When it comes to migrating, many people ask themselves, what will be the best destination for me to settle down? And for those who look to Latin America as an option, Panama emerges with an advantage for those who want the perfect balance between modernity, nature and lifestyle.
In this document we make a comparative analysis in terms of quality of life, economy, health, retirement programs and immigration policies, backed up with recent data and studies.
1. Quality of Life: A Balance between Development and Nature
One of the reasons why Panama is highly valued by expatriates is its balance between urban living and access to nature. Panama City, known for its modern skyline, has been ranked as one of the cities with the best quality of life in Latin America. According to the *Global Liveability Index 2024* of the Economist Intelligence Unit (EIU), Panama City ranks as one of the best evaluated capital cities in the region, with a score of 75 out of 100 in categories such as infrastructure and culture.
In comparison, countries like Costa Rica or Mexico also offer a good quality of life, but face greater challenges in terms of infrastructure or security, as noted by ‘The World Economic Forum’ in its Global Competitiveness Index. In addition, the cost of living in Panama is more affordable than in places like San Jose, Costa Rica, or Mexico City, which makes it a more accessible option for expatriates. According to Numbeo, rental costs in Panama City are approximately 25% lower than in San Jose and up to 40% lower than in Mexico City.
2. Health Care: An Efficient and Affordable System
The Panamanian healthcare system is a combination of public and private options that offers excellent coverage at significantly lower costs than in the United States or Europe. International Living’, a popular expat portal, mentions that “a visit to a general practitioner in Panama can cost between $20 and $60, and many medical professionals are trained in the United States or Europe”.
Panama also stands out from other countries in the region, such as Brazil or Argentina, where public health systems are solid but face challenges such as high demand and lack of resources in certain rural areas. In contrast, cities such as the Panamanian capital, David and Coronado have world-class hospitals, such as Hospital Punta Pacifica, affiliated to Johns Hopkins Medicine, which offers private medical care comparable to the best hospitals in the United States.
In addition, the private health care system in Panama is recognized for its reduced waiting times compared to neighboring countries, which is attractive to retirees and expatriates who require fast and efficient medical care.
3. Visas and Retirement Programs: Accessibility without Complications
One of the main advantages of settling in Panama is the accessibility of its visa programs. The “Pensionado” program, for example, is considered one of the best in the world by *International Living*. Anyone receiving a minimum pension of $1,000 per month can qualify for permanent residency and enjoy benefits such as discounts on medical services, airline tickets and recreational activities.
In comparison, countries such as Mexico and Costa Rica also offer retirement programs, but Panama has considerably simplified the process and guarantees more tax benefits for foreigners. According to an *Expat Focus* report, “Panama’s visa application process is one of the fastest in Latin America, with processing times as short as three months for certain categories” .
In addition, the Qualified Investor Visa is designed to attract high-profile investors and offers a fast track to permanent residency. One of the main benefits of this visa is the tax exemption on income generated outside of Panama, which is particularly attractive to expatriates with international income. In addition, Panama has signed double taxation agreements with several countries, facilitating tax management for foreign residents.
4. Economy and Business Climate: Stability and Growth.
Panama is a global financial center, and its economic stability has been maintained despite global fluctuations. According to the International Monetary Fund (IMF), the Panamanian economy has shown robust growth in recent decades, with a GDP growth rate averaging 5% annually between 2010 and 2023, outperforming most countries in the region.
The use of the U.S. dollar as the official currency provides stability that many expatriates consider crucial, especially in the face of economies such as Argentina, Venezuela, Colombia or Chile where inflation and currency devaluation have generated uncertainty. In addition, Panama’s pro-investment tax policies allow income generated outside the country not to be subject to local taxes, a great incentive for expatriates who rely on foreign investments or pensions.
Compared to countries such as Colombia or Peru, which have experienced political instability at times, Panama offers a much more predictable business environment with less bureaucracy. The ease of doing business and the ability to get established quickly with special visa programs make Panama an ideal destination for those looking to start or expand their business activities in Latin America.
5. Infrastructure: Technology and Global Connectivity
Tocumen International Airport is known as the “Hub of the Americas”, being one of the best connected airports in the continent. According to the Airports Council International (ACI), Tocumen handles more than 16 million passengers annually and offers direct flights to more than 90 destinations in Europe, North America and Latin America. This connectivity is vital for expatriates who plan to travel frequently or conduct international business.
On a technological level, Panama has made significant investments in improving its digital infrastructure. According to *Speedtest Global Index*, the country ranks third in Latin America in terms of Internet speed, surpassing countries such as Brazil and Mexico. In addition, the country’s major cities, including Panama City, Colon and David, have high-speed Internet access, making it a favorable location for both digital entrepreneurs and expatriates working remotely.
6. Security and Political Stability
Panama is one of the safest countries in Latin America, according to the *Global Peace Index 2024*, ranking third in the region after Uruguay and Costa Rica. This security is a decisive factor for many expatriates, especially in comparison to neighboring countries that face higher crime rates. At the political level, Panama has maintained a stable democracy for more than three decades, which has contributed to an environment of social peace and economic progress.
In comparative terms, countries such as Honduras, Nicaragua or El Salvador present greater risks for expatriates due to political instability or violence, which makes Panama a much more attractive option for those seeking a peaceful environment to live and thrive.
7. Culture and Expatriate Community: An International Welcome
Finally, Panama’s rich cultural mix, which includes influences from Latin America, the Caribbean, Europe and Asia, makes it a welcoming place for expatriates. International communities in areas such as Boquete, Coronado and Panama City are very active, facilitating the social integration of newcomers. In addition, Panama is a bilingual country in many areas, with English being common in key sectors such as business and healthcare, which is a great relief for expatriates who do not master Spanish.
Unlike countries such as Guatemala or Paraguay, where expatriate communities are small, Panama offers an established and vibrant network that organizes events, activities and provides support to newcomers. This ease of integration, combined with the welcoming nature of the Panamanian people, reinforces the country’s reputation as an excellent place to live.
Panama is an ideal destination for expatriates seeking a combination of economic stability, accessibility in terms of visas, excellent healthcare and a welcoming international community. Comparing key factors such as infrastructure, security, economy and quality of life, it is clear that Panama offers a unique proposition for those seeking a place to live or retire with tranquility and prosperity.
