World's Best Retirement Visa & Banking Hub of the Americas
Yes. US Social Security payments are one of the most commonly accepted pension sources for the Pensionado visa. You need a letter from the Social Security Administration (SSA) confirming your monthly benefit amount is at least $1,000. The key requirement is that the income must be guaranteed for life — not a savings account or investment portfolio.
No. The Pensionado visa has one of the most relaxed residency requirements in the world: you only need to spend at least one day in Panama per calendar year to maintain your residency status. Many holders split their time between Panama and their home country.
The Pensionado visa is specifically for retirees and does not include work authorization. If you want to work or run a business in Panama, you would need to obtain a separate work permit or explore the Friendly Nations visa with an employment tie. Some freelance/remote work for foreign clients may be acceptable as it is not considered local employment, but consult an attorney for your specific situation.
Approximately 50 countries qualify, including the United States, Canada, the United Kingdom, Australia, all EU member states, and most Western Hemisphere nations. Panama periodically updates the list based on diplomatic relations. Citizens of countries not on the list can explore other residency categories such as the Pensionado visa or Self-Economic Solvency visa.
No. Under Panama's territorial system, income earned outside Panama — including foreign pensions, Social Security, dividends, interest and salary for work performed abroad — is exempt from Panamanian income tax, even if you are a tax resident and even if you transfer the money into a Panamanian bank. Only Panama-source income is taxable.
You are a tax resident if you spend 183+ days in Panama in a calendar year, or if your center of vital interests (home, economic and family life) is in Panama. Because foreign income is exempt regardless, becoming a tax resident does not increase your Panamanian tax bill — but it lets you obtain a Tax Residency Certificate to help exit your former country's tax net.
No. Immigration residency and tax residency are separate. A Pensionado or Friendly Nations visa gives you the right to live in Panama, but tax residency depends on the 183-day or center-of-vital-interests tests and is administered by the DGI, not immigration.
Mainly ITBMS (VAT) — 7% on most goods and services, 10% on alcohol and hotels, 15% on tobacco, with food, medicine and school supplies exempt. If you own property you pay annual property tax (0–2.10%), and if you take a local job you and your employer pay CSS social security. There are no inheritance, estate, gift or wealth taxes.
Not to the US. There is no US–Panama tax treaty, and the US taxes citizens on worldwide income wherever they live. You must keep filing US returns, but the Foreign Earned Income Exclusion and Foreign Tax Credit usually reduce or eliminate US tax on income you've already sheltered or paid abroad. Panama itself will not tax your foreign income.
Yes. Panama has some of the most foreigner-friendly property laws in Latin America. Foreign nationals have the same property rights as Panamanian citizens — you can own titled property outright with no restrictions. Property is registered with the Public Registry and ownership is protected by law. Note that some beach and island properties operate under "right of possession" (derecho posesorio) rather than titled ownership — exercise caution and use a qualified real estate attorney for any purchase.
Punta Pacifica is Panama City's most prestigious address — luxury oceanfront highrises with US-style amenities, walking distance to Hospital Punta Pacifica. Rents range $1,800–$4,000/month. El Cangrejo and nearby Bella Vista are the traditional expat/business districts — more walkable, established restaurant scene, more affordable ($1,000–$2,000/month). Most long-term expats prefer El Cangrejo or Marbella for the urban-village feel. Punta Pacifica suits those prioritizing medical proximity and luxury amenities.
Boquete, in the Chiriquí Highlands at 3,900 feet elevation, offers a completely different Panama experience. The climate is mild (65–75°F year-round) compared to Panama City's tropical heat. Expats account for approximately 25% of Boquete's population, creating a strong English-speaking community with meetups and social networks. Costs are 30–40% lower than Panama City. World-famous Geisha coffee is grown on local farms. The tradeoff: limited specialist healthcare (a 40-minute drive to David), fewer dining options, and a quieter small-town lifestyle that not everyone appreciates.
Standard leases are 12 months with renewal options. Monthly agreements are available but carry a 15–25% premium. Security deposits are typically 1–2 months' rent. In Panama City highrises, leases are commonly offered furnished (with appliances and basic furniture) or unfurnished. Many expats find furnished apartments through Facebook expat groups (Panama Expats, Expats in Panama City), Encuentra24.com, and CompreOAlquile.com. Using a local real estate agent costs no extra — agents are compensated by the landlord.
Panama City has a well-developed international school system reflecting its Canal Zone heritage. Top options include: International School of Panama (ISP, IB curriculum, English, $12,000–$18,000/year), Balboa Academy (American curriculum, $8,000–$14,000/year), Oxford International School (British curriculum), and the French Lycée. Most are located in upscale neighborhoods like Clayton, Albrook, and Marbella. Wait lists can be long — apply well before your planned arrival.
Yes. Panama City's international schools use English as the primary instruction language, a legacy of the former US-administered Panama Canal Zone. Many schools are fully bilingual (English/Spanish), which is excellent for children who will integrate into Panamanian society. In Boquete, options are more limited — some expat families homeschool or use online accredited programs like Connections Academy or Khan Lab School.
Public education in Panama is free and instruction is in Spanish. Quality varies significantly by region — Panama City public schools are better resourced than rural areas. For expat children who are not yet Spanish-proficient, public school is challenging initially. Many expat families use international private schools while their children build language skills, then transition to local schools over time.
The Universidad de Panamá (public, founded 1935) and Universidad Tecnológica de Panamá (UTP) are the main public universities. Private institutions include Florida State University Panama (a satellite campus of FSU offering US-accredited degrees) and ISAE Universidad. Florida State University Panama is particularly popular with expat families as it grants an accredited US degree at a fraction of US tuition costs.
You can look, but you cannot legally work until the MITRADEL work permit and immigration permit are approved. Working on a tourist entry risks fines for you and the employer and can sink future residence applications. The realistic sequence is to secure a sponsoring offer (or residence first), then file the permits before starting.
A role at a SEM-licensed multinational headquarters (Law 41 of 2007). SEM staff sit outside the 10% foreign-worker cap, need no separate work permit, get permits of up to 5 years (renewable for 5 more), and can pursue permanent residence after five years. Target these companies first.
No — these are among dozens of professions reserved by law exclusively for Panamanian nationals, so a work permit for them is not available regardless of your qualifications. Options are naturalization, or pivoting to an adjacent open role (e.g. technical project management, consulting under a licensed Panamanian professional, or a corporate function that isn't the regulated profession itself).
The employer sponsors and files it. In Panama City, expect roughly 2–6 months; in the interior (e.g. David, Chiriquí) it can stretch to 9–10 months plus time to issue the physical permit card. Most people run it in parallel with their immigration permit through a Panamanian attorney.
English is genuinely enough inside multinational HQs, international banking, BPO/call centers, and the tourism corridor. Everywhere else — local companies, government, most of the economy — Spanish is essential. Bilingual candidates earn a clear premium and unlock far more roles, so learning Spanish is the highest-return investment for your career here.
Yes. The 90-day foreign-license privilege is tied to your visitor status — it lapses the day your temporary or permanent residency is approved, even if fewer than 90 days have passed. From then you must hold a Panamanian license. If your country has reciprocity with Panama (most do), it's a document exchange (homologación) with no driving test, done at the ATTT for under US$100.
In Panama City you can live car-free: the Metro plus Metrobus, ride-hailing, and taxis cover almost everything for a few dollars a day. Outside the capital — Boquete, Coronado, the beaches, the highlands — transit thins out and a car (ideally a 4x4) becomes close to essential. Many expats keep a car for weekends and use apps in the city.
One. A single Tarjeta Metro (B/.4.00, bought and recharged at stations) works on both the Metro and the red Metrobus buses. The card comes with no balance, so top it up before your first ride, and note that some older guides still quote the old B/.2.00 card price. There is no cash payment on board Metrobus, so you need the card. It can also pay the small access fee at the Albrook intercity bus terminal turnstiles.
Ride-hailing (Uber, inDrive, DiDi) is legal, regulated (Executive Decree 331), and the recommended default for newcomers — fixed GPS pricing, no haggling, and a record of the trip. A Supreme Court ruling means cash is now accepted, so you can ride before your local bank card arrives. Street taxis are cheap but rarely metered: always agree the fare before getting in, and use the official fixed-rate desk at Tocumen airport rather than touts.
By air. Air Panama flies Albrook (PAC) to David in about an hour for roughly US$60–115 each way, versus a 6.5–8 hour, ~US$15–25 coach from Albrook Terminal. From David it's a further ~45–60 minutes by local bus or shuttle up to Boquete. Fly if your schedule is tight; take the bus if budget is the priority or you want to see the country.
Not immediately. Yappy is tied to an active account at an affiliated Panamanian bank (Banco General, Credicorp, Davivienda, Caja de Ahorros, MetroBank, Banisi and others), and opening a local account generally requires residency or a strong local tie. Until then, rely on cash, Visa/Mastercard, and a prepaid USD wallet like Zinli for online purchases. Once your residency and bank account are set up, Yappy becomes your everyday default.
At official Tigo or +Móvil stores the clerk will register the SIM against your passport (or cédula/residency card). Registration is light-touch and short-term prepaid packs activate on load; some small resellers sell already-active SIMs with no ID check. A postpaid contract, however, requires local ID/residency and usually a bank account, so tourists stick to prepaid.
Use a Miami-box forwarder such as Mail Boxes Etc. or Airbox Express: you get a US (Miami) address, shop online, and they fly parcels to a Panama pickup office, billing by weight. For documents and time-sensitive items, DHL, FedEx and UPS deliver to physical addresses. The national post (Correos de Panamá, formerly COTEL) requires collection from a rented apartado postal (P.O. box); it does not deliver to your door.
Both. Malls, supermarkets, hotels and mid/upscale restaurants take Visa/Mastercard and contactless. But taxis, diablo-rojo/metrobuses, small eateries, markets, tips and most of the interior are cash-first — always carry small US bills. Panama uses the US dollar; the balboa exists only as coins at 1:1.
Yes, and the apps keep running, but the rulebook was in flux in 2026. Uber, DiDi and inDrive operated for years under Executive Decree 331 of 2017. That was repealed in April 2026 by Executive Decree No. 10, which reclassified the platforms as 'taxis de lujo' under ATTT supervision; after strong backlash President Mulino repealed Decree No. 10 on 20 April 2026 and opened a consultation to draft a replacement within about 90 days. Check the current status before you rely on any specific rule — but in practice you can still hail rides through the apps, and cash is accepted.
Uber (rides), PedidosYa/Appetito24 (food and errands), your carrier app (Tigo or +Móvil), your bank's app plus Yappy once you have an account, the 311 app for government services, and a translation app with Spanish downloaded offline. Add Zinli if you want a USD wallet before your bank account is ready.
Most visitors do not. US citizens can stay up to 180 days visa-free for tourism, and EU, UK and many other nationalities get a 90-day visa waiver on arrival. You'll need a passport valid 3–6 months beyond entry, proof of onward travel, and possibly proof of funds (~$500). Always confirm your specific nationality's rules before traveling.
The US dollar is legal tender in Panama, pegged 1:1 to the local balboa — so US travelers need no currency exchange at all. Prices show as "
quot; or "B/." and mean the same thing. Bring small bills for taxis, markets and tips; ATMs are common in cities.The dry season (mid-December to April, driest Feb–April) is best for Panama City, the Pacific coast and the canal — sunny but pricier and busier. The wet season (May–November) is cheaper and greener, with mostly sunny mornings and brief afternoon storms. Note the reversal for Bocas del Toro, which is driest in September–October.
Panama is one of the safer countries in Latin America, and the main tourist areas — Casco Viejo, the canal zone, Bocas del Toro, Boquete and Guna Yala — are well patrolled. Use normal precautions against pickpocketing, avoid Colón city and certain Panama City neighborhoods after dark, and steer clear of the Darién border zone outside guided tours.
Spanish is the official language (about 93% of people). Roughly 14% speak some English, mostly in Panama City and tourist areas. In rural and Indigenous regions English is rare, so a few Spanish phrases are genuinely useful and appreciated.