What To Know Before Retiring in Panama

Individuals seeking retirement opportunities in Latin America can choose Panama as their destination. The country is in an ideal location between North and South America, providing a strategic place for global trade. When relocating, you may want to understand if the country’s economy, healthcare, and housing options favor retirees. Here’s what you need to know before retiring in Panama:

Cost of Living

Panama appeals to many retirees due to its affordable cost of living. This country’s average cost of living is approximately 49% less expensive than the U.S. When you retire in Panama, your retirement income will be twice as much as in the U.S. This leaves you with more money for food, entertainment, and investments. The cost of living in the city is higher than in the countryside. When choosing a residential area that helps you save money, look for locations outside Panama City, like Boquete, Chitré, and Volcán.

Housing Options

Before retiring in Panama, understand the housing options available for real estate projects. Due to the country’s modern infrastructure, you’ll likely find comfortable and secure residential properties. You may choose a luxurious home in the city or a beachfront property in your desired location. A licensed realtor will help you find a suitable home in Panama and close a deal. Your realtor may choose a home in a thriving expat community to help you live with like-minded people.

Healthcare Services

Retirees in Panama can benefit from high-quality healthcare services and medical facilities. Due to the country’s smaller size, you will likely stay near clinics, veterinaries, and pharmacies. Hospital Punta Pacífica in Panama is the only hospital in Latin America affiliated with Johns Hopkins Medicine International. You’ll also benefit from good medical care, often provided by qualified doctors trained in the U.S. and Europe. When you retire in this country, you don’t have to worry about costly healthcare services. The public and private healthcare system is more affordable than in the U.S.

Visa Programs

Panama offers a variety of visa programs for expats interested in new retirement destinations. One of the most popular programs is the Pensionado Visa, offering a more affordable way for expats to retire in Panama. This visa program has many benefits, including discounts on airfare, healthcare, and dining. Retirees who want to invest in Panama can opt for the Qualified Investor Visa. You can acquire this visa through real estate acquisitions or fund investments. An experienced law firm in this country will help you apply for a visa and start investing.

Tax Benefits

Before choosing a retirement destination in Panama, learn about the country’s taxation policies. The country is popular among retirees due to its tax advantages. Its territorial tax system exempts income tax for investments done outside the country. That means any money a retiree receives from investments and pensions in their home countries won’t be taxed. You’ll benefit from tax breaks, like import tax exemption and discounts on property taxes.

Plan Before Retiring in Panama

Regardless of your end goal, you need a thought-out plan before relocating to retire in Panama. This will help you to know if the country fits your budget and lifestyle. Panama’s stable economy and tax benefits allow retirees to live comfortably and invest wisely. Before relocating, work with experienced attorneys to navigate all legal requirements and residency applications. These experts will help you choose your retirement location and apply for your visa. Contact a trusted law firm today to understand what you should do before retiring in Panama.