradition are Boquete and Volcan, at the outskirts of the Baru Volcano, area also known as the country’s orchard.
For over 20 years, a series of unlikely events turned the coffee world’s eye towards Panama. The appearance of the Geisha variety in coffee plantations in the Isthmus would become the new star product in the country.
Regular precipitation and the appropriate altitude are key factors in the success of coffee production: rich nutrients found in volcanic soil, abundance of humidity and cloud coverage nurture the coffee plants that produce high quality grains with rich and profound flavors.
This is how year after year the prices of specialty coffee grains have broken records currently reaching the amount of USD $1029 per pound for Finca Elida’s Geisha coffee in the past edition of the Best of Panama, the auction where the best coffee grains in the country are sold.
8. Sports
For every lifestyle. Panama has a long tradition in baseball and boxing. Panamanians are passionate about the NFL, NBA and they also qualified to the last World Cup of soccer.
There are few places in the world where practicing a sport ealy in the morning is so enjoyable. Walking through Parque Omar or the Cinta Costera as the sun rises can be both a physical and relaxing experience.
Or play golf. You do not need to travel far from the airport to find the first golf course in the city, Santa Maria, the second course designed by Jack Nicklaus in Panama. With a spectacular design, it is the youngest course in the country, with over 7,153 yards built with the best technical specifications that challenge the player to really think through each play.
This is how Panama welcomes golf fanatics. However, there are 10 other golf courses spread throughout the city, beaches and mountains that present a variety of possibilities for the player.
Honoring its name, Panama is one of the preferred destinations for sports fishing. In its waters, you can find a great variety of fish during different seasons in the year.
Or a unique competition is the Ocean to Ocean, a cycling race that begins in the Atlantic and finishes in the Pacific. The last edition summoned over four thousand cyclists.
Panama is the perfect destination for any sports fanatic.
9. Real Estate
Panama has developed a highly coveted real estate market. A modern city with first class tourism projects that provides both the investor and those looking to live here a wide range of opportunities with the same benefits as the local citizens.
With a dollarized economy, real estate in Panama is both stable and safe. Similar to how some have decided to invest in permanent residences, there is another group of foreigners that, taking advantage of the benefits that the country provides and its stability, aim for investing in some sort of housing through what is known as ‘residential tourism’ which is estimated to have totaled 10 thousand million dollars just last year.
Developments such as Santa María, Buenaventura o Santa Mónica, are clear examples of projects based on amenities with high return in the medium term.
10. Expat Communities
The ‘Expats’ have adopted Panama as their own and it is common to find them in certain areas of the city and spending time with friends. They also organize different groups and plan activities for the community.
Music festivals, cultural, gastronomical and social gatherings, are some of the activities which connect Panama to the world through foreigners that have chosen the country as their place of residence.
For these and many more reasons, Panama has become one of the preferred retirement destinations in the world.
If you want to know more about Panama or are interested in visiting or moving down here, feel free to contact us and we will gladly guide you through the process.
This information was developed by Panama Living, a digital platform committed to collecting, researching, and disseminating all the necessary information to turn your interest in Panama into a pleasant and enriching experience.
